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    Clique Pens Write Up (OASIS 8B)

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    PRIYANKA SRIVASTAVA
    Clique Pens has seen a 6% decrease in gross profit margins over the past two years. The president must decide how to allocate marketing development funds to increase profits. The VP of Marketing proposes increasing prices and customer promotions while the VP of Sales favors increasing retailer discounts to gain shelf space. An integrated marketing approach focusing on advertising, promotions, and price reductions may help boost sales and profits.

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    Clique Pens Write Up (OASIS 8B)

    Uploaded by

    PRIYANKA SRIVASTAVA
    30 views4 pages
    Clique Pens has seen a 6% decrease in gross profit margins over the past two years. The president must decide how to allocate marketing development funds to increase profits. The VP of Marketing proposes increasing prices and customer promotions while the VP of Sales favors increasing retailer discounts to gain shelf space. An integrated marketing approach focusing on advertising, promotions, and price reductions may help boost sales and profits.

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    Clique Pens has seen a 6% decrease in gross profit margins over the past two years. The president must decide how to allocate marketing development funds to increase profits. The VP of Marketing proposes increasing prices and customer promotions while the VP of Sales favors increasing retailer discounts to gain shelf space. An integrated marketing approach focusing on advertising, promotions, and price reductions may help boost sales and profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views4 pages

    Clique Pens Write Up (OASIS 8B)

    Uploaded by

    PRIYANKA SRIVASTAVA
    Clique Pens has seen a 6% decrease in gross profit margins over the past two years. The president must decide how to allocate marketing development funds to increase profits. The VP of Marketing proposes increasing prices and customer promotions while the VP of Sales favors increasing retailer discounts to gain shelf space. An integrated marketing approach focusing on advertising, promotions, and price reductions may help boost sales and profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Case Report

    Clique Pens: The Writing Implements Division of


    U.S Home
    Group: OASIS 8B

    Team Members:
    ⮚ 130071. Manikant Kumar
    ⮚ 130072. Mayank Shekhar
    ⮚ 130073. Navin Kumar
    ⮚ 130074. Nitish Kumar Jha
    ⮚ 130075. Pratik Kumar
    ⮚ 130076. Rahul Kumar Pandey
    ⮚ 130077. Rajnish Ranjan
    ⮚ 130078. Rakesh Ranjan
    ⮚ 130079. Rashmi Verma
    ⮚ 130080. Raushan Kumar
    Executive Summary

    Because of 6% decrease in its gross profit from2010 to 2012, the dilemma for Elise
    Ferguson, The President of “Clique Pens-writing implements division” is to satisfy
    customer needs, retailers and at the same time also increase both revenues and gross profit
    margins by implementing new strategy.

    Elise Ferguson believes that reduction in Gross profit margin is due to trade discounts and
    unnecessary giveaways which have to be reduced in order to drive sales more effectively by
    this amount. As per Logan Chen, division VP of marketing, using customer-oriented MDF
    (Market Development Funds) is one way to increase profit with higher sales. He also believes
    that advertising campaigns, such as instant coupons, brand awareness advertisements may
    boost sales and increase in price would help to improve profits both for clique and its retail
    buyers. As Logan Chen suggested 6% price increase would result only 1% reduction in sales
    because consumers are not price-sensitive and they also do not have strong brand loyalty,
    therefore any price changes will not result loss in Profit.

    Despite the facts given above, Ross McMillan, division VP of sales, believes that
    implementing retailer-oriented MDF will increase market share by gaining more shelf space
    in retail centres. He stated that the company unnecessarily spends 30% more on advertising
    activities. In a competitive environment only way to get more market share is to offer
    discounts and use additional to take advantage of opportunities.

    So, Ferguson wants to resolve the dilemma which occurred between Marketing and Sales and
    figure out what strategy should be taken that can solve competition challenge for retail space,
    increase sales and which also in favour of Clique Pens' brand power in the Market.
    Introduction

    Clique was found in 1922. It mainly produces fountain pens and it switched to ballpoint in
    1960’s, by 1980’s it valued at $17million.

    The Marketing office drove by Logan Chan proposed a customer arranged arrangement for
    MDF, which incorporates three significant systems: decreasing economic alliance, expanding
    item evaluating, and building up extra customer focused on promotions.

    The Sales office drove by Ross McMillan then again demands retail-arranged MDF
    procedures, which requires reducing down expenses on publicizing and purchaser
    advancements, and increment exchange stipend to make additional obliging arrangements
    with purchasers to get rack space.

    Chan's methodology centers around expanding the gross profit edge rate yet would sacrifice
    the seriousness for rack space among other unmistakable brands. McMillan's methodology
    then again might actually sacrifice the organization's authority over its estimating, and have
    little effect for acquiring genuine marketing support at the retail location.

    Clique pens have experienced a 6% decline in the gross profit margin within 2 years. (i.e., it
    drops from 42%in 2010 to just over 36% in 2012.
    Central Issue
    Clique pens observed a 6% decline in the gross profit within 2 years President should decide
    on the market development funds (MDF) that how much of its resources will be allocated for
    marketing and sales to implement a new plan which could increase the gross profit, increase
    the work with retailer and motivate the consumer. company is confused within the consumer
    and retailer that where we should focus.

    Contingency Plan
    ❖ Clique should discuss the MDF issues as well as to discuss the allocation of funding
    for marketing and sales to grow the profits.
    ❖ Clique should to develop an integrated package of advertising, trade and consumer
    promotion to maintain market share and profitability.
    ❖ To maintain the brand and to gain market share Clique should provide discount
    directly to consumer.
    ❖ Clique should invest in research and development to make it continue to have
    competitive differentiation from other players.
    ❖ Clique should focus on building economies of scale in production and sales.

    Recommendation
    ❖ Instead of giving discount the Clique should reduce the price so that retailer make
    gross profit margin and also make more profit on sales and to get a better consumer
    value.
    ❖ Clique Pens should focus more on advertising and increase it up to about 20 % of its
    promotional budget. As more advertising of the products will build the brand image
    for their product. They should also focus on promoting the unique feature of their
    pens.
    ❖ Clique should also focus on increasing their expenditure on trade promotion. As the
    competition for attaining the self-space in retail shops is immense it is required to
    provide additional services to the retailers in order to achieve the immediate sales.

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