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RMHC Analysis

 

As a result, it is not a wise decision.
             2. Solidify promotional programs, increase the amount of local .
             advertising, and direct marketing themselves.
             According to these actions, the customer loyalty will be much higher. .
             First, it has a close relationship with its customers through phone .
             contact with customers. The customers are satisfied with the present .
             service and quality of the products. Second, "envisioned ads and direct .
             mail pieces with picture and human interest stories about the staff as .
             well as charts showing the steady growth in patronage dividends over .
             the past few years" will intense the customer confidence to RMHC.
             especially for the "three large commercial customers." As for UFA,.
             Rocky Mountain House is a quite new area. It must invest much more .
             cost and time to attract new customers. Therefore, it should be worth of the investment.
             3. Vary the rate of patronage dividends by department. In other words, they decided to put more patronage dividends into the petroleum division and .
             decrease them of the other two divisions---home center and shopping center.
             The case was shown "margins in the petroleum division are much lower than in other area of the company." It means the petroleum division is not the most important profit maker. Then, reducing the other two divisions patronage dividends to support the petroleum will be a dangerous choice. The other two divisions will lose many customers through reducing patronage dividends, and it means the bigger part of the origin of profit will decrease.
             4. Get into the fertilizer and ag-chemical business. The reason why RMHC want.
             to open the business is "they are building a complete farm-supply outlet might be attractive to many current RMHC customers who would like to purchase crop supplies where they buy petroleum.


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