...annual chemical cost by 15%, thus the increase in savings by Coracle is 10% (25%- 15%). The annual chemical cost (excluding clarifiers) is $300. Calculation of Coracle’s annual EVC: $56.25+ 0.1x $300= $86.25. Coracle, being a new brand should first adopt a push strategy since there is low brand loyalty and low brand awareness. This will generate exposure and encourage distributors to stock up on Coracle. Only 25% of consumers understand and use clarifiers regularly. This shows that there is low involvement in purchasing decision and perhaps an impulse item as a residential clarifier. And thus a push strategy is a good way to promote the product. However, since product benefits are not well understood by consumers, Soren can also adopt a pull strategy in communicating the actual...
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...Strategy: Push strategy is where companies forecast demand before ordering based on the willing buyers and also the goods doesn’t runout unexpectedly. For example winter jackets are required by retailers during the end of summer or during start of fall and winter. Companies can predict in their supply chain as they know what will be needed long before their demand actually arrives. So the main disadvantage in Push system is it’s purely based on forecast which is a guess. For example Billions are spent in US on computers and software’s but most of the time demand and forecast differed. So if forecast goes wrong there will be excess of investments and profits will decrease. Sometimes we may runout of inventory and lose customer loyalty. Pull Strategy: Pull strategy is the one which is based on demand data. This is based on the actual consumption at stores and also forecast rather than predicting sales. For example Custom computers are build by direct computer seller only when the order is received from consumer. Cloud technologies these days are providing daily consumer demand for generating forecast. Based on this strategy, a company can manufacture goods based on daily demand and reduce production of goods which are moving slowly so that inventory maintenance cost is reduced for goods which are not in demand. The disadvantage of this strategy is that sometimes we may runout of inventory if demand increases and if we are unable to increase production. Aggregate Forecast: This forecasts...
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...Reliance Baking Soda Case Questions Please provide written answers to the following questions. Limit your answers to a maximum of two pages, plus exhibits. 1. What are the strengths and weaknesses of the RBS brand? With a 70% share in the baking soda category, RBS is clearly the market leader and due to the relatively high degree of versatility it is also widely recognized in several other categories as a key player in the market. The brand also boasted high levels of brand recognition and also unaided brand awareness. By being in the baking soda category and more or less defining the category as a whole, it has created a reasonable level of acceptance of the multiple uses for the product and in turn the brand as well. As for distribution, the brand has demonstrated extremely high levels of penetration among the various retail outlets in grocery stores, mass merchandise stores, and drug stores. As for the weaknesses, the primary limitation of the brand is the lack of awareness of the multiple cleaning purposes of the product. The brand and the product are both widely considered to be rather boring and unappealing, and to make matters worse the product has not undergone any changes in the past century. The category and in turn the brand are experiencing increasing selling prices, low traffic and low turnover. Lastly, there is an extremely low recollection among consumers when it comes to the advertising of the brand irrespective of the medium. 2. Analyze the...
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...Your analysis was unclear or was not supported by facts from the case. (1 Point Earned) Substantive omissions were made in your analysis. (0 Points Earned) B. Past Promotional Events (2 Points Possible) Analyze the effectiveness of past RBS consumer and trade promotions. How have the promotional strategies impacted sales volume? What kind of return on investment is the company getting for consumer promotions and trade promotions? You provided a well-reasoned financial analysis that was supported by facts from the case. (2 Points Earned) Your analysis was incomplete or was not supported by facts from the case. (1 Point Earned) Substantive omissions were made in your analysis. (0 Points Earned) C. Push vs. Pull (2 Points Possible) Compare the relative merits of a push vs. a pull strategy for the marketing a low-involvement, lowprice grocery item in a mature market setting. You clearly identified the relevant strategic considerations of the two strategies case and provided a well-reasoned analysis based on those considerations. (2 Points Earned) You were not clear in your identification of the relevant strategic considerations. Your analysis was incomplete or was not supported by facts from the case. (1 Point Earned) Substantive omissions were made in your analysis. (0 Points Earned) D. Recommendation (2 Points Possible) What is your recommendation for how Regnante can achieve her 2008 target profit? What if any changes should be made to trade and consumer promotions to make them...
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...1.0 Introduction Pollick (2015) mention that the amount of inventory of products and material contained in a store or factory at any given time. Store owners have to understand the precise number of goods on the shelves and storage areas in order to place an order or loss of control. Industrial unit managers have to to understand how much product’s units for buyer orders. Restaurants have to order extra food depend on their recent supply and the demand of the menu. All of these operations depend on the stock count to give a respond. The word "inventory" means the amount of goods and calculation of their performance. A lot company takes regular supply of inventory to avoid running out. Others take inventory, to make sure that the number of items ordered items to match the actual number counting. Shortage or excess inventory that theft (referred to as the "contract" retail circle) or inaccurate accounting practice. 1.1 Advantage and Disadvantage of hold inventory First advantage is improving customer service. By hold inventory can increase investment in inventory may result in a higher level of customer service and able to meet and anticipate customer demand. It also prompts and precise customer order upon request. Second advantage of hold inventory is economies of scale. Take advantage of per unit price reduction for purchasing in large quantity and enjoy economies of production as greater plant capacity and lower per unit manufacturing costs. The following is disadvantage of...
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