Professor Frederic Brunel. with the aid of Deborah Utter. wrote this instance entirely to supply stuff for category treatment. The writers do non mean to exemplify either effectual or uneffective handling of a managerial state of affairs. The writers may hold disguised certain names and other placing information to protect confidentiality. Ivey Management Services prohibits any signifier of reproduction. storage or transmission without its written permission. Reproduction of this stuff is non covered under mandate by any reproduction rights organisation. To order transcripts or bespeak permission to reproduce stuffs. contact Ivey Publishing. Ivey Management Services. c/o Richard Ivey School of Business. The University of Western Ontario. London. Ontario. Canada. N6A 3K7 ; phone ( 519 ) 661-3208 ; facsimile ( 519 ) 661-3882 ; e-mail [ electronic mail protected ]Copyright © 2009. Ivey Management Services
Version: ( A ) 2010-04-29
On a hot Baltimore twenty-four hours in August 2006. Phillips Seafood Restaurants were full of tourers lunching on local seafood fortes. Among them. Cherry Stockworth. vice-president of selling for Phillips Foods. Inc. . and Ron Birch. merchandise director for the new pasteurised male monarch crab. were discoursing the approaching stage II of the launch of king crab ( see Exhibit 1 ) . In stage I. Birch had targeted foodservice purchasers and had spent about half of his $ 160. 000 king crab launch budget for ads in foodservice trade magazines. For stage II. Stockworth was recommending a different scheme. She summarized: Ron. king crab is one of the most of import launches we have done in old ages. We are the leaders in bluish swimming crab and our pasteurisation procedure is arguably the best in the concern. However. if we want to keep our double-digit growing. we need to leverage the merchandise variegation that king crab provides.
In stage I. you have advertised the merchandise in eating house and institutional foodservice magazines. and the response has been good and the trade ads have worked good. Now. for this 2nd stage. we must guarantee an every bit successful launch in the other two markets: nutrient retail merchants and sweeping distributers. I know that your stage II program is to lodge with the proved trade advertisement scheme but I think that we can bring forth more gross revenues leads if we make king crab the centrepiece of our booth at the IBSS ( International Boston Seafood Show ) in March. This will bring forth bombilation and give male monarch crab the needed exposure to distributers and retail purchasers. If we go that path. I will bear down your budget for half of Phillips’ cost for the trade show. Please take a few yearss to see this thought ; work up the Numberss on the two options and let’s talk next hebdomad to finalise the determination.
PHILLIPS FOODS. INC.
Founded by Augustus E. Phillips in 1914 on Hoopers Island. Maryland. Phillips Foods Inc. had grown into one of the largest seafood concerns in the United States ( $ 160 million for 2006 sales1 ) and was the figure one U. S. trade name for crab meat. The company was made up of three concern units: ( 1 ) a eating house division which operated eight full service eating houses in the Baltimore part and a turning franchise division along the East Coast ( e. g. airdrome locations ) . ( 2 ) a foodservice merchandises unit that sold to eating houses and foodservice establishments. and ( 3 ) a retail merchandises division which sold straight ( or indirectly via jobbers and distributers ) to grocery shops and other retail nutrient merchandisers.
Phillips was renowned for its crab merchandises and the trade name image remained closely associated with its Maryland beginnings. Yet. the company had actively diversified its supply beginnings and production. and had 14 fabrication sites ( one in Baltimore and 13 overseas ) . and three gross revenues offices outside the United States. Unlike most of its rivals. Phillips owned and operated all of its workss. It believed that this scheme ensured greater nutrient safety and quality.
