Dinardo 16 Or Natural Meals
2. Do you advise Sanchez to run a national sales promotion? If so, which one of the items should the funds be allocated to: Dinardo 32, Dinardo 16 or Natural Meals?
Ans: One of the most critical factors involved in contemplating the decision to run a notional sales promotion is the return of marketing investments (ROMI) which had been coined to refer to the return (marketing margin)from the undertaking marketing initiative. After assessing all the data given and taking into account the three key metrics we came to a conclusion that from the entire product lines the best ROMI is for the Natural Meals product line. The Natural Meals are positioned as a premium product and have higher profitability. A Natural Meals promotion would result in increased revenues of $6.7 million and $507k marketing margin, which result of 12% ROMI. ROMI for this product line is high and raises brand awareness for Natural Meals. Monthly promotion of Dinardo 32 …show more content…
A promotion on Dinardo 16 results in $278 million increase in revenues and 881k lower marketing costs. The ROMI-return of marketing investments for a Dinardo 32 promotion would be 10% and Dinardo 16 promotion -9%. If we focus mainly on ROMI then the two best product lines to promote would be The Natural Meals and Dinardo 32. These two lines also have different target audiences - for Natural Meals, health-conscious consumers, that take a decent amount of time to look for organic food, with low fat and that doesn’t contain unnecessary additives or preservatives. These people are willing to pay a bit more for a fancy, healthy food. But for the Dinardo 32 the target audience is families with at least 4 members who are price-conscious and are more used to traditional foods that people know for years, like Spaghetti & Meatballs, Lasagna, etc. It is believed
Ans: One of the most critical factors involved in contemplating the decision to run a notional sales promotion is the return of marketing investments (ROMI) which had been coined to refer to the return (marketing margin)from the undertaking marketing initiative. After assessing all the data given and taking into account the three key metrics we came to a conclusion that from the entire product lines the best ROMI is for the Natural Meals product line. The Natural Meals are positioned as a premium product and have higher profitability. A Natural Meals promotion would result in increased revenues of $6.7 million and $507k marketing margin, which result of 12% ROMI. ROMI for this product line is high and raises brand awareness for Natural Meals. Monthly promotion of Dinardo 32 …show more content…
A promotion on Dinardo 16 results in $278 million increase in revenues and 881k lower marketing costs. The ROMI-return of marketing investments for a Dinardo 32 promotion would be 10% and Dinardo 16 promotion -9%. If we focus mainly on ROMI then the two best product lines to promote would be The Natural Meals and Dinardo 32. These two lines also have different target audiences - for Natural Meals, health-conscious consumers, that take a decent amount of time to look for organic food, with low fat and that doesn’t contain unnecessary additives or preservatives. These people are willing to pay a bit more for a fancy, healthy food. But for the Dinardo 32 the target audience is families with at least 4 members who are price-conscious and are more used to traditional foods that people know for years, like Spaghetti & Meatballs, Lasagna, etc. It is believed