Scribd
Upload
11 views1 page

National Sales Promotion Strategy Analysis

Global discounts on Dinardo's 32 and Dinardo's 16 have negatively impacted overall revenue and margins. Promoting these brands often causes them to cannibalize each other's sales. Natural Meals sales are rising steadily without being influenced by Dinardo brand events. Therefore, funds should not be allocated to Dinardo 32 or 16, but rather to promoting Natural Meals through channels like above-the-line advertising to fuel long-term growth.

Uploaded by

Pratyush Barua
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
11 views1 page

National Sales Promotion Strategy Analysis

Global discounts on Dinardo's 32 and Dinardo's 16 have negatively impacted overall revenue and margins. Promoting these brands often causes them to cannibalize each other's sales. Natural Meals sales are rising steadily without being influenced by Dinardo brand events. Therefore, funds should not be allocated to Dinardo 32 or 16, but rather to promoting Natural Meals through channels like above-the-line advertising to fuel long-term growth.

Uploaded by

Pratyush Barua
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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?

Global discounts on Dinardo's 32 and Dinardo's 16 have affected the overall top line and
marketing margin figures, based on the historical evidence presented. Promotions on these
labels often cause the other brand's major cannibalization. For one product, a peak in the
overall revenue figure is correlated with a sharp decline in the other product. Natural
meals sales are also rising at a steady rate as per the provided data and are not influenced
by events related to the brand of Dinardo. Therefore, neither D32 nor D16 should be
marketed, as the resulting rise in sales would not substantiate the publicity and advertising
expenses.

The Natural Meals customer base is insulated from any improvements to the Dinardo
brand. We also recognise that this is a niche market and GCP is concerned about the
dilution of products and the loss of brand value. Therefore, in the long term, advertising
activity for GCP goods might not be a successful choice. In addition, GCP's main
competitor, Daft, may increase the incidence and/or depth of its promotional activities if
any promotional activities are carried out by GCP. Therefore, to advertise and encourage
Dinardo's and Natural Meals, GCP should look at other channels, such as ATL ads, and thus
fuel development over the long term.

You might also like