Objectives and Strategy for Period Four

Team: Break Even

Problems Identified

Some of the problems identified for fall in SPI from 1133 in period 2 to 1014 in period 3 are as follows.

1. Accidentally reverting Cake to the initial formula which has led to drop in sales.
2. Wrong positioning of Cocoa which has led to deviation of sales from the expected figure.
3. Candy became stagnant in its position and the pricing led to the average retail price to fall to $25.6.
4. Wrong strategy in the form of selling Cake, a high end brand through e-grocers.
5. Large spends on advertising Cocoa, which had been wrongly positioned.

Objectives:

Following are the targets which need to be achieved in the period 4.

1. Increase the revenue of Candy by at least 40%.

2. Concentrate on improving revenues by not reducing prices and not increasing margins.
3. Reduce inventory of Cocoa and prepare for launch of the improved brand.
4. Position the brands based on market surveys to better project the key attributes.
5. Distribute the management time and budget across various channels effectively.

Strategy:
The strategy that we have identified to meet the above mentioned targets is as follows:

1. Upgrade Cake with the formula C03B-Cost and prepare to launch it in the next period by reducing the production
level to dispose the inventory of 950K units.
2. Reduce the production level of Cocoa to 1600K units since there are already 3831K units in inventory and this
need to be sold before the next period when Cocoa will be upgraded to avoid loss due to inventory disposal.
3. Correct the positioning of Cocoa to focus on packaging and price which is important to for medium and singles.
4. Aggressively push Candy in specialty stores and e-boutiques by allocating more resources in terms of
management time, trade marketing budget and promotional budget.
5. Increase the advertising spends on Candy to highlight the improved features.
6. Increase the average retail price of Candy to $27 to support the enhanced features and create a sense of quality
-among the target group of High income and Affluent families.