Magazine article Marketing

OPINION: Volume and Long-Term Value - as Different as Sales and Marketing

Magazine article Marketing

OPINION: Volume and Long-Term Value - as Different as Sales and Marketing

Article excerpt

Two companies hit the headlines last week because of what appear to be very different strategic challenges. Panini, the leading manufacturer of football trading cards, has been apologising to customers because of a shortage of its World Cup 2002 collection. Unprecedented demand has left many newsagents sold out and Panini is unable to restock them, because it has also sold out.

It is an unfortunate situation. Panini's distribution base of hundreds of independent newsagents makes it hard to predict demand surges before they occur. As a result, nine- to 16-year-old males are now scouring their areas for any remaining supplies while Panini tries to manufacture more product before the World Cup ends and the market for those cards disappears.

Meanwhile, retail group GUS is getting ready to float Burberry on the London Stock Exchange. For two years GUS has planned the flotation and it now plans to sell up to 25% of Burberry in July for well in excess of pounds 1bn.

The Burberry brand smacks of success because of the remarkable turnaround that Rose Marie Bravo has engineered. In 1997 Bravo inherited a dated fashion brand. By widening retail distribution and associating Burberry with a series of hip and trendy celebrities, such as Madonna and Kate Moss, Bravo led the brand back to rude health. In 1999 annual sales were pounds 207m; this week Burberry announced 2002 sales of pounds 499m. A good week for Burberry; a bad one for Panini, right?

Marketing and sales are not the same thing. If they were, they would have the same name. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.