Giant Consumer Products, Inc the Sales Promotion Resource Allocation Decision

In: Business and Management

Submitted By diningtias
Words 2481
Pages 10
GIANT CONSUMER PRODUCTS, INC
THE SALES PROMOTION RESOURCE ALLOCATION DECISION

I. PENDAHULUAN
Kasus ini berkaitan dengan strategi marketing, khususnya dalam promosi penjualan. Saat itu awal September 2008 di markas Giant Consumer Product, Inc (GCP), tepatnya pada Divisi Makanan Beku (Frozen Food Divison ) – FFD - tidak melakukan tanggung jawabnya dengan baik, dimana target yang telah ditetapkan tidak tercapai dan performance kinerjanya kurang baik. Dari permasalahan yang ada tersebut mengakibatkan vulume penjualan hanya tercapai sekitar 3.9% dan profit sebesar 3.6%. Melihat permasalahan yang terjadi didalam internal perusahaan, maka Maria Davidson, selaku GM FFD segera menghubungi Mike Sanchez (Direktur pemasaran FFD) untuk mengindentifikasi strategi promosi penjualan yang akan dijalankan, tetapi sebelumnya harus memilih dari ketiga peroduknya, mana yang akan dilakukan promosi penjualan. Ketiga produk tersebut diantaranya :
a) Dinardo TM 32-ons paket
b) Dinardo TM 16-ons paket, atau
c) Natural Meals TM / makanan organik
Terdapat dua kategori utama dalam FFD, yaitu :
1) Merek Dinardo™, merek ini menghasilkan lebih dari $ 425 juta untuk pendapatan setiap tahunnya. Merek ini menawarkan produk spaghetti & bakso, lasagna, dan ayam Cacciatore. Kelebihan dari produk ini adalah penggunaan bahan - bahan yang berkualitas dan bumbu yang membuat Dinardo ™ menjadi makanan yang terasa lebih enak dibandingkan dengan produsen lain.
2) Natural Meals™, produk ini berupa makanan beku organik. Bagian ini menyumbang sekitar 25% dari pendapatan divisi makanan beku itu (hampir $ 150 juta per tahun), karena yang dipromosikan adalah jenis makanan organik dan produk ini cukup menarik bagi konsumen yang sadar kesehatan. Selain mengalami permasalahan dalam strategi promosi penjualan, juga terdapat permasalahan mengenai kanibalisasi, dimana kanibalisasi merupakan fenomena yang…...

Similar Documents

Sales Promotion and Consumer Loyalty: a Study of Nigerian Tecommunication Industry

...Sales Promotion and Consumer Loyalty: A Study of Nigerian Tecommunication Industry Oyeniyi Omotayo Abstract In today’s competitive business world customers are considered to be kings. Customers have several choices to make among alternative products, and they exercise a high level of influence in the market with respect to product size, quality and price. Hence, it is important for producers to meet the needs of customers in order to stay competitive. One of the marketing communication tools that is used in attracting the attention of the customer and build their loyalty is sales promotion. The aim of this paper therefore is to determine the effect of sales promotion on customer loyalty in the telecommunication industry. In this study, the survey method was used in gathering information from the respondents. Simple random sampling was used to select a sample size of 310, while descriptive and inferential statistical analyses were conducted with the aid of SPSS software. Producers spend a large part of their total marketing communication expenses on sales promotion. Hence, this paper attempts to find the effect of sales promotion on customer loyalty using a sample of customers of mobile telecommunication services. The paper found that, there is positive relationship between sales promotion and customer loyalty. More importantly, it was discovered that non-loyal customers are more prone to switch to competing products as a result of sales promotion than loyal......

Words: 3933 - Pages: 16

Sales Promotion

...Sales Promotion Lesson 24 Sales Promotion Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap cakes, an extra soap cake will be given to you free of cost under “buy 2 get 3” scheme. You feel attracted to buy as by doing so you are saving money on one soap. Moreover, soap is an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson. 24.1 Objectives After studying this lesson, you will be able to: explain the meaning of sales promotion; state the objectives of sales promotion; describe the various tools used in sales promotion; recognise the role of each tool in promoting sales; and describe the importance of sales promotion in business. 24.2 Meaning of Sales Promotion Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. 115 Business Studies There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have......

