Pepita Disco Ppm Marketing Presentation
Pepita Disco PPM is a company from Uruguay that produces beef-based dog food, treats, and toys. Pepita is now the second firm in its market. It was founded by Pedro Mateo Araujo, in 1934, as part of a family business. Carolina Araujo is part of the new generation that is managing the company and after her father retirement she is trying to re-energize the employee base and grow Pepita Disco’s business faster than the overall market, she had started taking some actions by employing more than fifty people in its sole location in Durazno. The present case pretends to analyze a variety of decisions that could be taken to maintain or increment the position of the company in the market, after Carolina found herself increasingly frustrated with the company’s stagnant earnings growth, which had only averaged 2.7% over the past three years under her father’s oversight.According to the results we have determined that the context in which it is the meat market in Uruguay, also allows significant growth in the pet food. Pepita Disco PPM, must take advantage of it and ensure its sustainability in the market in the next years. It has been found that the best option to confront the low earnings growth that affect this organization should be by raising 10% of the Price, consequently the company would double its net operating income.
Actions as get the salespeople to sell 10% more, reduce all variable cost by 10% or reduce all fixed costs 10%, could constitute good alternatives for Pepita, it is important to analyze the consumer behavior to take the final decisions, because in the real world some customers could take negative reactions against the increase in price of the product.
Finally, the study of the different options has determine that scenarios as lower its price 10% with an elasticity, reduce marketing and advertising 10% and, as a result, unit sales decreased 5%, reduce research and development 10% and, as a result, unit sales decreased 5% or reducing