Giant Consumer Products Case Study

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Goal: The goal is to figure out which sales promotion will be a win-win for all parties involved in the process. This includes the company, manufacturer, wholesaler, and the consumers. Company: Giant Consumer Products (GCP) People- Allan Capps: CEO, Byron Flatt: VP of Sales, Mary Davidson: FFD General Manager, and Mike Sanchez: Director of Marketing -A main concern for GCP is to preserve brand equity and not hurt the overall image by discounting. Current issues within GCP: 1) They need to increase revenue in order to meet Wall Street’s projections or it can seriously hurt the division’s standing within the company. 2) They need to increase demand of their product without hurting long term goals Factors to Consider: 1) 2.8% increase in growth rate between 2003 and 2007 (has slowed down since) 2) Customers view sales promotions as a very positive thing and keeps the product on their minds 3) 50% of consumers’ money spent on food is at restaurants (expected to decrease because of current hurting economy) 4) Current trend of healthier eating and focusing on the ingredients 5) Different types of family dynamics…family eating, childless families, etc. Competitors Daft- 25% market share of Italian Frozen Dinners and preparing to launch Healthy Options Consumers: GCP has different types of consumers: families, empty nesters, and individuals. Type 1- they are willing to pay a premium for healthy food. They focus on ingredients and are very health conscious. ----Natural Meals Type 2- families- need a larger option that will appeal to everyone in the family. They are cost sensitive but do want healthy ingredients-----Dinardo’s Concerns: -Consumers stockpiling during promotions -Wholesalers continuing discounted price even after promotion and pocketing the profits and hurting the brand image -Pressures to make the goals set by GCP -brand switching,

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