Case Analysis III: Sales Promotion Planning @TML

Arakal, Jeevan J (2020) Case Analysis III: Sales Promotion Planning @TML. SAGE Publications, 24 (2). pp. 242-245.

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Mr Rath, the protagonist of the case, is facing a challenging situation, albeit a ubiquitous one in sales organizations. The key issue is a divergence between volume and value growth, TML has pursued sales by excessively spending on dealer incentives and advertising. The company operates in a market which is in the maturity stage, growing at a slow pace of two to three per cent. Such a market creates competitive pressures which compel a company to deploy a wide range of advertising and promotion triggers, targeted at both the trade and the end users. The case facts point to a relative stability of the market share for the incumbents; this is not an accident but the result of consistent efforts to preserve one’s position in the market. The flip side of this is leakages in the profitability of the firm, as it achieves higher volumes. TML now has a profit shortage of `7.5 million. It looks very unlikely that the additional sales can be realized without promotion support. It is also worth pondering over competitor reactions when a company rachets up the promotion efforts. A framework for understanding the decision choices is given below:

Item Type: Article
Uncontrolled Keywords: Case Analysis III: Sales Promotion Planning @TML.
Subjects: Marketing
Marketing > Sales Force Management
Depositing User: Ms. Sachitha R
Date Deposited: 17 Jul 2020 07:02
Last Modified: 17 Jul 2020 07:02

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