Clique Pens: The Writing Implements Division of U.S.

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GRACELIA MAHARANI YP61A/29119209

1. How the objectives of MDF different from Trade Discount ?

a. MDF:
 Brand Awareness Increasing
 Marketing Strategies Available
 Marketing Driven
 Collaborative Process
 Indirect Sales Channel
b. Trade Discount:
 Sales Increasing
 Limited by Price
 Purely Sales Driven
 Internal Users
 Direct Sales Channel

2. Should Clique be more concerned with retailer needs (requirements) or consumer needs?
What factors drive this decision?
In my thought, Clique should concerned on both (retailer and consumer needs), because
each of them has positive impact to Clique. The factors that bolster decision for retailer’s
need is because satisfy the needs of retailers are the major objective of a retailer-oriented
MDF program to get desirable result for the company. Besides that, the objective of the
retailer-oriented MDF program is to increase the shelf space in the retailer’s store as well
as increase the market share of the company by providing discounts to the retailers. And
the factors that bolster decision for consumer’s need is because consumer behavior shows
that brand recognition is important but switching cost are few. Colors and designs of
packaging have considerable impact. The consumer address their writing needs by
purchasing almost immediately and often with a brand in mind. So, key factor in
addressing these needs is to avoid stock outs which have proved discounts and features
which are not as distinguishable amongst competitors and yet only 1.3 % of the purchases
are through coupons. Consumers often become indifferent to pricing because of the
complexity in distinguished price per unit of products in big retail stores. Price discount
promotions at point of sales could have higher impact.

3. Should Clique institute MDF as marketing initiative or as another means for sales to
compete for retail shelf space?
 Yes, Clique should institute MDF as a marketing initiative. Because, its purpose to
increase the discount of advertising and consumer directed like coupons. By decreasing
retailer discounts, that will be funded it.

4. If Clique were to fully implement MDF oriented to consumers, how should Ferguson go
about obtaining retailer support?
Ferguson should explain to retailers that the funds will be relocated to consumer
discounts and it will be increase the sales. Furthermore, the sales increasing will help the
lost margins for retailers.

5. How should Ferguson manage the pull/push conflict between the marketing department
(Chen) and the sales department (McMillan)?
Both of these ways could be implemented, while sales department focus on retailers and
marketing department focus on customer. Attempt some campaigns and coupon can be
tried by Clique. 1,3% customer use the coupon and also Clique can keep shelf space with
retailers that gives impact of sales.