Giant Foods Case Analysis
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OUTLINE
I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV.
EXECUTIVE SUMMARY COMPANY ORIENTATION COMPANY PORTFOLIO ISSUES TREATED PROMOTION OR NO PROMOTION? CANNIBALIZATION BRAND EQUITY EROSION FORWARD BUYING PASS-THROUGH STOCKPILING ENGEL’S LAW GENERAL REASONS TO CONDUCT A SALES PROMOTION PROMOTION FOR WHICH ITEM FINANCIAL ANALYSIS THANK YOU NOTE
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EXECUTIVE SUMMARY:
Frozen food division (FFD) is the key contributor to Giant Consumer Product 's (GCP) profits which have successfully grown over the past 30 years. The company has two main products lines, Italian frozen dinner “ DinardoTM”, and organic frozen foods “Natural mealsTM ”. However, recently FFD has encountered a shortfall in sales volume and gross revenues. Now, Allan Capps the CEO of GCP is hesitant about running a trade sales promotion with retailers. And if so, which brand should the marketing funds be allocated to?
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COMPANY ORIENTATION
CEO
(chief executive officer) Allan Capps disagrees with doing a sales promotion due to several concerns.
GCP’s Vice
President of sales Bryon Flat suggests and supports doing a sales promotion featuring FFD brands on special retailer-instore weekly circular promotions that could generate a short-term sales lift.
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COMPANY ORIENTATION
General Manager of FFD Mary Davidson has to recommend whether a sales promotion should be launched or not and if so, identify the most item to promote. According to the CF0 (chief financial officer) the return on marketing investment (ROMI) should be greater than 100% or will not be considered profitable. Director of Marketing Mike Sanchez has the control over the two brands DinardoTM and Natural mealTM.
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COMPANY’S PORTFOLIO
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COMPANY’S PORTFOLIO (CONTINUED)
Dinardo’sTM Brand: Generates over $425 million revenues annually. Available in 3 sizes:
D32: inexpensive way to feed a family of four. D16: convenient for 2 people. D6 & D8:
OUTLINE
I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV.
EXECUTIVE SUMMARY COMPANY ORIENTATION COMPANY PORTFOLIO ISSUES TREATED PROMOTION OR NO PROMOTION? CANNIBALIZATION BRAND EQUITY EROSION FORWARD BUYING PASS-THROUGH STOCKPILING ENGEL’S LAW GENERAL REASONS TO CONDUCT A SALES PROMOTION PROMOTION FOR WHICH ITEM FINANCIAL ANALYSIS THANK YOU NOTE
2
EXECUTIVE SUMMARY:
Frozen food division (FFD) is the key contributor to Giant Consumer Product 's (GCP) profits which have successfully grown over the past 30 years. The company has two main products lines, Italian frozen dinner “ DinardoTM”, and organic frozen foods “Natural mealsTM ”. However, recently FFD has encountered a shortfall in sales volume and gross revenues. Now, Allan Capps the CEO of GCP is hesitant about running a trade sales promotion with retailers. And if so, which brand should the marketing funds be allocated to?
3
COMPANY ORIENTATION
CEO
(chief executive officer) Allan Capps disagrees with doing a sales promotion due to several concerns.
GCP’s Vice
President of sales Bryon Flat suggests and supports doing a sales promotion featuring FFD brands on special retailer-instore weekly circular promotions that could generate a short-term sales lift.
4
COMPANY ORIENTATION
General Manager of FFD Mary Davidson has to recommend whether a sales promotion should be launched or not and if so, identify the most item to promote. According to the CF0 (chief financial officer) the return on marketing investment (ROMI) should be greater than 100% or will not be considered profitable. Director of Marketing Mike Sanchez has the control over the two brands DinardoTM and Natural mealTM.
5
COMPANY’S PORTFOLIO
6
COMPANY’S PORTFOLIO (CONTINUED)
Dinardo’sTM Brand: Generates over $425 million revenues annually. Available in 3 sizes:
D32: inexpensive way to feed a family of four. D16: convenient for 2 people. D6 & D8: