RELIANCE BAKING SODA
Stewart Corporation had four divisions i.e. Household,
Beauty, Foods and International.
In 2006 the company generated $150 million in net
income and $558 million in profit.
Household division was responsible for $400 sales and
included baking soda, laundry detergents, window cleaners
and disinfectant, wipes.
Lot of income spent on promotion in 2006
Product sales high for 2006
Sales went down on 2007
Price increase in 2006-07
Strengths and Weakness
Market Leader-70% market share
Multi utility product
85% households purchase RBS
Strong brand recall-95%
Price sensitive market
Push strategy involves the grower’s marketing activities
(primarily the sales force and trade promotion) directed at the marketing channel intermediaries, such as brokers, wholesalers, etc.
Push strategy is especially appropriate where:
there is low brand loyalty in a category;
purchase, selection or choice is based upon availability in
the retail outlet;
the product is an impulse item;
the product benefits are well understood.
Relative merits of Push strategy…
When successful, push strategies result in
a wider range of availability,
fewer stock outs,
greater merchandising activity, and
a greater marketing effort than would have been
achieved with little or no push communications.
Advertisements were made in women’s magazine, Sunday newspaper and
In April set of coupons for 5 household brands was included in 6 million boxes of Brilliance Laundry detergent.
In June shrink wrapped twin pack of 1 lb. boxes and a $1 cash refund inside the pack with proof of purchase of 2 1 lb. boxes.
Discount on invoices for cases ordered in promotion period. Free cases with a purchase of a minimum order.
Performance discount incentives for providing verifiable merchandising and
Temporary discount used to promote sales, lasted 3 to 6 weeks. Advertising trade support much lower than that of competitors
Manufacturer's Price Per Case
Factory Shipments ( in 000's of cases)
Variable Manufacturing Cost per Case
Variable Manufacturing Cost
PR/Media Production costs
Total Marketing Expenses
Profit Before SG & A, Overhead and taxes
Increase promotions within social media like Facebook
Use of internet like Youtube for mass promotion
Revise marketing strategy with reduced trade promotions
and increased consumer promotions
Pricing should be competitive to tame private players
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