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Reliance Baking Soda: Optimizing Promotional Spending

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Submitted By FionaHAO
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Northeastern University
MKTG 6200 summer 1, 2015 # 41058

Case analysis: Reliance baking soda: Optimizing promotional spending
Student: Jiangping Hao (Fiona)

Reliance baking soda (RBS) was a clear market leader in the baking soda category, capturing 70% share. In 2006, over 85% of U.S. family households with income of $25k+ used the product. Now the main challenge for Anna Regnante is to identify the ways to optimize promotional spending for the RBS. Moreover, Anna Regnante also needs to develop the budget (Income statement) for the year 2008 that would result in a 10 % increase in the profit over the estimates of 2007. RBS’s main competitors were private label brands, priced 30% below RBS. In the last decade RBS had lost 5% of its share to private label brands. RBS also competed with products outside the baking soda category, whose price per ounce was significantly higher than that of RBS. And I gave the Alternatives below:
Alternative 1:
By creating out -of – the -box uses for the product, the first alternative for the Anna in optimizing the promotional spending is to modify the product specification according to the needs and wants of the customers. That means the company has needed to introduce some new or low price of the produces for the specific customers. It can include cleaning and deodorizing garage equipment etc. For the long-term planning and they can give the window cleaner low price for the every holiday that could make a slogan likes “ we are together make the windows cleaning” etc. That also requires Anna to develop and implement effective advertising and promotional activities for the Reliance Baking Soda (RBS).
Alternative 2: Improve the advertising
Tessa Simon an advertising manager told Anna Regnante, “Every day new, specialized products are appearing on the shelves that can cannibalize the baking soda market. We have to keep RBS at

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