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Csr-Ikea

In: Business and Management

Submitted By miomarketmaker
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Kelly Elizabeth have got a mission of preliminary media budget range of $12.5 to $12.9 million, and sales budget of $4.85 to $5 million for fiscal 2006. Before Kelly Elizabeth’s presentation, Kelly Elizabeth and Grace decided to use the media vehicles in fiscal that was used in fiscal 2005, but Grace said that the cost of media advertising might grow two percent for fiscal 2006. They were not attending to hire new sales representatives in fiscal 2006.
Kelly Elizabeth should propose three major issues; Firstly, she suggest that the company should mainly focus on the pleasure/vacation traveller and business traveller market, and allocate the media advertising dollars in these two markets. The most important purpose to the company is offering a clean, comfortable and convenient place for business travellers, these also the main elements to enhance its reputation. And also the company has received lots of complaints from their frequent business guests about the family business. On other hand, pleasure/vacation travellers have more sense of price than business travellers, since business travellers generally apply for reimbursements from where they work. According to the case, the percentage of media budget in target pleasure/vacation travellers is 35 percent, and 65 percent for business travellers. This means that business travellers are their core customer comparison to the pleasure/vacation travellers.
Secondly, Kelly Elizabeth as well as should propose that carry forward the ‘frontier’ strategy in to fiscal 2006 plan which was used in fiscal 2005, because she believed that the results of ‘frontier’ strategy were positive, though mixed. She understood that brand awareness and brand acceptance would not be changed overnight. However, in 2004, there were 84.5 percent of guests preferred either extremely ore very likely to stay at an Astor Lodge & Suites on return visit…...

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