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santalone Moderator
Joined: 27 Apr 2004 Posts: 50
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Posted: Fri Aug 26, 2005 3:29 pm Post subject: Pickles, Inc. (August 30, 2005) |
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With little formal education or work experience outside the home, the widowed founders of the Azka Pickle Cooperative face numerous hurdles as their burgeoning business struggles to expand to stores throughout Israel. This episode of WIDE ANGLE portrays this unconventional business start-up and offers rare insight into the lives of courageous women striving to overcome extraordinary obstacles to achieve a better life. Use this space to share your thoughts.
Last edited by santalone on Thu Sep 01, 2005 3:11 pm; edited 1 time in total |
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sberry27
Joined: 01 Sep 2005 Posts: 4 Location: Brethren, Michigan
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Posted: Thu Sep 01, 2005 9:40 am Post subject: Re: Pickles, Inc. (August 30, 2005) |
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They should have read a paperback called Marketing Warfare by Jack Trout and Al Ries. The focus was on enlarging the sales and not increasing the margins by developing a niche brand. They were never going to be able to compete in a commodity market, I am sure they went down to the store and compared prices. Bad plan, they should have used their greatest asset, home/hand made and made it a delicacy, raised the price by at least 2x and got away from focusing the marketing on volume. The consultant they brought in was of no help, actually a liability. (somehow there was the thought that making nothing on 300 jars a week would be preferable to making nothing on 100 jars a week) Even with no cost labor they couldnt meet production expenses, how does anyone think that increasing volume would be the answer? The answer would have been to be able to market at a profit, 6$ a jar for the BEST pickle, HAND MADE, sold to the retailer at 4$ instead of 2 and the retailer would have a bigger incentive to make 2 instead of one. Even if they sold half the amount, a 1/3, or even 1/4 they would have been making some money. The concept to expand to stores thruout the country was beyond their reach and sapped the energy and clouded vision. Anyone really believe any major vendors would have given up their market share to the come latelys? By going to small high end markets they could have made it, smaller jars of product at a higher price. _________________ Sberry
Last edited by sberry27 on Thu Sep 01, 2005 10:12 am; edited 3 times in total |
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sberry27
Joined: 01 Sep 2005 Posts: 4 Location: Brethren, Michigan
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Posted: Thu Sep 01, 2005 10:05 am Post subject: Re: Pickles, Inc. (August 30, 2005) |
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A good example is Starbucks coffee, the whole focus in the beginning was to get the customer to think that it was the BEST, that coffee there was worth 3$ while others were getting a dollar, this created excess profits to build a business on. _________________ Sberry |
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