GIANT CONSUMER

PRODUCTS:THE SALES
PROMOTION RESOURCE
ALLOCATION DECISION

Group 2
Dheeraj Makhija | Ankit Lalwani |Taneha Verma | Akram Hameed
Sidharth Sachdeva | Himanshi Shivhare |Tanmay Yadav

INTRODUCTION
Frozen Food division sales 3.9% behind plan
Immediate need to Increase sales volume to maintain groups
growth as whole
Downside of sales promotion
Cannibalisation

Brand equity erosion

Expensive
Forward buying

Dinard
os 32
ounce

Dinard
os 16
ounce

Optio
ns

Natural
Meals

INDUSTRY AND COMPANY CONTEXT

One of the largest categories in the frozen food aisle in supermarkets
FFD had the most consumer-centric management team in the frozen foods industry
FFD had a 43% market share (by revenues) in the Italian frozen dinner and entre offerings

Dinardos
Key contributor to FFDs bottom line($425 million
annually)
Simple and better tasting than competitors like Daft
Available in 3 sizes
1. 32 ounces
2. 16 ounces
3. 6 and 8 ounces

Natural Meals
Accounted for 25% of the frozen foods
divisions revenues($150 million annually)
Great-tasting, organic food low in fat
Appealed to health-conscious consumers
who were not interested in Dinardos
Minimal
threat
for
cross-brand
cannibalization

RECOMMENDATIONS
Giant should promote Naturals based on a positive 12% ROMI and no risk
of cannibalisation. Also price reduction can result to erosion of brand
equity and hence Giant could make use of the following kinds of
promotions instead:
Coupon Offering
Pay for Performance

FDD

In-store Product Placement

Repackaging for Naturals portions
Retailer

Increase in market share

Purchase time acceleration over short period
Increased awareness about Natural Meals offering
Improved ROMI

Increased margins - Naturals is a premium product

Wider variety on shelf attracts moe customers
Performace Pay

Wider variety with health benefits with dicsounts

Consum Premium product made affordable

ers

STRUCTURING THE
PROMOTION
1. Off-invoice pricing
Manufacturer reduces price-to-retailer for specified time period
Allows retailers to purchase in the quantity desired
2. Pay for performance approach
Retailers compensated for actual amount sold
3. Target based approach
Compensate retailers only in case they hit a pre-specified target

THANK YOU!