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Giant Consumer Products

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Connor McCollam

on 26 March 2013

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Transcript of Giant Consumer Products

Connor McCollam
Nicole Quenneville
Ben Mazhero
Carolina Robayo Giant Consumer Products Giant Consumer
Products Problem Statement: Situational Analysis Strengths Alternatives Alternative #1 Recommendation Natural Meals Plan of Action Natural Meals Promotion Frozen Foods Division
Growth has Plateaued Overriding Factors Marketing Margin : Sales Promotion? Which Product? 2. Situational Analysis

3. Alternatives

4. Recommendation and Rationale

5. Plan of Action
-Connor Agenda The Most Centric Management Team Deliver the Promise: Good Tasting Food at a reasonable Price Has a 43% National Market Share (by Revenues) Carrier clout with large supermarket chains Ability to successfully anticipate trends Situational Analysis Weaknesses Division Sales Volume (in units) was 3.9% behind plan Gross Revenue was under plan by 3.6% Marketing Margin was under plan by 4.1% Growth since 2007 is lower than registered the prior 5 year period Speculation that growth would plateau from analyst Situational Analysis Opportunities Consumers looking for substitute for restaurants Improved ROMI = True Brand-Building Activities Situational Analysis Threats Consumers are buying less frozen foods Many Products utilize promotion , promotion is no longer enough Large and diverse in number and types of brands (Highly Competitive) Daft (Lead Competitor) has been holding steady with 25% market share Restaurants have become a formidable rival to consumers Promote Frozen Food Sales : Plan of Action Set Goals Month
1 Annual Promotion Plan Begin Promotions Month
2-6 Month
6-18 Firstly Criteria Overall: Top Line Revenue: $603,280,000 Gross Margin : $324,736,500 Natural Meals: Volume: 49,500,000 Lbs Revenue: $143,550,000 Gross Margin: $88,306,500 Marketing Margin: $69,000 Key Metrics: Marketing Margin % : 48% Gross Revenue /Lb : 2.9 Gross Margin /Lb : 1.78 Marketing Margin /Lb : 1.39 Duration : One Week What is Needed? End-Aisle Display
Temporary Price Reduction
Lower Price to Consumer Set up Promotion Schedule Account Management Team task: Inform Retailers of Promotion Record and schedule when which retailer would like to execute Promotion Follow Schedule Deliver Necessary Promotional Items Direct Store Delivery Gage Performance Weekly Evaluation of Promotion Performed through: Historical Data from Promotion Key Metrics Overall Company and Division Goals Perform corrective Measures if needed The End Thank You! Questions? Sales Promotion: Yes or No? Would Give the boss what he wants Data shown that sales promotion is proven to generate short term sales lifts Increase in Brand Awareness Pros Positive relations between retailers and company Alternative #1 Sales Promotion: Yes or No? Alternatives Cons Possible Cannabilization Brand Equity Erosion Stock Piling Forward Buying Promotion Loyal vs. Brand Loyal Customers Alternatives Alternative #2 Dinardo 32 Pros Success through existing popularity Largest change in potential revenue (+$6,901,028) Alternatives Alternative #2 Dinardo 32 Cons Stock Piling due to portion size Cannabalize Dinardo 16 by 5.58% Smallest ROMI at 11.5% Alternatives Alternative #3 Dinardo 16 Pros Has the best ROMI at 48.65% Alternatives Alternative #3 Dinardo 16 Cons Risk of Stock Piling Alternatives Alternative #4 Natural Meals Pros Minimal chance of Cannibalization Easier Cost of Promotion Super Premium Product = Attractive to Retailers Best Marketing Margin (Approximately 2$ Million) ROMI of 41.10% Alternatives Alternative #4 Natural Meals Cons Competitor Daft has similar product and would possibly counter promotion Multi-Million Dollar Consumer products manufacturer Increased Overall Market Growth through Promoting Capitalize on Consumer Hierarchy of Frozen Foods Category Management Structure: Off Invoice Pricing Alternatives 1. Sales Promotion? 2. Dinardo 32 3. Dinardo 16 4. Natural Meals Effects of Cannibalization on revenue:
Dinardo 32 = - $1,197,278
Dinardo 16 = $2,775,636 Natural Meals
Highlights Extraordinary Growth : 15% per Year Predicted to Grow 5-10 times current rate Possible Concern Promotion might hurt Natural Meals Super Premium image Leader in Health Food Segment ROMI of 41.1% Consider Would Cannabilize Dinardo 32 at a rate of 0.19%
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