BUAD 479: Marketing Strategy for the Firm
Semester: Spring 2013
1. What are the key questions in the case?
a. The main question for Rose is whether they should create their own brand or become a
major supplier for Party!, one of its biggest buyers.
b. If Rose was to create their own brand, they would need funding for promotion which
would come from a price increase of about 6 % to 7%. This is a risky move in the party
goods industry where there are many competitors who offer low priced goods, which gives
the consumer higher purchasing power. However, with their new printing prototype, they
are capable of taking color files from the pre-press network and putting them directly on
the printing press, eliminating the expensive filmmaking process while enhancing the
quality of the printed products (Stone 30). Even though Rose will most likely lose sales
due to increased prices, they will still save money through more efficient operations.
c. Another issue is if Rose passes on Party!s offer, they will lose the 20% of their sales that
comes from Party!. However, if they do join, then Party! would become a competitor if
Rose wanted to become a brand eventually. For Rose, being a commodity-based company
also yields uncertainty for future business, especially if other suppliers learn how to print
their images the same way that Rose plans to.
2. 5 Cs analysis
a. Customer Needs *€“ Rose looks to bring the highest quality printed party apparel to its
prospective customers. They want to create products that their customers will appreciate
more than the products of their competitors. Rose looks to target holidays as the time to
promote and sell their products to their customers who like to celebrate holidays by using
decorative products to give the day more flare and fun. The market segments that Rose
looks to target are parents, brides, and teens just to name a few.
b. Company Skills *€“ Rose already has high-end printing capabilities, and great trade
relations making it a significant force in the party goods industry (Stone 30). Even with
their presence, they look to gain recognition as a privately labeled brand. After discovering
a break-through concept, Tom believed he had a new way to separate himself his company
from the rest of the competition. He put his new prototype to action by consulting
engineers to create the technology. His new printing process that successfully eliminates
the filmmaking process altogether, both shortens the time spent on printing and cuts the