Phillips had besides differentiated itself on at least two other foreparts. Phillips was the first to hone a method to pasteurise and can crabmeat while continuing a fresh-like merchandise gustatory sensation and texture. Once canned. the crabmeat needed to be refrigerated. but it enjoyed an 18-month shelf life. In retail shops. pasteurized crab was typically sold in self-service iceboxs that were located in propinquity to the seafood counters ( see Exhibit 2 ) . To back up these merchandise inventions. Steve Phillips ( CEO Philips Foods. Inc. ) besides implemented a bona fide branding scheme. Alternatively of selling crabmeat as a trade good. he invested in brand-building activities for the Phillips trade name. In 2006. Phillips’ merchandises could be found in over 10. 000 retail shops in the United States. To sell to these shops. Phillips relied on its ain direct-to-retailers gross revenues force and on a web of nutrient agents. distributers and jobbers who acted as mediators between the company and some retail merchants.
In recent old ages. Phillips’ merchandise scheme had centered on developing value-added merchandises ( e. g. ready-toeat merchandises ) that offered higher borders than obviously seafood. Harmonizing to Bob Goldin. executive VP with Technomic Inc. . a nutrient research and consulting house. net income borders for trade good nutrient points ranged between one per cent and three per cent. whereas borders for value-added merchandises could be eight times as big. 2 By 2007. Phillips expected to deduce most of its grosss from gross revenues of value-added points. In the retail channel. its merchandise line included refrigerated crab meat. crab dip. frozen appetisers. frozen crab bars. assorted frozen seafood ( e. g. runt. salmon. Tilapia. mahi-mahi ) . a line of frozen Asian-inspired merchandises. and besides a line of flavorers and cocktail and potassium bitartrate sauces ( see Exhibit 3 ) .
Phillips’ latest invention was king crab. In 2006. no other company had a pasteurized male monarch crab merchandise with the same fresh-like quality. The pasteurisation technique allowed Phillips to place the merchandise as an option to fresh or stop dead male monarch crab. The merchandise was available in two bundles: one targeted at eating house and institutional foodservice markets. and one for retail consumers ( see Exhibit 1 ) . For stage II of the launch. Birch was looking into the best manner to procure retail distribution for the consumer market version of the merchandise.
While bluish swimming crab might raise images of household merriment. summer yearss and flaxen Maryland beaches. king crab was “synonymous with the altogether. rugged beauty of Alaska. ”3 Most king crab was fished in the unsmooth Northern Pacific waters off the seashore of Alaska and Russia. Fishing for king pediculosis pubis was frequently a unsafe and heroic matter. and had been the topic of a popular plan ( Deadliest Catch ) on the Baltimore Business Journal. January 11. 2008. Seafood Business. June 15. 2007.
Discovery Channel. Seafood Business magazine stated that “during the show’s rise to prime-time prominence. king crab became a seafood spectacle. ”The pediculosis pubis themselves were dramatic. Depending on the sub-species. mature specimens weighed up to eight lbs for aureate male monarch pediculosis pubis and up to 20 lbs ( with leg spans of five pess ) for bluish male monarch pediculosis pubis. King crab was considered a daintiness and a luxury seafood merchandise. and was chiefly consumed in eating houses. Most king crab meat was shipped cooked and frozen in packages of legs and claws still in the shell ( some was shipped fresh or unrecorded ) . Restaurateurs said that consumers enjoyed king crab “because of its Sweet and lush taste” every bit good as “the belly laugh factor” of the big legs. “You cleft open a leg. and there’s a immense piece of meat… you don’t have to contend with it to acquire a small bitty piece. ”5 King crab legs used for Phillips’ merchandise were cooked. chilled and brine-frozen at sea.
They were so transported to Asia. where the meat was extracted from the shell. pasteurized and packaged in 8-ounce containers ( 16 ounce. for warehouse nines ) . The merchandise had no additives or preservatives. Advantages to retail merchants were the 18-month shelf life and the potency for retail borders in the 35 to 45 per cent scope. The suggested retail monetary value was $ 16. 99 for an eight-ounce container. Besides Phillips’ trade name repute. advantages for consumers were: a sensible monetary value in comparing to fresh or stop dead ; the convenience of 100 per cent useable crab meat ; and the high-quality gustatory sensation of fresh without the muss of checking and taking the shell. Phillips expected that a ample figure of U. S. consumers would purchase this new retail merchandise.
