Reference no: EM133224985

Assignment:

Abdullah Saeed began making wooden writing utensils as a hobby until Ahmed Umar recognized Abdullah's talent. Ahmed immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Abdullah Saeed had never thought of marketing his talent but Ahmed's enthusiasm and the recent sales were enough to change his mind. With limited resources, Abdullah contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Abdullah was ecstatic! "I figured business would slow down after that," Abdullah stated, "but in February I was contacted by Creative Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."

Creative Distributors provided products for school fundraisers in a seven-state area. Abdullah was offered a two-year contract and immediate inclusion in Creative's promotional flyer. Abdullah Saeed accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Abdullah added. "I couldn't grow out of control. I was already working to capacity." Abdullah decided to place his major focus on the large contract with Creative. However, to avoid placing his total emphasis with one customer, Abdullah continued nurturing his four previously established accounts without targeting any additional customers.

"At this point, I had set up an assembly line in a rented building," Abdullah explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Abdullah paused. "But I can't take the Creative project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."

1. As Abdullah business grows, is there any way that he could consider mass marketing?

2. How does Abdullah position his products differently among his customers? Explain.

3. Abdullah Saeed stated, "We use differentiated marketing, but we use undifferentiated manufacturing." Explain. In what way is Abdullah using concentrated marketing?

4. How does Abdullah segment his customers based on usage rate? Is there any demographic basis upon which Abdullah could segment the market?