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review scenario: After the implementation of the new website and wider distribution of products through health food stores in Sydney, Melbourne and Adelaide, the situation

review scenario:

After the implementation of the new website and wider distribution of products through health food stores in Sydney, Melbourne and Adelaide, the situation for NatureCare Products six months later is as follows:

  • Sales have increased by 20% in the first six months of marketing activities being implemented. Products are now available in health food stores in Sydney, Melbourne and Adelaide, as well as in the existing Brisbane stores.
  • The web site has been generating approximately 30 emails a day with a range of questions about the products such as whether they are organically certified, how long they last for, etc. As there is only a small number of staff, answering each of the emails has been very time consuming.
  • While sales are increasing, marketing research indicates that consumers are unable to differentiate NatureCare Products from other similar products. A short market research project undertaken indicates that only 1 in 20 people interviewed recognised NatureCare Products.
  • The on-line shop is proving to be successful with 15% of the sales coming from the online shop.
  • Your closest competitor has just launched a large range of new products.
  • The budget for marketing activities has blown out. $15,000 has been spent. Timelines have not been kept to, for example, the web site wasn't completed until the last week of July.

There was a rush (due to publishing deadlines) to include an article about NatureCare Products in free health magazines in Sydney and Melbourne and it was considered that the information didn't really reflect the ethics of the business to provide eco-friendly products. Management feels that this had an adverse effect.

Question:

Develop a report on the outcomes of the promotional activities conducted, as well as outcomes and issues arising as identified above.

Report should include:

- A summary of the outcomes of promotional activities as per the information above and its impact on sales and awareness.

- A report on costs and timelines and an analysis of the benefits from the activities.

- Recommendations for future promotional activities, as well as other activities generally based on the outcomes so far.

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