Reliance Baking Soda:

Optimizing Promotional Spending

GROUP 4
MEHARE ANIKET CHARUDATT
(PGP/20/331)
GUILLAUME FRANSSEN (IE/20/010)
PHALE SAYALI SUDHIR
(PGP/20/337)
SHASHI KUMAR (PGP/20/348)
SRUTHI S (PGP/20/185)
SWATI NIMJE(PGP/20/187)
Question: 1
What are the strengths and weaknesses of the RBS brand?
Market leader in baking soda category
with 70% market share
Possessed excellent brand awareness and
loyalty
High distribution penetration with 90%,
85% & 80% in grocery stores & mass
merchandisers, warehouse clubs & drug
stores respectively
Multipurpose & stable usage as
household cleanser, laundry aid &
deodorizer
Considered as substitute higher priced
products like specialized cleaners, air
fresheners & laundry detergents
Strengths
Increasing encroachment of Private label brands
which captured 5% of RBS share
Low advertising recall at 20%
Requires intensive push marketing to boost
trade interest
Advent of new & specialized cannibalizing
products
Overstocked trade inventory
Lack of direct control over the trade
management of inventory and prices
Overloading the trade during promotions
Lower advertising & merchandising support
than competitors
Weakness
Question: 3
Compare relative merits of push vs. pull strategy for a low-
involvement item in a mature market
Merits - Pull strategy Merits - Push strategy
Directly targeted to end to build demand Focus on selling directly to customers through
for the product point of purchase displays and direct
approaches to customers
It creates additional demand for the
product at the retail outlets and their by This strategy makes customer feel the product is
inducing demand increase at relatively cheaper by offering discounts and
manufacturers as well future purchase coupons
Makes the brand highly visible Generates exposure in retail market products
Increase the recall rates Focused on both end customers and other
channel partners ultimately to pus product to
Increase brand awareness consumers
Increases perceived brand differentiation
among consumers