Tecnolgico de Monterrey

Business communication

Andrs Valdez
A01251160

Homework Page 33
Questions
How has spending on different types of promotion changed between last year and this year?
The budget of point of sale display has been reduced; on the other hand they raised
the magazine advertisement and leaflets at health spas budget.
What can you say to complete the comments on the first chart?
1. Not very successful because the reduction in the number of people visiting
supermarkets.
2. Very successful because the sales increase in electronic copies.
3. Reaching right people thanks to the better structuring of the niche market.
How has the total budget changed, and how will it change next year?
Has been increased from 50,000 to 90,000 and this year and will be decreased by
30,000.
What recommendations can you make for spending next year?
Increase the means of promotion, such as adding budget for online advertising,
positioning web page (SEO) and target ads on YouTube.

Report
Introduction
The aim of this report is to summarise the spending of Slimchocs in promotional activities
the last two years and make recommendations for the future budget.
Promotional Activities
Spending on points of sale display has decreased from 30,000 pounds to 15,000 pounds
this year.
Over the same period has been raised spending on magazine advertisements by 35,000
pounds because a sales increase of electronic copies. Also has been increased spend on
leaflets at health spas by 30,000 pounds because a better reaching of niche market.
In general terms the company total promotional budget go from 50,000 to 90,000 this year
and the estimated budget for the next year has a decrease of 34%.
Recommendations
The budget will be 60,000 pounds next year so I recommend diversification on the
promotional channels, decrease the budget percentage of magazine advertisements and
leaflets at health spas, then distribute it on online advertising, positioning web page (SEO)
and target ads on YouTube.