Comm 215 - Case Study of Custom Covers

Case Study of Custom Covers

COMM/215

Case Study of Custom Covers

In the last three years, from 2002 until 2005, we at Custom Covers, Inc have lost approximately ten percent in revenue in each of those years. Unfortunately, due to these lost revenues, I have had to lay off 100 employees' in the past two years. Even though these lay-offs have helped with recouping some of my lost revenue, I foresee the possibilities of more lay-offs if sales do not increase soon. I do not want to lay-off any more employees' so I would like to discuss some ideas that may benefit both of our companies.

As you all know, my company has been making and providing leather steering wheel covers for your cars for several years. It has been an honor and privilege working with GM for all these years and I want to continue this working partnership for many more years to come. I am aware of the losses that General Motors has experienced in just this past year, and as an exclusive contractor, I want to do whatever I can possibly do to help your company regain its customer base as well as make my add on accessory appealing to your customer base; whether they are your future customers, prospective customers, current customers or past customers.

I have a couple of ideas that I would like to discuss with you all and hopefully they will be helpful to GM as well as to my company. My first proposal will be to add my steering wheel covers to any promotional offers or packages where GM could cover half the cost and I will cover the other half. These promotional offers can be for returning customers or to attract new customers. Another proposal I would like for GM to consider will be to have a "lottery" type of promotion at each of your dealerships. The purpose of this "lottery" would be that one out of every one-hundred car buyers will have the chance to win a package upgrade that will include my steering wheel covers. For my final proposal I would like to suggest a "trend towards value" concept. This concept will have GM offer my steering wheel covers to every model of your cars and in doing so I will reduce the prices of the covers to around $55 to $125 per cover.

There are several benefits to these proposals that I believe would help both GM and my company. For my first proposal, I believe that by adding the steering wheel covers as a promotion this will allow the customer to