Lieber Light
Autor: Brice Hong • February 16, 2016 • Essay • 630 Words (3 Pages) • 836 Views
Lieber Light Case
Yang Hong (0651587)
Problem Statement:
Lieber Light is the leader of manufacturing plastic skylights for use in home and office buildings, professional remodeling, and do-it-yourself market. Although skylights varied greatly in size, the company is facing a lot of problems such as obtaining more profit and market share. Also, Vancouver’s light cut their price and how should Lieber Light respond to. In order to attract wilder range of customers, what kind of pricing and marketing strategy should Lieber Light follow in this market.
Situation Analysis:
1. Product line: Skylights had become very popular. This is great for the company to earn more profit and market share. In the meanwhile, the company should extend their product line in order to develop more potential customer base.
2. At present, 70% are homebuilders, 25% in professional remodeling, 5% in the do-it-yourself market. Total market is 45000 units, it is obvious that homebuilders are accounted for 31500 (45000x70%) units, professional remodeling is 11250 units (45000x30%), and do-it-yourself is 2250 (45000x5%) units.
3. Four large builders account for half of all sales of skylights in the Pacific Northwest region, which means 5625 units for each. Five midsized builders bought an average of 1000 units each, which means there are 5000 units (5x1000) total. The remaining sales were split among more than 100 independent builders and remodelers. Thus, 17500 units or 0.175 units each.
Decision Criteria:
We want to ensure there is a market for the product in order to achieve sales and ultimately profits. It would also be beneficial if the number of competitors was not large. The factor impacting the decisions is the costs and price. It may not be very profitable if the costs too great, also, we do not want to increase our costs to beat other competitors. Price is also essential for our company; it is risky if our price is much higher than other companies. Hence the costs and price are most important for Lieber Lights company.
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