Reliance Baking Soda Essay

Reliance Baking Soda Write-Up
1) There are a number of alternatives to reach the objective of a 10% increase in profits for Reliance Baking Soda.
a. The first alternative is to increase the price of the product. The suggested retail price for each box of RBS is 10% higher than the actual retail price. I would suggest increasing the price by between 5-10% for the 8 oz. boxes and the 1 lb. boxes, as these are the most successful sizes according to the sales volumes in exhibit 5. Additionally, 80% of consumers in a 2006 survey said that they consider baking soda to be inexpensive. Because our target consumers, female heads of households, are less price sensitive to our product, I think a slight increase in RBS retail price would be acceptable to help us reach our goal of increased profit.
b. Another possible alternative would be to repeat previously successful promotions. In 2006 these promotions became an integral part of our marketing strategy, and we can use the results of past campaigns to
As an out-of-the-box alternative, I think RBS should consider expanding their product uses and relay these new benefits through point-of-purchase marketing materials and social media campaigns. For example, in the fitness industry it is a well-known ‘secret’ that baking soda is the best way to sanitize and deodorize gym equipment, clothes, and athletic shoes. RBS has continuously shown alternative uses for their product in the household, and how to substitute baking soda for costly products. One angle they did not pursue previously was using baking soda for personal care and beauty. Some of these uses for baking soda include: oral hygiene (making natural toothpaste, mouth wash), facial scrub and body exfoliate, nontoxic deodorant, hair wash, and more. Teaching their target consumer these fun new uses for RBS through promotional ads (YouTube how-to videos), point-of-purchase demonstrations, and even coupons in women’s magazines with ‘recipes’ for natural personal