1) How should the promotion money be allocated? 2) Should investment-spending ma
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Question
1) How should the promotion money be allocated? 2) Should investment-spending market tests be run first?l Verizon LTE 6:43 PM Sung Wu is product manager for Geard Deoderant Sap Sung was sonewha urprised at the sigaificant re 1. The underdevelopmest of the deodorant bar seg meat of the beauty bar segnent Bat some past ary of Lever Ceoup, In from world bradquareni NewYerk Sung is ansious to make a good impeeion be He is working on developing and se reiearch suggesied thas this is du to culeral group product manages, who i re disinfecting, A imarpatern i seen in mest inseressed than ochers is cleaning, deodorieing, and veral such plans from prodact nangnEuropean couneries, Sung's marketing plan is the single reaionm, the perfamed soap share is highest in Frenchspeaking Qb mal marketing plian does theee main things 1. lt peviews the beand's performance ie the ast yrac,aPrisManio/Saskachen and Albera). The I spetis out marketing strategies and the plan for thepooly in hardwater areas and leave a soaS pment of the ether segment in ec This wgnmt, cominting olbnd fares 3 Finalk, and most impersanly the arkeding plan sets out the beand's sales oljecives and motion budget requirenens In preparing this markeding plian, Sang getherell de Sungs brand, Geard, is a highly perfuned deodorant bar His businen is relatively weak in the bey Ontario nee Tahile 2 Table Past laMonth Share of Bar Soap Market (percent) Table 2 Standard Cases of s-Ounce Bars Consumed per 1000 People in 13 Months These dfferences are especially inneresing since per c thi will increase bine in the key Oetario markes capita sales ofall bar soap products ane roughly qli hich has overa third of Caradapopuladon becua condacied approximately a year age. This sudy revealed Sung pemesied thi idea to King, his neul brand diflered gready across Canada Thia wa true de ebeen reening Caardsbnes and feels thuprome er anitade and nage research stady was compeaton sho are promoing hewiy of the research revealed that coe locaing ands gionaly s it wan well than indhasing sales in
Explanation / Answer
Sung vs King
If we look closely, then it is clear that the prevailing strategy of Guard seems to be appropriate but there are a number of areas where improvements can be ensured. At present Guard has to face a lot of issue in order to have the business in Ontario market. This is mainly resulted in Canada as the awareness of the Guard seems to be quite different. When a customer buys this brand, he is quite informed about the high fragrance of the product and it is used as the main selling tactic. A greater number of customer buy this product again and again which is almost 70%. But the main reason for a hard time of this brand is increasing competition in the market of Ontario.
While promoting and developing the pricing strategy, the company lacks aggressiveness. At present company only spends 20% of total sales on the advertising and sales promotions activities. Sung and King have some strategies which could be effective in helping Guard in this situation. Here, the main focus should be on finding the threats and opportunities, developing effective marketing strategies, having suitable advertising and promotion budgets and establish sales objectives.
Advertising and promotional budget is the main area which is being focused by Sung and she is of the opinion of improving the spending on these activities in Ontario. On the other hand, King tries to focus more on finding the strengths and weaknesses so that the sales can be improved. In her opinion, the spending should be according to the sales of the product in the region rather than on the basis of population.
The previous year, Guard received more than 36% of the allocated budget to Ontario and it was only 12% of total sales.There are very limited business activities in Ontario and thus if more money is spent, it can harm the company dearly. Depending upon the concept of King’s, the money should be invested. In her view, the funds should be distributed regionally to help the strengths of the brand. In her opinion, this is the best strategy as the brand can generate more sales in its stronghold areas in place of focusing on those areas where sales are going to be less . Thus the focus should be on stronger areas of sales for improving the sales.
Yes, it is a good idea to perform the investment spending market test first. Despite the opinion of Sung, in long run, the firm can have greater benefits from this strategy. This will be used in order to know whether the incremental spending can have greater sales. This can be used by the company to provide an explanation for greater expenditures. In fact, any problem which could be faced can also be addressed if a test is run. Once an issue is determined related to the product, a better and effective plan can be prepared.
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