Question

Analyze the current marketing mix strategy (key issues/challenges, key strengths) for GREEN WORKS and make recommendations...

Analyze the current marketing mix strategy (key issues/challenges, key strengths) for GREEN WORKS and make recommendations for the marketing strategy going forward, using the questions below as a guide

Place (Distribution): Is Wal-Mart a good distribution channel for Green Works? Why or why not? Would you support entering membership clubs like Costco? Will such retailers attract new or repeat customers?

Homework Answers

Answer #1

Answer: No, Wal-Mart is not a very good distribution channel for Green Works because of its strategy of everyday low prices. Wal-Mart offers huge discounts to the customers on the products it sells. Green Works on the other hand offer prices that are higher as compared to the ordinary products from the competitors in order to create a quality and organic image for its products. If company will distribute through Wal-Mart, it will not only lose its image of differentiation but will also need to give in huge margins to Wal-Mart owing to its purchasing capacity and bargaining power.

Joining membership clubs like Costco will help the company as it will not only attract new members initially from the membership list of companies like Costco but it will also attract repeat customers as such chains have practises that encourage repeat purchases.

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