Memorandum, Case Study Example

Date: December 3, 2009

Subject: Expanding Oral Care Group

To: Brinda Patel

From: Global Marketing Student

Introduction

As projected by Lang, increase in advertising to expand the Oral Care Group in 2010 is not justified. This is according to the study contacted in the year 2009. The findings of the study of the year 2009 are used to project the plans for the year 2010.

Findings

If advertising is increased by 3% as proposed by Lang, profit from operations will reduce from 18% to 15% of sales. In addition, the estimation revenue will reduce from $18.3 to $17.55. This is according to the comparison of projections proposed by Patel and Lang. The company should develop a tracking system, which will ease the measuring of production changes in every quarter of the year. It will be easy to come up with the recommendations from the system analysis.

From my opinion, Cottle-Taylor should allocate large share to first time user identification, mid-range and buttery brushes and frequency in brushing respectively. This is due to the difficulty to use the first time users. This leads to increase in the number of users, which will automatically increase the revenue. After identification, promotion of mid-range and battery brushes should be considered next. This is because they are cheap and can be afforded by all users. Increasing the frequency of brushing is the least because almost all users are aware that they should brush frequently. This will make the use of toothpaste to be more effective.