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    Sior, Its Distributor, and All The Sales To Excelsior Carried Excelsior's Own Brand Names and Harter

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    Annapurna Purohit
    Western Products is considering launching its first large advertising campaign after 35 years in business. George Norrin, the majority owner, must decide. The chainsaw division, which accounts for 42% of sales and 48% of profits, was acquired 15 years ago. While Western has 15% market share for gasoline-powered chainsaws, it does not currently advertise, relying instead on sponsoring fairs and calling dealers. The company manufactures various chainsaw models but has not differentiated on features beyond blade length and horsepower.

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    Sior, Its Distributor, and All The Sales To Excelsior Carried Excelsior's Own Brand Names and Harter

    Uploaded by

    Annapurna Purohit
    45 views2 pages
    Western Products is considering launching its first large advertising campaign after 35 years in business. George Norrin, the majority owner, must decide. The chainsaw division, which accounts for 42% of sales and 48% of profits, was acquired 15 years ago. While Western has 15% market share for gasoline-powered chainsaws, it does not currently advertise, relying instead on sponsoring fairs and calling dealers. The company manufactures various chainsaw models but has not differentiated on features beyond blade length and horsepower.

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    Western Products is considering launching its first large advertising campaign after 35 years in business. George Norrin, the majority owner, must decide. The chainsaw division, which accounts for 42% of sales and 48% of profits, was acquired 15 years ago. While Western has 15% market share for gasoline-powered chainsaws, it does not currently advertise, relying instead on sponsoring fairs and calling dealers. The company manufactures various chainsaw models but has not differentiated on features beyond blade length and horsepower.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views2 pages

    Sior, Its Distributor, and All The Sales To Excelsior Carried Excelsior's Own Brand Names and Harter

    Uploaded by

    Annapurna Purohit
    Western Products is considering launching its first large advertising campaign after 35 years in business. George Norrin, the majority owner, must decide. The chainsaw division, which accounts for 42% of sales and 48% of profits, was acquired 15 years ago. While Western has 15% market share for gasoline-powered chainsaws, it does not currently advertise, relying instead on sponsoring fairs and calling dealers. The company manufactures various chainsaw models but has not differentiated on features beyond blade length and horsepower.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    So, before we get into the case, let understand what the case is all about.

    As you can see the question


    “Should the company for the first time in its 35 years history, begin a large advertising campaign?”

    The whole case is about solution to the question and to find the solution, let’s begin with understanding
    the case background.

     Now as you can see, George Norrin was the major owner of western products who has to make
    the decision about the campaign.
     If we look into the products, Western Products marketed a variety of power tools, i.e. drills,
    generators & concrete vibrators to industrial and construction markets.
     And they entered the chainsaw business 15 years ago.
     At the same time, Jim Dagan decided to retire and sold his company to his friend.
     Even after selling, he remained a passive partner and received 10% of the profits from the
    chainsaw division of Western products.
     One important thing, the chain saw accounted for 42% of Western’s sales and 48% of the
    company’s profit.

    Now coming to the market background.

     Western estimated that it held about 15% market share & it was also 4 th largest manufacturer
    for Gasoline-powered chainsaws in its region.
     And these products were usually sold to loggers, farmers, large land owners and homeowners,
    so basically the casual users with many trees on their land.
     And at the time Dagan Power saw was purchased, 3/5 th of it’s sales were made through Excel-
    sior, its distributor, and all the sales to Excelsior carried Excelsior’s own brand names and Harter
    Brand name was used for sales through other companies.
     Mr. Norrin & his chief assistant Kara Smith regularly called a lot of companies and institutions
    that were likely to be buyers, but they were not able to visit many of the dealers. In the recent
    years they visited only 19 out of 53 dealers in Washington region.
     The company also participated in a number of agricultural fairs, such as the Pacific Nation
    Exhibition and also sponsored log-rolling & other contests.
    However, to make a note, the company had never advertised either in trade journals or in
    magazines.
     Next, Western products manufactured a variety of chain saw models, but they differed primarily
    on length of the blade and horse power. But a number of other features were important too for
    the customers, ie. Weight, ease of use, weather is has a gas protector, warranty and most
    importantly, safety.

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