MKTG 2030 Lecture Notes - Lecture 8: Bargain Hunters, Private Label, Aldi
Document Summary
Background: meredith collins, vp of marketing, reed, needs a plan for 2011 to execute to grow its current market share from 14% to 16%. Margins for error are negligible as competition has intensified in every segment and current economic conditions aren"t looking good. Stop the dollar special for each week: 1st step is to stop the dollar special promotion immediately. This is not consistent with the brand equity and positioning built over the years. It"s resulting in net operating loss of 76% on each discounted item and overall decreased the net operating profit for 2010 to 0. 4% only. Moreover, this promotional activity is polluting the message for regular consumers, considering that some of the dollar stores are located nearby. Increase sales target: to increase the current market share to 16%, sales target is set to. It"s an increase of 95mn. from 2010, on the assumption that total market size (4. 74bn) remains same.
