Giant Consumer Products (Gcp)
2174 words 9 pages| Giant Consumer Products (GCP) | | |
A. Situation Analysis:
1. Context: In early September’08 Giant consumer Products, Inc. (GCP) realized that Frozen food division, which had been growing at 2.8% (compounded annual growth) rate since 2003 to 2007 and accounted for almost 33% of GCP’s overall business volume, is not doing well now. The sales as well revenue volume is around 3.9% behind the target. Most specifically marketing margin (key parameter for GCP business) was also under plan by 4.1%. GCP had been doing well in wall-street but performance of past couple of quarters has increased the worries of GCP i.e. whether GCP will able to maintain its profitable growth.
GCP is expecting FFD to deliver the sufficient growth to …show more content…
Based on the assumption, it is estimated that the sales volume of the other DinardoTM products would meet the planned annual targets without any promotions. (Please refer Exhibit-11) * The ROMI of “The Natural Meals” is positive (0.93), which would provide us incremental revenue benefits, if we go for its promotions. There is no cannibalization among other FFD products due to its promotion. We also analyzed the impact of monthly promotion of Natural Meals product based on Volume, Marketing Margin, Net revenue, Gross margin & % Marketing Margin. It is found that however the yearly target of Marketing margin (%) for Dinardo-32 is not achieved but if we go for 2 months promoting for Natural Meals, we achieve the year (%) Marketing Margin target. * Care has also been taken of rival company ‘Daft’s’ Plan to launch a new product in Jan’09, hence we recommend to extend the promotion of Natural Meals in the month of Dec’08 too.
Hence we recommend GCP-FFD should promote only the “The Natural MealsTM product” during the month of September’08 and December’08. (Please refer Exhibit-2, 3, 4, 5,9 & 10) C. Promotion planning and implementation:
* The GCP-FFD should use retailers and the supermarket to increase the awareness of “The Natural Meal” products among the end consumers. The same should be done under the retailer’s compensation plan under which retailers would be paid a fixed commission only if they hit a