CASE 2

Case Analysis : Baun's Confectionery Inc.

Mr. Eddie Sotelo, advertising manager of Baun's Confectionery Inc. (BCI) was hopping

mad when he told his friend, Albert Rofino, the production manager of BCI that he will resign for

blaming him (Mr. Sotelo) of the lower sales of BCI brand which he handles, the Mint-Glow candies.

"It is true they are blaming you for the lower sales of our Mint-Glow candies", said Mr.

Rofino. "But, on the other hand, they surely will realize that you are not entirely to blame. The

market has become more competitive. More brands are there fighting it out. Our sales and

distribution network is not all that hot. To top it all, the whole economy's in pretty bad shape. Many companies are laying off their workers. I myself was asked to reduce production level by 50%.That means I have to lay off people, too!"

"So why blame it all on me?" wailed Sotelo. Mr. Sotelo told Mr. Rofino that BCI cut the

advertising budget from Php 1M to Php 0.5M; the company wants to expand sales and distribution of Mint-Glow from Visayas to Mindanao, and Metro Manila to the rest of Luzon; and to top it all the company wants to launch another brand!

Questions:

1. Should the management push through with the launching of a new brand to boost sales?

2. What recommendations would you give BIC's Management concerning marketing of the product, particularly advertising and sales promotion?