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Reliance Baking Soda

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Reliance Baking Soda: Best Promotion
Problem
Anna Regnante, the new Domestic Brand Director for Reliance Baking Soda must determine the effectiveness of past promotional strategies in order to select a promotional strategy which will contribute towards a 10% increase in profits for 2008 before SGA, overhead, and taxes, specifically through marketing expenditures in advertising, consumer promotion, and trade promotion. Further Regnante must develop a 2008 budget P&L that will show the resulting 10% increase in profits from the marketing expenses.
Situation Analysis
Context
Economic * Mature industry * Increasing raw material cost * Recent price increases * Low-involvement purchase * Prior to 2005, consumer promotions were not really a significant part of RBS marketing Technological * Baking soda first produced in 1846 Social/Cultural * Alternative uses for baking soda * Different types of users of baking soda * Staple product in most homes * Female heads of households generally are the purchasers * Reliance has high brand recognition (95% mentioned Reliance when asked for a baking soda brand)
Competitors
The main competitors for Reliance baking soda are private label brands who compromise 30% of the market and are priced 30% below RBS price. RBS had lost 5% of its market share to private label brands in the past decade. Baking soda does not have any viable substitutes or alternatives as it is a unique product and staple product, but private label brands posing price pressures on Reliance are a big threat.
Company
Stewart Corporation, founded in 1915 is compromised of four divisions: Household, Beauty, Foods, and International. RBS has a high distribution penetration, with 90% of grocery stores and mass merchandisers, 85% of warehouse clubs, and 80% of drug stores stocking at least one size,...

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