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Marketing 201 Case

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Pioneer Academy

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Marketing 201 Case # 2

1. Evaluate the present strategy for Guard and Sung’s and King’s proposal strategies.

Answer: Sung’s strategy is to allocate the sales promotion by region rather than to the

proportion of the population. He wanted to increase the promotional budget spending on Ontario

where the product is not doing well. Based on his observation on the market-product grid where

he identified that slow performance of the brand on the store’s shelves due to aggressive

marketing competitions, this led to delisting of the product by the grocery chains and this causes

fewer sales. Since the Ontario region has a bigger share in terms of population in Canada, Sung

believes that increasing the promotional budget in this area will help in boosting the brand and

will be able to compete with the competitors.

King believes that promotional funds should be spending more on where the brand is doing

business meaning there is more return on investment (ROI). She believes that the priority is to

support the areas where the brand is selling best than in trying to increase sales in Ontario. She

also added that building business in the Ontario region is by investing the funds on incremental

promotion but a test of the investment proposition should be conducted first. This will determine

the attitude of the brand in the market and will justify the higher or additional spending for

promotions in Ontario.

King’s proposition of spending more promotional funds where the brand is already working best

would is a secure way of ensuring more ROI. This way she is already assured that the product

positioning in the market stands out. This allows the product and the company to cope with bad

times easily and allows flexibility to the brands on distribution, advertising, and other changes

needed to stay in the competition.

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However, if the company would want to have more ROI there is a need to consider the factors

that affect the sales of the product in other regions just like how Sung did in his marketing plan

where he found significant information with regards to the position of the bar soap in the market

by region. His marketing strategies include the purchase decision process especially in Ontario

where it covers problem recognition, information exploration, alternative assessment, purchase

decision, as well as post-purchase behavior. Sung found out that the competitors in Ontario are

spending heavily on promotions and there is a need for them to add some more marketing

spending on this region such as product repositioning to create more favorable attitude and

consistent purchase of the brand known as brand loyalty. There is also a need to change the

delisting attitude and perception of the chain stores in Ontario on the performance of the brand in

the market.

2. How should the promotion money be allocated?

Answer: promotional spending is required to make the brand exist for the consumers. A product

can’t profit if the consumers do not know that it exists or it has better benefits compared to other

products. To increase profitability the company must allocate more promotional funds where it

needs to boost the base for loyal clients and keep them patronizing the brand. This loyalty will

connect to other newer audiences that will lead to an increase in sales and ROI. Allocating

promotional funds should consider the important factors where the money should be spent. In

Sung’s proposition, he already identified the problem that causes fewer sales of the brand in the

chain stores and knows what kind of marketing strategies should be employed to increase the

sale of the product. In marketing even if the revenue is not relatively high the companies have to

spend to make more money.

3. Should investment-spending market tests be run first? Why? Explain.

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Marketing 201 Case # 2 1. Evaluate the present strategy for Guard and Sung’s and King’s proposal strategies. Answer: Sung’s strategy is to allocate the sales promotion by region rather than to the proportion of the population. He wanted to increase the promotional budget spending on Ontario where the product is not doing well. Based on his observation on the market-product grid where he identified that slow performance of the brand on the store’s shelves due to aggressive marketing competitions, this led to delisting of the product by the grocery chains and this causes fewer sales. Since the Ontario region has a bigger share in terms of population in Canada, Sung believes that increasing the promotional budget in this area will help in boosting the brand and will be able to compete with the competitors. King believes that promotional funds should be spending more on where the bra ...
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Tags: marketing strategies sales promotion by region organizational branding purpose of promotional funds marketing competitions