PROPOSAL TO INCREASE CURRENT SALES

Delivered to the District Manager and Store Owners

June 27, 2014

Max Collins, Assistant Manager

allstarmax13@yahoo.com

OVERVIEW: SALES SLUMP

• The problem that this five month old Jimmy John’s is facing is slow

sales. The store is new to this location, but it is experiencing a plateau

in sales. As a result of these sales, the store is incurring significant

losses per four week sales period.

INTRODUCTION

• Jimmy John’s is a sub shop that differentiates itself from other sub

shops by two factors. First, they say that they make “freaky fast”

sandwiches and are usually able to complete each sandwich in 30

seconds or less. The second thing that separates Jimmy John’s from

other sub shops is that they can deliver. They significantly beat the

times of other delivery options such as pizza delivery by getting each

order to the customer between 5 and 15 minutes.

OPPORTUNITY: INCREASE BRAND AWARENESS

• Since the store is still relatively new, it may be necessary to analyze

its surrounding market of customers. The customers in this store’s

area may be unaware that this Jimmy John’s exists. In addition to

this, many customers might not know what Jimmy John’s is. As a

result, the store may need to improve its brand awareness.

THE CURRENT SITUATION

• Over the past five months, this Jimmy John’s has been experiencing the same

stagnant sales numbers. The reason could be that it is getting the same customers.

KEY SUCCESS FACTORS

• Two key success factors for Jimmy John’s exist because of their two types of

customers: In shop and Delivery.

• In shop: Providing these customers with their sandwich in 30 seconds or less. Sometimes

these customers get their sandwich before they finish paying which “freaks them out”.

• Delivery: Providing these customers with their delivery in a faster time than other

businesses that provide a delivery service. On average, customers can get their order

between 5 and 15 minutes.

• Both success factors are dependent on the speed of the service.

ANALYSIS OF ALTERNATIVES

• There are two alternatives to help the store produce a profit. One requires reducing

costs and the other requires increasing revenue.

• Reduce current variable costs: this could be done by eliminating waste of sliced meats or

prepped vegetables. In addition to this, meats are sliced at a certain weight range. Slicing

at the lower range could help keep food costs down.

• Increase advertising: in theory, offering samples to businesses in the store’s delivery area

can help increase sales steadily.

STRATEGIC OPTION

• Increasing the amount of sampling done at this store can be essential

to increasing the store’s sales. This would increase the overall brand

awareness of the consumers in the store’s delivery area. Following a

strict sampling schedule of two times a day and five times a week will

increase the store’s slumping sales.

BENEFITS AND RISKS OF STRATEGIC OPTION

• Following this strategic option more strictly than it is being followed currently

presents both benefits and risks. However, the benefits outweigh the risks.

BENEFITS

• Increased revenue: Sampling to different businesses will bring in more customers

and, as a result, increased sales.

• Increased brand awareness: New customers who either did not know that this

Jimmy John’s existed or did not know what Jimmy John’s was will have the

opportunity to try the product from the samples before they buy it.

RISKS

• The only risk is the effect of the costs incurred from using the extra product to make

the samples. However, this risk is not too significant because the benefits of

increased sales greatly outweigh this extra cost of the product used to make the

samples.

FINAL RECOMMENDATION/ CALL TO ACTION

• My final recommendation is to follow a strict sampling schedule at this store.

Currently, sampling is happening, however it is happening inconsistently.

Sometimes it happens once a week, other times it may happen every day. This

inconsistency will not lead to the consistent, increasing sales that both the district

manager and owners want.

REFERENCES

• Shwom, B. & Snyder, L. (2014). Business communication: Polishing your

professional presence (2nd ed. Pp. 296-301). Pearson: Upper Saddle River, New

Jersey.