Words: 2810 - Pages: 12

Personal Selling and Sales Promotion

...Selling and Sales Promotion 1. Under what conditions does personal selling typically become a primary component of the firm’s promotional mix? * Consumers: geographically concentrated and relatively low number of them * Product: expensive, custom made, special handling requirements * Price: relatively high * Channels: relatively short 2. Describe over-the-counter and field selling. Which is more expensive? Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’s place of business Field Selling: sales presentations made at prospective customer’s locations on a face-to-face basis *More expensive 3. Distinguish between inbound and outbound telemarketing. Inbound: customers who initiate calls to obtain information and place orders Outbound: salesperson who makes a call to the customers 4. List/discuss the three major personal selling approaches. Relationship Selling: regular contacts between sales rep and customers over an extended period of time to establish a sustained buyer-seller relationship Consultative Selling: meeting customer’s needs by listening to them, understanding their problems, paying attention to details, and following through after the sale Team Selling: selling situation in which several sales associates or other members of the organization are recruited to help the lead sales rep reach all those who influence the purchase decision 5.......

Words: 670 - Pages: 3

Sales Promotion

...Abstract Sales promotion has been in constantly growth since the 1960’s and have today become one of the key factors in the promotional mix. The methods used have become more sophisticated and an increasing number of companies are realizing the importance of a well structured promotion strategy. The purpose of this thesis is to provide a better understanding on how sales promotion is used in B2B setting. In order to reach this purpose, research questions focusing on the objectives of sales promotion, as well as which sales promotion tools that were used were stated. Based on these research questions, a review of the relevant literature was conducted, resulting in a conceptual framework, which was used to guide this study's data collection. A qualitative, case study approach was used, using interviewing at an industrial company in Sweden as the primary data collection tool. The findings indicate that, although the individual objectives of the tools can be different they can still be used overall to lead to the same overall goal. It was also found that the focus is not always on using sales promotion tools to generate sales, but to improve relationships. As for the tools used, it was found that there are commonly used sales promotional tools in B2B settings. More specifically, gift giving can be deemed inappropriate in certain contexts and should be used carefully. Table of Contents TABLE OF CONTENTS 1. INTRODUCTION .........................................................

Words: 15132 - Pages: 61

Resource Allocation

...Summary – Resource Allocation 1. The universal aspects of the way strategic commitments get made fall into two categories: a. Organizational Structure. At any company, responsibility is divided up among various individuals and units has vital consequences for how strategy gets made. * Knowledge is dispersed. For any given strategic question, relevant expertise resides in scattered, sometimes unexpected parts of a corporation. * Power is dispersed. * Roles determine perspectives. Miles’s Law – the notion that where you stand is a function of where you sit—is central to how strategy gets made in practice. b. Decision-making processes. Just as important, the way decisions are made throughout an organization has vital consequences for strategy. * Processes span multiple levels; activities proceed on parallel, independent tracks. * Processes are iterative. Crafting strategy is an iterative, real-time process; commitments must be made, then either revised or stepped up as new realities emerge. 2. Six ways that senior managers can direct the strategy of their firm by better understanding the resource allocation process: a. Understand the people whose names are on the proposals you read. b. Recognize the strategic issue and make sure it is addressed. c. When a debate reflects fundamental differences about the strategy, intervene. d. Use operational managers to get work done across divisional lines. e. The leadership......

Words: 564 - Pages: 3

Sales Promotion

...people who have some interest in the product being promoted. + Attract more attention and interest than sweepstakes. (Effort in the entries) + Can be design to have public relations value. + Allow companies to solve marketing problems (contest about What the coolest computer can do) - Most people enter only once or a few times. Sales Force Contests Designed to encourage company, distributor, or retail sales forces to work hard to sell the product. ex, reward the top salesperson Spliffs – reward retail- or distributor-level salespeople with a certain amount of cash for each item they sell. Mystery Shopper – usually consist of actors, hired by manufacturers, who visit retail outlets asking for assistance and recommendations. If salespeople respond by suggesting the “right” brand, they can win a prize. Instant win – find out directly if they’ve won Other sweepstakes may give consumers game pieces that include entry numbers or symbols; individuals must then visit a specific retailer, watch a particular TV show, or take some action to find out if the have won a prize. Uses of Sweepstakes & Contests 1. Create consumer interest and excitement. 2. Joint promotion can be developed with manufacturers of relatively high-priced goods, who provide prizes at cost, or free, in exchange for the publicity value. 3. Attract free media attention, especially contests. 4. Good way to collect information about its consumers for a costumer database. 5. New......

