Giant Consumer Products: The Sales Promotion Resource Allocation Decision Executive Summary A. Situation Analysis: 1. Context: In early September’08 Giant Consumer Products, Inc. (GCP) realized that Frozen food division, which had been growing at 2.8% (compounded annual growth) rate since 2003 to 2007 and accounted for almost 33% of GCP’s overall business volume, is not doing well now. The sales as well revenue volume is around 3.9% behind the target. Most specifically marketing margin (key parameter for GCP business) was also under plan by 4.1%. GCP had been doing well in wall-street but performance of past couple of quarters has increased the worries of GCP i.e. whether GCP will able to maintain its profitable growth. GCP is expecting FFD to deliver the sufficient growth to match up with the annual targets. VP of GCP suggested CEO of GCP for the sales promotion of the FFD; however the CEO has some of his apprehensions against the sales promotions. Nonetheless he agreed to allocate some funding if FFD team comes up with a solution generating funds without affecting long term health of the GCP’s brand. 2. Consumers: The emergence of dual career families resulted in unavailability of sufficient time to cook food. Hence interest and love towards such frozen food is increasing1. Type of meal 2. Brand 3. Variety. A new consumer segment for healthier frozen food (Organic food) has also grown in recent past. This segment doesn’t like any kind of artificial ingredient in the food. 3. Company: FFD of GCP has the most customer centric management team and hence they had consistently delivered on the promise of convenient, good tasting food (Italian frozen dinner’s sector) at a reasonable price. GCP has two brands: I. Dina... ... middle of paper ... ... and 2nd option. * The GCP-FFD should also fix various posters in the retail outlets and supermarkets to promote its product. (Please refer Exhbit-11) Summary: All our analysis suggests that if GCP-FFD doesn’t do promotion for Dinardo32 and Dinardo 16 the planned annual targets 2008 for % Marketing Margin would not be met for D32, but for D16 annual targets can be met without any promotions. It becomes imperative to do promotion for Natural Meals for two months (Sep’08,Dec’09) keeping in view the Daft’s plan to enter Organic/healthy frozen food markets with a new product – ‘Healthy Options’. Also, Natural Meals target could not be met by just a month of promotion, hence we recommend promoting it for two months. The Natural Meals promotion would mitigate any possible threat arising from Daft’s new product launch and would also give a boost to net revenue.
Rocket-Blast, LLC, a beverage maker, has seen its profit margins reduced which presents a real problem for the company going forward (Precord & Macdonald, nd). Management has decided that operating costs must be reduced in order to increase profit margins to
The first observation from the financial data in appendix one is that General Motors has a low profit margin and is generally less than the industry average each year. The firm is able to keep a low profit margin because they have such high sales volumes throughout the world. This strategy can be both an asset and liability in business planning. The plus side of the strategy is that GM is able to sell a large number of vehicles in the marketplace due to the lower selling price as compared to the competitor. However, the down side of the strategy is that there is a possibility that if sales volumes decrease, the firm can incur a significant decline in the EPS because the profit margin on each item sold is very low. If the global economy sours, GM can have a very difficult time meeting shareholder expectations.
One year later, in 1997, in an attempt to source its strategic investments, Natureview organized an equity infusion from a venture capital firm; however, the venture capital now needs to cash out of its investment in Natureview and management will therefore need to find another investor or position itself for acquisition. In order to attain the maximum potential valuation, the company must make strategic marketing choices in an attempt to increase revenues to $20 million before the end of 2001. And to meet this lofty goal, Natureview can potentially enter a new market and transition from the natural food channel into the supermarket channel, a move that would signify a dramatic departure from the company’s present channel strategy and affect all facets of Natureview’s current business model. B.
One of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the manager’s are promising him . His goal is to obtain a 15% increase in the operating income from his division (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income.
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
Differences: Although both lines are new product concept, which try to target similar customer segment who are interested in Italian food, market potential might vary for different product line. First in terms of positioning, in pasta market, dry and frozen pasta occupied large market share due to its higher accessibility than fresh past sold at specialty store and restaurants. This might explain the fact revealed by research that 77% of respondents in favor of fresh pasta concept never purchased fresh pasta before. Therefore, wide distribution of refrigerated pasta will serve customers?desir...
