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A Rose by Any Other Name Case Study

In: Business and Management

Submitted By dzstoyanov
Words 350
Pages 2
Case One

The Dilemma:
Rose Partyware has been working towards creating its own brand of party ware supplies to give it a competitive edge in an industry of generic party supply manufacturers. Recently, Rose Partyware was presented with the opportunity to produce a private-label brand of party goods. This alternative would provide Rose with a stable revenue source as well as opportunities to create private-labels for other retailers. However, pursuing this option would drain Rose’s resources and prevent them from launching their own branded goods. Additionally private-labels would make Rose into a manufacturer-only role and limit its long-term prospects, but having its own brand is very costly to promote and comes with many short-term risks.

Possible Solutions:
1. Proceed with Rose Partyware branded party supplies. * Retain loyalty of small independent retailers (35% of sales) * Brand advantage in party supplies versus other generic suppliers * Positive long-term returns * Control over pricing, branding, and distribution of goods * Short-term technological advantage

2. Pursue manufacturing private-label goods for retailers. * Retain largest Rose customer (20% of sales) * Supplier of choice in private-label manufacturing * Lowest short-term risk * Cheapest option in terms of change to company structure & spending

The Decision:
If I were in Tom Roses’ position I would choose to proceed with Rose Partyware branded party supplies and persuade Party! to hold off its test launch. While this decision would expose Rose Partyware to the short-term risk of promoting their new brand, the potential returns as well as the prospects for long-term growth results in a net advantage for Rose Partyware. The threat of operating as an easy-to-replace private-label supplier is too risky Rose Partyware despite the short-term payoff.…...

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