Anasazi Case Analysis
Anasazi salon products is a very unique venture. Not in the sense that they sell salon products, but more on how they do it and to whom they have decided to focus their efforts towards. Thus far, sue has done a great job pursuing her new business opportunity. From my perspective I believe that Sue has found a need in a competitive market where bigger players have failed to deliver. In the following analysis, I will focus on the different areas such as people, opportunity, deals, business model, risk, capital, context and legal issues. Though I am fore how Sue has pursued her opportunity, in some areas she has failed and I will be addressing that as well. Let us see the people aspect of Anasazi and how they have managed to bring together a well-rounded team.
Sue Krukonis, Vice-President of the Elite Division for Zoto International saw that product manufactures were more focus on mass distribution of their products rather than selling exclusively to salons. She found this to be a problem due to the fact that salons were complaining that the products were not exclusive enough and could be purchased at grocery stores and other small mall retailers. Getting tired of this at Zoto, Sue decided to start her own product line and exclusively market it to the top 20% of salons since their revenue was 80% retail. Sue saw an opportunity she could capitalize on in the salon products industry which was extremely competitive and barriers of entry were high due to requiring 20-50 million in capital to successfully advertise new products. Since Sue was very familiar with marketing strategies, she know that using a distributor would not get her products into salons since distributors push products out that server a higher profit margin in their favor. Sue’s plan was to cut ou the distributor and directly sell to salons in order to build a customer base and loyalty. Sue knew her strategies for selling salon products directly to salons was a great idea that she and her partners
Sue Krukonis, Vice-President of the Elite Division for Zoto International saw that product manufactures were more focus on mass distribution of their products rather than selling exclusively to salons. She found this to be a problem due to the fact that salons were complaining that the products were not exclusive enough and could be purchased at grocery stores and other small mall retailers. Getting tired of this at Zoto, Sue decided to start her own product line and exclusively market it to the top 20% of salons since their revenue was 80% retail. Sue saw an opportunity she could capitalize on in the salon products industry which was extremely competitive and barriers of entry were high due to requiring 20-50 million in capital to successfully advertise new products. Since Sue was very familiar with marketing strategies, she know that using a distributor would not get her products into salons since distributors push products out that server a higher profit margin in their favor. Sue’s plan was to cut ou the distributor and directly sell to salons in order to build a customer base and loyalty. Sue knew her strategies for selling salon products directly to salons was a great idea that she and her partners