Tuesday, January 15, 2019
Case Analysis â⬠Giant Consumer Products Essay
1)Using data in Exhibits 1 & 4 train solution templates in Exhibit 3 for Sanchez.From the table above, it is clear that the touch of a promotion fundamentnot be considered in isolation. On the whole, the promotion has resulted in a loss instead of a profit for the Dinardo range of products. Considered in isolation a promotion on Dinardo 32 may estimate attractive but overall its a loss-making proposition.2)Do you advise Sanchez to fountain a national gross revenue promotion? If so, which one of the items the funds be allocated Dinardo 32, dinardo 16 or natural meals?Sanchez can run a sales promotion for indispensable meals. This is the only profitable option as can be seen from Solution template Part-3 in the table above.3)Prepare Sanchez for additional strategic/ tactical questions that he anticipates from Flatt given at the end of case.a)The promotion of Natural Meals would be a win for FFD, the retailer as well as the consumer. FFD gains due to a positive increase in mark eting beach due to the promotion. For the retailer, the benefit will be on account of the change magnitude spending by FFD for promotional activities. The margins on Natural Meals are high for retailers and an increase in volumes would directly have a positive impingement on retailers revenues. The consumer benefits due to the reduced prices from the promotion.b)FFD should go with the pay for performance admission for promotion of Natural Meals. The price on the box of the product should not be reduced and instead a discount must be offered at the time of billing. The retailer should then be reimbursed for the discounts offered to customers. This would help conceal the premium positioning of FFDs products and avoid customers from looking at the products to be available at a deal during subsequent purchases.
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