Brim-case study in marketing strategies
Brim received an initial influx of advertising dollars, then, nothing. As a result, consumers never developed a clear perception or loyalty to Brim.
Target Market
In the 1970’s, the coffee buyer was predominantly the woman of the household and Brim’s advertising should have been directed at her. However, from 1972-1978, Brim only advertised once in Good Housekeeping, arguably the most popular women’s magazine published. Obviously Brim was not always reaching its target market. The informative/reminder ads were not strong enough to convince consumers to buy Brim. A persuasive approach may have been more effective.
Industry Advertising Spending Levels
Brim and Sanka combined spent more in advertising than Tasters Choice Regular and Decaffeinated and Nescafe and Nescafe Decaffeinated but as their declining market share illustrates, their message was not effective. Sanka’s advertising levels increased at the expense of Brim. Taster’s Choice, even though its spending was less, could receive more impact for its advertising dollar because both brands could be advertised together since the brand names were the same and the packaging was similar. Taster’s Choice Decaffeinated was borrowing a “known” name, Taster’s Choice, so the name recognition was quicker than for a new to the world product such as Brim. Nestle and Proctor and Gamble could succeed because of the synergies each enjoyed, particularly in sales, distribution and marketing.
Product Life Cycle
Brim is in the mature stage of its product life cycle. During the mature stage, sales promotion becomes the most important promotional tool, followed by advertising, then personal selling. Advertising builds brand loyalty and creates a reason for consumers to buy the product. Promotion offers an incentive to buy, and weakens brand loyalty. In the 1970’s, coffee was purchased weekly, so advertising was crucial. Promotions will cause some consumers to shift brands, but generally, this type of consumer will buy whatever brand is offering the best deal. The loyal brand buyers will not usually switch brands because of a promotion. Developing loyal customers may be accomplished through consistency in the message, medium of advertising and levels of spending.
Trade Promotion
Sixty percent of Brim’s sales volume was on deal. Brim should decrease this incentive to cut costs. However, wholesalers and retailers have grow accustomed to receiving these incentives and they could stop buying Brim, especially since there are many other competitors to buy from. Brim should gradually decrease the amount sold on deal and instead offer less expensive quarterly trade promotions. High Point was effective with its distribution even though High Point used a low percentage of pull promotions.
Current Advertising Dilemmas
Alan Laker and his staff are faced with several advertising concerns. First, should Brim reintroduce national advertising, second, how much should they spend, and third, what message would be the most effective.
5 M’s of an Integrated Marketing Program
Brim’s management team should consider the 5 M’s before embarking on an advertising strategy: mission, money, message, media and measurement.
Mission
Since Brim is in the mature stage of its life cycle, the company should not increase spending on advertising or promotion. Brim’s goal should be to keep its sales from declining [next page]