Question

Imagine that you are part of the marketing management team at Home Plus, a regional discount big-box retailer who competes with Wal-Mart and Target. Home Plus currently focuses on offering a broad range of discount consumer goods, from small home furnishings and clothing to packaged goods and kitchenware. In addition to the discount lines, Home Plus carries some higher end clothes, shoes, and bedding. Some members of management believe that the best way to improve the company's competitive positioning is to concentrate more of its energies on the higher-end product lines. They have proposed that Home Plus double the number of luxury products it carries and halve the number of discount consumer packaged goods.In an essay, explain why you would agree or disagree with the proposed change in marketing strategy. Be sure to discuss both the proposal's advantages and its disadvantages.

Answer 1

Answer:

Staying in the discount big-box retailer as it is delivers what is expected to the costumers. Change it to luxury products can cause uncertain of the company's purpouses.

Explanation:

In order to create luxury products a strong sense of brand and acceptance in the market has to be already established. It has been explained the Home Plus is a regional discount big-box retailer instead of a premium or higher-ended reailer. In order to distinguish from the inicial brand it might needed to be created a branch which higher-end products proposal.

On the other hand, staying in the status quo of selling discount products as before, it gives to the costumers what is expected. So, by increasing the number of luxury products with different company foccus can cause uncertaining in the company purpouses.