Introduction
Global Gadgets Imports was established in 1992 and deal with home décor and gift items. Over the past few years, the firm has witnessed a reduction in its level of revenue and store sales. The management of the firm intends to improve its performance of the firm. One of the strategies that the management of the firm is considering is increasing the awareness of the firm’s products. However, the firm does not have sufficient funds to undertake marketing and has considered integrating the cooperative marketing strategy. According to Travis (2008, p.1), cooperative marketing refers to a marketing concept in where the distributor or a manufacturer supports the promotional efforts of the retailer. To achieve this, the management has considered three strategies. These include:
- Expanding the product lines by including housewares.
- Adopt a new repackaging and branding strategy.
- Opening additional stores.
- The discussion of this paper is aimed at illustrating how the above strategies will be implemented.
Expanding the product line
In expanding the product line, the management of the firm should conduct consumer market research to determine the houseware needs of the customers. By expanding its product line to include housewares, the firm will be able to meet diverse customer needs. In addition, collaborating with the houseware manufacturer will also enable the firm to supply the products to the consumers at a relatively low price. Because the consumers are price-sensitive, the consumers will be attracted to buy the firm’s products. This relationship will benefit both GGI and the manufacturer. This is because the manufacturer will undertake all the promotions while GGI will increase the scale of distribution of the firm’s products. In addition, GGI will be able to venture into a new market segment thus increasing its level of profit (Anthony, 2000). This means that the cooperation will result in economies of scale for the two firms.
Repackaging and branding strategy
Product image is an important characteristic in marketing firms’ products. The image can be improved through the adoption of repackaging and branding strategies. To effectively implement these strategies, comprehensive consumer market research should be undertaken. This will enable the repackaging and branding to be in line with the customer’s preferences. For example, different colors should be used in repackaging gift items. This will appeal to different customers. In integrating cooperative marketing in branding the products, the firm should liaise with the manufactures by incorporating the co-branding strategy. According to Stuart (2005), a co-branding strategy enables firms to share the cost of promotion. This will minimize the probability of GGI’s profit margin reducing. For instance, GGI can undertake market research to determine the most effective branding strategy since it has direct contact with customers. On the other hand, the suppliers should undertake the branding.
Opening additional stores
In opening additional stores, the management of the firm should consider the various geographical locations. A single store should be opened in every state. The stores should adopt an operational strategy similar to that of the manufacture with whom the firm has allied. This will result in the creation of a positive public image. The management should ensure that its new product lines are available in the new stores. Increased efficiency in the accessibility of a firm through additional stores will result in increased store loyalty (‘Shopper trend’, 2007, p.4). In addition, the management should use agents to distribute its products to the entire region. This will ensure that the firm’s products penetrate the entire market. The effect is that there will be increased sales and brand awareness.
Conclusion
Cooperative marketing can increase the firm’s level of profit. This is because there is increased product awareness in the market. Cooperative marketing also helps in minimizing the cost of promotion for a firm’s product. Increasing product awareness can also be achieved through opening the additional store and adopting a new branding and repackaging strategy.
Reference
Anthony, T. (2005). Cooperative marketing: a time tested advertising method. Web.
Stuart, W. (2005). Ingredients branding case study: Intel. Web.
The Nielsen Company.(2007). Shopper trend. Web.
Travis, W.(2008).Cooperative marketing: what does it take ? Is it for you? Ohio: Ohio State University. Web.