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To Study Of Sunny Homes Company’s Products

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Discuss about the Reasons why Customers are not Buying Sunny Homes Company’s Products.


Introduction and Background Information

The most significant aspect that businesses must get right is customer service. Customer complaints result from poor quality of products and services offered by a company to the customers (Fatoki, 2014). The provision of inferior quality products adversely impacts on the performance of a company. The poor attention to customer preferences, delayed provision and delivery of goods, and unprofessionalism are not acceptable while running a business.

Sunny Homes, a New Zealand based company located in Mankau city, Auckland is a modular and mobile home dealer that sells homes to different clients in the country. Sunny Homes sells three types of homes namely, Pine Grove Homes, Eagle River Homes, and Pleasant Valley Homes. Recently, the reputation of Sunny Homes has been tarnished due to the poor quality services offered at unaffordable prices. This report will explore the primary reasons why customers are not buying the homes/products provided by Sunny Homes company.

Project Aims and Questions

Recently, Sunny Shines company has started experiencing poor sales of houses to the customers, and this is a worry to the management. Despite the fact that Sunny Homes sells modern modular and mobile homes to customers, the quality of the buildings does not match the price at which the company sells these houses to customers. This hence has led to a shift in buying patterns by the customers to the enterprise's products.

This following objectives will be analyzed and discussed in this project:

  1. To identify the primary reasons why customers are not buying Sunny Homes company's products.
  2. To determine the effects of reduced sales level of Sunny Homes products by the customers to the company.

To ensure that these research objectives are properly achieved, the following project questions will be used:

  1. What are the primary reasons why customers are not buying Sunny Homes products?
  2. What are the effects of reduced level of sales to the company’s operations?

Literature Analysis

Reasons why Customers are not Buying Sunny Homes Products

To identify the reasons behind the reduced purchasing levels by clients to Sunny Homes products is caused by various factors. This project proposal adopts a situation analysis and evaluation of Sunny Homes internal and external environmental factors in order to understand the firm's capabilities, customers, and the business climate. These reasons include:

Perceived lack of caring to customers preferences by the company

Recent research shows that the clients of Sunny Homes have changed their purchasing attitudes due to the feeling that the firm has been expressing little care to customers demands (Rhee & Valdez, 2009). There have been customer complaints pertaining the modular and mobile homes sold by the company. However, instead of Sunny Homes responding to these complaints quickly,  they have been hesitant. As a result, customers have got bored and hence failing to buy from the company.

Damaged Public Reputation of Sunny Homes

The primary source of poor reputation that the clients have formed about Sunny Shines is the inability of the company to offer quality homes and their high prices charged on the homes. Further, the management of Sunny homes has been reluctant in marketing the product and make it accessible to all customers in the entire country (Prahalad & Ramaswamy, 2013). Due to this poor reputation, customers have changed their buying attitudes and shifted it to other competing firms of Sunny Shines.

Government Policies

The New Zealand government has introduced numerous legislations that adversely affect the real estate investors where Sunny Homes operate. The introduction of unfavorable legislations and rules to business operations of Sunny Shines has made the company increase the price for homes to cater for the additional charges introduced by the government (Crouch & Housden, 2012). As a result, customers have become reluctant in buying the mobile and modular houses sold by Sunny Homes.


Effects of Reduced Sales Level of Sunny Homes Products

The inability of clients to buy Sunny Homes company products has affected the company adversely. These impacts of reduced sales levels include:

Poor profits

The changes in customers attitude to buy Sunny Homes modular and mobile homes has led to poor productivity and hence small profits. Both the potential and existing clients of the company have shifted their loyalty to other real estate dealers, and this has significantly affected the profitability of Sunny Shines (Liu & Yermack, 2012). The loss of reputation to the customers due to the company's inadequate attention to customers demands has also led to reduced sales and thus small profits.

Loss of employees

The poor quality of client services provided by Sunny Homes makes these clients keen on scoring the employees of the company (Hahn, 2012). As a result, employees have quitted from working with the company since they operate under the direction of management. The company has been incurring a lot of money and time in advertising and hiring new employees for the firm.

