The memorandum recommends the promotion of Natural Meals which will lead to marketing margin of 48%, return on marketing investment of 12% and top-line revenue. It is assumed that 25% of the retailers will take part in the promotional activities. The rationale behind this is that Natural Meals showed an impressive growth of 15% per year. It is commendable that the brand is growing in spite of no promotional activities. Hence, the promotion of the brand will generate more sales. According to the exhibits Natural Meals shows the most positive impact in contrast to D32 and D16. The brand constitutes a 25% of the Frozen Food Division revenue which is hefty portion. The only concern is to promote the brand and not jeopardize its premium image. National promotion would result in …show more content…
Instead of offering discounts Natural Meals need to create brand awareness. Offering coupons can also be offered since it offers discounts but does not lower the value. This will prevent brand equity erosion and lead to recovering losses. The main motto is to sustain the premium image as well as increase sales. In order to do so store discounts should be avoided as it will boost short term sales according to the Point of Sales data. The plan is likely to succeed because it will be beneficial to GCP, retailers and consumers. Natural Meals could offer samples in store to consumers to attract customers. Creation of demand for healthy food would generate more sales and healthy life styles rather than offering discounts which may tarnish the premium image. The problem with Natural Meals is that it is available in 16 ounces size only. To make it more profitable 32 ounces size should be introduced. The company will enjoy economies of scales, it will cater to the demand of the consumers and compete with other frozen food