The analysis considers the roles of pricing, advertising, consumer promotion, and trade promotion in marketing the mature product. The paper includes problem statement, problem analysis including evaluation of quantitative factors, identification and assessment of alternatives, and recommendation and implementation with tentative budget for marketing the product.
There is a need to optimize the promotional spending on brand advertising, product distribution, consumer promotion initiatives, and trade promotion programs.
A constellation of problems -- which are highly interactive -- will be considered here. The trade promotion program and the consumer promotion campaigns are not operating in concert, nor are they achieving their stated goals.
The trade promotion program has been co-opted by the merchandisers, such that, discounts are used to build supply in storage and not to restock shelves. As a result, year-long sales are not stable; an inordinate number of sales to the trade occur during trade promotions.
In addition, because discounts from the trade promotion process have been captured by the trade, there is no incentive to implement the consumer promotional campaigns that are designed to overlap the trade promotion periods.
Any potential for increased sales due to consumer discounts or for developing a new and enthusiastic customer base are undercut by the actions of the merchandisers. The following questions form the basis of the marketing problem statement: What incentives are available to promote conformity with the intended objectives of the trade promotion program?
How can the sales force encourage merchandisers to implement the consumer promotion campaigns during their trade promotions? What type of training might be offered to the sales force to engender excitement about the multiuse possibilities of the RBS product?
How can social media be used to invite conversations with a young market segment?
What advertising firms show promise of running a successful cross-channel campaign to reposition the RBS product as "more than baking soda? Recommendations are made for changes to current levels of marketing expenditures for advertising, the consumer promotion program, and the trade promotion program.
Long-term strategic implications for the recommended changes in the marketing plan are addressed in the final section. With the objective of optimizing the promotional spending plan for Reliance Baking Soda inprimary consideration will be given to changes in marketing expenditures, particularly with regard to the effectiveness of the trade promotion and consumer promotion programs, and the advertising strategy and plan configuration.
The statements in this paragraph are general observations that refer to a three-year period from through Consideration will be given to a comparison the changes in marketing expenses over this three-year period.
Figures for are estimated based on Q1 and Q2 revenue and expenditures. Gross sales and gross margin for the period are up over three years.
Advertising costs are moderately down from Total marketing expenses are up over the three-year period frombut are down in compared to Marketing Plan Problem Considerations.
These increased earnings will be used to fund the marketing launch for two new Division products. Alternative schemas include an increase in promotional spending, a reduction in promotional spending, or a reallocation of promotional spending without changes to the categorical advertising expenses.
This section addresses considerations related to the trade promotion program. Feedback from various stakeholders indicates a lack of agreement about what changes should be made to the trade promotion plan."Reliance Baking Soda Optimizing Promotional Spending" Essays and Research Papers RELIANCE BAKING SODA Stewart Corporation Stewart Corporation had four divisions i.e.
Household, Beauty, Foods and International. In the company generated $ million in net income and $ million in profit. Abstract of Case Study for Reliance Baking Soda: Optimizing Promotional Spending (Brief Case): Reliance Baking Soda: Optimizing Promotional Spending (Brief Case) Case Solution.
Reliance Baking Soda is Stewart Corporation’s oldest and most established product. Abstract of Case Study for Reliance Baking Soda: Optimizing Promotional Spending (Brief Case): Reliance Baking Soda: Optimizing Promotional Spending (Brief Case) Case Solution.
Reliance Baking Soda is Stewart Corporation’s oldest and most established product. Reliance Soda. RELIANCE BAKING SODA Stewart Corporation Stewart Corporation had four divisions i.e.
Household, Beauty, Foods and International.
In the company generated $ million in net income and $ million in profit. Reliance Baking Soda: Optimizing Promotional Spending (Brief Case) is a Harvard Business (HBR) Case Study on Sales & Marketing, Fern Fort University . Reliance Baking Soda is Stewart Corporation's oldest and most established product.
The new Domestic Brand Director needs to create a marketing budget .