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We believe that the company should not launch the new fragrance Cambridge due to the main reason, lack of budget. It is stated in the case study that ÐShulton has a communication budget of approximately twelve million with which they can afford an impressive number of advertising options such as magazine spreads and television commercial, MEM pales in comparison as shown in Exhibit nine. The companys communication budget averages between six to seven million, which is spread over their six existing colognes. It is therefore highly unadvisable to go against Shulton as they have much stronger financial backing and are choosing to use it to create a very aggressive marketing campaign.
Instead it would be wise to focus their attention on achieving company growth. We think that MEMs biggest obstacle to success is that they have too many products that are not doing as well as they should in the market. So we believe MEM should discontinue the product that generate the least amount of sales, it is shown in Exhibit five that ÐLime is the least profitably product out of all of them; bringing in only 2.3% of dollar sales. Then MEM can reinvest the money into revamping and remarketing the other more successful colognes. Perhaps they could use the product with most brand awareness and sales dollars as their signature product. This would be ÐEnglish Leather which generated 68.3% of the dollar sales between 1979 and 1980 and has the highest brand awareness with 96% as shown in exhibit three. After ÐEnglish Leather has been established then MEM could use the halo effect to slowly market off the other re vamped colognes.
Another way they can achieve company growth is by expanding their products into food stores. So far, MEM has been against introducing their products there, but exhibit six shows that the three other major men toiletries brands Brut, Old Spice and Mennen Skin