Marketing and Pottery Barn Essay

1. If Williams-Sonoma continues with its present strategies and objectives, where bequeath it be in 5 years? Given todays economy, and the bleak economic outlook, I do not weigh Williams-Sonoma will continue to exist with its legitimate strategies and objectives to serve its below propose grocery consumers. Bottom line is many consumers washbasinnot afford the products being sold by the company. Although, the companys target market is in the 10% of wealthiest consumers, and had total earnings of over 3.5 billion. (2010 grantholders meeting).Other avenues of generating revenue must be explored. I fear that even the 10% will eventu bothy become more cost informed in the years to come. On the lines of the company improving its position in the next five years, I think the company should continue to improve on concepts already in place. An example is the pottery group B Teen website. (pbteen.com). Williams-Sonoma had used the concept in moderation starting with WS acceptance re gistry.The idea took flight and as a result, locomote the concept to its sell operations such as Pottery Barn, resulting in a 500% jump in online gross revenue generating over 1 billion in revenue. (Prophet.com). Still with all(a) these profits and improvements, if WS cannot hold by decreasing its prices so that other(a)s not in the 10% range can afford their products, the company will fail like the housing market. Over the next five years, the company should consider inflateing its product line to include bath dcor to complement the already established retail home furnishings.2. If you were CEO of Williams-Sonoma, what strategies would you recommend? There are so many recommendations. I would first contour on the network base I talked about earlier. If I can improve internet sales over 500% I certainly want to keep that going. I would incorporate interactive websites. Having the might to talk to, chat with an associate while Im shopping in my underwear is eternally helpful. Next I would improve my e-commerce presence by advertising on social media outlets and improve availableness to shopping by posting web-apps. I would consider lowering price points so I could badger into the more than 10% of consumers without becoming Wal-Mart. Now the company did do something to increase its position that I found useful.That was to decrease its overall lease space by 2%. (2010 shareholders meeting). This reduction in retail occupation cost attributed to the 1 billion dollars the company enjoyed last year. I would also consider expanding the companys customer base by broadening the product line to similar to Home Goods or cut Bath and beyond who currently double the revenue of Williams-Sonoma. (Redistribute assets earmarked for traditional cataloging to online accesses. Not only will this accomplish money, but will also impact paper usage. I believe advertising in this was has all but outlived its usefulness.3. Describe the competitive strategies used by each of Williams-Sonomas competitors. Which of these are most good? Williams-Sonoma has six major competitors plus one more in their market. The company holds only 7.9% market share (FY10) to main competitor Bed, Bath and Beyond with an astonishing 34.4%. (William-sonoma.com/investors) BBBs strategy is to offer competitive prices for tonus products. Its target market is middle to upper middle class and this is the reason it fairs better in the current market. The Bombay Companys strategy was to increase its footprint by increasing outlet store locations so it could offload clearance items and increase sales to the outlet mall customer base. (Homeaccentstoday.com).Crate and Barrel stubborn to complete a nationwide marketing campaign that targeted catalogs and websites. While Pier 1 Imports, in a bold move consolidated chains, and licensed their name to Sears in Puerto Rico. (turnaround.org). Door to Store decided to win over and market to style-minded customers at low prices capitaliz ing on web selling and shipping nationwide. (buyfurnitureyoulove.org). Rolling Pin Kitchen emporium switched most of its locations to upscale malls and targeted marketing thru websites and catalogs. While Restoration Hardware seemed to advertize to its wealthiest customers targeting the top 10%, attempting to expand its base. If I had to choose one of these strategies I would have to go with the one I mentioned first.I am aware that this was not a in the original case study but in researching I found the Bed Bath and Beyond strategy to be most formidable considering the company twofold the revenue of Williams-Sonoma last year. There is a reason why the company commands 35.4% market share in FY 09 while WS was at 7.9%. (Williams-sonoma.com/investors) Williams-Sonoma is only utilizing a portion of marketing power while watching other companies progress thru a tough recession and recover by constant restructuring.4. How is Williams-Sonoma using the Internet as a distribution channel n ow, and how would you recommend that they us the Internet in the future? Williams-Sonoma launched a bridal registry as a test bed for furthering the use of the internet. (prophet.net).This shift was so successful it moved the use of the internet to Pottery Barn, and other retail outlets. The result was 500% increase in internet sales and a 1 billion dollar profit. They also used the web to launch PB Teen which focused on the gap in age between Pottery Barn and Pottery Barn Kids. Each website is interactive now but PB Teen was the first with outstanding success.This appealed to dialed in kids wanting something to improve their own piece of sanity, their bedrooms. The interactive site allows the exchange of ideas, instant feedback and the customer has the great power to view products they like. Williams-Sonoma has already completed its internet shift. I feel they can rely more on the model by providing 24 hour online support to those consumers that have odd hours. Furthermore I belie ve the company should limit its use of hardcopy catalogs unless specifically requested because this focus had established itself as a business, does zip fastener for it in the future. Another approach is marketing thru social networking sites. This approach, along with direct marketing does have its costs and would show profit after the initial cost blast. If the company wishes to improve its position of 7.9% market share, it will need every edge it can possibly have.