Using the features of the product
S: You have proposed three ways to eliminate the threat: increase the turnover rate of new watches; use visual advertising or booklets; and conduct mass events to sell more watches. If implemented, it will be possible to reduce the losses associated with occurrence of new clocks on your shelves.
T: But how could these “ideas” be implemented? I do not see any way.
S: We’ll talk about that issue now. I suggest using the features of the Gagarin desktop clock to implement these methods.
T: Which ones?
S: The ones that I mentioned in the presentation.
Table clock "Gagarin" is characterized by multifunctionality, exclusivity and is associated with space. These features allow the buyer to demonstrate belonging to a special, exclusive public group, thereby claiming a higher status than he actually has.
How can we use our knowledge of these features to conduct mass events for the sale of watches?
T: We could conduct a “status watch festival” and show there what the status difference is between “Rolex” and “Gagarin.” At the same time, we could split the “status” buyers into two categories: the cheaper status and the more expensive status. These are, in fact, two different approaches. In our store I met those who needed a “cheaper status,” they are only licking their chops at Rolex, but do not buy Casio. In short, they are viewing us like a museum – looking but not buying. Now, of course, we can target them at Gagarin, since you have a wide range of prices.
S: How can we use our knowledge of these features to create visual advertising?
T: Here we could, on the one hand, design something like a poster that shows the transition from a “purely functional” Casio to a “purely status” Rolex through Gagarin. It is possible to arrange the watches and clocks on the shelves in this order: from “purely functional” to “purely status.” It’s interesting, but in this case Gagarin might occupy the very center, which may positively affect its sales and turnover rate. Although not three times faster, but still...
S: How could this knowledge be used to create brochures?
T: Same approach: watches and clocks for all tastes and budgets, from “functional” through “low-cost status” to “high-cost status.” These brochures could attract new customers to our store, those who have not previously thought about buying a watch or clock.
S: Well, the last question: how could this knowledge be used to increase the turnover rate?
T: We already talked about that. If we run “festivals,” send out brochures, put these clocks in the center of the counter, we might increase the turnover rate. Also, we need to formulate for sellers how to present watches and clocks: who might be interested in this watch or clock, and what are their advantages and benefits.
S: Do you think this would be enough to avoid the threat and prevent too big of a reduction in profitability?
T: It seems, yes, that’s enough.
S: Is there anything else keeping you from deciding and ordering Gagarin table clocks for your store?
T: No, nothing.
S: Then let’s close a deal?
T: Yeah, why not?
The group passed its exam.