Alternative Selection
After analyzing 3 alternatives, we suggest HABECO using alternative 3 - Promotion Solution because:
- Risk: While risk for Alt1 and Alt2 are high as it is difficult to manage and foresee the effectiveness of doing so while Alt3 risk are almost under control by adding up 2% incremental sales on top of the planned target and in the same time, we reserve 10bil budget for rebate scheme applied to top 5 key wholesalers to motivate them to achieve their sales target through 04 quarters, this both solution are almost to secure the potential risks that may have.
- Incremental sales: To achieve 8% for Alt1 and Alt2 are in high challenge as Place (current distribution) covered t almost 98% of the market and improve further distribution capability is still very tough, the choice for Production is still very low as once new product on board, it take quite a lot of time to get the feedback from the market while the consumers in the north are quite conservative that is also one of the facts under big consideration. Incremental sales for Alt3 are almost be seen as what we are doing is reflecting the market habit and the market needs and turnovers will be generated directly during the promotion period so that we can track and monitor easily. Specially, doing these kind of promotion will bring a lot of HALLOW effect that for sure will impact positively to our incremental sales
- Brand awareness impact: We expect strong HALLOW effect from doing this promotion and this is the key why we consider Alt3 as one of the most potential choice for our BC.
- Cost: obviously, cost are the most visible here specially for Alt3 that is the highest. However, what we can see from Habeco is that there was not any good effective branding strategy in their business plan for many years in the past while their direct competitors (such as: Sabeco, Huda, Samiguel etc) almost spend over 10% average for their branding activity which brought a lot of HALLOW effect afterward and impact extremely to their incremental sales after
In general
- Our key strategy is not only grow more sales (8% growth) but more important at this stage, we also target to empowering our brand in the market place against our direct competitors who are so active on building their brand awareness in the FMCG market
- Alt3 represents for the lowest risk solution against another Alts
- ROI of Alt3 is in within our “Fun zone” that is perfect area to choose
So, Alt3 is the best choice for us to aim to 8% growth and also Alt3 will help us to empower our brand awareness which is to impact strongly to our additional sales in future.
Metrix