Words: 2553 - Pages: 11

Sale Promotion

...Sale promotion Techniques By one get one free, receive a free gift bag with this purchase, free samples to try, Voucher and coupons for extra discount, Prize draws or zero percent financing have you ever herd these words or read them in a news paper magazine or internet or maybe even seen it on TV or your local mall or even a bus ride to work or home, these are all examples of sales promotion. According to Dave Dolak (2010), Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. But first sales promotion could be directed towards Trade or consumers and some times both trade is the retail store or the sales men and maybe the whole sale distributor that the company must work with to sell its product wile on the other hand consumers are people who are there to buy the product. Different companies or firms or even people use different techniques of sales promoting some of them are discount and deals, increasing industry visibility, price based consumer sales promotion and attention getting consumer sales promotion Moving on to the first technique, which is discount and deals this is done by giving a price break to seller or whole seller or some times even the sales men or by lowering the prices of the product. The Firm or company can do this by offering merchandizing allowance, according to MIMI.HU web site (2010) states “Merchandise allowance a manufacturer's agreement to pay resellers certain amounts of money for providing......

Words: 907 - Pages: 4

Promotion Sales

...1 6 CHAPTER Advertising, Publicity, and Sales Promotion In the summer of 1965, 17-year-old Fred DeLuca was trying to figure out how to pay for college. A family friend suggested that Fred open a sandwich shop—and then the friend invested $1,000 to help get it started. Within a month, they opened their first sandwich shop. From that humble start grew the Subway franchise chain with more than 33,000 outlets in 91 countries. Targeted advertising, timely publicity, and sales promotion have been important to Subway’s growth. For more than 10 years, memorable Subway ads featured Jared Fogle, a college student who was overweight but lost 245 pounds by only eating Subway’s low-fat sandwiches like the “Veggie Delite.” Jared says it was a fluke that he ended up in Subway’s ads. After all, he was recruited to do the ads because of good publicity that Subway got after national media picked up a story that Jared’s friend wrote about him in a college newspaper. Subway’s strategy at that time focused on its line of seven different sandwiches with under 6 grams of fat. The objective was to set Subway fare apart from other fast food, position it to appeal to health-conscious eaters, and spark new sales growth. Jared already knew he liked Subway sandwiches, but the “7 under 6” promotion inspired him to incorporate them into his diet. As soon as Jared’s ads began to run, word of his inspiring story spread and consumer awareness of Subway and its healthy fare increased. It’s always hard......

Words: 19343 - Pages: 78

The Impact of Sales Promotion

...telecom firms to succeed in this ever increasing competitive market, they employ a lot of different promotional tools to attract and retain their customers. One of the most commonly used promotional tools is sales promotion which provides incentives to customers or to the distributor channel to stimulate demand for a product. This study is aimed at assessing the role sales promotion play in influencing the consumer buying behavior of telecom consumers. A non-probability sampling technique was used for the study and the sample was selected from a population of telecom service users resident in the Accra Central. A five point Likert scale Questionnaire will be used in acquiring the respondent’s information. The questionnaires Will be analyzed with the help of Statistical Package for Social Sciences (SPSS) and Microsoft Excel. INTRODUCTION The business environment has become very competitive in the 21st century due to the growth in technology, infrastructure and access to information around the globe. This has made the environment very complex and consumer preferences keep changing because of the low switching cost in the market. Due to this increasing demand of consumers in the market, management of business organizations have to increase their resources with attention focused more on attracting and retaining its customers. The ever increasing competition in the global market has prompted organizations to be determined and ensure satisfaction of customer......

Words: 2345 - Pages: 10

The Role of Product Positioning in Consumer Buying Decision Process

...Role of Product Positioning in Consumer Buying Decision Process Segmenting, Targeting, Positioning (STP) is the process which marketers employ to select target markets. Segmentation is the process of ordering consumers into groups with similar product interests or needs. Targeting involves a company determining which market segments it believes it can satisfy, and then choosing an appropriate targeting strategy for the segments. Positioning is how consumers perceive a brand or product, particularly in relation to other brands and products. The relation between target segments and product positioning is dependent on the age of the company. For a new company, they have the opportunity to decide what perceptions that want the public to have about the company as they are yet to have a position. Therefore they can choose the target market, and then decide on brand positioning. For a company that has existed for some time, they already have a present brand position. Brand positioning often takes time to build, and much time to change. For this reason, established companies are likely to choose target markets that are ideal for its brand positioning. Positioning is a crucial element for any company as this is how the general public views a brand or product. The public perception of the brand or product is likely to be a determining factor as to whether they buy it or not. Brand positioning is delivered to the market through a marketing mix, which consists of: product......

