Brim-case study in marketing strategies
declining too quickly, maintain its market share, limit its costs and generate as much revenue as possible to recoup its investment. Kotler discusses five factors to consider when setting an advertising budget: the product’s stage in its life cycle, its market share, competition and clutter, advertising frequency, and product substitutability. Brim has a declining market share, faces competitors with deeper pockets and better advertising messages, has advertised inconsistently, and decaffeinated coffee has many substitutes. Brim should adopt a strategy of guerilla attacks on its competition instead of launching a full-scale national advertising campaign. Brim would keep its costs to a minimum and yet be able to pick strategic markets.
Setting a Promotion Budget
Of Kotler’s four methods of setting a promotion budget, the affordable method or the objective and task method may help Brim generate as much cash as possible before it is discontinued. Brim would either spend what it could afford or spend a set amount to achieve certain objectives. Since Brim is now a market follower, the percent of sales method would cost too much and the competitive parity method is not feasible because Brim’s competition is willing to spend more on advertising and has deeper pockets. Brim should spend….
Brim’s Message
Brim should choose a message of….but then keep the advertising message the same over a period of time. Brim’s packaging should remain the same. A change in packaging would confuse consumers, reduce credibility and changing the packaging is an expense Brim could avoid.
Brim’s niche is the premium tasting decaffeinated coffee market. Brim should consider distributing sample packets of its coffee to target markets, such as an insert in the Sunday newspaper. Consumers drink coffee, especially in the morning while reading the paper.
Brim should hire a new ad agency with fresh ideas because its advertising using Benton & Bowles has not improved. When High Point was being test marketed, it used the same advertising, packaging and media plan in each test market, creating a consistent approach.
Media
Brim should advertise in mediums where they can reach their target market. A combination of print advertising (ladies magazines such as Good Housekeeping and Ladies Home Journal), prime time and daytime (soap operas).
Measurement
V. RECOMMENDATIONS
The Maxwell House division of General Foods has three strategic choices for Brim coffee in fiscal year 1979. The first choice is to do nothing. This strategy will allow natural market forces to determine the fate of Brim under its previously assigned brand role. Which is? The second alternative for the Maxwell House division is to engage in a hold strategy. This strategy aims to maintain Brim’s market share through its desired role. The third option is to engage in a complete retrenchment strategy in an effort to pull Brim off the shelf.
Do Nothing
Prior to1979, Brim’s advertising strategies were ineffective in communicating and emphasizing its taste benefits and other attributes. At the forefront of this problem was a continuous shift in advertising strategies from year to year. This lack of continuity eventually forced the [next page]