Soda:

Optimizing
Promotional
Spending
Presented by Group 2
Anantaya Gupta
Indrayani Ingale
Jharna Rochlani
Viranchi Shah
Zainab Qasim

B020
B025
D048
D050
A041

Q1. What are the

strengths and
weaknesses of the RBS
brand?

Q2. Analyze the effectiveness of

past RBS consumer and trade
promotional events. How have the
promotions strategies impacted
sales volumes? What kind of return
on investment is the company
getting for consumer promotions and
trade promotions?

Q3. Compare the relative

merits of a push vs. pull
strategy for the
marketing of a lowinvolvement (low price)
grocery item in a mature
market setting.

Low involvement
products

Relatively inexpensive
Pose a low risk to buyer
Consumer is not actively
searching for information or
alternatives

Push strategy

Pull strategy

for low-involvement, impulse products

Use sales force, trade promo to induce
intermediaries to carry, promote and
sell products to end-users
Helps in generating sales and increasing the topline of the
company
main objective is to create an immediate sale and not to
create product involvement

For high-involvement, differentiated offers

Use advertising, consumer promotions
and other forms of communication to
persuade consumers to demand the
product from intermediaries
It lures customers from competitors products by
differentiated positioning & consumer promotions

Q4. What is your

recommendation for how
Regnante can achieve her 2008
profit target? What if any
changes should be made to
trade and consumer promotions
to make them more effective?
Develop a pro forma income
statement and be prepared to
address the long-term strategic
implications of your decisions.

Key Points

Increase in Manufacture price by 5% - contribution

to world food programme.

Required to sustain the consumer promotion and

trade promotions

An increase by 5% across categories to maintain

the 28:47:25 ratio

An increase of 0.01 based on predictions of no

change mentioned in the case

Advertising

As seen in exhibit 3, there is a 95% recall of the

brand reliance for baking soda, hence knowing of
product is not a problem

A small increase in total budget to continue the

advertising, majorly to support the promotions.

An increase in Print advertising to target

magazines read by women in age of 35-55 who
buy the product

No change to PR budget

Promotions
Consumer Promotion

Only 70% people buying the product when the

recall is 95% of brand name, means we need to
break on display barrier

An increase in consumer promotion to encourage

the consumer to use RBS rather than
competitor( even though they are cheaper)

Promotions
Trade Promotion

Continue to support Trade Promotion to stop Trade

partners in piling up the competitors cheaeper
product.

Due to higher margin, RBS can provide due to its

higher cost and margin can be used to overcome
price gap in trade

The high buying of product only during promotion

period can be countered by smaller promotion
period or limiting promotion stock