bsg journal 1 year 11

Region Wholesale Internet Private Label

North America Due to our

differentiation strategy,

we got our S/Q rating

up to 10. We decreased

the wholesale price

from the previous year

and was 14% above

average. We also

increased our brand

advertising a bit, which

put us above average

by 12% in that section.

We also increased our

retail support, which to

our surprise was not the

highest but was still

above average by 27%.

We did have a loss of

300 due to stockouts

too.

We kept our search

engine advertising at

the same price as the

previous year. We also

decreased our retail

price and it was above

average by 16%. Even

then, we were able to

gain 10% market share

and follow our

differentiation strategy

by offering a high

quality and high price

shoe.

We decided not to

focus on private label

this year since we

wanted to increase our

demand in the other

sections. This would

allow us to make more

profit wholesale

segment is the biggest.

Europe-Africa To differentiate our

product, we wanted to

invest a little more in

advertising to have a

competitive advantage

here. We decided to set

our brand advertising to

26,000 and it was the

highest number of all

the companies. It was

above average by 40%,

so we could have

afforded to decrease it.

We did end up having

the second highest

market share at 17%.

What has helped our

differentiation strategy

succeed is having a

strong celebrity appeal.

By gaining celebrities,

our product becomes

more appealing and

stands out. We also

decreased our price

from the previous year,

which was still the

highest by a few

dollars. We noticed

other companies have

gotten their prices up,

and still, we were able

to gain just a little more

market share than them.

Same as previously, we

did not decide to

participate in private

label this year because

we wanted to make

better use of our pairs

not depend on private

label.

Asia-Pacific In this region we also

differentiated our

product by having the

highest S/Q rating. Just

like the other regions,

we also decreased our

price in this section.

However, it was not the

highest this time. Our

price was barely below

average, and we got the

We are still the only

ones with a 10 S/Q

rating so we still have

that competitive

advantage that lines up

with our differentiation

strategy. Our price was

lowered from the

previous year, and was

higher than average,

but not the highest

We did not have any

pairs to participate in

this segment.

highest market share.

Sadly, we had a loss

due to stockouts. Our

brand advertising was

also the highest, and

like previously

mentioned, we can

consider decreasing it.

price in the industry.

We also got a decent

market share of 13%.

Latin-America Due to our

differentiating strategy

we decided to increase

advertising. Looking at

how much higher we

are than industry

average, we should

again consider

decreasing. We offered

the same price as

another company and

got more market share

than them as well. We

had increased our retail

support too. It was not

the highest investment,

but we have the highest

retail outlet numbers.

The price we offered

was the highest by

16%. We were able to

gain a fair share of

market share and did

not make any changes

to our investment in

advertising.

For the LA facility,

there were pairs

available to be sold. We

placed them to be sold

in LA and kept the

price the same as our

previous year. We

ended up selling the

pairs we offered.

Some major changes that we made were buying more space in AP for the following year which

is a big cost to take on. We invested more in S/Q rating and are the only ones so far that have a

10. We chose to make these decisions because our costs per pair are going down. Our demand

has also increased, so the more we keep producing, the more costs per pair decrease. The

outcomes of these decisions were stealing market share from our rivals. We were able to meet

investor expectations in each section. We made the most profit we have made so far and placed

#1 on the scoreboard.