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Jolson Lift Case

Decent Essays

The lift market in North America is divided into two main segments of In-ground and Surface. Surface lifts (two posts, four posts, scissor, and other) take up 79% of the total market in 1999, while In-ground (single post, and multiple post) occupied the rest with 21%. There were a total of 49272 lifts sold in North America and the U.S. market is 10 times larger than the Canadian market. Hoists ranged from $3,000 to $15,000, while Jolson Auto motive’s average retail price was in the upper middle at $10,990 (company received average of $9,210). Scissor lifts account for 4.7% of the total lift market with 2316.

1.) 49,272 hoists sold each year in the U.S., 1054 being sold by Jolson.
Based upon the information given, if Jolson sold 1,054 …show more content…

8.) There is a strong opportunity to build the U.S. Market
Jolson has the opportunity to open a sales office in NY that would serve the New England and Mid Atlantic market for the Jolson lift. If Jolson had a dedicated sales team serving this area, then the possibility of increasing market share is a possibility.

9.) There is a strong opportunity to enter the European Market.
Jolson has an opportunity to enter into the European market with little to no liability in the current plan from Bar Maisse.

10.) Each Distribution channel earns different levels of profit.
Jolson’s direct sales distribution receives 100% of the profit earned from each hoist sold. Through Canadian Distributors, Jolson receives 80% of the selling price. Lastly through the U.S. Wholesaler distribution, Jolson receives 78% of the total selling price. By using this information. Jolson can evaluate which distribution channel has the most profit potential. .) Recommendation of Action

a.) Should Jolson stay with their existing overall marketing strategy?

a1.) Establish a sales office in the Eastern section of the United States.
Based on the information provided, Jolson should keep their three levels of distribution (Direct Sales, Canadian Distributor, and U.S. Wholesaler), while adding an additional market strategy of opening a sales office in the United States around the New England area. The United States has 264 million people with 146 million cars. If the

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