Mayank Bhatt IPM01038 Section-A

Marketing Management - II
Assignment

Case: Reliance Baking Soda (RBS)

Alternatives for Anna Regnante:

1) Increase in price of Reliance Baking Soda

2) Decrease in advertising and marketing budget
3) Decrease in consumer promotional and trade activities

Decision Matrix

FACTORS Alternative 1 Alternative 2 Alternative 3

Sales 3 0 0

Cost 0 5 3

Profitability 3 4 4

Total 6 9 7

The identification and evaluation of different alternatives which are determined based on
the components of sales, cost and profitability of the company. The most favorable
alternative for the company appears to be alternative 2 i.e. decline in the budget of
marketing and advertising activities. Moreover, with the presence of Stewart Corporation
in the market for more than 100 years and with strong brand reputation in the market, it
is least likely that the decline in marketing and advertising activities result in hampering
the sales of the company, because according to the result of survey it was found that
the company possesses loyal customers who are not affected by marketing and
advertising activities. Furthermore, the alternative 1 i.e. increase in sales price can
hamper the sales of the company as the increase in price can diverge the consumers to
prefer other brands, which are available at low prices in the market, in comparison to
Reliance baking soda. The alternative 3 i.e. reducing marketing and promotional
activities would not incur much cost in comparison to advertising and marketing
budget,and it would also assist the company in selling other products which are
classified as weaker brands of the company. Therefore, adoption of alternative 2 i.e.
reducing the advertising and marketing budget appears to be the most feasible
alternative for Stewart Corporation and Anna Regnante.