978-0073403267 Chapter 24 Appendixes Part 2

Type

Solution Manual

Book Title

Business Communication: Building Critical Skills 6th Edition

ISBN 13

978-0073403267

978-0073403267 Chapter 24 Appendixes Part 2

April 6, 2019

Appendix 24-I: A Long Report Example

Page 4

REDWOOD AND ROSS'S CAMPUSTOWN STORE

Twenty-one Redwood and Ross stores are located throughout the Midwest with stores in Illinois,

Indiana, Michigan, and Wisconsin. This chain is privately owned with main headquarters in Kalamazoo,

Michigan.

The University of Illinois Campustown store was founded in 1957 and is located at the corner of Green

Street and Sixth Street, the heart of Campustown.

Redwood and Ross wants to maintain a consistent image across all stores; every Redwood and Ross

store carries the same style and quality of products. To ensure uniformity, the advertising and pricing policies

are controlled by managers at the main headquarters in Michigan.

Redwood and Ross's Product Line

Both quality and style are important components of Redwood and Ross's product line. Redwood and

Ross stores carry only high-quality, well-known name brands.

Redwood and Ross's Prices

Prices are higher than average at Redwood and Ross. As Figure 1 shows (page 5), Redwood and Ross's

prices are higher than those at Sears, a favorite store among U of I college men--over twice as high on wool

blazers and sweaters. The design of the product is similar at the two stores.

Redwood and Ross wants the customer to feel that high quality, stylish clothing is worth the extra

money. Mark Hoover, manager of Redwood and Ross on campus, believes that "clothes are an investment." If

the man buys good clothes, he saves money in the long run because the clothes last longer and will be in style

longer. Redwood and Ross emphasizes that its clothes are a good value because of the styling and workman-

ship.

Table 1. Clothes Cost Twice as Much at Redwood and Ross

Item Cost at Redwood and Ross Cost at Sears

Wool Blazer $180 $75

Wool Crewneck Sweater 30-80 24

Striped Dress Shirt 34 18

Appendix 24-J: A Long Report Example

Page 5

Redwood and Ross's Advertising

Redwood and Ross does not believe that extensive advertising is consistent with its image; therefore, it

relies mainly on its reputation as a fine clothing store to attract new customers. Word-of-mouth testimony

from existing satisfied customers is the most effective form of promotion, according to Mr. Mark Hoover. The

only form of media advertising Redwood and Ross currently uses is newspaper ads with pictures of the

clothing and text emphasizing "classic versatility." Most of the ads are placed in The Champaign-Urbana

News-Gazette while a few similar ads are in The Daily Illini.

Redwood and Ross uses brochures more often than media advertising. The brochures enhance the

image as a high quality retail store. The colorful pictures and informative description of each product provide

information about the style, quality, design, and price of the products. Redwood and Ross also promotes its

image with phrases such as "traditional excellence," "classic collection," and "life style of good taste and

lasting tradition."

Problems Facing Redwood and Ross

Redwood and Ross's basic problem is that sales of its product lines have not been as high as

management would like. Redwood and Ross in Campustown has been profitable, but management feels that

sales have not reached their potential.

REASONS FOR REDWOOD AND ROSS'S LOW SALES

Four possible causes of the low sales level are

1 The demand for men's clothing is not great enough to support the men's clothing stores which

currently exist.

2. The demand for classically styled clothing is not great enough to support Redwood and Ross.

3. Redwood and Ross does not have the differentiating characteristics which are important when

choosing a clothing store.

4. The male student population is unaware of Redwood and Ross and is unfamiliar with its products

and characteristics.

Appendix 24-K: A Long Report Example

Page 6

My research shows that of these possible reasons, only the last is a serious problem. A tertiary problem is that

while men like the clothing Redwood and Ross carries, they believe that the prices are too high.

