Marketing and Pottery Barn Essay Example for Free

Marketing and Pottery Barn Essay1. If Williams-Sonoma continues with its present strategies and objectives, where willing it be in 5 years? Given directlys economy, and the bleak economic outlook, I do not intrust Williams-Sonoma will continue to exist with its accepted strategies and objectives to serve its below target grocery consumers. Bottom line is many consumers digestnot afford the products being sold by the company. Although, the companys target market is in the 10% of wealthiest consumers, and had total loot of oer 3.5 billion. (2010 shareholders meeting). Other avenues of generating revenue must be explored. I fear that even the 10% will eventually become more cost sensible in the years to come. On the lines of the company improving its position in the next five years, I think the company should continue to improve on concepts already in place. An example is the Pottery Barn Teen website. (pbteen.com). Williams-Sonoma had used the concept in moderation startin g with WS bridal registry.The idea took flight and as a result, moved the concept to its retail operations such as Pottery Barn, resulting in a 500% jump in online sales generating over 1 billion in revenue. (Prophet.com). Still with all these profits and improvements, if WS cannot hold by decreasing its prices so that others not in the 10% range can afford their products, the company will fail like the housing market. Over the next five years, the company should experience hyperbolizeing its product line to include cleanse dcor to complement the already established retail home furnishings.2. If you were CEO of Williams-Sonoma, what strategies would you recommend? There are so many recommendations. I would first physique on the net base I talked about earlier. If I can improve internet sales over 500% I certainly deprivation to keep that going. I would incorporate interactive websites. Having the ability to talk to, chat with an associate while Im shopping in my underwear is perpetually helpful. Next I would improve my e-commerce presence by advertising on complaisant media electrical outlets and improve accessibility to shopping by posting web-apps. I would consider lowering price points so I could tap into the more than 10% of consumers without becoming Wal-Mart. Now the company did do something to increase its position that I plunge useful.That was to decrease its overall lease space by 2%. (2010 shareholders meeting). This reduction in retail occupancy costs attributed to the 1 billion dollars the company enjoyed kick the bucket year. I would also consider expanding the companys customer base by broadening the product line to similar to Home Goods or turn in Bath and beyond who currently double the revenue of Williams-Sonoma. (Redistribute assets earmarked for traditional cataloging to online accesses. Not only will this save money, but will also impact newspaper usage. I believe advertising in this was has all but outlived its usefulness.3. D escribe the competitive strategies used by each of Williams-Sonomas competitors. Which of these are most efficacious? Williams-Sonoma has six major competitors plus one more in their market. The company holds only 7.9% market share (FY10) to main competitor Bed, Bath and Beyond with an staggering 34.4%. (William-sonoma.com/investors) BBBs strategy is to offer competitive prices for quality products. Its target market is middle to upper middle class and this is the reason it fairs better in the current market. The Bombay Companys strategy was to increase its footprint by increasing outlet store locations so it could offload clearance items and increase sales to the outlet mall customer base. (Homeaccentstoday.com).Crate and Barrel decided to complete a nationwide marketing campaign that targeted catalogs and websites. While Pier 1 Imports, in a bold move consolidated chains, and licensed their name to Sears in Puerto Rico. (turnaround.org). Door to Store decided to convert and mark et to style-minded customers at low prices capitalizing on web selling and shipping nationwide. (buyfurnitureyoulove.org). Rolling Pin Kitchen Emporium switched most of its locations to upscale malls and targeted marketing thru websites and catalogs. While Restoration Hardware seemed to advertize to its wealthiest customers targeting the top 10%, attempting to expand its base. If I had to choose one of these strategies I would have to go with the one I mentioned first.I am aware that this was not a in the original case study but in researching I found the Bed Bath and Beyond strategy to be most formidable considering the company twofold the revenue of Williams-Sonoma last year. There is a reason why the company commands 35.4% market share in FY 09 while WS was at 7.9%. (Williams-sonoma.com/investors) Williams-Sonoma is only utilizing a dower of marketing power while watching other companies progress thru a tough recession and recover by constant restructuring.4. How is Williams-S onoma using the Internet as a distribution channel now, and how would you recommend that they us the Internet in the future? Williams-Sonoma launched a bridal registry as a test pull away for furthering the use of the internet. (prophet.net).This shift was so successful it moved the use of the internet to Pottery Barn, and other retail outlets. The result was 500% increase in internet sales and a 1 billion dollar profit. They also used the web to launch PB Teen which focused on the gap in age between Pottery Barn and Pottery Barn Kids. Each website is interactive now but PB Teen was the first with outstanding success.This appealed to dialed in kids wanting something to improve their own piece of sanity, their bedrooms. The interactive site allows the exchange of ideas, instant feedback and the customer has the ability to view products they like. Williams-Sonoma has already completed its internet shift. I feel they can rely more on the model by providing 24 hour online support to th ose consumers that have odd hours. Furthermore I believe the company should limit its use of hardcopy catalogs unless specifically requested because this focus had established itself as a business, does nothing for it in the future. Another approach is marketing thru social networking sites. This approach, along with direct marketing does have its costs and would show profit after the initial cost blast. If the company wishes to improve its position of 7.9% market share, it will need every edge it can possibly have.