Jordan Monroe Koch’s Marketing Plan
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I.
Executive Summary
Koch Sporting Goods is here to bring you the upmost quality. This ranges from
equipment to customer service. The goal is to become profitable each year enough
to improve the next. A lot goes into their planning for each sport season as they take
the time to deliver quality products to their customers. This company has been
around for over 125 years and continues to implement their strategies perfectly.
They expect what they put in and they put in a lot.
II.
Situation Analysis
A.
The Internal Environment (refer to Exhibit 3.3)
Koch’s Sporting Goods is here in Cincinnati, Ohio and is here to give
the people a family business that lives for its grand customer service and a
culture of excellence, while offering products that typical sporting goods
stores cannot. Their game plan is tradition. They offer as much to the
consumer as they are able.
These goals and objectives are consistent with their mission because
by bringing great customer service and offering all the products that others
cannot, they create this culture of excellence centered around the local
consumer. The movement towards small business continues to grow as its
becoming more relevant to support local business compared to the larger
corporations. They stick straight to their values of tradition by keeping the
business in the family since it opened in 1888.
Review of current marketing strategy and performance
The firm’s current strategy is to offer a full line of team sporting
goods; including but not limited to equipment and uniforms,
embroidery of those uniforms, licensed team products and equipment,
local sports teams gear, a wide variety of sports team apparel and an
abundance of sporting good needs for sports that are forgotten about
in large corporate stores. The variety offered at Koch’s is next to none
with desirable prices. These strategies are working well as this family
owned business has been around since 1888. They stick to their
family values and have been since the first generation who opened it.
Koch’s is exceeding in performance. This family business is rated
A+ by the BBB. There are 13 factors of their rating meaning they are
exceedingly better than competitors whom some are rated form a
high B to a low C. They’re performance is about the same
throughout. The more they have added to the business the more
they’ve sold. However, they have stayed top of their game
because the sports industry has grown over the years as sports
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become more and more popular. Looking at large corporations in
the sporting good category, stores like Academy, Dicks and Eastbay,
all thrive on their large ability. Koch’s doesn’t have that but they are
still competing in this industry and have been around longer than
most of these large corporations.
The only reason they would decline is for a few reasons. One being
the sports industry would become very unpopular. If this doesn’t
happen they won’t go under. Another could be if the sports teams in
Cincinnati all sold to other places, which is next to impossible, and
would take away their main business of local sports teams.
Review of current and anticipated organizational resources
The state of the company’s recourses in simple. “And, if on that rare
occasion that a request is made, and Koch’s doesn’t have the item on
the showroom floor, one of five floors at 131 West Fourth, they will
get it, and quickly.” They take pride in their service and will get you
your product quickly. The resources will change depending on the
market. Each season is different: baseball, football, basketball and
more. Whatever season is in, that’s the products they will have
most.
Rarely will they lack resources for their consumers, however, they
order the product that is needed personally in order to please the
consumer.
Review of current and anticipated cultural and structural issues
The cultural aspect of this organization is looking anything
but down. The sports industry is growing and thriving more
than ever. If you don’t play a sport the chances are you
watch or enjoy a sport. Their customer orientation is next to
none; because they are family owned you meet the family
every time you go there it’s not just a cycle of numbered
employees. Their planning would revolve around the short-
term. Since they are a sports industry they have to cycle
along with the sports seasons and what they have to carry
more of or less of. They take on change by adding the new
teams and items that become available for the market. For
example, Cincinnati just got a new professional soccer team
and they have their gear already. The marketing function of
Koch’s relies heavily around public relations, strategy and
sale promotion. Their higher positions stay the same as it is
family owned and the morale of the business, especially
local, is next to none. Their structure supports their
marketing strategy as they stay local and focus on the city of
fans that they are in and not people who don’t support them.
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B.
The Customer Environment (refer to Exhibit 3.4)
Who are the firm’s current and potential customers?
