Summer 2009 Term
Competency # 53054
DATE: May 14, 2009
RE: SecondMemo Assignment for Thurs Evening, Sendwine.com.
The present memo aims to discuss the ways that the Capital Venture (CV)raised by Sendwine.com should be invested.
Several venues could be explored for CV investment could be explored. First of all, in order to have a more organized view of scenarios and accountcontingencies, Mike Lannon should start pulling together a task force to present different recommendations for Capital Investment.
Consumer research indicates that most of the purchases are driven bybusinesses during the Christmas season where delivery is expected in less than two days. That information indicates that this type of business is more seasonal, thus more advertising dollars should be placedduring this period. By the same token, in order to satisfy all the additional demand due to advertising extra temporary staff should be hired.
In terms of diversification, there is solid data thatsuggests that the service is requested more because the ease and convenience feature (ca. 24%) than the unique product concept (ca. 14%). Dollars need to be invested in researching what the potentialalternative items would be.
Instead of implementing an aggressive transition in diversification, Mike Lannon should start with products on the same category, liquors. For example: cognac,champagne, brandy, rum and tequila.
Eventually, keeping in mind busy professionals, market research should be conducted to determine what other non-alcohol items could be offered. Non-alcoholic items wouldhave the advantage of being shipped without interstate regulatory hassle.
Certain amount of dollars should be invested in reward programs for frequent costumers. Also and tailored packages for...