Giant Consumer Products

Giant Consumer Products:
The Sales Promotion Resource Allocation Decision

Group-1
Asish Adhikari A002
Venkatesh Gade A062
Mohak Wadhwa A065
Udit Madaan E040
Abbas Jamil F023
Surabhi Deshmukh H014
Sravani Gadhamchetty H018
Q1.) Describe the competition, key target segments, consumer and shopper behaviour for the products:
(a) Dinardo’s 32-ounce packages, (b) Dinardo’s 16-ounce packages, or (c) Natural Meals
Product Name Competition Key Target Segments Consumer and Shopper Behaviour
• Customers of Dinardo’s packages were price

conscious, as evident from overnight success of
fairly inexpensive D32 as a dinner for four
• They rated packaging as a crucial metric for

Price conscious, Quality product quality assessment and
Dinardo’s Daft (Major conscious and quality as a metric above price –
32-ounce packages competitor) convenience seeking Although price conscious, they tended not to
buyers from nuclear buy private label goods because they perceived
families – family of four their packaging and product quality to be sub-
par
• Convenience was important for the D-32

customers, as evident from the choice of oven
friendly packaging
2
Product Name Competition Key Target Consumer and Shopper Behaviour
Segments
• Sought simple, easy to cook food
alternatives for a family of two – owing
to absence of children who seek a
greater variety of food options in case
• Empty Nesters – of empty nesters and due to time
Parents whose crunch in case of busy couples
Dinardo’s Daft (Major children had
competitor) moved out from • They also rated the taste of the food as
16-ounce packages home an important criteria for food choice –
owing to high quality ingredients in
• Busy professional Dinardo’s
couples (Dual
income) without • Although price conscious, they tended
kids not to buy private label goods because
they perceived their packaging and
product quality to be sub-par – Valued
quality above price.
3
Product Name Competition Key Target Segments Consumer and Shopper Behaviour
• Health conscious consumers, watchful of

food choices – avoided unnecessary
preservatives and additives, low fat, organic
• Not-so -price conscious individuals,

favoured healthier options over cheaper
Natural Meals Daft (Major
competitor) – California Types • Consumers exhibited a more sophisticated
Manly Meals palette than offered by Dinardo’s, evident
from the Natural Meals options -
Penne al’ Arrabiata, Egg Plant Ravioli etc.
• The consumers probably also sought image

related benefits, associated with organic
food purchases and the premium brand
image of Natural meals
4
Q2. How was GCP handling the marketing of the three product lines? What were their motivations
behind their strategies? Critically discuss GCP’s approach .
GCP marketing strategy was different for both Dinardo and Natural Meals. The segment was different
for each product line and product type.
Being positioned in the premium segment, GCP did not rely highly on advertisements
Dinardo:
• High quality ingredients indicating premium product and justifying the price
• Easy to use in microwave as well as conventional ovens
Dinardo 32:
• An affordable option to feed a family of four
Dinardo 16:
• For “empty nesters” as well as professional couples without kids
Dinardo 6 and 8:
• For single consumers and for eat-alone occasions
5
Natural Meals:
• Consumers looking for healthier options (organic, low fat food with no added preservatives or
additives) while maintaining great taste
• Not designed to look like a :big company” frozen food with folksy color palette and imagery
• In the premium segment offering better margins and attracting traffic in the superstore
As the customers segments were different for Natural Means and Dinardo, GCP did not want to present
them as products from the same company, which could dissolve customers’ association with the brand.
Hence, it followed a ‘house of brand’ architecture instead of ‘branded house’
The motivation behind this strategy was:

• Customers are ready to pay a premium price for good quality food
• With changing preference, easy to prepare food offering great taste would be in demand
• Customers were switching towards healthier options.
ADD A FOOTER
6
Q3.) Improve upon Exhibit 2 in the case and draw up an exhaustive list of typical costs incurred in a sales promotion.
7
Q4. Was Capps right in raising his concerns regarding trade promotions (cannibalization, brand equity erosion, forward-buying,
pass-through, and consumer stockpiling)? How much should this effect the promotional decisions for GCP’s products?
Cannibalization
•A sales promotion for Natural Food’s promotion can reduce D32’s consumption as former is a better product. This is not true vice-
versa as consumer base and value proposition is different for both of these products
•If sales promotion is provided on Dinardo 32, it will push the customers of Dinardo 16 to buy a bigger pack and save, and vice versa
Brand Equity Erosion

•Nature food is positioned as premium organic food category product, hence Brand erosion is a sure thing as its customer base is the
health-conscious, elite crowd who will see any discount as quality compromise
•Dinardo’s consumers are price sensitive and promotion on it would increase the customer base and there would be no significant
brand erosion
Forward Buying
•This can be a potential problem for GCP as retailers can purchase at discounted PTR and try to sell at normal PTC.
•Hence, GCP must leverage its clout with retailers and ensure compliance with promotion by enabling checks/audits
Pass-through
•GCP can again leverage its clout with large supermarket chains and offer superior premiums to retailers. This could help them
enforce the lowered PTRs to the PTC.
Stockpiling
•Sanchez’s point about home freezers not being larger enough for stockpiling invalidates this claim. Consumers would also be
cognizant of expiry dates and hence wouldn’t possibly stockpile.
8
Thank You!

Giant Consumer Products

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Giant Consumer Products:

The Sales Promotion Resource Allocation Decision

• Customers of Dinardo’s packages were price

• They rated packaging as a crucial metric for

• Convenience was important for the D-32

• Health conscious consumers, watchful of

• Not-so -price conscious individuals,

• The consumers probably also sought image

The motivation behind this strategy was:

Brand Equity Erosion

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