La Shampoo is a high quality and more expensive product that has the same marketing strategy over years. From 1989, the line start to slowly decline its sales. The ad agency tried to develop new look campaign, but this solution did nothing for La Shampoo sales and customers didn’t even noticed the change. Caroline, the brand manager wanted a new marketing plan to improve the sales and increase the market share, not to just keep the product remain on retailer’s shelves. She made a marketing meeting with Eric, her product sales manager, and Beth, the representative of the advertisement agency that held La Shampoo account, to discuss their recommendation. 1. Compete on Price :
Eric’s solution is to reduce prices permanently as long as long term plan to save major accounts that in danger. Eric argued that the brand will died if we didn’t act very quickly and he saw his solution as a rescuer. Reduce prices is very helpful solution in supporting sales reps and increase sales volume at least for short time ,but it is not good in building the brand and increasing the brand market share for many reasons . First of all, competing in the price could be very dangerous if other brands lower their prices too specially if they are offering benefits La Shampoo can’t provide, like “beautiful hair from natural sources”. Secondly , price- driven consumers are not loyal ,so they will go with another brand that is cheaper. 2. Strong Brand Campaign :
Beth’s solution is to create new advertisement campaign. This solution seemed better to improve sales ,but there is still no specific changes Beth suggested to repositioning La Shampoo on the customers’ minds. This solution is good if the marketing researches found out the causes of the sales’ decline. Then the new advertisement’s campaign should focus in repairing La Shampoo image and correcting the mistakes that happened in the previous years. So to obtain this solution marketing researches should...
Please join StudyMode to read the full document