I. Problem: x
How
can Mr. Eduardo Rosales, the advertising Manager of CCC, recover or revive the
life of their dying candy product sales at the same time, pursuing almost all
of the company’s proposed objective despite the Advertising budget
insufficiency?
III. Areas of consideration:
1.) Market
Competition- as we know, that the competitors in the market can
really affect much on your sales. These competitors help weaken your sales
because they are consuming some pert of the market share which consumers will
be divided.
2.) Advertising
Budget- when talks about budget; it really refers to money. Which
money is the medium of exchange that helps run a certain establishment. There
is no for free at this time, you can never promote or introduce your product to
the public without paying the media or advertising company. So money or budget
is really relevant in this case since, the normal budget of the company for the
advertising campaign has been reduced.
3.) Strategy- strategy
has never been absent or missing in the field of business. In this case,
strategy on how to recover sales is highly needed. It should not only eradicate
one problem but most likely, strategy has complex effects in eradicating
problem. So, establishing a new strategy may have a major or great effect in
this problem.
IV. Alternative courses of action:
1.) Increasing
the advertising budget- If CCC really wants to recover from the loss of
sales or lowering of their sales level, they should consider advertising as a
helpful tool at this moment because public exposure can really help much in
increasing their sales. So in this case, they should have to give importance on
advertising campaign for we know that this is also a key to their sales
recovery. As they said “no pain, no gain”, and to translate it in the business
world, the more risk that you will face, the more yield you will receive- that
is how business goes. So in order to pursue or achieve as certain goal or
objective through public exposure, they increase their budget for the
advertising campaign.
Advantages:
a.) The often
that they can expose their product in the public, the better that the media
hypnotism will be effective, for as we know that these Ads on the television
are just simply a propaganda instrument in hypnotizing consumers to buy a
certain product.
Disadvantages:
a.) But if the candy
product has already reached to its highest peak on the selling so, it would
only mean that whatever advertising they are going to engage with, still this
will be useless and can be added to the company’s losses.
2.) Applying a
new strategy- “ whatever goes up, must go down”, that is the law
of gravity in science, but if this thought will be applied or translated in the
business language it would only mean that if the sales level of your product
has already reached to its highest peak, it was already predicted that that
sooner or later this product may decline. So, how can we apply strategy? Like
in the concept of planning, we are here not to accept what the future will be
but rather we have to affect it. If we will look at the case of a man who lost
his legs, the man just don’t let his self crawling but rather he would prefer
to have a scratches or a wheel chair to survive, even though that he is not the
man we used to know that has legs but still he is the man whom we really knew.
If this condition will applied to the candy product, all we have to do is to
let the rainbow candy survive by given it a new image- through innovation. Like
what happen to the “jellyace”, when their company noticed that their product is
dying in the market they immediately gave “Jellyace” a new image, which we know
now as “jellyace sticks”. The transformation was indeed successful and now
“jellyace” is still saleable in the market because people love it more that
ever.
Advantages:
a.) As the
innovated candy product will be launched which already ahs a new flavor, shape,
feature like containing vitamins which good for the body and a new wrapper
design that people will really love. It would not be far enough that the candy
product will still survive in the market and recover from depression or
declining.
b.) For it was
innovated this will be also considered as a new candy product that will stand
as the new brand, which the company want to launch. So there is no need anymore
to launch another brand. In fact, they can also save in the manufacturing
expenses for they only have to concentrate now at the innovated product
manufacturing.
c.) Aside from
the two, for the company was planning to expand their distribution for the old
candy product and for the planned new brand, it would be now easier for the
company to do it because they don’t have to expend double for the distribution
and transportation cost, which the company can save from it, of the newly
innovated product. So the company can use the budget, which supposedly for the
transportation cost, to be added for the advertising campaign.
Disadvantage:
a.) The only
thing that might hinders the launching of the innovated candy product is the
minimal budget for the advertising campaign but worry not, because still the
advertising campaign can be possible at least in one field. So, they just have
to select a certain medium to present their Ads for the candy product. Of
course, as we can see that the television is the best one to engage with, for
almost all people watch TV than reading newspaper or magazine. But to consider
radio- it is no good, for people can’t see if what the candy look like. The
aftermath of the minimal budget is the short exposure in the public through
advertising in the TV. But considering the fact that the company has already
save money out of the possible expenses in manufacturing and distribution cost,
maybe the company can consider now increasing their budget for the advertising
campaign. Who knows, after the success of the launching of the innovated
product the management might realize that they only have to focus now on
advertising than any other thing.
V. Recommendation:
After pacifying the gloomy condition about the CCC
Company’s problem, which Eduardo Rosales who is the advertising manager of CCC
carried the burden; the group has made a solid decision that we recommend the
second alternative courses of action, which is the applying of a new strategy.
It is because, we have found out between the two alternative courses of action,
the applying of a new strategy is the one which possesses this so called
complex effects, specifically the “the Trident Effect” for this alternative
courses of action blow only once but hit trice. These are the; launching of the
new brand through innovation, lessening the distribution and manufacturing
costs that may pave the way to transferring its budget use to the advertising
campaign and of course, the possible recovering from sales depression or
declining. To conclude the matter, innovation would really save the company and
even Mr. Rosales itself from drowning in this business sales disaster despite
the insufficient budget for the advertising campaign given by the management.
In
Marketing 1
Submitted
By:
Danny
Vincent B. Bibar
Pedro
Lim
Judy
GAcayan
Micheal
Sanchez
Ariel
Aragon
Submitted
to:
Mr.
Policaruso Busig
Associate
Professor II