The firms current and potential customers are the exact same: sports
fans. They identify with anyone who is interested from rooting for a
team to playing for a team. They stick with the locals, which in this
area can range from northern Kentucky, to northern Ohio to eastern
Indiana. The whole tri-state area. Say a little kid shows interest in
playing baseball. The parent takes him to Koch’s, the kid sees and
hears the lifestyle that he could live from the owner’s own words and
he’s a customer for life. And their service is perfect for both heavy
and light users. Want to always buys your sports teams jerseys from
Koch’s? No problem become a regular buyer and enjoy team
discounts. Want to go once or twice a year for a new sports team
jersey? Perfect come in whenever and enjoy the wide variety of new
products they have.
The purchase process can take place online, in store and in store
online. And what I mean by in store online is if they don’t have the
product you desire, they will order it on the spot to you and can ship
it to your house or to the store. The influences can be anyone as well.
You can make a recommendation for items that you believe would
be a great product for Koch’s to carry, and another does the same,
after a while they’ll pick that products up and carry it instore because
of the influence of any purchaser. The bills are to be paid by the
owners; and guess who also works there? The owners. They know
exactly what to pay and why they need to pay it because they work
in house on a daily basis to provide for the community.
What do customers do with the firm’s products?
Their products meet the customers many needs of sports. They can
use items in game, to watch or just to have for show. They serve the
community’s many needs of sporting goods.
The products can be purchased in small orders or in bulk. They
carry items for individuals and whole teams and groups such as
jerseys. These products can be purchased solely for a solution and in
compliment of other products. It all sits on what the consumer
desires.
The firm’s products are for use. Even if the item is just sitting in a
frame, the use is showing the value of the item.
There are no issues of waste by the firm.
Where do customers purchase the firm’s products?
All of Koch’s prodcust come directly from the company responsible
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for the products. Jerseys come from MLB, NFL, NBA, MLS and
NCAA certified stores, whereas, equipment items come directly from
the brand of item: Wilson, Nike, Under Armor, Adidas and more.
The firm’s products have been purchased seasonally. Since they
revolve around sports, some items are purchased just in that sport
season. This store’s products are “sport seasonal.”
When do customers purchase the firm’s products?
Purchase behavior, like previously stated, is based on the season.
Promotional events happen around major holidays or involve bulk
buying. They have bulk promotions year-round for sports teams to buy
their jerseys from.
Purchase behavior is also based around the consumer. You can buy items
24/7 online or the hours the store are open as the hours of operation stay
the same yearly, so you will always know the time is right for the
consumer to buy.
Why (and how) do customers select the firm’s products?
The advantages Koch’s have in Cincinnati are they base their sales
around local sports team items. No other large corporation can do
that as they are a national company and can’t focus in one area.
Koch’s focuses on the local teams and activities and that is their
largest advantage as they will always have local business. These
products fulfill the local sports consumer, coach or player that needs
anything for their sporting good needs.
The issues Koch’s could have are they’re a local sports team sports
store. They could have commoditization issues with sports fan
whom are not interested in the local teams. The purchase behavior
depends on their interest of local teams and any equipment needs.
Their equipment makes up for the local team miscue.
There are no financing options as you pay the price of the product or
you don’t receive it as it’s just a sporting goods store not a home or
auto business. Customers seek both long-term and transactional
business. Long-term could be teams who buy their jerseys and
equipment from Koch’s as well as fans who look to consistently buy
their gear from here; these teams can most of the time receive
promotions for buying for a team. Transactional is everything else
including stopping in one time to buy a jersey and never coming
back.
Why do potential customers not purchase the firm’s products?
The products are based solely on local sports teams. The local buyer
whom doesn’t support a local team will not be interested in buys
apparel from this store.
In contrast to the previous statement, the local die hard sports fan
who is looking for a relationship with a local sporting goods store
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that supports his cities teams will give them business over any large
origination every single time.
Since they are local, the prices of certain products could be a little
higher than stores like Dick’s who have millions of items that if
they don’t sell can make up for the cheap price. The non-consumer
of Koch’s would definitely look elsewhere if they are looking for
cheap products.
