MereRx Laboratories is a manufacturer and distributor of high quality, well respected and widely used over-the-counter pharmaceutical products. Their products are sold nationally in grocery, pharmacy and “big box” retail chains. The company has annual sales in excess of $3.0B and has “top three” brands competing the in the gastro, dentifrice, vitamin and supplement categories. MereRx spends approximately $76.5M (A/S: 2.55%) annually in “working” advertising that is split 42% in television, 31% in magazine; and 27% in on-line. • •GavonPlus (gastro) is the company’s leading over-the-counter antacid product and has been a steady performer in terms of net trade sales and margin over the past 10 years. The brand, on average, has an annual “working” advertising budget of $3.4M. The Brand Manager of GavonPlus calls a meeting with the agency and announces that MereRx is considering increasing the brand’s budget 118% to $7.4M for the coming year. There are no planned changes in their business model or from a product and/or distribution standpoint. The Brand Manager outlines this initiative as purely abrand opportunity maneuver to build both competitive insulation in key accounts and maximize brand sales and profits as effectively and efficient as possible. And at the end of the meeting the Brand Manager asks the agency for a formal point of view and recommendation on how and where the incremental $3.0M in annual advertising support for GavonPlus should be allocated in the coming year. The agency’s point-of-view is due in 10 days. • •Referring back to the lectures and classroom discussions (including case studies) onAdvertising Planning, how would you approach this assignment? What sales, distribution, consumer, media, etc. information would be beneficial for you to obtain from the Brand Manager to assist you forming your proposal? What other information would the agency need to source to assist in developing the point of view? What sort of market and market segmentation analysis would be required and/or beneficial to conduct in order to provide a recommendation? • •Note: you do not need to develop a point-of-view; you need only describe the process you would undertake and the strategic/critical thinking you would employ in meeting the GavonPlus Brand Manager’s request for an agency point of view.

SmartExpert

(118)

Status NEW Posted 12 Jun 2017 04:06 AM My Price 8.00

-----------

Attachments

file 1497248232-1495643760-MereRx Laboratories.docx preview (593 words )

M-----------ere-----------Rx -----------Lab-----------ora-----------tor-----------ies----------- P-----------rof-----------ess-----------or ----------- Na-----------me ----------- Da-----------te ----------- Pr-----------efa-----------ce:----------- M-----------ere-----------Rx -----------lab-----------ora-----------tor-----------ies----------- is----------- a -----------rec-----------ogn-----------ize-----------d m-----------anu-----------fac-----------tur-----------er -----------and----------- di-----------str-----------ibu-----------tor----------- of----------- ou-----------t o-----------f c-----------oun-----------ter----------- ph-----------arm-----------ace-----------uti-----------cal-----------s. -----------The----------- an-----------nua-----------l s-----------ale-----------s o-----------f t-----------he -----------com-----------pan-----------y p-----------rod-----------uct-----------s a-----------re -----------in -----------exc-----------ess----------- of----------- $ -----------3.0----------- Bi-----------lli-----------ons-----------. A-----------mou-----------nt -----------spe-----------nt -----------by -----------Mer-----------eRx----------- in----------- ad-----------ver-----------tis-----------ing----------- is----------- $7-----------6.5-----------mil-----------lio-----------ns,-----------out----------- of----------- wh-----------ich----------- te-----------lev-----------isi-----------on -----------spe-----------ndi-----------ng -----------is -----------42%-----------, M-----------aga-----------zin-----------e s-----------pen-----------din-----------g i-----------s 3-----------1% -----------and----------- 27-----------% o-----------f t-----------he -----------tot-----------al -----------spe-----------ndi-----------ng -----------is -----------for----------- on-----------lin-----------e s-----------ale-----------s o-----------f t-----------he -----------com-----------pan-----------y. -----------The----------- le-----------adi-----------ng -----------pro-----------duc-----------t

Not Rated(0)

• Buy Answer