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Issue analysis:
Thus marketing mix considerations i.e. the distribution, advertising, consumer protection and trade promotions are the issues to be analysed.
2012H149216 Vinay Amdhare Distribution: There was a high distribution penetration. Selling Prices of RBS increased 3 times in previous 5 years. This is something not desirable. There was a Price increase on all product sizes in 2006-2007and this price increases were due to increase in raw material cost by 11 %. Maximum distribution by one lb box and varies by channel. There was a small sales force of 150 person sales team to manage retail and wholesale accounts. Moreover the Sales-force incentivized by a quota system with quarterly volume quotas as the result most compensation to salesperson came from bonuses pricing.
Advertising: In 2006 many RBS products moved in the market so there was a need felt to deplete the inventory and to increase the sales. The advertising is focussed on the new uses of the product. There is a need to put RBS in realm of pet care, baby care, pool care outdoor care and the advertising focus on non toxic benefits of the product.
Consumer Promotion : There was a need to be more aggressive in promotion in last 3 years, since 2005 2006 consumer promotion had 4 partsThe first event was launched in January $2 cash refund for purchase of RBS and 4 additional household brands. Advertisements were made in womens magazine, Sunday newspaper and company website. In April set of coupons for 5 household brands was included in 6 million boxes of Brilliance Laundry detergent. In June shrink-wrapped twin pack of 1 lb boxes and a $1 cash refund inside the pack with proof of purchase of 2 1 lb boxes. 2 page advertising supplement launched in September in top 4 womens magazine.
Trade promotions: In case of promotions discount was offered on invoices for cases ordered in promotion period. Free cases with a purchase of a minimum order. There were performance discount incentives for providing verifiable merchandising and advertising support. A temporary discount used to promote sales was done and the trade promotions lasted 3 to 6 weeks. Past data about trade promotions show that lot of discount given and the advertising trade support much lower than that of competitors 2
Improvisation in consumer protection is important as well. They can think of coupon system or cash back one customer loyalty plan which could offer their customers better and attractive benefits. This would also generate a customer loyalty
Trade incentives should be made better. It is seen that RBS does not have a better control over the pricing of its products. It is therefore e difficult to give any pricing benefits to its consumers. 260 competing products ads have made rbs difficult to compete. With better trade incentives they may get more ads run in favour of competing products.
Better advertising strategy: they can advertise on internet as baking soda a seen as a commodity. There are very few .