Case Analysis of Giant Consumer Products

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Emmerson Carrington Student ID #206138 Consumer Behavior BUS330 TJ Hanratty 28th May 2012 Case Analysis of Giant Consumer Products: The Sales Promotion Resource Allocation Decision • General Overview of Market In early September of 2008 Giant Consumer Products, Inc. (GCP) the Frozen Food Division (FFD), which constituted almost a third of GCP's overall business volume, was not delivering as expected. FFD's sales volume and gross revenue were 3.9% and 3.6% respectively, below expected levels. More importantly, the company's marketing margin was also 4.1% below plan. Historically, GCP’s stock had been favored by Wall Street forecasters, but recently, those same analysts were wondering whether GCP could maintain its above average growth. As a result, the company’s immediate objectives were clear: (1) generate much needed demand in the Frozen Foods Division (FFD) without undermining the long-term health of GCP's brands; (2) increase GCP's numbers to a point where they at least reach the low end of Wall Street's expectations. The achievement of these objectives heavily depended on GCP’s marketing strategy, and. GCP's senior management was highly motivated to reach the planned numbers. They were considering undertaking a sales promotion as a means of achieving the identified objectives and several company executives were tasked to determine whether a national sales promotion would be the right decision for the company, and if it was which products should be considered for promotion. • Supporting Facts Dinardo’s TM brand generates over $425 million in revenue annually and is available in three sizes: D32 which is an inexpensive way to feed a family of four, D16, convenient for two people and D6 and D8, for single consumers. Natural meals TM, generates $150 million annually and is an organic frozen food, low in fat, additives, and

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