discussion on effectiveness of previous years trade and consumer promotions Summarized in Brand Fact Books (for eg. Different hair brand, Di fferent Skin care brand)
Fact books - historical perspective of category and brand, competitor profile s, actions in advertising, promotion, pricing and product, consumer attitudes quantitative results - sales, market share, shipments, contribut ions etc May -July - Develop marketing plans based on fact books for each brand develop forecast of sales October - Forecasts were incorporated in division budget Nov - Jan - Category and divsion strategic business plans 4 strategic categories - Build, Hold, Harvest, Withdraw (all 4 s trongly tied to resource allocation) Build - build market share Hold - hold market share and profit levels Harvest - maximized cash flows (high margin) Withdraw - painless exit After this plans were reviewed by Operating committe and reviewed with EX vP of North America and President of the company Control - Sequence of activities Daily sales reports(actual vs budgeted) and monthly sale forecast reports on sal es Trade reports Distribution channel reports MRD reports on products movement from factory to distribution channel to consume rs In addition managers used informal reports like intention to buy after sampling, whether consumer liked advertising campaign White Rain's manager - looked at proportion of promotion goods sold to total goo ds sold (if promotion increased he will sell at low price so marketing mix needs to be adjusted) looked at share and shipments (since it was build brand)
Right Guards manager - more towards providing product news consistently to trade and consumers. He focused on profit (since it was hold) Right Guard - Background and issue deodrants for male users aerosol image more entrenched to consumers than competitors Restage process moved from hold to build new fragrance, new packaging, advertising was reduce to maximize profit Price increase in october 1982 advertising low for first 5 months trade promotions were grouped together in second quarter full line promoted together to maximize restage impact new product came to shelves 12.7 million advertising campaign Market didn't grew that much (only 2%) competitor increased advertising by 45% to 12.8 million Achieved 7.6% share vs 8.1% forecasted consumer and trade reaction weak huge brand awareness - difficult for old aerosol image to modify MSS 6.5%. New products/improvement in pipeline. Became Hold brand again White Rain No extensive documentation End run test = once safety and effectiveness tests performed did attitude testin g on getting negative reaction (instead of bunch of positives) No advertising - Low price Launched at same price to competitor but providing more quantity No advertising was significant barrier in gaining shelf space authorized a minimal advertising campaign 2/3 not learned about shampoo until they saw it on store shelves brand developed special shelf displays