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Presentation on Rose Milk

case

PRESENTED TO :- prof. Ajeet Sharma

PRESENTED BY :- Adesh Kumar

Kamal Singh

Rashid Beg

Sumit Singh

Shaivya singh

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About caseAbout case

In early 1973, Rosehaus discovered a new toiletriesproduct on a business trip of west coast.

In his sister s kitchen he found rose milk hand lotion, ithad a texture that made it superior from others.

It was discovered that rose milk was distributedexclusively through home delivery.

Brands owner tried on several occasion to obtain normalretail placement .

It had been unable to sustain distribution in massmerchandising due to company limited financialresources and consequent inability to provide marketsupport.

So competitor s were taking advantage with stronger

merchandising.

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Cont.Cont.

By january 1974, J.B Williams company, a largetoiletries and drug company, had acquiredCenutry creation and Rosehause company.

Hand cream and lotion industry hand cream and lotion in the united state was

estimated at approximately $80 million atmanufacturing level.

Cream and lotion were used by consumer toprevent dryness and to create smoothness inhands.

Until the early 1970, jergen was leading brand in

market with having 50% of market share.

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Cont.

In 1970 chasebrough-ponds introduced Vaselineintensive care lotion.

It had been carefully positioned as a therapeutic ratherthan as a cosmetic like Jergen.

By 1975 vaslinne intensive care became market leaderwith having 25% of market share of cream and lotionmarket.

During 1970 there were several large firms like johnson& johnson, madison lab, gillete came with their products

which were subsequently withdrawn Rosehause believed that these unsuccessful efforts were

due to lack of brand loyality in marketplace.

According to survey customers switched the brand in

this category on the basis of price.

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Rose Milks New Marketing Program

In 1974, Company started its 1st distribution and

promotional campaign at Seattle. Company decided Lawrence Welk Showas

Media vehicle for advertising program.

Show key personality were endorsing the brand,

High Viewer Loyalty. The advertising theme emphasizes the story line.

You can really feel the difference

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Contd..

Rosenhauss 2 rules for success

1) Have a good product with a perceivabledifference.

2) Tell the truth about the product & its benefits.

The Company need to gain 10% market share to

justify the retailers to keep the brand on shelf. Company need to sell 46,000 units in 6 months

to gain 10% Market share.

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Conversion Rate

The no. of customer purchasing a product due to thecompanys advertising effect.

Total no. of women living in Greater Seattle (Abv18):- 321,000.

Total Viewership of Welk Program :- 42% ofwomen age group 18 or abv 18 i.e. 1,34,820 (Once in 4weeks)

To get the desired sales :- 2.5 % of total of Seattlewomen or 5.5% of Welk audience i.e. 7,500 units.

Actual Sales :- 50,000 units in 6 months

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Contd..

After getting success in Seattle market, The

company introduced the product other citieswith the same advertising program & theme.

By May 1975, the product was introducedNationally.

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Tournament of Roses Parade

Telecast

Seeking a media vehicle.It is telecasted by NBS & CBS. The program is for

2 and hour and makes announcement for Ad

Approx 41 mn women will view all the programIt is more cheaper than other TV programs (forTV $1.25for walk show ,2.80for prime show ,$1.75for evening show )

NET WORK ANNOUNCEMENTS

TOTAL COST PER /1000 HH

NBC 2-60s, 6-30s $100.100 $0.74

CBS 2-60s, 3-30s 84,500 $0.93

NET WORK ANNOUNCEMENTS

TOTAL COST PER /1000 HH

NBC 2-60s, 6-30s $100.100 $0.74

CBS 2-60s, 3-30s 84,500 $0.93

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The final decision

In late October a decision had to be taken on whetherRose milk should go for all of the Tournament of Rose

Parade television time. The other option was that the parent company could take

several spots for some of its other products. Argument in favor of first option was advertising so

heavily on a single day would leave a huge psychological

impact on retail trade. Great advantage in saying we own the day. Would confirm Rose milk as national brand and in the

big league.

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Q.What decision should rose milk make regarding the

tournament of rose parade television sponsorship?

Less price

Telecast by NBS & CBS Coverage

41 million women viewers

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2) Advantages & Risk involved inTournament of Roses Sponsorship

Advantages1) 41 million viewership across the country.

2) CPM was low as compared to other Vehicles.

3) Advertising nationally will make Rose Milk aNational Brand.

4) It will create psychological impact on retailtrade.

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Contd..

Risk

1)T

he total advertising budget is high.2) If the advertising fails, then the company will

suffer huge loss.

3) It will create negative impact on the brand.

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3) Assess Rosenhauss view about

advertisements role and the impact onconsumers

Make people aware about the brand Rose Milk.

Focus on the fact that none of the establishedcompetitor brands can give the non greasible

experience Rose Milk lotion can give.

Establish the brand as a national brand and in

the big league To reach a large number of their target audience

at one time.

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4) Appraise the promotional program

proposed to accompany the parade

advertising

Merchandising materials like brochures were

created that could be used to support thenational ads. Large floor display case given free to retailerswith purchase of 4 dozen rose milk containers. Cooperative advertising allowances and

substantial wholesale price deduction Done to attract retailers to participate in this

special merchandising program.

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Contd..

Purpose to stimulate retail advertising, cause atemporary retail price deduction, to encourage

store management to buy rose milk in largequantities.

Brochure describing trade promotion detailswould be shown to all of Rose Milks currentretailers and to prospective ones. Used as a salestool.

Idea behind this was, if a major portion oftoiletries retailers agreed to this promotion plan,consumers would be exposed to Rose Milk manytimes during January.

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Contd

Christmas time slow for merchandising of toiletries. Products having more of christmas appeal sold.

Thus major promotion of a hand lotion centered aroundNew Years Day had advantage of not being crowdedwith programs of competitors.

Since hand lotion is a product of low salience toconsumers, consumer had to be reminded constantly ofthe name and characteristics.

With this in mind, Rosenhaus proposed an attractiveprogram of 30 secs spots throughout first quarter of 1976to be purchased.

The money spent on this would have been the same as tothe spending on New Years Day.

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