SEAFOOD RETAIL MARKET
U. S. seafood retail gross revenues ( $ 14. 4 billion in 20066 ) had been fueled by increased wellness concerns of U. S. consumers. the debut of advanced seafood merchandises. and the growing of warehouse nines. Over the following six old ages. five per cent to six per cent one-year growing was predicted. Fresh seafood ( chilled or refrigerated ) represented 54 per cent of seafood retail gross revenues. frozen represented 33 per cent and shelf-stable seafood ( non-refrigerated ) accounted for 13 per cent. 7 These comparative portions were non expected to alter significantly.
Seafood ingestion forms varied greatly across merchandises and state of affairss. Amongst the 110 million U. S. families. 90 per cent of them ate seafood ; nevertheless. 43 per cent of these families ate seafood chiefly when they dined out. Further. merely 27 per cent of U. S. families reported purchasing frozen seafood and 18. 5 per cent purchasing fresh seafood. with crab ( all signifiers ) being purchased by eight per cent of U. S. families. 8 By and large. most U. S. housewifes were non confident in their ability to decently cook seafood. therefore ensuing in this low incursion of seafood for home-cooking. As a consequence. experts agreed that direct-toconsumer advertisement runs and concerted promotional plans ( e. g. in-store signage. trying. presentations ) were necessary to accomplish successful new seafood merchandise launches. 9 Harmonizing to the CEO of Blue Horizon Organic Seafood Co. . when seafood was cooked at place. “consumers want accessible spirits similar to those they’ve experienced in eating houses or on vacation… they are looking for something tasty and alimentary that they can set on the tabular array in proceedingss. ”10 In response. makers had introduced merchandises that emphasized “convenience. ” “natural. ” “premium” or “microwaveable” as the chief merchandise benefits.
The retail side of the market had been marked by: 1 ) a considerable industry consolidation within supermarkets ( food market shops with one-year gross revenues over $ 2 million ) and 2 ) the growing of warehouse nines ( see Exhibit 4 ) . In 2006. seafood merchandises were sold through 34. 000 supermarkets ( 75 per cent were portion of ironss ) . 1. 100 warehouse nines and 13. 000 smaller independent nutrient stores11 ( including 3. 800 forte seafood markets12 ) .
Seafood gross revenues accounted for four per cent of supermarket gross revenues. with packaged seafood stand foring one tierce of that sum and majority seafood stand foring the remainder. It was besides estimated that gross revenues of packaged seafood in supermarkets accounted for 25 per cent of entire U. S. seafood retail gross revenues. 13 Most retail merchants purchased either straight from the makers or through nutrient agents. Agents were used for their relationships with retail merchants and their geographic coverage. They sold the merchandises to retail merchants and visited the retail mercantile establishments often to keep the presentation of the merchandises on the shelves. Food agents were typically paid a three to five per cent committee based on the manufacturer’s merchandising monetary value. Most retail merchants were ambivalent about new merchandises.
On one manus. they sought them to derive a competitory advantage or better borders. but on the other manus. they were immune because of limited retail shelf infinite and a desire to minimise hazard. To transport a new merchandise. retail merchants would routinely extinguish another SKU ( stock maintaining unit ) in order to do room for the new one. New merchandises were selected based on their bottom line potency and their possible stock list bend rate. It was common when negociating with retail merchants to offer a publicity calendar. which included price reductions and promotional events during the twelvemonth. To back up the retail merchants and educate consumers. Phillips had developed a male monarch crab formula brochure that would be available for free at the point of purchase. shelf signage and an icelator show bin to keep the merchandises during promotional events ( see Exhibit 2 ) .