Project Approaches

This study provides approaches that the business will take to improve the reputation it has to the customers so as to thrive in future. The dropped value of customer demand has dropped, and the company is worried about its sustainability in the business environment (Evans & Lindsay, 2013). The project adopts the following approaches:

Enhancing Quick Responses

The management of the company should lay down strategies for responding to the negative reviews labeled to the firm by customers (Badri, Nadeau, & Gbodossou, 2012). Sunny Homes should have a key figure who could monitor the areas resulting to bad client services for the company to make amendments.

Conduct Inbound Marketing

The project will adopt inbound marketing approaches with an aim to repair the damaged image and as an approach to retaining customers (Allred & Addams, 2013). This method should be undertaken by providing newsletters, exclusive deals, FAQ pages, and webinars to the customers. This client retention strategy will help customers build loyalty to the company.

Accept Responsibility for Wrongdoing

For the company to resolve this issue of poor sales of the homes, the management should take responsibility for giving poor customer services (Beneke, Flynn, Greig, Mukaiwa, 2013). Therefore, based on the negative perceptions of the customers to the quality of homes sold by the company, the company has to resolve the problem internally.

Project Management

To ensure the success of the project aims, a feasible project schedule is drawn to guide the proposed project showing the progress dates and the completion dates in a clear table.

The Project Time-Line

2017 Quarter 2

Understanding and familiarization with the company’s operations

Identification of key issues to get resolved in the project

2017 Quarter 3

Designing the research plan

Creating data collection tools such as surveys and questionnaires

Composing a literature review

Discussion with the director about the current situation

2017 Quarter 4

 Working on project proposal

Group project proposal

2018 Quarter 1

Find the target population from social media

Inviting social media participants into the survey

Data collection from the target population

Discuss with the director about the rationale of the collected data

2018 Quarter 2

 Working on personal proposals

2018 Quarter 3

·          Completion of individual proposals and submission to the supervisor

2018 Quarter 4

Write a team draft report based on individual proposal

Collecting the best ideas from different proposals

Finalizing the project methodology

Data collection

Data analysis

Completion and submission group draft report

2019 Quarter 1

·          Working on the feedback given by supervisor

·         Preparation and presentation of the final report

Project Resources

This project will use the following resources to carry out the project from its beginning to the completion:

Research assistants who would get the project done

Data collection tools; books, pens, files

Capital for money is required to assist the company pay salaries to the research assistants



Allred, A. T., & Addams, H. L. (2013). Service quality at banks and credit unions: what do  their customers say?. International Journal of Bank Marketing.

Badri, A., Nadeau, S., & Gbodossou, A. (2012). Proposal of a risk-factor-based analytical approach for integrating occupational health and safety into project risk   evaluation. Accident Analysis & Prevention, 48, 223-234.

Beneke, J., Flynn, R., Greig, T., & Mukaiwa, M. (2013). The influence of perceived product quality, relative price and risk on customer value and willingness to buy: a study of private label merchandise. Journal of Product & Brand Management, 22(3), 218-228.

Crouch, S., & Housden, M. (2012). Marketing research for managers. Routledge.

Evans, J. R., & Lindsay, W. M. (2013). Managing for quality and performance excellence.Cengage Learning.

Fatoki, O. (2014). The causes of the failure of new small and medium enterprises in South Africa. Mediterranean Journal of Social Sciences, 5(20), 922.

Hahn, R. (2012). Inclusive business, human rights and the dignity of the poor: a glance beyond economic impacts of adapted business models. Business Ethics: A European    Review, 21(1), 47-63.

Liu, C., & Yermack, D. (2012). Where are the shareholders’ mansions? CEOs’ home  purchases, stock sales, and subsequent company performance. In Corporate Governance (pp. 3-28). Springer Berlin Heidelberg.

Prahalad, C. K., & Ramaswamy, V. (2013). The future of competition: Co-creating unique   value with customers. Harvard Business Press.

Rhee, M., & Valdez, M. E. (2009). Contextual factors surrounding reputation damage with  potential implications for reputation repair. Academy of Management Review, 34(1), 146-168.

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