Marketing Final Section 9

CU Odor Eaters

Recommendations:

CU should launch their partnered Odor Eaters brand because they will be able to leverage Odor Eater’s existing brand awareness and because the venture will be profitable if we can achieve our projected market penetration.

We will use a 2-pronged TV and print marketing campaign to generate a projected 25% brand awareness which will allow us to capture the market share necessary to make our sales numbers. We will also use coupon promotions both through mail and point-of-purchase coupons to boost in-store sales. The use of our prominent and noticeable displays in food, drug, and general merchandise chains will help to generate the unplanned purchases that our consumers are prone to. We will need to hire 50 manufacturer’s reps and 3 additional sales people to manage our new customers and this sales force will help us generate sales with the retail chains we want to sell to.

If we project 7500 displays in one year, and then 15000 displays in two years, we will generate $81M in revenue at a cost of $77M. This will generate profits of $4M in two years, plus higher levels of profits in subsequent years since our initial advertising expenditures will be behind us.

The landscape:

Customer:

Our end-user, despite being male, tend to have their socks purchased for them by women. Evidenced by the fact that women buy 2/3 of all men’s and boy’s socks. Consumers tend to buy socks as impulse purchases, buy seasonally, and do not pay attention to brands. Branded sock buyers are less price sensitive than private label sock buyers.

Our customers include all merchandise chains that sell socks to the general public. We project to enter the food store, drug store, and discount store markets. Food and drug stores are good places to sell our product because they encourage the unplanned buying that was characteristic of our target consumers.

Company:

CU is a relatively small company that has had success in optimizing efficiency....