Reliance Case Questions
Review Case Analysis Recommendations
This case addresses trade and consumer promotion decisions for a mature product. Turn in a one-page memo that identifies the recommended course of action (e.g., push emphasis on trade promotion, pull emphasis on consumer promotions, pull emphasis on advertising, or some combination) and describes the core strategy (objective, competitive advantage, growth, and positioning), all in the first paragraph. The second paragraph should provide explicit marketing mix (especially promotion and pricing) implementation details and identify how the implementation matches RBS’s capabilities and the external opportunity. The third paragraph should address the pros and cons of the less-emphasized alternative (trade promotions, consumer promotions, advertising) and identify reasonable assumptions that might lead you to recommend this alternative. The one-page recommendation should be accompanied by exhibits (any number) that offer specific detail in support of the recommendations.
Be sure to attach the Reliance Grading Schedule as the cover page for your recommendation. Use the Reliance Communication Strategy worksheet to assess advertising and consumer and trade promotion and the Reliance spreadsheet to calculate ROIs for past Trade and Consumer Promotions and develop pro formas for the alternatives. Be sure to consider the following questions.
• Compare the relative merits of push vs. pull promotion for the marketing of a low-involvement, low-price grocery item in a mature market. What do the ROIs for past trade and consumer promotions tell you regarding which promotions are successful and why.
• What was the return on marketing investments over the last 3 years? What is Reliance’s brand equity?
• Compare the relative merits of consumer promotion vs. consumer advertising for a low-involvement, low-price grocery item in a mature market. Which fits better with RBS’s competitive advantage?
• Using ROIs for past trade and consumer promotions along with correlations and elasticities for the various promotion activities, develop a pro forma that reflects your recommended strategy along with a pro forma that reflects the next-best alternative.
A Note on Exhibits
Exhibits should be numbered consecutively and MUST be referenced in the text (i.e., in the one-page memo for this assignment); otherwise, they do not exist. Exhibits should be completely self-explanatory. That means that the reader should understand the purpose of the exhibit by reading the title and should be able to easily follow the flow of the table, chart or figure. If something is not evident, a note should appear at the side or bottom, cross-referenced by a number, letter, or symbol, explaining the derivation of a particular number, the process, or the assumptions driving the process. Exhibits should NOT be structured as additional text; they must be in table, chart or figure format.