Words: 1134 - Pages: 5

Resource Allocation

...For hotel sales and marketing professionals limited resources are allocated to presenting properties in the sales channels that will be the most productive in their comp set--be they print ads, direct mail, public relations, sales calls or electronic distribution channel participation and advertising. A sales professional strives to select the most cost-effective and compelling channels that will in turn bring guests to their door and fill their available rooms at a competitive price.  This resource allocation process requires assessment of each potential business source’s target audience, opportunities for participation, probable production and costs. This applies to electronic distribution just as it does to utilizing central reservation call centers.  Narrowing the focus to the electronic distribution channels, the two broadest categories are global distribution systems (GDS) and Internet web sites. The GDSs, of which there are four major competitors including Amadeus, Galileo/Apollo, Sabre and Worldspan, originated as private networks for use by travel agents. In the 35 years since their inception, they have grown to serve a worldwide clientele who use nearly 500,000 access points. They have expanded from listing only air flights to presenting the full array of travel services. Recently, they have moved to make their rich databases of travel service information available to web sites – both their own and others managed by third parties. Key considerations in......

Words: 1334 - Pages: 6

Sales Promotion

...Objectives of Sales Promotion You have learnt that the main objective of sales promotion is to increase sales. i. To introduce new products ii. To attract new customers and retain the existing ones iii. To maintain sales of seasonal products iv.To meet the challenge of competition Let us learn about these objectives in details. (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufactures and dealers give off-season discount. For example, you can buy air......

Words: 8537 - Pages: 35

Consumer Behavior - a Manufacturer of Personal Care Products in the Premium Segment Starts Frequent Sales Promotions. What Is Likely to Be the Impact on the Above-Mentioned Types

...THESIS aravind.banakar@gmail.com ARAVIND - 09901366442 – 09902787224 CONSUMER BEHAVIOR 1. What does the purchase of a product like Nike mean to Sunder Singh? 2. What does the story say about our society and the impact of marketing on consumer behavior? 1. Explain how the above-mentioned information is likely to benefit a marketer? 2. Which of the above mentioned types are likely to respond to sales promotion? Explain. 3. A manufacturer of personal care products in the premium segment starts frequent sales promotions. What is likely to be the impact on the above-mentioned types? 1. What is likely to be the decision process in case of choosing an airline? 2. Would this plan suggested by the vice president help in convincing the customers to use Star Airways? Give your reasons. 1. Has Shobha identified the best target market for Mouse-Rid? Why or why not? 2. Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct? 3. What type of advertising can influence consumers for this type of product? 1. Discuss the nature of problem(s) in this case? 2. Suggest the kind of consumer research needed? 3. How should Golden Glow be positioned/ repositioned to bring about the desired change among consumers? Give your reasons. 1. Why would some consumers have high-involvement levels in learning about this sales promotion? 2 Is a level of 75 per cent comprehension realistic among those......

Words: 298 - Pages: 2

Sales Promotion

...AIDA 5. Promotion Process For Cars i. ii. iii. iv. v. vi. vii. viii. ix. Selecting the target market Product and Brand Positioning Promotional Decisions Advertising Direct Marketing Interactive/Interactive Marketing Sales Promotion Publicity/Public Relation Personal Selling 6. Ford Fiesta and its Promotions i. Target Market 2 ii. Adopting offer to suit target segment iii. iv. Market Competition Strategic Promotion of Ford 7. Questionnaire 8. Analyzed Survey Report of the Questionnaire 9. SWOT Analysis 10. SWOT Analysis of Ford Fiesta 11. Conclusion 12. Bibliography 3 Chapter 1 Introduction 4 Objective  To study and analyze the elements of Promotional Strategies.  Study and analysis of promotional strategies of Ford India for its product Ford Fiesta.  Study the customer response regarding the promotions of cars in India. Scope of the Project  Study the basic aspects of Promotional Strategies such as Sales Promotion, Personal Selling, Advertising and Publicity.  Studying the customer response regarding promotions of cars in India through a questionnaire.  Study the promotional strategies of Ford Fiesta with all the tools of promotion.  Analyze and interpret the responses by SWOT analysis. 5 Data Collection and Analysis  Secondary data collection from the various car information websites, newspapers, magazines, etc.  Primary data collected from a questionnaire designed to target the customer regarding the promotions of......

Words: 7080 - Pages: 29

Sales Promotion

...Sales promotion From Wikipedia, the free encyclopedia Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons,freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, andrebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are calledconsumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.[1] |Content| |s | |  [show| |]  ......

Words: 2464 - Pages: 10

Vidmate premium apk download | When The Dust Settles | Paul Bettany