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Promotion - Reliance Baking Soda Case

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Promotion - Reliance Baking Soda Case
A. Situation Overview

The strength of the RBS brand is that they are well known. They also obtain majority of the market, 70% of it. The only competitor customers were fully aware of was Reliance. RBS obtains brand awareness, recognition, and brand loyalty. They are well known and well established for decades in the industry. Consumers have purchased these RBS products and have other uses for them other than just odor neutralization or cleaning use.
The weakness of the RBS brans is lack of awareness of these products’ multiple use. Advertising and promoting this awareness is necessary to educate customers on possible various and numerous uses. Promoting this awareness hasn’t increased as it should and therefore an increase in sales have not increased. RBS increased its prices yet customers’ purchases remain constant along with the time they buy it.

B. Past Promotional Events

Consumer and trade promotions have had a positive impact on sales for RBS. Consumer promotions aren’t favored as much as trade promotions in RBS. Though most of the years they have been successful, expect for in 2007 when they cut the consumer promotion budget, sales decreased that year. In the exhibits shown in the article, it shows that trade promotions are more effective than consumer promotions, about 30% more in terms of ROI. Trade promotions are also overall successful yet two out of six years there was a loss for the company. My opinion is that two out of six years is a big factor in which RBS has to be cautious about.
The comprehensive report that the analyst created is helpful yet it does not reflect the effects of advertising spending in each model, therefore specifics aren’t detailed.

C. Push vs. Pull

Consumer promotions are also known as the “pull strategies” and trade promotions are known as the “push strategies.” Such strategies in a low-involvement marketing, and as a low-price grocery item is hard to reflect maximum profits.
Consumer promotions “pull” are created to

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