Two chief tendencies were expected to determine the hereafter of seafood retail. First. consumers were expected to buy a greater portion of their hebdomadal nutrient basket in warehouse nines and big mass merchants ; therefore. the portion of seafood sold through these channels would increase. Second. there was a tendency toward greater accent on self-service merchandising for seafood. For illustration. loose seafood counters were being phased out by several food market ironss ( e. g. Stop & A ; Shop. Giant ) . In these cases. the traditional counters were replaced with prepacked seafood in iceboxs or deep-freezes. The Food Marketing Institute estimated that. by 2007. less than 60 per cent of supermarkets would still hold a full-service seafood counter. Ironss following this scheme were chiefly motivated by cost nest eggs and a desire to aline their operations more closely with the theoretical accounts used by mass merchants and warehouse nines. Although consumers might bask more competitory monetary values thanks to these alterations. they had besides lost a cardinal beginning of seafood information and place cookery advice: the counter employees. Though. there were some noteworthy exclusions to this tendency. Some up-market ironss such as Whole Foods had gone in the opposite way: hiring more forces in their seafood sections and offering more instruction and premium points.
In the United States and Canada. over 14. 000 trade shows ( a. k. a. exhibitions. exhibition. carnivals ) would be held in 2006. A typical show ran for two or three yearss and had about 35. 000 square pess of exhibition infinite and over 100 exhibitioners. 15 Smaller shows were typically held in hotels or conference installations and larger 1s were held in big exhibition and convention centres. Most of these face-to-face events were aimed at concern audiences. Although consumer shows ( e. g. a local boat show ) tended to hold more visitants. they merely accounted for 18 per cent of all shows.
Exhibition professionals argued that shows were a alone gross revenues and selling medium because ( 1 ) they brought the most active chances and clients to the exhibiting company. ( 2 ) companies could show merchandises. reply inquiries. overcome expostulations and interact face-to-face with their current or possible clients. ( 3 ) companies could construct on all five human senses in order to present impactful and memorable messages and ( 4 ) multiple selling ends could be pursued at one time ( e. g. from long-run relationship-building to immediate gross revenues take coevals ) . 16 However. there were restrictions to the marketing power of this medium. A little figure of trade shows might non ever present on the promises made to the exhibitioners and attendants. Occasionally. attendants and exhibitioners had reported that some shows felt excessively cramped. There were besides stray anecdotes of keynote talkers being dissatisfactory or even neglecting to demo up. It was therefore of import that attendants and exhibitioners selected well-managed shows with a strong repute and a positive path record.
Besides. because most attendants wanted to be able to see the cardinal industry participants for one industry under one roof. the absence of some of import exhibitioners had contributed to the ruin of several shows. Conversely. while some shows failed to pull adequate exhibitioners or attendants. others might fall victim to their ain success. Trade shows could be so big that exhibitioners had jobs standing out amongst all exhibiting companies and attendants had jobs happening the companies or merchandises they sought. As attending grew larger. exhibitioners found it disputing to properly staff the exhibits or do certain that their exhibit infinite was big plenty to suit the volume of visitants. Irrespective of overall show size or exhibit design and staffing. there was one common ailment from attendants and exhibitioners: shows were palling and it was difficult to be “on” for 12 or more hours per twenty-four hours. for two to three yearss at a clip.
In 2005 in the United States. houses spent $ 7. 5 billion on trade show exhibit infinite and 42 million visitants attended. 17 In add-on to leasing floor infinite. companies spent money on exhibit design ( e. g. design and building of show. renovation. storage. expose stuff ) . show services ( e. g. electrical. plumbing. rug. janitorial services. security. lead retrieval information system ) . transportation ( e. g. cargo and material handling ) . travel and amusement ( e. g. travel and housing of forces. repasts. cordial reception and client events ) . and advertisement and publicity ( e. g. sponsorship of events at the show. ads in plans. pre-show selling. print stuff. giveaways and awards ) ( see Exhibit 5 ) . As a regulation of pollex. entire trade show costs were approximately three times the cost of floor infinite for little exhibits that did non necessitate extended apparatus and show services. However. if the exhibit was larger and required more services. a better regulation of pollex was five times the cost of floor infinite.
