Marketing Case Study on CLUST Essay Example

such as channel conflicts, limitations in group buying solutions, and competition lowering profit margins. The various ways for consumers to make purchases can also pose challenges. After a successful launch strategy that generated interest, the website now faces a dilemma between focusing solely on group buying or expanding its offerings with less emphasis on low prices for consumers. The primary problem is deciding which path to take.

This problem is evident in Pauli's statement suggesting two alternative paths: either focusing purely on group buying or broadening the website's offerings with less emphasis on low pricing for consumers. The chosen strategy will have implications for profitability and long-term prospects.

One strategy is to prioritize increasing the value of group buying and offering discounted deals to members. This aims to meet the needs of more customers who were previously unable to access these offers due to limitations such as a small purchasing team. The main focus will be on strengthening the purchasing team to handle increased demands, even though there may be lower profit margins due to increased competition. It is important to note that most visitors come to clubs.com with the intention of saving money, as 86.9% are looking for savings.

Alternatively, another option is for the website to solely concentrate on providing an exclusive and creative workshop experience. As mentioned earlier, people are open to new service methods, and this alternative has higher profit margins compared to the previous one.