Pier 1 Case Analysis
1. Situation Analysis First one must analyze the capabilities of the firm and its ability to develop and implement a successful promotional program. The successes and failures of past programs must be analyzed as well. Pier 1 Imports kept its focus throughout the years. Pier 1 opened its first store in 1962 in San Mateo, California. Its objective has been to offer the consumer distinctive items. The company has been successful with that marketing plan. The company started in 1962 with one location, and today Pier 1 has more than 1,200 locations. Since the company has been around for 51 years, and has established the strong socially responsible image they do not have to focus on their company image as much as an upcoming company.
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“In April 2007, Pier 1 Imports implemented a turnaround strategy that involved improving merchandise assortment and margins, while reducing inventory and associated operational costs. However, such an attempt has not been fruitful, with reduced consumer spending since the recession significantly hurting the company 's overall sales. To this point, revenue is expected to fall at an annualized rate of 0.5% over the five years to 2013 due to declining same-store transactions and closures of underperforming locations. As economic conditions continue to improve, however, IBISWorld projects that the company 's consolidated revenue will experience strong growth. From 2012 to 2013, industry-specific revenue is expected to increase by 3.0% to total $1.3 …show more content…
Pier 1 uses and indirect channel of distribution. This company imports a selection of unique products from India, Vietnam, and 58% of its merchandise is distributed from China. This leaves the company vulnerable to variations in the value of the dollar and other trade disruptions. The large amount of merchandise received from China can also affect Pier 1 in the future as the Chinese labor wages are likely to increase, which can also cause the sourcing costs for increase for Pier 1.
4. Methods of Selling
a. Pier 1 sells online as well as in store. The recently new CEO Alex Smith has chosen to put forth more money into making the store environment and the service offered more pristine. Although he knows that e-commerce is the cutting edge of how many consumers shop today. He still believes that seeing the products that Pier 1 offers on a small cell phone screen does not do the company and its products justice (Dishman). Therefore, he has spent more money in renovating current Pier 1 stores and opening new ones in the heavily populated areas.
2. Campaign
“In April 2007, Pier 1 Imports implemented a turnaround strategy that involved improving merchandise assortment and margins, while reducing inventory and associated operational costs. However, such an attempt has not been fruitful, with reduced consumer spending since the recession significantly hurting the company 's overall sales. To this point, revenue is expected to fall at an annualized rate of 0.5% over the five years to 2013 due to declining same-store transactions and closures of underperforming locations. As economic conditions continue to improve, however, IBISWorld projects that the company 's consolidated revenue will experience strong growth. From 2012 to 2013, industry-specific revenue is expected to increase by 3.0% to total $1.3 …show more content…
Pier 1 uses and indirect channel of distribution. This company imports a selection of unique products from India, Vietnam, and 58% of its merchandise is distributed from China. This leaves the company vulnerable to variations in the value of the dollar and other trade disruptions. The large amount of merchandise received from China can also affect Pier 1 in the future as the Chinese labor wages are likely to increase, which can also cause the sourcing costs for increase for Pier 1.
4. Methods of Selling
a. Pier 1 sells online as well as in store. The recently new CEO Alex Smith has chosen to put forth more money into making the store environment and the service offered more pristine. Although he knows that e-commerce is the cutting edge of how many consumers shop today. He still believes that seeing the products that Pier 1 offers on a small cell phone screen does not do the company and its products justice (Dishman). Therefore, he has spent more money in renovating current Pier 1 stores and opening new ones in the heavily populated areas.
2. Campaign