Marketing Management

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Strengths and Weaknesses One key strength of RBS is high distribution penetration, with 90% of grocery stores and mass merchandisers, 85% of warehouse clubs, and 80% of drug stores stocking at least one size. The demand for different box sizes varied by channel; for example, warehouse clubs exclusively purchased the 5 lb. size. Exhibit 5 provides detailed channel data. The Household Division maintained a 150-person sales force to manage the retail and wholesale accounts for all products within the division. The sales force was incentivized through a quota system, with divisional senior management establishing quarterly volume quotas for each salesperson. Salespeople received a small base salary; most of their compensation came from bonuses for meeting and exceeding sales targets. Regnante was expected to work with sales management in creating a schedule of consumer and trade promotion. Randall Todd, senior account manager for several major grocery chains, pointed out a major weakness of the RBS brand. He stated, "RBS needs a lot of push marketing to stimulate trade interest. Baking soda is not a natural traffic builder, it does not have high turnover, and it is boring. The product hasn't changed in almost 100 years. The only way I'm going to make my quotas is if we offer attractive incentives to the trade." Past Promotional Events RBS had raised manufacturer's selling prices three times in the last five years (in 2004, 2006, and 2007). From 2006 to 2007, an increase of

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