Clique Pens Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Clique Pens: The Writing Implements Division of U.S Home

Question 1

Goals of marketing-controlled consumer-oriented MDF programs

The most important goal of the consumer-oriented MDF programs is to deliver the best marketing and advertising incentives to the customers that result in higher sales and profit for the company. In addition to this, consumer-oriented MDF programs intended to enhance the brand loyalty and awareness among the customers by providing them the greater benefits.

Another goal of the consumer-oriented MDF programs is to promote the brand among the customer in order to keep them up to date with the offerings of the brand as well as for attracting a larger audience. The focus of the consumer-oriented MDF programs is always on providing customer driven incentives whereas minimizing deals with the retailers in order to increase the profitability and growth of the company. Basically, the overall goals of the consumer-oriented MDF programs is to satisfy the needs of the customers, so that higher sales and growth of the company can be achieved.

Sales-controlled retailer-oriented MDF programs

The purpose of the implementation of the Sales-controlled retailer-oriented MDF programs is to provide different incentives to the retailers to help them effectively sell the products of the company. Moreover, the overall objectives of the Sales-controlled retailer-oriented MDF programs is to satisfy the needs of the retailers in order to get the desirable results for the company.

Another objective of the retailer-oriented MDF programs is to increase the shelf space in the retailer's store as well as increase the market share of the company by proving the discounts to the retailers. In addition to this, deliver the promotional encouragements and allowances to the retailers is another goal as without their help most of the companies could not succeed their target and deliver their offerings to the larger audience.

Question2

There are several economic and non-economic challenges that the Ferguson must consider in order to make the decision about selection of MDF (Market Development Fund) from the consumer-oriented MDF programs and retailer-oriented MDF programs.

Economic Ramifications

Firstly, Ferguson needs to consider both the MDF programs in term of cost that can occur during the planning and effective implementation of the MDF programs. The analyzing of the present and expected value of the business in term of growth is another economic implication that needs to be considered.

Furthermore, Ferguson should also consider a comparison of the cost vs revenue for both the MDF programs as this will help the company to identify a cost effective method for increasing the growth and the profitability of the Clique Pens. The amount of benefits in term of incentives and discounts are other economic implications that the Ferguson also needs to consider for both the MDF programs as percentage allocation of the benefits is vital so, it is important for the company to allocate the appropriate amount of the incentives and discounts in order to attract the different market segments without affecting the revenue of the products.

The introduction of the price -off- deals in the MDF programs is another difficulty for the company as how much to reduce the price of the products is the issue that Ferguson should consider as it is important in order to gain and hold the larger shelf space and attract the larger customers as compare to the competitors. Additionally, the pricing issues such as the increase in the retail price, price discounts and increase in the product's price is also needed to be considered by the Ferguson that can hugely impact the sales and gross profit margin of the Clique.

Non-economic Ramifications

Ferguson needs to consider the impact of internal and external environmental influences on both consumer-oriented MDF programs and retailer-oriented MDF programs. As, these factors may adversely affect the successful planning and implementation of the MDF programs. Furthermore, the strong points and weaknesses of both the MDF programs needs to be analyzed in order to effectively select the best solution for the current problems of the company. The level of acceptance of the customers as well as the retailers also needs to be consider as this is the most important challenge and its success depends upon the customers and retailers.

Moreover, in order to select the best available option, it is important for the Ferguson to evaluate the opportunities that consumer-oriented MDF programs and retailer-oriented MDF could create for them to appeal the large number of audience towards the brand................

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