Case study:

Company overview

"Watch Universe" is a leading online watch retailer that offers today's most popular brand-name watches for men and women at sale prices up to 90% off the manufacturer's suggested retail price (MSRP). The company source the top watch lines from manufacturers and distributors throughout the world that gives them the buying power to guarantee authentic, new watches at the very lowest prices guaranteed.

"Watch Universe" has been in business since January 1997 and customer satisfaction remains their number one goal of the current management.

Products and services

As the name suggests, the company has a multitude of watches in their catalogue. The price range that "Watch Universe" covers is anywhere from $100 to $13,000, so whatever your budget, they are bound to have the piece that the customer is looking for.Brand names like Casio, Invicta, Gucci, Breitling, Montblanc, and Swiss Legend, just to name a few, are always on hand for the discerning buyer, but if it is a daily run-around piece you want, then there are the budget brands on hand as well.

Apart from the products that it sells, the company also provide repair services.

Online platforms used to sell products and services

The company uses online platforms such as Amazon, eBay, Alibaba, Gearbest, Kogan and Catch to sell their products and services.

Special discounts

The company provide a 10% discount to loyal customers on each product and service.

PRODUCTS AND SERVICES SATISFACTION GUARANTEE POLICY

Iron-clad warranty

Most of our watches are backed by our own warranty, which meets or exceeds the manufacturers' warranty period. Some watch brands are warrantied and serviced directly by the manufacturer.

Watches covered by our warranty are serviced and repaired in our own repair facility by trained watch experts, saving the turnaround time to you.

Easy refunds and returns

If you're not completely satisfied with your new watch purchase, simply return it within 30 days for a refund (excluding shipping and handling costs).

Secure, convenient online ordering

Just choose the watch you want and add it to your shopping basket. Our checkout is simple, easy and uses secure encryption technology for the utmost security and confidence.

Case study scenario

Recently, the outcomes of customer feedback surveys have revealed a great demand in watches that have the following features:

• Shock-resistant
• GPS-controlled
• Radio-controlled
• Smartphone link functions: automatic time adjustment, easy watch setting
• Solar-powered
• Hybrid Mount Construction
• Smart Access
• LED lights (Super Illuminator)
• Magnetic-resistant (ISO 764 standard-compliant)
• 20-bar water resistance
• Auto Hand Home Position Correction

The company has identified that the product that matches these requirements is flagship series in the G-Shock line, i.e. "MR-G.

The company has decided to promote the products of this flagship series along with the loyalty program discounts on Amazon. The company expects to sell about 3,200 watches from this G-Shock flagship series over the course of the year.

The budgeted amounts are as follow:

• Budgeted sales revenue: $3,072,000
• Budgeted cost of goods sold: $2,150,400
• Budgeted promotional cost: $81,600
• Other budgeted overhead costs: $380,000
• Budgeted profit: $460,000

The company wants to ensure that product promotions are done in an effective manner. They want you to provide advice and information within an organisation about the development and distribution of its products and services.

Activity 2: Evaluate promotional activities.

Case scenario:

As the policy and procedures, the company evaluates the promotional activities based on the rate of response.

The rate of response for different promotional activities based on customer feedback from the previous year is as follow:

Promotional activities	Rate of response
Google AdWords	7%
Newspaper	1.9%
Amazon Ads	4%

Activity:

This activity requires you to evaluate the promotional activities based on the rate of response.

To do so, you need to:

• Identify the best promotional activity based on the response date.
• Identify promotional documentation and materials required for the presentation of the organisation's products and services.
• Calculate actual costs for the best promotional activity against budget.
• Estimate the impact of promotional activities from verifiable customer feedback sources.
• Evaluate the benefits of promotional activities.
• Recommendations for future promotional activities.

You must use the template provided to document your response.

Evaluation template:

Best promotional activity
Promotional documentation and materials required for the presentation of the organisation's products and services
Actual costs for the best promotional activity against budget
Impact of promotional activities
Benefits of promotional activities
Recommendations for future promotional activities (Any two)