Another option would be to focus on revamping the advertising strategy. One way RBS could do this would be to increase advertising through channels outside of women magazines and newspaper clippings. Television and internet campaigns could reach the both loyal and new consumers directly by making the product more attractive. RBS has a multitude of uses that go beyond its established kitchen uses, and the lack of advertising is damaging to the products overall appeal. Lastly, Regnante could focus on the manufacturing for private label brands. Currently, Reliance does not manufacturer for private labels. This leaves over 5% of market shares open for competitors. Although RBS is the current market leader by a landslide, the five percent shares …show more content…
Since there are factors that RBS cannot avoid nor work around, the company should look into different ways to penetrate the market. With this solution, Stewart does not have to make big economic sacrifices and they can supply agreements at much higher margins. Strong trade promotion agreements tide with a stronger presence through an expanded advertising strategy would increase RBS sales as well as introduce the brand to a broader consumer base. Even though this may not immediately raise profits by 10%, it is a step forward for RBS to regain its minimal lost and further dominant its …show more content…
The core issue with RBS’s current trade promotions is that buyers are buying the product in excess during promo periods then selling the products to consumers at regular price which robs the consumer of their cut of the deal and leaves the retailer as the only benefiting party in the trade agreement. By basing the trade promotions offered to retailers on their sales performance as well as offering a suggested retail price of the products, RBS can ensure that their products are sufficiently promoted and that the sales are passed through to the consumers by retailers. Pay-for-performance trading contracts are becoming a favorable alternative for manufacturers who are looking for an alternative arrangement that would better benefit all channels involved (Bell & Dreze, 2001). The savings from ineffective trade promotions could then be reallocated to cover the additional