Sorrell Ridge Essay

1966 Words Oct 21st, 2012 8 Pages
Case: Sorrell Ridge a. What are Sorrell Ridge's sources of negotiating power and weaknesses? What about Bromar’s?
This case is about the slotting allowance when Allied Old English Company wants to introduce the Sorrell Ridge spreadable fruit product into the California market. Considering the factors including product itself, market, distribution channels, consumers’ needs& demand, competitor’s profiles, we analyzed the negotiating power and weakness of Sorrel Ridge and Bromar.
Sorrell Ridge’s power:
1) Uniqueness of product itself: Comparing to its competitors’ products, Sorrel Ridge could be a diabetic diet.
2) Volume of the Product itself: it holds 60% of retail sales in the all-fruit segment.
3) Consumers’
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In the introduction and expansion phases, Sorrell Ridge should implement a strong push strategy to gain more market shares. The push promotional strategy involves taking the fruit jam directly to the customer via the second biggest retailer: Bromar to ensure the customer is aware of Sorrell Ridge’s brand at the point of purchase. Besides this, offer a variety of ways of discount for customers can also attract their interest in Sorrell’s product. The different promotion channels include: newspaper advertising, coupon books and also fee tasting in the retail store. Last but not the least, Sorrell Ridge can join the trade show in California to encourage retailer demand.
While, after a strong push promotion strategy, Sorrell Ridge should have established their demanding customers which can help them move to the next phase. In this phase, since Sorrell Ridge has already gained some market shares, it is better for them to use the pull strategy which involves motivating customers to seek out Sorrell Ridge’s brand and ask for supply. In order to so, Sorrell Ridge should enhance its advertising and mass media promotion. Besides this, Sorrell Ridge should pay more attention to the customer relationship management in order to improve its product and increase the customer satisfaction and get word of mouth referrals from customers.
The first year marketing program helps the push-pull promotion strategy in the California’s market.

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