Lever, Ltd Case
1. Lever Company deals with different product categories such as deodorants; beauty bars and other skin care items. To allow for a positive outcome in each category Lever has conducted market research and identified demands within targeted markets. Based off of this research, key product assortments are sent to retailers based off of demands and cultural needs. While understanding end user preferences it is essential there is a decreased focus on markets where retailers just want to move volume not necessarily offer assortments. Lever can address this in several ways since it can positively or negatively impact brand reputation.
2. Mr. Sung, the new product manager of Lever Company feels that they should focus and invest maximum of the promotional fund on the market where delisting problem persists, while the remaining funds will be equally divided amongst other markets. On the other hand Ms. King suggests that the majority of the funds are to be spent on areas with the greatest profit and business. For those markets where delisting occurs she suggests conducting an investment-spending market test. The rolling out of this test will allow for profits to be recycled within the non-lucrative markets and be used for promotions and analysis of whether a return is being made.
3. Certainly major part of promotional funds should be spent on markets where the company makes a return and the remaining profit can be reinvested in other markets with not as much business. Investment-spending market tests can be done to reduce risks in spending money on a particular market. While without some risks companies may not receive and reward, many times promoting in non-lucrative markets can be a waste and provide negative results. To avoid this risk proper market research and market tests can be conducted which will ensure no negative out come will come from these investments.
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