GROUP 1

Student Code Student name In-charge Check the answer

2013316676 Đỗ Lê Duy Question 5

2013316684 Nguyễn Thị Hồng Hà Question 1

2013316708 Nguyễn Quốc Khánh Question 2 ALL

2013316716 Trần Thị Huệ Linh Question 1

2013316731 Huỳnh Kim Ngân Question 4

2013316737 Nguyễn Tống Nguyên Question 7

2013316746 Trần Ngọc Phương Nhi Question 3

2013316815 Nguyễn Duy Thuận Tú Question 6

CASE STUDY
1. List and discuss the advantages and disadvantages of pur-chasing a two-wheel trailer for
each store to use for deliver-ing the Super Gyms.
Advantages:
- If the product is a hit, Kiddie Land could do its own deliveries, saving the company
money, and this investment could lead to a strategy for cheaper and faster distribution.
(Ex: They can deliver super gym to its stores on a daily basis and trailers will always be
available to deliver super gym to the customer’s premises)
- The trailer might be utilized for other deliveries or processes within the organization in
the long run.
- They can also rent or sell the trailer if there is no longer a need for it in the firm to save
money.
Disadvantages:
- Trailers incur licensing and insurance costs, adequate selection of bumper hitches, etc
which requires a high investment.
- If the product fails, there would be a huge loss of gross margin due to the high cost
involved of the investment to trailers.
 - High delivery costs translate into a loss of gross margin from product profits.
- If the trailers are damaged due to misuse, the company has to pay a fee to repair them and
increase the price of insurance.

2. List and discuss the advantages and disadvantages of having local trucking companies
deliver the Super Gym from the retail stores to the customers.
● Advantage
- According to marketing research 85% of the customers drive less than 25 minutes
to the store, so with the flat fee of $40 per shipment it would be cheaper to deliver
for the company
- The KiddieLand no need to spend capital on initial investment
● Disadvantage
- Most local companies that were found prefer deliveries twice a week but not daily
as demand might require
- Price fluctuation in future due to economic factors like oil prices, repair fee etc.
That could lead to an increase in the cost of distribution using this option
- Profit margin will be eaten away by paying the charges for using local trucking
companies' trucks

3. List and discuss the advantages and disadvantages of stock-ing Super Gyms at the
distribution centers and then having the truck that makes deliveries from the distribution
center to the retail stores also make deliveries of Super Gyms to individual customers.
● Advantage which consolidating and sending more than one delivery to the retailer or
customer equals that they will less travel
● Disadvantages
- Double deliveries to the distribution center and then to retail stores will make
burn a lot of fuel
- Squeezing an 18-wheeler into some subdivi-sions wouldn’t make sense
- Every time they try, they have risk of knocking down a couple of mailboxes and
leave truck tracks in some homeowner’s lawn during deliveries
4. List and discuss the advantages and disadvantages of charg-ing customers for home
delivery if they are unable to carry home the Super Gym.
● The advantage is that:
- Huge cost savings by shifting shipping costs to consumers
- Charging customers for delivery would absorb the $40 delivery fee per set
- Convenient for individuals who do not own an SUV.
- Customers can order product with no need to drive to the stores
● The disadvantage is that:
- Still existing customers who do not pay delivery charges, may not agree or be
dissatisfied
- Lossing the customers.

5. Which alternative would you prefer? Why?

1. Purchase a two-wheel trailer for each store.
→ Can’t solve the shipping problem.
2. Find a local trucking company that can haul the Super Gym from the KiddieLand store to
the customer.
→ Incur out-source fees.
3. Stock the Super Gym at the two distribution centers and have the truck that makes
delivery runs to the retail stores also make home deliveries.
→ Distance-effective & convenient for the customers but incur more transportation cost.
4. Charge for delivery if the customer cannot get the Super Gym home.
→ Shipping fees reduced.
→ Simple procedures for both parties. Customers can order online and spend the same
amount (product + delivery cost) as if they buy at the store (save time).
→ All alternatives aim at the convenience for the customers by home delivery but only
Option 4 is beneficial for the company.
5. Negotiate with the Super Gym manufacturer to ship directly to the customer.
→ Nominal cost unchanged but real cost increased.
6. Draft a brief statement (catalog copy) to be inserted in the firm’s spring–summer
brochure that clearly explains to potential customers the policy you recommended in
question 5.
If opted Doorstep Delivery, we got the following policy
Sell price (Product only) $715
Additional Delivery Charges (Deliver the product to customer house) $40
Total (including delivery) $755

7. At the first meeting, A. J. asked about SUVs, but there was no further mention of them.
How would you follow up on his query?
Advantages:
- A SUV was owned by more than half of the consumers.
- SUVs are often large, so they can easily hold three packages of Super Gym weighing 450
pounds.
- Some SUVs include hitches which can be used to tow a trailer.
Disadvantages:
- Loading and unloading the three large Super Gym equipment from the SUV might be difficult,
time-consuming, and inconvenient.
- Loading an SUV with such large and heavy cargo might endanger the driver's (customer's)
safety.