What should his company do?

Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates

For This or a Similar Paper Click To Order Now

Harold Turnley, brand manager for Sweet Dream, anxiously waited for Lindsey Murphy, his boss, to report on the marketing committee’s decision whether to authorize a national rollout of Sweet Dream. After 18 months of work, four test markets, and $5.2 million, Harold had invested greatly in the product, culminating in a 47-page report and a 65-page appendix, including a five page executive summary.
“I’m glad you’re sitting down,” Lindsey quipped uncomfortably as he entered Harold’s office. “The news isn’t good. The committee decided not to go ahead.” Lindsey proceeded to explain that Barbara Reifenheiser essentially killed the project. Barbara’s clout in the firm has grown since her successful years as brand manager of LaTreat, the company’s other frozen specialty dessert. Her evidence: 75 percent of the people who tried Sweet Dream had bought LaTreat in the last four weeks, and repurchase rates (i.e., purchase again after initial purchase or trial) were highest among LaTreat heavy users. It appeared that LaTreat users were switching to Sweet Dreams.
Launched five years ago, LaTreat was the first “super-premium” frozen dessert to enter national distribution. Unlike LaTreat, which came on a stick, Sweet Dream resembled an ice cream sandwich. Lately, however, LaTreat faced tough challenges from three direct competitors as well as several parallel concepts (e.g., Sweet Dream). Fortunately, the total frozen specialties market had grown fast enough to absorb these new entrants without reducing LaTreat sales, but sales were basically flat for LaTreat. Overall, it appears that category sales are increasing at a decreasing rate.
After Lindsey left, Harold reviewed the report. Although four test markets were used, only two distinct marketing mixes were used. In Marion, Indiana, and Corvallis, Oregon, Sweet Dream was promoted as “Go Ahead, You Deserve It,@ while in Midland, Texas, and Pittsfield, Massachusetts, superior quality was emphasized, “Taste the Goodness.” Price promotion was not used in the latter two (i.e., Midland and Pittsfield) contrasted with frequent 50-cents-off coupons and 75-cent rebate vouchers after purchase in the first group (i.e., Marion and Corvallis). Harold had used BehaviorScan (services offered by Information Resources, Inc.) to generate weekly data on volume, dollar sales, shelf price, market share, feature advertising, coupons, in-store displays, and the relationship between sales and promotional offers. Midland and Pittsfield had a higher repurchase rate than Marion and Corvallis.
BehaviorScan is used in marketing tests to measure the effect of marketing strategies on product purchases. In a typical BehaviorScan test, one group of consumer panelists is exposed to certain variables (i.e., print or television advertisements, coupons, free samples, in-store displays), while other participating consumers serve as a control group. Supermarket scanner data on both groups of consumers (who present identification cards to store checkout clerks) are used to evaluate purchasing responses to marketing campaigns. A typical BehaviorScan test lasts about one year.
The results aside, other issues troubled Harold. Freezer space is tight (in retail outlets); the longer new product development takes, the harder stores are going to pressure us because competitors will have developed new products. Second, other people are going to find out how well Sweet Dream did in Midland and Pittsfield. Although the BehaviorScan data will be unavailable to competitors, they probably monitored our tests. And finally, LaTreat has been shifting money out of print and TV and into coupons and rebates. Yet, total marketing expenditures are unchanged for LaTreat. What should Harold do? What should his company do? Explain. Adapted from a Harvard Business Review case
New Prod
Make sure you use the below concepts to answer it. Thank you
The components of the positioning statement are: i) target market; ii) need; iii) brand; iv) concept; and v) point of difference.
Where are your positioning statements?
The first slogan does not address customer needs. Marketing concepts must be used to substantiate your answer.

Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates

For This or a Similar Paper Click To Order Now

Leave a Reply

Your email address will not be published. Required fields are marked *