Starting in March Kiddie Land would begin to promote a new a new product Super Gym Outdoor children’s Exercise center. The problem or the issue was the company has never shipped something this big, they had to come up with ideas of how to make a profit and how to reach it to the customers.

Case Questions

1. Advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivery of the Super Gym

Advantage

  • Kiddie land could do its own deliveries saving the company some money

 Disadvantage

  • Bumpers on the newest autos cannot accommodate trailer hitches

2. Advantages and disadvantages of using local trucking companies deliver from the retail stores to the customer

• Advantage

  • According to market research 85% of the customers drive less than 25 minutes to the store, so with the flat rate of $40 per shipment it would be cheaper to deliver for the company

• Disadvantage

  • Local companies that were found prefer deliveries twice a week but not daily

3. Advantages and disadvantages of stocking Super Gym at the distribution center and having the truck make deliveries to the retail stores also make deliveries to customers

Advantages

  • Consolidator-Ship more than one delivery to the retailer or customer equals fewer trips

Disadvantages

  • Burning too much fuel with double deliveries to distribution center then retailer stores
  • Squeezing an 18 wheeler into a subdivision would not make any sense
  • Knocking down a couple of mail boxes and
  • Truck tracks in some homeowner lawns

4. Advantages and Disadvantages of charging customers for home delivery if unable to carry

 Advantage

  • Charging customers for delivery would absorb the cost of $40 for delivery per set.

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 Disadvantage

Chasing away customers

  • With added minor insects to catch customers attention may cost the company later

5. I would prefer using Local trucking company due to

  • The company can avoid expensive shipping and handling expense to the customers and
  • Avoid charging the customers for home deliveries.

6. With a purchase of our new product the Super Gym Center we will deliver to your doorstep for free

7. My Follow up on SUV would be

  •  Do they have enough room for the Super Gym?
  •  To maintain sales, how many SUVs would the company require?
  •  How many employees would be willing to part with their trucks for company business and for how much?

Cite this page

Kiddie Land Gym. (2016, Dec 20). Retrieved from https://studymoose.com/kiddie-land-gym-essay

Kiddie Land Gym

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