MARKETING METRICS

Giant Consumer Products: The Sales Promotion

Resource Allocation Decision

INTRODUCTION
The frozen food division of the Giant Consumer Products, Inc (GCP) was not doing well as
the division’s sale volume was 3.9% behind the plan. Sales promotion by use of coupons and
promos was suggested as one measure to counter declining sales and attracting new
customer. The fact is that the management realizes that trade promotions are most
expensive and least understood marketing tool which is deployed by the manufactures.
These measures might also lead to cannibalization due to promotion of a particular product
and brand equity erosion due to a “price-off” deal on a super-premium brand.
Our analysis is if the sales promotion is considered then how should the company structure
a sales promotion strategy. The recommendations would be based on selecting one of the
three products i.e. (a) Dinardo’s 32 (b) Dinardo’s 16 (c) Natural Meals, in which the company
which include promotions.
SWOT analysis followed by a PESTLE analysis is also shown to understand the position of the
company.

SWOT ANALYSIS-
STRENGTH
 Short term strategy of marketing is well structured and defined.
 The brand image of Dinardo’s brand is strong and well known. The revenues
generated by the company is as high as $425 Million per annum.
 The quality of products was better than the competitor products.

WEAKNESS
 The long-term marketing strategy was not planned out and no strategic direction for
the same
 Lack of advertising and promotion
 One size option of natural meal products which reduces sales and consumer
attractivity towards the product.

OPPORTUNITY
 The focus is towards healthy living lifestyle and eating healthy food.
 The growth of natural food items was expected to be around 5-10% per annum.

THREAT
 There was a threat of cannibalization within the brand.
 The consumer habit may shift in the long so building capabilities that are not needed
in the future might be a cause of concern.

PESTEL ANALYSIS
POLITICAL-
 Government focus towards healthy eating amongst the people as obesity was seen
as a cost factor in the economy.
  Risk involved when greater public awareness will be created through the product of
GCP once it is rolled out.

ECONOMIC-
 In spite of large downturn in economy FFD had steady growth rate of 2.8% between
the year 2003 and 2008.
 Sales promotion will play an important role to show relevance to the consumers.
 Various economic conditions would lead to a 50% reduction in consumer spending.

SOCIAL-
 Families have both men and women working due to lesser time for food preparation
will be there.
 The focus is towards healthy living lifestyle and eating healthy food.
 The family interest is towards returning to family style of dining where all members
sit together and enjoy the meal.
 People have increased awareness about the food they eat and the quality of the
ingredients

TECHNOLOGY-
 Use of technology to create mass scale production and innovative organic foods.

ENVIRONMENTAL-
 Trend towards eating healthy food and readymade healthy food.

LEGAL-
 Concern over organic certifications of the products.