Clique Pen Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Analysis

What are the objectives of Trade promotions? How are the objectives of MDF different from trade discounts

In business and marketing, the term trade is referred to the relationship between producers and sellers. [1] Trade refers to marketing activities that run in the retail trade between these two individuals. Trade promotion is a marketing method which is aimed at increasing demand for retail products based on special pricing, accessories presentation, demonstrations, premiums added value without engagement gifts, and more.

Trade promotions may offer several advantages to companies. Selling stores can be an extremely competitive environment; trade promotions can help businesses to differentiate their products from the competition. Companies can use commercial promotions to increase product visibility and brand awareness among consumers. Trade promotions may also increase the rate of consumption of a product, or the average amount of a product consumed by consumers in a given period of time. Moreover, effective trade promotions can expand the penetration of the market segment for a product, or sales of the product in proportion to the jurisdiction of the category. Furthermore, companies use Trade Promotion to improve the distribution of their product (s) in stores and strengthening relationships with retailers. Finally, trade promotions can be leveraged to introduce new product launches in retail stores.

Trade Promotion Management (TPM) represents management product promotion, for example, discount / special conditions for the sale of products - and is a close integration with the pre-sales / sales. Market Development Funds (MDF) directs marketing activities performed by the partners (or other internal departments) without such tight linkage sell product but focusing on expanding the scope of marketing, increase brand awareness, and stimulate demand. For there is no overlap for TPM and thin MDF, but can be viewed separately, because different departments are dealing with promotional and marketing activities couple.

Moreover, MDF is marketing-driven, in that process, the marketing department is typically driving these activities; while TPM is a process driven sales in the Sales Department is normally conducting these activities. Commercial developments are handled by key account manager (or sales representative) in your CRM system. Collaboration and agreements with retailers are only managed by the key account manager in SAP CRM, order business agreements - only internal users involved. While MDF is a collaborative process by which the interaction between the brand owner and channel partners with the support of CRM,sellersare allowed controlled access to the system. TPM has claims that are created either by a claim deduction instigated in the ERP or CRM instigated bill claim, even after a sale of the promoted product has taken place. While MDF’s claims are made on the basis of the cost of a marketing activity for a product to run and is the only processed in CRM (payment only via ERP).

The few commonalities between TPM and MDF: one of them is a way to borrow money from the manufacturers; track how the money was spent; workflow for approvals. In the solution of both MDF programs and trade, promotions can be displayed and monitoring within the marketing calendar. Budgetary control both shares and Claims Management framework for their business processes.

Based on the information provided in the case, reproduce McMillan’s calculations of sales and profit

Clique Pen Case Solution

If consumer-oriented MDF is employed

If the consumer oriented MDF is employed then the net profit of the clique pen will result in the year 2013 is $ 20.33 million where it is assumed that the sale will remain constant

If retail-oriented MDF is employed

If the retail oriented MDF is employed then the net profit of the clique pen will result in a decline of$ 19.33 million where it is assumed that the sales will remain constant.

Calculate what Clique’s gross profit would be based on the Staples Test of the 10% discount to the consumer

Clique’s gross profit would be based on the 10% discount given to the consumer that was$60.3 in the period of 2013...........................

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