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    Giaint Consumer Products

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    Anupam Chaplot
    1) The document discusses whether to run a national promotion for FFD products and analyzes the impact on various stakeholders. 2) It provides data on the sales volume, revenue, costs and marketing margin when items are promoted versus not promoted. 3) Within-brand cannibalization is considered, showing the negative impact promotions have on other items within the same brand. 4) Based on the analysis, the recommendation is that no national promotions should be run for any of the FFD products since the marketing margin is negative for all products.

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    Giaint Consumer Products

    Uploaded by

    Anupam Chaplot
    269 views6 pages
    1) The document discusses whether to run a national promotion for FFD products and analyzes the impact on various stakeholders. 2) It provides data on the sales volume, revenue, costs and marketing margin when items are promoted versus not promoted. 3) Within-brand cannibalization is considered, showing the negative impact promotions have on other items within the same brand. 4) Based on the analysis, the recommendation is that no national promotions should be run for any of the FFD products since the marketing margin is negative for all products.

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    1) The document discusses whether to run a national promotion for FFD products and analyzes the impact on various stakeholders. 2) It provides data on the sales volume, revenue, costs and marketing margin when items are promoted versus not promoted. 3) Within-brand cannibalization is considered, showing the negative impact promotions have on other items within the same brand. 4) Based on the analysis, the recommendation is that no national promotions should be run for any of the FFD products since the marketing margin is negative for all products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    269 views6 pages

    Giaint Consumer Products

    Uploaded by

    Anupam Chaplot
    1) The document discusses whether to run a national promotion for FFD products and analyzes the impact on various stakeholders. 2) It provides data on the sales volume, revenue, costs and marketing margin when items are promoted versus not promoted. 3) Within-brand cannibalization is considered, showing the negative impact promotions have on other items within the same brand. 4) Based on the analysis, the recommendation is that no national promotions should be run for any of the FFD products since the marketing margin is negative for all products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Giant Consumer Products: The Sale

    promotion Resource Allocation Decision

    By Group K1
    Issues
    • Should there be any national promotion for FFD?
    • Would the promotion will be beneficial for all the
    stack holder?
    If yes,
    • How the promotion be structured?
     Off invoice pricing
     Pay for performance
    • Should FFD compensate retailer only if they hit
    some pre-established target?
    Considering promotion impact on promoted
    item
    Dinardo 32 Dinardo 16
    When that item is on
    promotion 10,460,943 6,210,220.36
    When that item is NOT ON
    promotion 6816234.948 3088564.553
    When Nothing is on
    Promotion 7,174,738.58 3,798,942.32
    Incremental Volume from
    promotion 3,286,204.09 2,411,278.04
    Revenue change from
    promotion 6,901,028.59 5,787,067.30
    Variable Cost change from
    promotion 952,999.19 795,721.75
    Promotion Cost change from
    promotion 3,752,779.97 4,291,408.93
    Marketing Margin Change
    from promotion 2,195,249.43 699,936.62
    Within Brand Cannibalization
    Dinardo 32 Dinardo 16
    When that item is on promotion 5,740,724 424,647.92
    When Nothing is on Promotion 7,174,738.58 3,798,942.32
    Volume Change from promotion of
    other item (1,434,014.52) (3,374,294.40)
    Revenue change from promotion of
    other item (3,011,430.50) (8,098,306.56)
    Variable cost change from
    promotion of other item (415,864.21) (1,113,517.15)
    promotion cost change from
    promotion of other item -1912.23 (75,555.82)
    marketing margin change from
    promotion of other item (2,593,654.06) (6,909,233.59)
    Total Brand Impact from promotion
    on TOP-LINE Revenue
    Total effect of D32 Promotion (1,197,277.97)
    Total effect of D16 Promotion 2,775,636.80
    Total Brand impact from promotion
    on marketing margin
    Total effect of D32 promotion (4,713,984.16)
    Total effect of D16 promotion (1,893,717.43)
    Promotion impact on Natural
    Average Monthly Incremental Volume
    for Natural 705,252
    Average %store Promoting for Natural 7.6
    Average Monthly Incremental
    Volume/promo point 92477.43895
    Incremental Volume from 25% Promo
    points 2311935.974
    Revenue change from promotion 2,045,231
    Variable cost change from promotion 275,048
    promotion cost change from promotion 4,125,425
    Marketing Margin change from
    promotion (2,355,243)
    Recommendation
    • Since the Marketing Margin is negative for all
    the three product, the organization should not
    run the national level promotion for any one
    of this product.

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