Reliance Soda
RELIANCE BAKING SODA
Stewart Corporation
Stewart Corporation had four divisions i.e. Household,
Beauty, Foods and International.
In 2006 the company generated $150 million in net income and $558 million in profit.
Household division was responsible for $400 sales and included baking soda, laundry detergents, window cleaners and disinfectant, wipes.
Case Overview
Lot of income spent on promotion in 2006
Product sales high for 2006
Sales went down on 2007
Price increase in 2006-07
Strengths and Weakness
Strengths:
Market Leader-70% market share
Multi utility product
85% households purchase RBS
Strong brand recall-95%
Weakness:
Price sensitive market
Poor Advertising
Marketing Strategy
Push strategy involves the grower’s marketing activities
(primarily the sales force and trade promotion) directed at the marketing channel intermediaries, such as brokers, wholesalers, etc. Push strategy is especially appropriate where:
there is low brand loyalty in a category;
purchase, selection or choice is based upon availability in
the retail outlet;
the product is an impulse item;
the product benefits are well understood.
Relative merits of Push strategy…
When successful, push strategies result in
a wider range of availability,
fewer stock outs,
greater merchandising activity, and
a greater marketing effort than would have been achieved with little or no push communications.
Consumer Promotions:
Advertisements were made in women’s magazine, Sunday newspaper and
company website.
In April set of coupons for 5 household brands was included in 6 million boxes of Brilliance Laundry detergent.
In June shrink wrapped twin pack of 1 lb. boxes and a $1 cash refund inside the pack with proof of purchase of 2 1 lb. boxes.
Trade Promotions:
Discount on invoices for cases ordered in promotion period.
Free cases with a purchase of a minimum order.
Stewart Corporation
Stewart Corporation had four divisions i.e. Household,
Beauty, Foods and International.
In 2006 the company generated $150 million in net income and $558 million in profit.
Household division was responsible for $400 sales and included baking soda, laundry detergents, window cleaners and disinfectant, wipes.
Case Overview
Lot of income spent on promotion in 2006
Product sales high for 2006
Sales went down on 2007
Price increase in 2006-07
Strengths and Weakness
Strengths:
Market Leader-70% market share
Multi utility product
85% households purchase RBS
Strong brand recall-95%
Weakness:
Price sensitive market
Poor Advertising
Marketing Strategy
Push strategy involves the grower’s marketing activities
(primarily the sales force and trade promotion) directed at the marketing channel intermediaries, such as brokers, wholesalers, etc. Push strategy is especially appropriate where:
there is low brand loyalty in a category;
purchase, selection or choice is based upon availability in
the retail outlet;
the product is an impulse item;
the product benefits are well understood.
Relative merits of Push strategy…
When successful, push strategies result in
a wider range of availability,
fewer stock outs,
greater merchandising activity, and
a greater marketing effort than would have been achieved with little or no push communications.
Consumer Promotions:
Advertisements were made in women’s magazine, Sunday newspaper and
company website.
In April set of coupons for 5 household brands was included in 6 million boxes of Brilliance Laundry detergent.
In June shrink wrapped twin pack of 1 lb. boxes and a $1 cash refund inside the pack with proof of purchase of 2 1 lb. boxes.
Trade Promotions:
Discount on invoices for cases ordered in promotion period.
Free cases with a purchase of a minimum order.