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    Reliance Baking Soda

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    zqasim
    This document provides an overview of a presentation on optimizing promotional spending for soda. The presentation is given by a group of 5 students and addresses 4 questions: 1) analyzing the strengths and weaknesses of the RBS brand, 2) evaluating the effectiveness of past RBS promotions, 3) comparing push vs. pull strategies for low-involvement grocery items, and 4) providing a recommendation to achieve a profit target through trade and consumer promotions. Key points addressed include increasing prices and promotion budgets to maintain ratios and market share.

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    Reliance Baking Soda

    Uploaded by

    zqasim
    578 views10 pages
    This document provides an overview of a presentation on optimizing promotional spending for soda. The presentation is given by a group of 5 students and addresses 4 questions: 1) analyzing the strengths and weaknesses of the RBS brand, 2) evaluating the effectiveness of past RBS promotions, 3) comparing push vs. pull strategies for low-involvement grocery items, and 4) providing a recommendation to achieve a profit target through trade and consumer promotions. Key points addressed include increasing prices and promotion budgets to maintain ratios and market share.

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    RelianceBakingSoda

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    This document provides an overview of a presentation on optimizing promotional spending for soda. The presentation is given by a group of 5 students and addresses 4 questions: 1) analyzing the strengths and weaknesses of the RBS brand, 2) evaluating the effectiveness of past RBS promotions, 3) comparing push vs. pull strategies for low-involvement grocery items, and 4) providing a recommendation to achieve a profit target through trade and consumer promotions. Key points addressed include increasing prices and promotion budgets to maintain ratios and market share.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    578 views10 pages

    Reliance Baking Soda

    Uploaded by

    zqasim
    This document provides an overview of a presentation on optimizing promotional spending for soda. The presentation is given by a group of 5 students and addresses 4 questions: 1) analyzing the strengths and weaknesses of the RBS brand, 2) evaluating the effectiveness of past RBS promotions, 3) comparing push vs. pull strategies for low-involvement grocery items, and 4) providing a recommendation to achieve a profit target through trade and consumer promotions. Key points addressed include increasing prices and promotion budgets to maintain ratios and market share.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Soda:

    Optimizing
    Promotional
    Spending
    Presented by Group 2
    Anantaya Gupta
    Indrayani Ingale
    Jharna Rochlani
    Viranchi Shah
    Zainab Qasim

    B020
    B025
    D048
    D050
    A041

    Q1. What are the


    strengths and
    weaknesses of the RBS
    brand?

    Q2. Analyze the effectiveness of


    past RBS consumer and trade
    promotional events. How have the
    promotions strategies impacted
    sales volumes? What kind of return
    on investment is the company
    getting for consumer promotions and
    trade promotions?

    Q3. Compare the relative


    merits of a push vs. pull
    strategy for the
    marketing of a lowinvolvement (low price)
    grocery item in a mature
    market setting.

    Low involvement
    products

    Relatively inexpensive
    Pose a low risk to buyer
    Consumer is not actively
    searching for information or
    alternatives

    Push strategy

    Pull strategy

    for low-involvement, impulse products


    Use sales force, trade promo to induce
    intermediaries to carry, promote and
    sell products to end-users
    Helps in generating sales and increasing the topline of the
    company
    main objective is to create an immediate sale and not to
    create product involvement

    For high-involvement, differentiated offers


    Use advertising, consumer promotions
    and other forms of communication to
    persuade consumers to demand the
    product from intermediaries
    It lures customers from competitors products by
    differentiated positioning & consumer promotions

    Q4. What is your


    recommendation for how
    Regnante can achieve her 2008
    profit target? What if any
    changes should be made to
    trade and consumer promotions
    to make them more effective?
    Develop a pro forma income
    statement and be prepared to
    address the long-term strategic
    implications of your decisions.

    Key Points

    Increase in Manufacture price by 5% - contribution


    to world food programme.

    Required to sustain the consumer promotion and


    trade promotions

    An increase by 5% across categories to maintain


    the 28:47:25 ratio

    An increase of 0.01 based on predictions of no


    change mentioned in the case

    Advertising

    As seen in exhibit 3, there is a 95% recall of the


    brand reliance for baking soda, hence knowing of
    product is not a problem

    A small increase in total budget to continue the


    advertising, majorly to support the promotions.

    An increase in Print advertising to target


    magazines read by women in age of 35-55 who
    buy the product

    No change to PR budget

    Promotions
    Consumer Promotion

    Only 70% people buying the product when the


    recall is 95% of brand name, means we need to
    break on display barrier

    An increase in consumer promotion to encourage


    the consumer to use RBS rather than
    competitor( even though they are cheaper)

    Promotions
    Trade Promotion

    Continue to support Trade Promotion to stop Trade


    partners in piling up the competitors cheaeper
    product.

    Due to higher margin, RBS can provide due to its


    higher cost and margin can be used to overcome
    price gap in trade

    The high buying of product only during promotion


    period can be countered by smaller promotion
    period or limiting promotion stock

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