Stephen Singer and Wayne Hull, owners and partners of Saints Landscaping, were busy during the Spring months planning for their holiday seasonal business in which Christmas Trees and wreaths are sold. Saints Landscaping has been selling Christmas Trees and wreaths in the Loudonville, New York, area since 2000 and has seen an increase in revenue in each of the past five seasons. Saints Landscaping relies heavily on the Christmas selling season to supplement the income of the business that is mostly generated during the Spring and Summer months. Saints Christmas Trees is a seasonal business of Saints Landscaping that sells Christmas trees and wreaths for one-month preceding Christmas. Orders for Christmas trees need to be placed with growers by July 4 in order to receive the quality and adequate supply desired. The trees for 2021 will be procured from growers in Canada with the delivered cost fixed at a contractually agreed price of $20 for the season. Steve and Wayne make their own wreaths from the trees they purchase. In planning for the upcoming season, Steve and Wayne need to generate a merchandise plan that will achieve their primary goal of maximizing profits. An integral component in attaining this objective will be decisions regarding the pricing of the Christmas Trees and wreaths. 

1. Discounts (1 points) 

Identify a discount that couple be applied to a Saints Christmas Trees product. Provide a marketing and fiscal rationale for the discount offered.

2. Channel Management (2 points) 

In the upcoming year, Saints Christmas Trees wishes to review its supply chain. What channel choice and management factors should the company consider? Identify two new strategies the company could employ and describe how those factors could impact the marketing strategy for the business.