Chicken of the Sea International Company - Case Study Example

• The trial was a great success that the company eventually adopted the brand name Chicken of the Sea as the company’s permanent name.

Problems
• The increased advertising expenses forced the company to increase the net price of the products. In the article, the writer's Belch and Belch point out that in the past 10 years, the company paid out most of its promotional spending to consumers in Free Standing Inserts (FSIs) in Sunday newspapers containing coupon offers.
• As a result, many consumers were found purchasing tuna from local brands or a brand that was on promotion or which offered the lowest shelf price.
• Chicken of the Sea as well as other major companies face increasing competition from local brands which are usually priced lower than the national brands.
• The company’s call for a ‘reduction in media advertising and increased emphasis on sales promotion’, as well as the development of local label brands resulted in a change in power from the manufacturer to the retailers (Belch & Belch).
• The profit earning margin on canned tuna has gone down as retailers demand lower prices and more trade allowances.
• A big question aroused; whether the company could afford to preserve Jessica Simpson, a rising pop star as a spokesperson for the company since her fame and reputation were at their peak so was her remuneration too.

Solutions
• A close study of the operation of the company over the recent years proves the absence of adequate marketing and promotional strategies of the firm. The marketing department of the company should prepare dynamic and interactive marketing strategies.
• Promotion plays a key role in the four elements of the marketing mix (product, price, promotion, and place), which must be utilized very well.
• The company should ensure that the information potential customers get is adequate to influence their views positively and thereby encourage them to use its products and services. That objective can be accomplished with a suitable promotion strategy.
• The promotional and advertising department of the company should make use of promotional tools based on the economical, geographical, and social conditions of the area of distribution.
• The question of whether to retain Simpson as the company’s spokesperson or not comes to an end fact that the company’s small media budget and the high cost of television advertising will force the management to drop the plan.

Resolutions
From the study, we would say, in recent years, the feat of COSI was not up to the point. If the company proceeds further, applying the same strategies they had been following till now, it will have to face tragic bangs. The management should make sure that the services they provide are qualitative and consumer friendly. Looking into the competitors they should study the situation and adopt the strategies that worked sound with the other firms and avoid which did not. They must create an intensive business plan and put it into practice. A better view of the company would give better results. Well-organized marketing and promotional policies within a sound marketing structure having perfect dispositions will help the company to earn a high profitability margin. That will enhance the sale and build brand equity for COSI even without having Simpson as the spokesperson. Read More