The Running Room Case Study

The Running Room Case Study

Problem Identification

Running room as an international retailer chain with over a hundred locations in Canada and the four in the United States has several challenges. One of the main challenges facing it is the expansion of its market and competition from other retail chains in Canada, such as Forzani Group Limited and Sporting Life. Additionally, as much as the company or retail chain uses technology to market its product, it has not upgraded it to a level that meets many customers across Canada and the United States. The marketing strategy that the chain also uses does not help them to stay in the market and even lead.  There is no proper corporate culture that enables them to keep their technology up to date and also follow the current trends in the market, such as targeting customers through Ads and online advertisements.

Situation Analysis

The company has several strengths and weaknesses. One of the major strengths is that it offers customers quality products with unique prices. It runs a successful line of private label known as the Running Room fit-wear and a range of gears and electronics for serious runners. Some of the footwear include Nike, Mizuno, Adidas and new balance. However, the retail has a weakness when it comes to customer services, marketing strategy and expansion. Unlike their competitors that have strong on line marketing, through advertisements, digital strategy and integrated marketing strategy,  running room only has several chains across Canada with few in the US. Additionally, the customer service offered by the retail, such as priced clinics will not attract many customers and sponsors. Therefore, the company needs to establish strong marketing strategies to enable it to outcompete other retail, offering the same products and services. Furthermore, the company should have a target of opening additional locations in the US and also in Europe.

Organizational Objectives

Running Room Retail company needs to set up specific objectives that will enable it to grow and expand and be able to attract many customers across the globe. Some of the objectives include; establishing business technology management that will help in productivity and innovation and hence increase sales. Ensuring that, the business strategy like better product service provision is in line with the goals, culture and activities of the company. Creating a strong digital market that will enable sales across Canada and the globe. Additionally, another objective of the company should be establishing ways through which they will be able to achieve competitive advantage. For example, retaining customers and reducing costs of production to sales.

Three Alternatives

One of the alternatives is establishing a strong digital market. Having a strong website that enables advertisements will enable Running Room to become more successful and also be able to reach more customers across the globe. Due to technological advancement over the past years, the company will be able to offer its customers information about their products, business, upcoming events, prices of products, membership of the company, locations of its branches and main office, and also training trips to welcome many runners. An advantage of digital marketing is that the company will not incur a lot of money running it. Another alternative is having an innovative business strategy that will enable the company to create more and better output, alter the methods in which the company will compete and efficiency to benefit the customer. Lastly, another alternative is having project management body of knowledge in the company that will help the management, team leaders, and sponsors have a large array of project management practises and techniques that will enable them to create a unique product service that will result into the company getting and having many customers.

Recommendations

The best alternative to the company is establishing a better digital marketing strategy. After expanding and opening several outlets in the united states, Running Room should have a strong digital market that will enable it to advertise, brand and sell its products to the expanded market with ease. The company can also have an integrated marketing strategy that will enable it to have everything on the website. For example, the products with several brands, the price of the products, promotion of the products and the place in which the customers can find the products and ways in which they can buy online and have the company deliver them to their nearest places or at their homes. The company should also have better positioning and a target market that will expand its likely buyers.

Implementation Plan

The company should expand its capital in digital marketing by increasing its expenditure in the advertisement from the current fifty thousand Canadian dollars to around one hundred and fifty thousand Canadian dollars. The money should be used by each store to create awareness in the first months of its operations in the United States. The company should establish other locations in Florida, Hawaii and Maryland in the first two months. After establishing the offices, the company should target the millennial’s in those areas by creating adverts that will attract them to buying the various products they are offering, such as Nike and Adidas.