A comparing of the effectivity and use of face-to-face events versus other selling tactics suggested that B2B sellers viewed face-to-face events as the most effectual maneuver for bring forthing leads and edifice trade name image ( see Exhibit 6 ) . These consequences could be reinforced by the fact that most attendants had non been called on by a sales representative in the 12 months predating a show. 18 Yet. the bulk of attendants were be aftering a purchase in the following 12 months and had some direct purchasing influence ( e. g. concluding say in purchase determination. specify merchandises. or do recommendations ) . 19 The figure one ground purchasers attended trade shows was to see new engineering or merchandises. Other motivations included constructing relationships. comparing trade names. acquiring penetrations in the industry and interacting with sales representative without the duty to do a purchase. 20
When purchasers were asked to place the most utile beginnings of merchandise information. exhibitions were the most frequently mentioned ( 90 per cent ) . followed by direct gross revenues and field gross revenues ( 75 per cent ) . public dealingss ( 75 per cent ) . the Internet ( 63 per cent ) . direct mail ( 58 per cent ) . trade advertisement ( 55 per cent ) and telemarketing ( 50 per cent ) . 21 Besides their informational value. exhibitioners and attendants besides pointed to the shows’ utility in edifice and keeping vendor/customer relationships ( see Exhibit 7 ) . Most attendees went to merely one or two shows per twelvemonth and selected which one to go to based on word-of-mouth and trade magazines. 22 Trade show interactions had an impact beyond the show itself. Estimates suggested that show attendants would portion the information they had received at the show with other people in their ain companies. 23 It was hence of import that exhibitioners created positive and memorable show experiences. Exhibit 8 summarizes the top grounds ( other than exhibit size ) that make an exhibit memorable.
Jefferson Davis. a outstanding trade show adviser. argued that exhibitioners should mensurate outcomes with difficult and soft prosodies ( e. g. ocular impact of the booth. quality versus measure of interactions. figure of leads generated. cost per lead and return on outgo ) . Second. exhibitioners should be prepared to leverage the fact that at a trade show. “customers come to you with an unfastened head. looking for merchandises and ready to prosecute in treatments. ” Therefore. it was important that companies be decently staffed. have an appropriate exhibit size and have procedures to capture client information at the show.
Following up on trade show leads could be effectual and efficient. Research had shown that gross revenues leads from trade shows were more likely to give gross revenues and have lower costs than regular gross revenues calls. In the absence of a anterior trade show interaction. it took on mean one initial field gross revenues meeting and 2. 7 followup field gross revenues meetings ( at an mean cost of $ 308 for each ) to shut a sale. However. if the initial gross revenues run intoing took topographic point at a trade show ( mean cost of a trade show gross revenues lead was $ 212 ) . it took 1. 6 followup field gross revenues meetings to shut a sale. 24 THE INTERNATIONAL BOSTON SEAFOOD SHOW
The IBSS was held yearly in early March at the Boston Convention & A ; Exhibition Center and was the largest seafood show in the United States. The show lasted for three yearss and is unfastened from 10 a. m. to 5 p. m. on the first two yearss and 10 a. m. to 3 p. m. on twenty-four hours three. Attendance for the 2007 show was expected to be approximately 18. 000. with a net attending of 12. 000 ( this excluded exhibitioners. show organisers and the imperativeness ) . With 175. 000 square pess of exhibit infinite and over 800 exhibitioners advancing merchandises runing from wild Alaskan salmon to farm-raised fish from Vietnam to refrigerated show instances and ice machines. the shows covered the full scope of industry
The show drew decision-makers from nutrient retail merchants. foodservice suppliers and distributers ( see Exhibit 9 ) . Visitors represented companies with average one-year seafood purchases of $ 3. 4 million ( see Exhibit 10 ) . Most visitants had buying authorization and were looking for new merchandises ; 81 per cent said that they had found new merchandises at the show ; 73 per cent had planned purchases after go toing the show and 88 per cent wanted to return from twelvemonth to twelvemonth.
