Recommendations for Sherwood to increase its sales Case Study Analysis
In the same way, if Sherwood improves the quality of its products then there is a possibility that the customers who have spread negative word of mouth about Sherwood,would start sharing a positive thought and experience with Sherwood, which will helps the company to boost its annual sales.However, this can be done only by implanting extensive marketing techniques, such as: advertisement and portraying the company’s image in front of the target market, highlighting its enhanced quality.
Apart from above mentioned options,the product prices should be decreased by Sherwood because customers are not willing to pay high prices for Sherwood’s products as their quality is not good as compared to the competitor’sproduct, and the value that it is providing is not enough. The company can decrease the prices by using bundle pricing techniques, in which it can give a package of products complementing each other, and then price the whole package accordingly. As a result,itwould increase the sales.The company can also go with penetration pricing technique, by charging lower prices as compared to its competitors, which could also increase the sales because customers would receive products, which are cheap and affordable.
Another issue which is persisting in the Sherwood hockey stick manufacturing company is related to the planoftransferring its operation in China, which is not an easy task and requires an increased number of formalities to be dealt with, such as: tax regulations, duties and withholding tax etc. However, moving its production facilities in China can be beneficial as well,because China has cheap labor rates, thus Sherwood can enjoy the economies of scale and economies of scope. Similarly,the expense of salary would be less because the payment would be made in Chinese currency (yen), which is much cheaper than the Canadian dollar.
In addition to this, owners can generate more profit without increasing the sales, because they would be benefitted with the exchange rate factor. Similarly, China is a country, which full of resources and there would be no problem in importing goods to China, because almost everything is available in China...............................
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