Introduction
The Grill Kleen Cits orporation deals with the production and sale of liquid detergent for cleaning kitchen equipment. In the last few years, the company has performed dismally since the manager was not keen on keeping adequate records of the transaction of the company. Moreover, the company did not follow any management policy. Besides, the company did not have adequate records to back up transactions of the company. Also, it did not have a record to back up costing, pricing, and its profit margin.
Further, the company did not have a flow of work in the production process. From the case, it is evident that the organization was being run haphazardly by the management team. The paper aims at coming up with various management policies for the organization.
Methods of distribution
The company should adopt the direct selling strategy to the customers and the use of intermediaries such as agents and dealers. In addition, the company can invest in distribution channels in various states. Considering the current companies situation, direct sales would be more efficient since the company does not have policies in place (Hisrich 2011).
Pricing Strategy and Appropriate Quantity Discount
Penetration pricing is the best pricing strategy that should be adopted for this product from a potential manufacturer would want to break into the segment of the market that was not previously served by the product. The main objective of the penetration pricing strategy would be to attract and increase the market share of this product. The business reduces the prices to a certain minimum in order to attract customers. For instance, a discount of 10% for purchase above 50 liters would be ideal.
Branding policy
In order to diversify market operations, the company should create multiple products from the same product with different coloration, scent, sizes, and packaging. This will create an environment of own competition and block other competitors from encroaching into the company’s market. These sub-products will be differentiated by features, prices, and the difference in quality (Hisrich 2011). This strategy will be successful towards dominance as it offers a variety of options to consumers, while at the same time, maximizing benefits of economies of scale.
Packing Size and Labeling Options
The best packing sizes for this detergent should be in quantities of 1 liter, 2 liters, 5 liters, 10 liters, and 20 liters brightly colored containers with a label of the kitchen artery before and after cleaning with the detergent. The smaller sizes will appeal to low income group while the larger sizes will attract the high income groups.
Promotion Strategy and Budget
Essentially, the success of marketing communication depends on proper alignment of a functional idea into the creation of flexible, involuntary, and quantifiable measurement of perception among the target audience in social media. This is achieved by advertisers through the presentation of catchy testimonials of the product aimed at triggering ‘identity socialization’, since the target would embrace the idea based on recommendations from idol or celebrity figures admired by many (Hisrich 2011). Currently, the sales cost of the company is $7,544. It is expected to increase in the first quarter and decrease as the year progresses. The budget per quarter is shown in the table below.
Reference
Hisrich, R. 2011. Entreprenuership. New York: McGraw-Hill Education.