Giant Consumer Products: The Sales Promotion Resource Allocation Decision Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

^{Giant Consumer Products: The Sales Promotion Resource Allocation Decision Case Solution}

Question no 2: Do you advise Sanchez to run a national sales promotion? Explain your answer.

As Mary Davidson, the general manager of FFD, contacted Mike Sanchez who worked as director of marketing at FFD for his recommendations about trade promotions, Sanchez was sunk in thoughts that if he should recommend national sales promotion or not. I would recommend him to run a national sales promotion for one of the three major products of FFD. Apart from my recommendation, Sanchez has already a vast experience and he can decide on the basis of metrics he had used in the past.

Moreover, the point of scale scanner purchased from a syndicated marketing research firm, Nielsen also shows that sales promotions should be run on one of FFD’s products to generate short-term sales lifts. Another reason behind preferring a national sales promotion over regional sales promotions is that it would not cast a weak image of the company on customers. Regional sales promotions are usually run when the sales are diminished in only few regions of the country. Whenever there is a need to uplift the overall profitability through increase in number of sales, using the national sales promotion is best idea.

Last but not least, running national sales promotions would not be much risky for FFD, especially if FFD runs a national sales promotion on Natural Meals. The reason behind this is that Natural Meals have shown successful promotions at regional level. So it would be less risky to use the promotions for the same product at national level.

Question no 3: If so, to which one of the items should the funds be allocated: Dinardo’sÔ 32oz. packages, Dinardo’sÔ 16oz. packages, or Natural MealsÔ?

GCP should allocate the funds in Dinardo’s 32oz. packages. The reason for allocation is evident from the values of top line revenue, marketing margin and ROMI calculated with the help of past sales volume and revenues generated during promotional and non-promotional seasons. Moreover, the reasons to invest in Dinardo’s 32oz. packages could also be found by deep analysis of the sales and customers’ trend. Some facts about running promotions on Natural Meals were already mentioned in the case study. The data illustrated regarding all of the products of FFD also helped determining which product should be used for national sales promotion. Following are the reasons that are extracted from the case study:

Dinardo’s 32oz. packages that are perfect solution for four persons is the most frequently purchased product of FFD. In addition to the brand equity of GCP, the Dinardo’s packages are not much high in prices. Therefore, they attract the people from restaurants towards fresh and good in taste frozen food by virtue of their lesser prices.
Most of the Dinardo’s purchasers are price conscious. It would be more captivating for them to see a sale promotion on one of their beloved frozen food product.
Selecting Dinardo’s 32oz. package would also cast less cannibalization as buyers of Natural Meals are health conscious and they would not be enticed to see a sales promotion on Dinardo’s.
The health conscious or California type customers of Natural Meals are lesser in number nationwide. Therefore, it would not be a good idea to run a national sales promotion on it.
Finally yet importantly, the Natural Meals have a premium image, and it would be smudged by running a national sales promotion on it.............................

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