Rbs Case Study

Topics: Profit margin, Gross profit margin, Marketing Pages: 24 (4415 words) Published: November 6, 2010
2. External Analysis1
2.1 PESTN Analysis1
2.1.1 Political1
2.1.2 Economic1
2.1.3 Social1
2.1.4 Technological1
2.1.5 Natural2
2.2 Industry Analysis2
3. Internal Analysis3
3.1 Current Customer Analysis4
3.2 RBS’s goals4
3.3 Current Positioning4
3.4 Financials4
3.5 4Ps4
4. SWOT6
5. Key Success Factors7
6. Core Problem7
7. Objectives7
8. Solutions7
9. Criteria Evaluation8
10. Recommendation & Justification8
11. Implementation Plan8
12. Contingency Plan9
13. Appendix10


|Industry Definition |Baking Soda Industry in the U.S | |Level of Analysis |Functional | |Time |August 2007 | |Product Life Cycle – RBS |Maturity |

Stewart Corporation was founded in 1915 by James Stewart Augusta, who had discovered NaHCO3 (baking soda). It comprised four divisions: Household, Beauty, Foods, and International; of which, RBS comes under the Household division. RBS is a clear market leader in the baking soda category, capturing 70% share. Furthermore, RBS is widely viewed as a substitute for specialized cleaners, air fresheners, and laundry detergents whose price per ounce is significantly higher than that of RBS. RBS has excellent brand awareness and loyalty but low advertising recall.

2. External Analysis

2.1 PESTN Analysis

2.1.1 Political

• Labels
One of the issues related to the legal regulation set by the US department is the labeling of the products. Besides the general information such as product name, ingredients statements and date of manufacturing, labels of the baking soda are required to bear the certain features. (Fig. 8 of Appendix)

2.1.2 Economic

• Economic recession
The US entered a recession at the end of 2007 had large impact on employment. For 2008, an estimated 2.6 million U.S. jobs were eliminated. As the result, consumers have to shrink their budget on household spending due to lower disposable income. They seek for the commodities that were less expensive and more useful.

2.1.3 Social

• Introduction of self-rising flour and instant cake mixes Traditionally, bakers use baking soda to bake cakes. However, the introduction of self-rising flour and instant cake mixes decrease the importance of it. Bakers now can use self-rising flour and instant cake mixes to bake cake in an easy and fast way. These innovations reduce the complicated baking process and consumption of baking soda. • Various new uses of baking soda

In the recent years, there has been an increase in the use of baking soda. It can be used for baking, as well as, household cleaning, laundry aid, deodorizer, skin care and for teeth whitening. Baking soda is considered to have multi-functional purposes and is essential to daily lives.

2.1.4 Technological

• Various machineries are adopted in the manufacturing process Baking soda is made by chemical reactions which can be easily done through various machineries; hence, the process of producing baking soda has been significantly improved in the recent years. • Technological Advancement

The improvement in technology led to more households using light-weight machinery such as vacuum cleaners and air purifiers to simplify cleaning processes. This may lead to a decrease in the use of baking soda.

2.1.5 Natural

• Environment pollution
Increase pressures for manufacturing plants to lower their emissions due to concerns with environmental pollution might affect the cost and production of baking soda plants.

2.2 Industry Analysis

Baking soda industry is in a maturity stage because...
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