Floor infinite was $ 30 per square pes and exhibits were available in many sizes ( multiples of 100 square pess ) and constellations. The minimal size was 10 pess by 10 pess. There was an excess charge of $ 500 per corner. At the clip of the instance. Phillips had non committed to a specific infinite ; nevertheless. the company was seeking to make up one’s mind the size and location that it needed to reserve ( see Exhibit 11 ) . PHILLIPS’ TRADE SHOW STRATEGY
Phillips exhibited at several trade shows and had late built an exhibit that could be shipped to any show. It was modular and made up of multiple elements that could be assembled based on different booth sizes ( from 600 to 2400 square pess ) and forms. The chief ocular subject was reminiscent of an oldfashioned haven crab hovel. The exhibit used big wooden piles. wooden shelves for merchandise shows and Zn lighting fixtures. However. the exhibit besides included hi-tech inside informations such as big flat-panel TVs ( see Exhibit 12 ) . The dominant colourss reinforced Phillips’ trade name individuality: ruddy rug and black for most of the furniture. and counters shaped as outsize tins of Phillips crab. The exhibit elements needed 250 square pess for set-up. For larger shows such as the IBSS. Phillips besides included a kitchen where nutrient samples were cooked. The kitchen country occupied 350 square pess and three staff members were needed to run it.
Because of its big size and figure of elements. it cost $ 9. 000 each manner to transport out and so return the exhibit to storage in Maryland. Exhibit 13 gives the dislocation of Phillips’ cost estimations. Phillips tended to restrict pre-show selling disbursals and alternatively used its resources for the luxuriant exhibit and outstanding locations where its trade name name and samples it served were used to pull visitants. In add-on. during each show. it was Stockworth’s policy to form a VIP party where Phillips’ staff could further relationships with the most of import histories. VIP parties were normally held in the eventide in one of the hotels bordering the conference centre. Typically. a VIP party cost $ 20. 000 ( including lease of locale. nutrient. drinks. amusement and ornament ) .
One of the chief determinations that Stockworth and Birch would necessitate to do was to find the size of the exhibit and the figure of staff that would go to the show. Phillips wanted its exhibit to look busy but non be excessively crowded. Decisions on infinite and staffing were based on the traffic expected. In the unfastened floor country of the exhibit ( entire size subtraction kitchen and infinite taken by exhibit elements ) . an mean denseness of four people per 100 square pess was comfy and ideal for most shows. It was of import to observe that most show attendants would non pass clip in the existent exhibit ; most would walk the show aisles and catch nutrient samples from the outward-facing shows. However. possible mark clients would typically come in the exhibit and pass some clip with staff members.
Based on past experience and industry norms. Phillips estimated that an mean interaction with a possible client lasted six proceedingss. 25 long plenty for them to show some involvement in the merchandises. portion contact information ( attending badges were scanned ) and bespeak some literature. It was Phillips’ end to hold one Phillips staff member to suit every possible client who stopped in during the three yearss of the show. However. it was besides of import to recognize that some possible clients might non hold adequate clip or sufficient involvement to halt at every exhibit in a show.
Based on initial attendee enrollment informations. Phillips estimated that 65 per cent of its mark attendants ( retail merchants. distributers and foodservice ) were looking for merchandises that matched Phillips’ offerings. Among that group. 16 per cent of them were looking for king crab. Further. based on past trade show experience and the draw of the Phillips’ trade name. Phillips believed that over the continuance of the show. it could typically pull and interact with 70 per cent of these mark clients who had an existent involvement in Phillips’ merchandises. This was somewhat better than the industry norm of 57 per cent. 26
Although certain times of twenty-four hours were a spot busier than others. fluctuations were non really big and clients tended to come throughout the continuance of the show. However. Phillips believed that it was a good pattern to hold two excess staff members above the lower limit needed in order to suit possible extremums. plus besides have two more people whose exclusive occupation was to pull off the shows. review the samples and go to to the general good province of the exhibit.
