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NEWMAN’S OWN ORGANICS:SALES PROMOTIONS AND RETAIL RELATIONSHIPS
Jason David had recently been promoted to director of sales promotions for Newman’s Own Organics. He was excited to find ways to expand product offerings into a wider variety of retail stores. His assignment was to fine-tune both the consumer and trade promotions that would be offered in various markets.
Newman’s Own Organics is a spin-off from the original Newman’s Own company. In the 1980s, celebrity actor Paul Newman and his friend, writer A. E. Hotchner, decided to concoct a batch of salad dressing to be given to their friends for the Christmas holiday season. The dressing became so popular that the two created the Newman’s Own company to sell the item. The two agreed that proceeds and profits would be given to charity.
Newman’s Own sold more than 10,000 bottles of the salad dressing in its first two weeks on the market. In the first year, Newman’s Own made a profit. The company slowly expanded to a wider variety of salad dressings, and then to salsa, marinara, steak sauce, pizza, and even wine.
Among the more famous charities supported by Newman’s Own are the Hole in the Wall Camps, which bring together children with serious and terminal illnesses for a free summer-camp experience. The Newman’s Own Foundation had given more than $250 million to various charities prior to Paul Newman’s death. The figure now approaches $300 million. The company’s mission statement reads, “Shameless Exploitation in Pursuit of the Common Good.”
Newman’s Own Organics was founded by Nell Newman, Paul’s daughter, in 1993. She became the sole proprietor in 2001. The product line for Newman’s Own Organics includes pretzels, chocolate bars, “Fig Newmans,” Champion Chip Cookies, Chocolate Cups, Newman O’s, Pop’s Corn, Alphabet Cookies, coffee, dried fruit, olive oil and balsamic vinegar, dried fruit, pet food, mints, tea, and soy crisps.
The company’s products are certified to be genuinely organic by Oregon Tilth. This means that the ingredients are grown on farms that have not used artificial fertilizers or pesticides for three years or more. The farms and processors have been certified by an independent third party. Kosher certification is made by the Union of Orthodox Jewish Congregations.
Newman’s Own Organics is described as the “second generation.” The company is for a profit, with a royalty paid to the Newman Foundation based on sales and profits. In this way, the organization is able to capitalize on the popularity of Paul Newman, the strong relationship to charitable giving, and the niche market of organic foods. Jason’s responsibility was to find and develop retail outlets for Newman’s Own Organics products. Large retailers that sell food products, such as Target and Walmart, constitute one major marketplace. Small grocery stores that are more upscale and feature organic foods are a second. Third would be any specialty stores that offer organic products.
Prospects might be developed by identifying the stores that carry Newman’s Own products. Further, the internet offers the potential to sell products directly to consumers without a retail store but also to direct consumers to stores that carry the items. Various types of promotions for the products and various charities, including the Hole in the Wall Camps, could be promoted on the Newman’s Own Organics website.
Jason knew that he had the advantage of a strong brand, plus connections to the original company that would give him in-roads into meeting with prospective retail customers. He also knew that it would take more than a name to persuade retailers to make room on the shelves for the products. Beyond simple placement, the ultimate goal was to develop bonds and relationships that would lead retailers to feature the products in advertisements and promotions over time.
Questions:
1. What types of consumer promotions would be best suited to end-users of Newman’s Own Organics products?
2. What types of trade promotions should Jason offer to retailers?
3. Would you expect Newman’s Own Organics products to sell at a higher price than competitors, match competitor prices, or to compete by lower prices in various ways, including using sales promotions?
4. Should Jason explore placing Newman’s Own Organics in restaurants to gain brand recognition? Why or why not?
5. Can you envision any types of trade shows the Jason should attend on behalf of Newman’s Own Organics? Access the Trade Shows News Network at www.tsnn.com and BizTradeShows at www.biztradeshows.com for specific trade shows and locations.
6. Now that Paul Newman has passed away, what challenges will be present as the “second generation” companies moves forward and memories of Paul Newman begin to fade away?
Textbook/Readings Integrated Advertising, Promotion, and Marketing Communications (8th Edition) by Kenneth E. Clow (Author), Donald E. Baack (Author) ISBN-13: 978-0134484136 ISBN-10: 0134484134
I have attached the lectures for you to take notes please answer each question in 4 to 5 sentences form and please add the question over each answer.
Use the text book and lectures as sources.
Solution
Sales Promotion
- What types of consumer promotions would be best suited to end-users of Newman’s Own Organics products?
Social media promotions and personal selling would be the most appropriate consumer promotions approaches Newman’s Own Organics merchandises end-users. Both of these approaches will augment the firm’s turnover and increase its market share by facilitating a highly interactive platform with potential clients (Clow & Baack, 2018).
- What types of trade promotions should Jason offer to retailers?
In-store displays and sampling are some of the trade promotion types that Jason should offer retailers for the products to find their reach to consumers………………………………..To access the rest of the solution for $5, please click on the purchase button.
