Finally, the online selling seems to be a good idea to start with regardless the disadvantages it might have. I will further develop this idea in my recommendation section.
The Weaknesses
On the other hand, the way this study was conducted appears to have some weaknesses and limitations. Concerning the product, I think that the size of the bag is really big. A 36 inch bag is huge and really hard to carry if it is full because it will be heavy. If we compare this product to the competitor, I think that it is a good idea to have wheels. I disagree with Ricci statement “oversized wheels would be cumbersome to maneuver on the sand”. I think that if the wheels are thick enough, the cart will not be able to move at all.
In my opinion the potential market has not been selected properly for the following reasons. First, the age group is 18 to 44. I think that this should be much lager because a 16 year old could be carrying a beach bag as well as a 60 year. Another problem with the potential market is the gender. I think man could also be potential buyer of this product. My forecast is that the percentage of man will be much smaller, but there is a market for man. In addition, I believe that the geographical division is not a good one. People that live in the Midwest do not have beaches close by. They could eventually purchase this product if they are traveling.
The most dangerous weakness of this case study is that, Ricci thinks that the potential market can be calculated by adding the sunscreen buyers to the suntan buyers. Using common sense, some people use sunscreen on a daily to protect their skin and also people use suntan to tan in the front of a pool or in a veranda.
In the distribution section, I think that something very important has been forgotten. The transportation cost to transfer the bags from the manufacturer to Ricci house has not been taken into consideration.
Finally the financing seems to be a problem. She did not take into consideration the cost of providing her customers with online service. She also does not seem to have a clear plan about how she is going to finance all her expenses. Moreover, Ricci does not have a business plan.
My recommendations to The Beach Carrier
In my opinion, the company should think about reducing the size of the bag. I propose a bag that is about 30 inch that is adjustable to 15 inches. This will allow different customer that have different need to satisfy them. For example some one that wants to bring only a towel and some cosmetic products will not need such a big bag. I also think that a beach bag might be heavy with an umbrella and chairs. For this reason, I believe that it would be interesting to introduce a two shoulder straps bag instead of one. Another possibility is to introduce a product that has the same wheels as a mini quad and that can be droved using a remote control. This will be the most convenient but further research should be made on the cost and the potential market for this product. Concerning the online selling, I think that the best idea is that Ricci should hire a company to help her with security issues. Another alternative would be to hire an intermediary company such as amazon.com that would sell her product online. Finally, I recommend Ricci to think about a targeting an international market in the long run.