PHILLIPS’ TRADE ADVERTISING STRATEGY
Industry particular ( trade ) magazines were critical information beginnings in most major industries. These publications provided up-to-date concern intelligence. research and penetrations to directors in cardinal decision-making places. Many directors tended to read several trade publications. frequently including perpendicular publications which were specific to their industry every bit good as horizontal publications which cut across industries but were specific to their occupation maps. For illustration. a human resources director at a food market retail merchant might read Progressive Grocer and Employee Benefit News.
In 2005. B2B magazine advertisement disbursement reached $ 10. 7 billion. 27 This sum of disbursement was a testimony to the value that sellers placed on this type of selling communications. In add-on to the magazines’ articles. the advertizements were a valued beginning of information for readers. Forrester reported that concern decision-makers rated industry-specific magazines as one of their most of import information beginnings. 28 In fact. 44 per cent of concern decision-makers spent three or more hours reading trade magazines per hebdomad. a rate that had more than doubled from 2001. Importantly. 80 per cent of the Forrester study’s respondents agreed with the undermentioned statement about their advertisement engagement: “When reading or interacting with industry-specific magazines. I find that I spend more clip reading or believing about the column content and product/service messages than with other general concern media. ”
Birch believed that trade advertisement was peculiarly effectual in bring forthing gross revenues leads and making big audiences: “Trade shows may let you to interact one-on-one with a few prospective purchasers over three yearss. nevertheless trade ads reach wide audiences and can construct your trade name twelve months per twelvemonth. ” During the six months of stage I of the launch. Birch had run a sum of 12 full-page colour ads ( placed across four monthly foodservice publications ) . Birch was pleased by the consequences. In response to each ad. an norm of 0. 30 per cent of the foodservice readers had called Phillips to ask about more merchandise information. This response rate was consistent with mean response rates for trade magazines. 29 Based on these direct response leads. subsequent field gross revenues meetings ( 2. 7 on norm ) had yielded significant gross revenues for the merchandise. Birch expected a similar response amongst retail and distributer audiences in stage II. He had identified three trade magazines that could potentially make retail merchants and distributers ( see Exhibit 14 ) and he felt that the two ads that had been developed for stage I could be used once more for stage II ( see Exhibit 15 ) .
Three yearss had passed since the tiffin with Stockworth. and Birch was still unsure about what to make for stage II. He had reviewed the trade show information but was inquiring if Stockworth’s thought was the right thing for the retail launch. Stockworth had asked him to do a determination rapidly because she wanted to offer the trade show chance to another merchandise director if Birch were to turn it down. Be the best scheme to concentrate his staying budget on the March trade show or distribute it across a series of trade advertizements? This was traveling to be a hard pick. He knew how to measure advertisement bargains in magazines and he had a good sense of the possible return that these bargains could bring forth. However. trade shows wereanother animal.
Trade shows were big erstwhile disbursals with hard-to-gage consequences. After back uping half of the cost of the trade show. would he hold any money left for other selling activities? Would he be able to make adequate purchasers during the three yearss of the show? His inherent aptitudes were stating him that he would be able to make a larger audience through mass media. But what about existent gross revenues leads and overall return on selling outgo? What was the most cost-effective manner to obtain gross revenues leads and ultimately gross revenues in the retail channels?
Frederic Brunel is an Associate Professor of Marketing and Dean’s Research Fellow at Boston University School of Management ; Deborah Utter is a Senior Lecturer. besides at Boston University School of Management. The writers recognize the aid and support of the Society of Independent Show Organizers and the Exhibition Industry Foundation.