Case study Vera Bradley turnaround strategies

Document Type:Case Study

Subject Area:Business

Document 1

In this section, the paper identifies the past sales growth rate, the sales growth rate to determine the stage at which the company occupies in the life cycle. In 2011, the sales growth rate was $366. 057 million, 2012 was $460. 843 million, 2013 was $541. 12 million, 2014 was $536. The company had a net profit of $38. 4 million in 2015 and did not appear in the top 100 companies in the US by revenues (Wallace). The core source of liquidity in Vera Bradley emanates from its operations. As such, it may be interpreted that the company deals with good business operations. In the financial statement, the company has no debt owing to its potential for further growth and expansion. Significantly, Vera Bradley has a proprietary product line that is somewhat unique. In this regard, essential elements entail a patent for the particular capability merchandise that other competitors cannot access.

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Important to realize, the company engages other design experts for the maintenance of a value chain that is considered cost-effective. Upon reviewing the company's financial statements, the organization does not have any debts. Therefore, it has an internal strength to enhance the innovation of its products. Despite the significant expense of this marketing strategy, it lacks the potential to increase the customer base. Opportunities The best opportunity that the organization has is to expand the current market segments. While the global picture is deteriorating, there is an increasing demand for luxury goods in China. Other countries comprise India and Malaysia with substantial need. Consequently, the corporation can extend their distribution channels in China market. The management may also turn the organization’s weaknesses through determining an international distribution channel.

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Recommendations Strategic Issue Although Vera Bradley has new products on the market, it has failed to create awareness of the new designs to the customers. As such, the sales have been deteriorating which presents an organizational problem. Strategic Recommendations Vera Bradley should begin an important marketing campaign to increase awareness among the consumers about its products, including the new ones. One of the key reasons that the company was not successful in making sales with the new products was lack of awareness that the organization sold products other than the cotton patterned bags. Consequently, the brand will earn more exposure which will make it more dominant in the market. Mainly since the customer base of the company comprises of young consumers, Vera Bradley’s main aim ought to be the social media.

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It will attract more consumers and increase the sales by enhancing the positive image of the company’s brand. The management ought to improve the global market in China and other countries with significant demand for luxury goods. Notably, the global luxury goods industry has been continuously increasing over the decades. The most excellent emphasis will be on product categories like backpacks and bags. Strategic Justification An advertising campaign has numerous advantages in the marketplace, although there are disadvantages as well. Benefits include its effective branding which primarily refers to the impression of a company. In many cases when a company comes up with a product which proves to be inefficient, advertising campaigns come to the rescue and promote a product.

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