“Recently, the growth in FAFH [Food away form home] has generated concern about its possible effect on dietary quality. Analysis of food consumption surveys have indicated that meals eaten in restaurants are generally of lower nutritional quality than meals eaten at home, mainly due to higher fat and calorie content (Lin and Frazao 1997)”. Among many sociological concerns in the current Canadian market, nutrition concerns are highly present. Over the past fifteen years the demand for food transparency has increased exponentially.
Food—it is that precious substance our bodies need to survive. Whether it brings feelings of nostalgia and comfort, or unites families together, we can all agree that food is a vital source of nourishment. However, our definition of food has changed drastically with the advent of modern technology, which has given rise countless food trends. The desire for the cheap mass-production of food has induced an unspoken transition from slow cooked chicken and steamed veggies to frozen tv-dinners disguised to look like actual food worthy of consumption. Hence, food trends and technology effects the way we produce, purchase, and consume food in the United States.
One of the following is an environment analysis of “largest Pizza chains” in the US and International. In the following sections, we will assess the environment analysis on “consumer satisfaction” and its re-formulated pizza recipe. Within the re-formulating and the expansion of its menu, we will see how they have been able to recapture some of the market with existing and new customers, with customer satisfaction and excellent delivery. Domino’s Pizza, for example, they have re-formulated their ingredients and added new items to their menu, but like Pizza Hut, Papa John’s, and Little Caesar, we will discuss their strength’s and weakness to be able to survive in the Pizza Industry. Within this report, I will cover the existing/future components of the general environment such as demographics, economics, political/legal, sociocultural, technological culture, and their efforts to remain a competitor in the industry.
The prices of their products are at times considered high by some customers. This is an area that the company should focus on. The fact that the market is seasonal has also affected the performance of the company and they should, therefore, make plan to ensure that the demand of their products remains high throughout the year.
...ice meal option and the nutritional value of meal offered (Teutsch, 2003). For these reason, McDonald’s brand image and sales have been faced huge impacted. Therefore, McDonald’s uses new promotional strategy to deliver clear and consistency message- “healthy food” as well as reestablish its image through IMC. IMC strategy has become an effective and successful marketing model that been adopted as a standard and achieved business objectives (Herstein et al., 2008). Furthermore, IMC strategy potentially enhances the effectiveness of the firm's advantage, and also could positively influence brand image (Madhavaram et al., 2005). Consequently, this project is useful for marketers to better understand IMC concepts and making useful and available promotional strategies. Also, it will be benefit on McDonald’s now or in the future, or whether others specialist industry.
Organic food is food that is grown without any pesticide or fertilizers. In recent years, sales for organic foods are increasing every year. A lot of people go to supermarkets in order to buy some organic foods, because they think that organic foods are healthier than conventional foods. People purchase organic foods for different reasons such as personal health, the quality of organic foods, and taste, but the most important reason is personal health. The topic that whether organic foods have more benefits or not is very controversial for a long time. Maybe some people believe that organic foods are beneficial to human health, but some other people disagree with the viewpoint, so buying organic foods depend on people’s choices. People believe organic foods are healthier because they generally think organic foods have less pesticide and fertilizer residue, more nutritional values, and are beneficial to environment.
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...
The organic foods market has become one of the fast growing sectors of most developed agricultural economies around the world, mainly in the European Union. Despite there being no explicit facts that organic foods are better than conventional foods, organic foods contain less harmful additives but more mainly (e.g., vitamin C, dry matter, minerals) and secondary nutrients (i.e., phyto-nutrients) than conventional foods. In other words, organic foods at least take no further risk of food poisoning (Heaton, 2001). On the foundation of the defensive attitude alone, choosing organic foods appears to be completely normal
Many restaurant chefs and culinary related professionals across the country are starting to use organic produce because they desire its superior quality and taste. Organic food, also gaining international acceptance, has become widespread in nations like Japan and Germany where the development of organic food markets has seen substantial growth (OTA, 2004)