Case ID: 4127
Solution ID: 18954
Words: 1407
Price $ 45

Reliance Baking Soda Optimizing Promotional Spending Brief Case Case Solution

Case Solution

An English-language PDF of this Brief Case in an academic course pack will allow the students with the opportunity to buy an audio form as well.Reliance Baking Soda is Stewart Corporation's long-standing and most proven product.  The new Domestic Brand Director has to construct a marketing budget for the year 2008 which will entail a demonstration of 10%higher profits compared to those in 2007. She is to first assess the efficiency of previous consumer and trade marketing activities and decide if a higher price will translate into higher profits by influencing the bottom line. Then she must also determine the best possible distribution of the available marketing budget, taking into consideration the brand’s supposed ‘cash-cow’ role in the HouseHold department of Steward Corporation. Students will be required to perform  the qualitative task of creating and defending a proposed budget. 

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Questions Covered

What are the strengths and weaknesses of the RBS brand?

Analyze the effectiveness of past RBS consumer and trade promotional events. How have the promotions strategies impacted sales volumes? What kind of return on investment is the company getting for consumer promotions and trade promotions?

Compare the relative merits of a push vs. pull strategy of the marketing of a low-involvement (low price) grocery item in a mature market setting.

What is your recommendation for how Regnante can achieve her 2008 profit target? What if any changes should be made to trade and consumer promotions to make them more effective? Develop a pro forma income statement (see template in Case Exhibit 10) and be prepared to address the long-term strategic implications of your decisions.