TCO 1 Candle Mix: A Supply House For Scented And Unscented C

1tco 1 Candle Mix A Supply House For Scented And Unscented Tapers

Candle-Mix, a supply house for scented and unscented tapers and other ceremonial candles to houses of worship, restaurants, and other establishments, has experienced a downturn in business in the last two years. Upon investigation, Kim, the owner of Candle-Mix, learns that the same candles that they sell are available from online retailers for at least 13% less. The firm will not be able to survive if customers continue purchasing from competing e-retailers. Candle-Mix maintains a storefront for selling candles but does not provide other services or products. Which of the following would most likely enable Candle-Mix to recapture their previous customers and gain new customers? (Points : 10) Candle-Mix could lower their prices on less popular candles to create "loss leaders" that would induce new customers to purchase regularly-priced candles from them. Candle-Mix could shut down their retail location to cut overhead and move their business to the Internet, where they could charge lower prices and compete with other online candle retailers. Candle-Mix could send out a mailing to all their customers reminding them that they carry a full line of candles. Candle-Mix could move their store to a more visible and expensive location in the mall. Candle-Mix could announce a "candle of the month" program to discount candles that traditionally have not sold as well as their other candles.

Paper For Above instruction

The primary challenge faced by Candle-Mix is the significant price competition from online retailers, which offers consumers the same products at lower prices. To combat this, Candle-Mix must employ strategic marketing and differentiation techniques to retain and attract customers. One effective approach is to enhance customer loyalty through targeted promotions and personalized services that online outlets cannot easily replicate. For instance, Candle-Mix could introduce a "candle of the month" program to highlight and promote less popular candles, creating a sense of exclusivity and urgency that motivates in-store purchases. This promotional tactic not only increases sales of specific items but also encourages regular visits to the physical store, thereby fostering stronger customer relationships.

Furthermore, Candle-Mix can leverage marketing communication by sending direct mailings that remind customers of the extensive product lines they offer, emphasizing the advantages of shopping locally, such as immediate availability, personalized service, and the opportunity to see and smell candles before purchase. This personal touch can be a critical differentiator in a competitive market. Moving to a more visible location within the mall could also boost foot traffic, especially if the new site increases brand visibility and convenience for shoppers. However, relocating involves costs that must be weighed against potential sales increases.

Another strategic option is to explore pricing strategies, such as lowering prices on less popular candles to create "loss leaders" that attract customers to the store, with the hope they will purchase higher-margin items. This tactic can boost overall sales volume and increase customer retention if done carefully to avoid eroding profit margins. Conversely, shifting entirely to online retailing might reduce overhead costs but could diminish the personalized customer experience that distinguishes Candle-Mix from competitors.

Ultimately, a multidimensional approach combining targeted promotions, enhanced customer communication, strategic placement, and pricing tactics would likely enable Candle-Mix to recapture previous customers and attract new ones. Emphasizing unique in-store experiences, community engagement, and superior customer service will be essential for differentiating Candle-Mix in a competitive marketplace.

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