Campustown Market Potential for Men's Clothes

The sales potential for all Campustown men's clothing stores is high. My survey shows that

approximately 70% of the undergraduate male students have shopped in the C-U area for clothes in the past

year. This represents about 14,000 of the 20,000 undergraduate male U of I students. Obviously, 14,000 men

is a sizable market for a Campustown store.

Most of the men (65%) shop less than once a month while 32% shop from one to three times a month.

These statistics show that men do shop quite often.

There are currently four men's clothing stores on campus--Get Your Shirt Together, Goldsmith's,

Redwood and Ross, and Shumaker's--trying to satisfy this demand for men's clothes. This shows that

Campustown competition is not that great. If a student wants to shop on campus, he does not have a variety of

choices. Almost half of the men surveyed believe that Campustown does not have enough men's clothing

stores.

Most men prefer to shop off campus, but location does not seem to be a hindrance for Redwood and

Ross; over 68% of the sample think Redwood and Ross has an excellent location, as I will discuss in more

detail later. My research shows that even though men may prefer to shop off campus, Redwood and Ross is

conveniently located if they must shop in Campustown.

Redwood and Ross has the potential to capitalize on the student market. With 14,000 men shopping

each year and only four stores on campus attempting to meet the demand, Redwood and Ross has great sales

potential.

Perceptions of Redwood and Ross's Products

Another of the potential causes of the low sales problem is that there is no demand for the style, quality,

or price of clothing Redwood and Ross offers. The men who responded to my survey were satisfied with the

product style and quality, but most of them felt that the prices were too high.

Appendix 24-L: A Long Report Example

Page 7

Whether or not a man likes the style, quality, and price of a particular store's product is extremely

important to him when he chooses a clothing store. These are the three most important factors to him when he

selects a store. In the survey, I asked each respondent to rate product style, quality, and price as being either

"Very Important," "Important," or "Not Important" when he chooses a store. Of the men who answered this

question, 73% rate quality as very important; style was the third most important factor with 67% rating it as

very important. Forty percent believe that price is very important, while 98% rate it as very important or

important.

Quality Style Price

10%

20%

30%

4 0%

50%

60%

70%

80% 73%

67%

4 0%

26%

31%

58%

Very Impt. Important

Figure 1 Quality Matters Most to Undergraduate Men

Each of these three factors influences where a man decides to shop. So, if Redwood and Ross is not

offering the style, quality, or price undergraduate men want, sales will suffer. I asked the respondents to rate

Redwood and Ross's products on these three characteristics to see if they are satisfied. The results show that

the men like the style and quality, but they believe prices are too high. Seventy-one percent rate quality as

excellent; sixty-six percent believe the style is excellent, and fifty-three percent say the prices are too high.

The sales potential does exist if Redwood and Ross can combat the dissatisfaction with its prices.

In general, male students are very price-conscious about clothes. In the survey, 73% agreed that

clothing prices were too high.

Appendix 24-M: A Long Report Example

Page 8

Some of the people who wrote comments on the questionnaire expressed strong feelings about the high

price of clothes. Some typical comments were

Bring the prices down a bit and you'll see me much more often! I like buying clothes

(nice clothes) and would like to do so more often if it was affordable. Remember

students are on a limited budget.

I really enjoy nice clothes, but seldom can afford them.

In relation to how much money I have, men's clothing prices are too high.

I'm on a tight budget during the school year. Tell the University to lower tuition and

fees and the rest of Campustown to lower prices.

A survey conducted for The Daily Illini by Belden Associates, a marketing and communications research

and counseling firm, shows where students get their money. Most students are at least partially dependent

upon their parents. Another major source is part-time and summer employment. (See Table 2, page 9.)

This research also shows that students have a limited money supply; they must pay for tuition, housing,

food, books, and any other items from the money they get from their parents, employment, scholarships, and

loans. The money earned by employment, especially part-time and summer, is restricted, as is scholarship and

loan money. Also, the money received from parents is limited unless the parents can afford and are willing to

give unlimited amounts to their child.

