L’EGGS PRODUCTS INC(A)

Submitted byDebadipta- F08076

Neha -F08097Ganesh- F08080Gurpal- F08082Gavin- F08110Cerys- F08063

PROBLEM

Specific alternatives to employ for L’eggs Pantyhose’s first national promotion during the coming fall season.

OBJECTIVE

Generate profitably the largest number of incremental sales.

Increase trial rate in low BDI markets and repeat purchases in high BDI areas.

ABOUT THE COMPANY

Introduced first in 1970(roll out marketing strategy followed)

Accounted for 25% of hosiery volume done by food and drugs outlets

5-6% market share- largest selling single brand in the hosiery industry

SUPERMARKET AND DRUGSTORE RETAIL FORMAT

Share- 12% supermarket 6% drug store

Advertising based on cost only; high stock outs; low ROI for retailers; low quality image; no brand loyalty; products lacked consistency

L’eggs- new product – for supermarket and drug store

TEST MARKETING RESULTS 40 % of potential women had tried awareness

increased by 80%,25% of all women listed L’eggs as their regular brand.

New products - Sheer from tummy to tots pantyhose, queen-size etc- cannibalized existing product to some extent.

COMPETITION Major competitors- Kayser-Roth Corporation

“No Nonsense Pantyhose and Burlington Industries “Activ Pantyhose”.

No Nonsense- backdoor delivery Activ- Cigar an news stands. Activ- $1.00 L’eggs- $1.9 No Nonsense – $0.99

ALTERNATIVES 40c off twin pack offer.

25c twin pack offer

A coupon mailed to homes worth 25c off one pair of L’eggs.

A 20c off single pack offer.

SALES ESTIMATION 20c off single pack- 480000(80%) dozens per

week at reduced prices ; 10% immediate increase in sales; 10%long term increase.

40c off double pack- 360000(60%) dozens at reduced prices, 10% immediate increase in sales- no long term effect.

25c – similar as 40c pack.

Coupon redemption- 8%

SUGGESTIONS

Advertise Nationally at 10% off.

Low BDI Areas – Push single packs of 10% off.

High BDI Areas – Push double packs of 10% off but also keep single packs available.

THANK YOU