Anna recently was promoted from Stewarts house hold division to domestic brand director for reliance baking soda. She, as brand director, is provided target to increase profit by 10%. In order to do that, she has to take many steps, like increasing advertising budget to create a pull. This step will also help in getting rid of inventories. In addition to that, she will have to increase consumer promotion and cut budget for trade promotion as trade promotions are long term activities. She will have to decrease the amount of product and might have to increase prices to catch up with the target provided.
What are the strengths and weaknesses of the RBS brand?
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?
Compare the relative merits of a push vs. pull strategy of the marketing of a low-involvement (low price) grocery item in a mature market setting.
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 (see template in Case Exhibit 10) and be prepared to address the long-term strategic implications of your decisions.