"We're never going to get this plan approved, Russ.I mean, look at our marketing objective: it is not even in line with the president's overall goal for the company."Jennifer Patel glanced down despairingly at the document that she and her assistant, Russ Saunders, had just spent several weeks developing.The deadline for submission of the 2021 Marketing Plan to the president very soon.She was thinking that she and Russ were going to have to rework their entire draft plan.Jennifer sat back in her chair and wondered had she managed to back herself into a corner like this and how was she going to get out of it?

Jennifer was the marketing manager for the Consumer Products Division of Cochrane Seeds Limited in Cochrane, Alberta.This was a medium-sized, private firm that had been in business for over twenty years and was 'micro-managed' by its founder, David Lee.It had started as a consumer seed company, but had expanded into small plants, fertilizers, gardening tools, and other similar related products for the consumer and business market.

David had called a meeting two months ago of all managers to discuss a strategic plan for the next fiscal year.He had already mapped out the overall corporate goal for next year; he wanted to share it with his managers.He announced that his research indicates that the current economic turmoil, originating south of the border and now affecting the Canadian economy, was going to continue; he believed it would exert a negative influence on the entire industry.He presented his overall target for next year: a revenue increase of 3% in dollar sales which would be obtained not by a volume sales increase, but by a price increase.

This came as a shock to Jennifer; her own ongoing trend analysis suggested a much stronger forecast.Their volume sales had been increasing over the past three years at an annual rate of approximately 4%, and she believed it would actually increase to 5% for 2021. Her research revealed an increased home-gardening trend which was driven by the people who lost their jobs during the 2020 global virus issue (in combination with a 'back-to basics' trend).She was also concerned with the fact that there had been small price increases in each of past three years.

As she sat listening to David, she really had to wonder what was driving his predictions.Her 2021 Marketing Plan had tracked competitors' activities and closely followed all industry-related news. Her position was to leave prices where they are, but consider some other form of expansion, possibly into other segments (or other geographic territories).How was she going to convince David that her outlook was accurate?

When the meeting ended, Jennifer approached David and carefully expressed her concern. He suggested that she work with her immediate manager, the director of the Consumer Products Division, and put together a counter-proposal for him to review.

Later that week, they did just that.Jennifer and her manager, Callum Wishart, held their own meeting. He was supportive of her position and ended the meeting by stating, "Your research justifies your stance on this, but you have to admit that David's points are strong, too.Be prepared to defend your counter-proposal".

Jennifer's meeting with David later that week went well.Callum was at the meeting, but it was Jennifer who laid out all her evidence and also noted that a price increase (again) could lower sales. David disagreed; he believed that a small price increase would have no impact on sales volume because it hadn't in the three previous years. Finally, he said, "Although you have presented several convincing arguments, Jennifer, I still think that our overall approach to 2021 has to be conservative.I suggest that your 2021 Marketing Plan be consistent with my corporate objectives."

Over the following weeks, Jennifer and Russ developed the Marketing Plan for packaged seeds (under Callum's supervision).Although it did discuss the possibility of raising prices, it also contained several stronger proposals for modifications to all of the 4P's. It also discussed new geographic territories which even considered joint ventures (if required to enter new strategic directions). However, the morning on which this story opened, Jennifer had received an e-mail from David, reminding her that her plan had to be consistent with his corporate plan.Did this mean that she would have to redo all her and Russ's hard work?Did it mean that the marketing plan for every Cochrane product had to be exactly the same?Would it be acceptable if: (i) only some products had price increases, (ii) other products had price increases as well as new segments or territories, (iii) all products must have price increases; even those for new segments, (iv) some other combination that still meets David's corporate directives?

Jennifer has some decisions to make.

Question 1: Provide a 'Summary' of the current situation.