Promotions Budgeting Essay
The $100 million budget for promotions of the personal grooming products for boys and girls can be allocated on the basis of the type of product, competitive position, (Kaplan & Norton 2004), risk (Shaw, 2000) and stage in the product life cycle. Likewise, the budget includes an analysis of the objectives for each marketing variable considering that the set of personal grooming product is in its maturity stage.
The initial promotional stage of the personal grooming product, a perfumed hair sanitizer gel, already in its maturity stage, is to repackage the brand image, literally and figuratively, enhance the product philosophy of use and re-introduce the product with a brighter, more modern techno design. This will re-invigorate attraction and interest in the product by its existing customers as well as the pre-teens sector. This repackaging stage will cost $10.
0M primarily spent on product and package redesign and testimonial promotions by television celebrities and icons, the likes of Hanna Montana or Miley Cyrus or an American idol favorite or similar local icons for local promotions. (Weber, 2003). The budget at this stage is expected to add another $20. 0M in promotional activities. The wholesome image of the endorsers, who will go on music
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The adults will likewise be a marketing target at this stage as the product goes on additional promotional activities such as tennis open tournaments, Olympics involvement and music videos. This final stage will add another $25. 0M in the promotional budget adding up to $100. 0M outlay but is expected to generate revenues of at least $500. 0M during the two-year period after the start of the promotional binge.