Marketing Management Internship Project

Project Summary

• Current Benefits• Conceptual Ideas• Timeline• Financial Impact• Risk Analysis• Pros and Cons

Through increased awareness of our membership benefits among associates, current members, and prospects, we intend to grow our membership base and increase retention rates.

Membership Loop

Tire & Battery Center

Tire & Battery CenterBecause you are a member, did you know that our tire and battery center offers free: flat tire repairs, battery checks, air pressure checks,

and tread depth checks.

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100%

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MemberAssociates

Average Member 31%Average Associate 77%

Tire & Battery Center

Current Benefits• Free flat repairs• Free battery check• Free air pressure check• Free tread depth check

Conceptual Ideas• Wheel alignment equipment- Offer free alignment when

upgrading to plus or renewing

- Offer an (e value) $10 off prior to a purchase of 4 new tires

Timeline• October (fall season)

-Promote winterizing

If Sam’s Club offered Wheel Alignments as a service to the tire/battery center,

would you take advantage of it?

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100%

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MemberAssociates

Member Average 84%Associate Average

83%

Impact of Wheel Alignments

Pros• Competitor driven

(COSTCO)Long- term profit by:- Increase member

satisfaction- Increase plus

memberships

Cons- Starting cost

(equipment and certifications)

- Not enough space - Labor wages

Tire & Battery Center

Alignment Financial Impact• Equipment $38,000• $452 amortization per

month for 7yrs.• $30 align. cost * 80

expected monthly align. = $2400 PROFIT

• $2400 – $452 = $1948 PROFIT per month

• Associate state certification cost $27

Risk Analysis• Safety/Physical liability of

associates• Increase liability

insurance• Significant financial risk

due to lack of sales

Jewelry

JewelryWould you take advantage of our Jewelry dept. if we offered: ring cleaning and adjustments?

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Members Associates

Member Average 53%

Associate Average 56%

Jewelry

Current Benefits• 1 & 2 yr. warranty• 100% refundable• Plus Membership

additional yr.

Conceptual Ideas• Ring

Cleaning/adjustment• Host education classes • Make cost comparison

sheets• Demo fragrance

Timeline• February & December

JewelryFinancial Impact• Total Cost of Hosting Educational

Classes – minimal• Total Cost of Cost Comparison

Sheets – minimal• Total Cost of 2 Fragrances Demoed

over a month- $48.00• Expected Sales – 17 bottles @ • 10 bottles x $34.67 = $346.70 • 7 bottles x $36.27 = $253.89• Total Expected Sales = $600.59• Total Profit = $192.24 • Total Profit / Total Cost = ROI• ROI = 300%

• Total Dollars = Total Profit – Total Cost $144.24

• *Total Cost of Demo Cart = $150.00 initial fee

• There will be a small loss on the first use of the Fragrances Demoed, however, the SECOND time and beyond these numbers are accurate.

Risk Analysis• Hosting class (low)• Cost comparison sheet (low)• Fragrance demo (moderate-high)• Ring cleaning/adjust. (extremely

high)

Impact of Jewelry Benefits

ProsFragrance demo• Increase sales• Member satisfaction

Educational Class• Informative• Test pilot for other

departments

ConsFragrance demo• Safety Issues• No profit

Educational Class• Ineffective

Cost Comparison Sheet

Jewelry Cost Comparisons - Example    

Item Competitor Price Our Price Savings

.75 ct. t.w. 14K White Gold Diamond Studs $3,400.00 $ 1,104.00 $2,296.00

14K Gold Freshwater Pearl Earrings 6.0mm

$85.00

$27.88 $57.12

.20 ct. t.w. Black & White Diamond Pendant

$600.00

197.12 $402.88

Total Savings     $2,756.00

Conclusion

We hope that because of our dedication and research that these ideas will be considered as a future reference to bring in new members and enhance the shopping experience of our existing valuable members.