This information about price sensitivity has an important implication for Redwood and Ross: unless

Redwood and Ross can lower prices, sales of its clothing will not increase.

Competitive Advantages

Competitive advantages are qualities which differentiate one store from another. These characteristics are

unique to a store and may include the store personnel, atmosphere, and location. Product quality, style, and

price are not competitive advantages because the same products and prices can be found at a number of

stores in the C-U area. For example, Baskins, Carson Pirie Scott, and Kuhn's all carry a classically designed

product at prices comparable to Redwood and Ross's.

Appendix 24-N: A Long Report Example

Page 9

Table 2 Most Students Depend on Parents for Income

Percentage Who Receive Income

Source from This Source

Parents 37%

Part-time Employment 27%

Summer Employment 19%

Loan 15%

Scholarships 10%

Full-time Employment 5%

Other 13%

Note: Percentages total more than 100% because multiple answers were permitted.

Source: Belden Associates, College Newspaper Audience (Champaign, Illini Publishing Company,

1985), p. 20.

According to my survey, service, atmosphere, and location influence where men shop. Redwood and

Ross is judged to be average on service and atmosphere, the two most important characteristics, and excellent

only on location, which is considered least important.

Importance of Service, Atmosphere, and Location

Service was by far the most important characteristic with 80% of the respondents believing it to be

either very important or important. But what do men want the service to be like? Do they want the sales

clerk's opinion, or would they rather that the sales clerk left them alone to shop? A majority (60%) want

someone's opinion when they shop, but, according to some of the comments on the questionnaires, men do not

like pushy or overly helpful salespeople. One respondent wrote, "I don't like them to drag out a bunch of

clothes for me to try on. All they want to do is make a sale." Men prefer helpful, but not pushy, salesclerks.

Atmosphere was also an important advantage with 65% rating it as an important factor when they

choose a store. I found that men prefer a bright, friendly, warm, informal atmosphere rather than a dark, quiet,

formal one. The store decor can create an uninviting or even intimidating look by seeming unfriendly, dark, or

too formal.

Appendix 24-O: A Long Report Example

Page 10

A good location is the least important competitive advantage a men's retail clothing store can have.

Over half of the sample rated location as not at all important to them.

Redwood and Ross's Rating on Service, Atmosphere, and Location

In my survey, Redwood and Ross rated average on service and atmosphere, the two most important

characteristics, and excellent on the least important quality, location.

Redwood and Ross's service could be improved. A majority rate it as being just average. One man was

so dissatisfied with the service that he stopped shopping there. He commented, "The personnel were so

snobby that I won't go in there any more." This is an isolated example, but it demonstrates that people can be

negatively affected by snobby or rude personnel.

The personnel should be helpful by approaching every customer and asking if he needs help. If he

answers "No", the salesclerk should still watch him to see if he needs help later. The salesclerk should never

flatter the customer and say he looks good in everything. The salespeople should be friendly, honest, available,

and willing to help.

Ninety-nine percent of the people who know about Redwood and Ross's atmosphere rate it as either

good or excellent. This terrific response cannot be accepted at face value because half of the respondents have

no perception of the atmosphere. This may be a real problem because the people who responded "No

perception" may be the ones who would not like the atmosphere if they did know about it.

I found that a positive relationship exists between the importance of the atmosphere and Redwood and

Ross's rating on it. Redwood and Ross should not change its atmosphere because those people who think it is

important are satisfied with Redwood and Ross.

The final and least important competitive advantage is the location of the store. Redwood and Ross

received excellent ratings on this factor. Of the people who answered this question, 75% rate Redwood and

Ross as excellent. Research by Belden Associates shows that 68% of the students shop in Campustown at least

once a month. So students do spend time and money on campus.

I had also asked "Where do you prefer to shop?" Only 16% said they preferred Campustown. A

majority would rather shop in their home towns. Figure 2 shows where U of I men prefer to buy clothing.

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Business Communication: Building Critical Skills 6th Edition