What is your recommendation for how Regnante can achieve her 2008 profit target?

What if any changes should be made to trade and consumer promotions to make them
more effective? Develop a pro forma income statement (See template in case Exhibit 10)
and be prepared to address the long term strategic implications of your decisions.

1. To accomplish the 2008 target, the principal thing that Regnante should do is to deal with
the costs of the variable manufacturing cost per case. Since the maker's cost for the case will
be something similar for the year 2008, that is certifiably not an exceptionally huge issue.
She should converse with the production group to focus on the variable assembling cost per
case since this isn't her main subject area. But she is the best in the marketing division.

2. To stand out enough to be noticed by possible clients, Regnante needs to focus on each
part of the Marketing Mix. In the event that we especially focus harder on the consumer and
trade promotions, here are a few perceptions.

It very well may be seen that in the year 2007, the person before Regnante had chopped down
the budget of consumer promotion events and facilitated just three rather than the four that
were held in the year 2006. Quite possibly this has contributed to hurting the revenues of
RBS. Yet, this additionally demonstrates that the deals made great revenues when the
occasions are held.

For trade promotions, a great deal of things that RBS had been doing, such as giving
discounts on invoice costs, free cases with the acquisition of a minimum order, promotions
and significantly more. RBS didn't have direct power over this and Regnante understood that
this is something that may be somewhat of an issue.
Despite the fact that these tactics have drawn in a great deal of clients, yet as per her, there is
lot of cash that is being lost and the advertisers are not being utilized accurately.

3.

Specs 2005 2006 2007 2008

Manufacturer's Price per Case
$ $ $ $
8 oz 6.18 6.37 7.20 7.20
$ $ $ $
1 lb 10.33 10.64 12.02 12.02
$ $ $ $
5 lb 46.63 48.03 54.28 54.28
Factory Shipments (in 000's of cases)
8 oz 640 793 714 850
1 lb 1,099 1,362 1,226 1,500
5 lb 581 720 648 750
Variable Manufacturing Cost Per Case
$ $ $ $
8 oz 3.02 3.05 3.38 4.00
$ $ $ $
1 lb 4.98 5.03 5.58 6.00
5 lb $ $ $ $
 22.12 22.34 24.80 26.00
$ $ $ $
Gross Sales 42,400 54,125 55,051 55,044.11
$ $ $ $
Variable Manufacturing Costs 20,258 25,354 25,325 24,769.85
$ $ $ $
Gross Margin 22,142 28,771 29,726 30,274
Gross margin/Gross sales 52% 53% 54% 55%
Advertising
$ $ $ $
TV
2,862 4,453 3,815 1,900.00
$ $ $ $
Print
687 950 694 480.00
$ $ $ $
Internet
76 238 248 120.00
$ $ $ $
Total Advertising 3,625 5,641 4,757 2,500.00
$ $ $ $
PR/Media Production Costs 191 297 198 187.76
$ $ $ $
Consumer Promotions 424 1,080 551 1,000.00
$ $ $ $
Trade Promotion 4,240 5,938 5,505 6,000.00
$ $ $ $
Total Marketing Expenses 8,480 12,956 11,011 9,687.76
$ $ $ $
Profit before SG&A, Overhead and Taxes 13,662 15,815 18,715 20,586.50
Profit/Gross sales 32% 29% 34% 37.40%

4. Here the things she can manage is that she can complete both the consumer and trade
promotions simultaneously or almost just one after another so that more individuals can get
ready for them. The retailers and advertisers will get the item directly when occasions are
being facilitated which will prompt the shoppers needing to get them. Right now, giving free
cases and giving limits off invoices probably won't be vital on the grounds that the interest
will consequently be so high.

The implications of expanding consumer and trade promotions are that it could either turn out
to be exceptionally bad or it very well may be something that could draw in much more
clients. The best approach to tell this is simply by noticing the pattern for a couple of years.
Another implications could be that the advertisers and retailers begin declining to keep the
items with them. In any case, denying a major brand could be unsafe to them in view of the
trust and dedication of customers. With everything taken into account, if Regnante chooses to
focus on consumer and trade promotions, there will be more certain implications than
negative.