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Reliance Baking Soda Case Study Essay

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_IN T E R O F F IC E M E M O R A N D UM TO: DR. MICHAEL PREIS – VICE PRESIDENT OF HUTCH CORPORATIONS FROM: MAXIMILIAN PAHN – SENIOR CONSULTANT SUBJECT: EXECUTIVE SUMMARY DATE: 02/10/2013 Executive Summary: 1) Since Hutch Corporations is targeting the lower-middle, middle-income range and no specific ethnic group, the two possible locations Dalton and Hinesville seem to be the good match for a new store according to Exhibit 2. Hutch´s target market of women between the ages 18 and 40 years, fits very good to the data that is given about these two cities. As you can see the biggest shares of inhabitants is from the age of 21 to 44. Even the relatively low percentage of women, living in these cities does not…show more content…
In September there was another offer of a $1.00 cash refund, with the proof of purchase for two 5 lb. boxes, which lead to an increase in gross sales of RBS, too. The $2 cash refund for the purchase of RBS plus four additional Household Division brands in January 2006 increased the gross sales even by more than 100% from $9.3mio to $20.6mio, a total net incremental contribution of $619,562. These coupons were advertised in women’s magazines, in a Sunday newspaper supplement, on the company website, and in point-of- purchase material the latter of which has a relatively high response rate of 2%. The event in June, that included a shrink wrapped twin pack of the 1 lb. boxes and a $1.00 cash refund inside the pack with proof of purchase from two 1 lb. boxes encouraged consumers to keep one box in the fridge and one in the bathroom, so that most of them bought two boxes of RBS which led to rising sales volumes Considering the significant increase in sales, RBS should focus on investing in print and online advertisement by increasing their budgets by 10% in this sector. To conclude and thinking long-term, budgets for consumer promotion should be raised by 10% to ensure that RBS continues selling high volumes. Due to missing information of the response rate of advertising in TV, RBS should maintain the budget in this sector constant. b)
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