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Recommend a Strategic Approach

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You are tasked by your Marketing VP to recommend a strategic approach. What would you recommend Merit Enterprises do with DEFENSE Deodorant? Defend your strategic decision and demonstrate comprehension of strategic decision making within the marketing environment.


Suppose you are the marketing manager for DEFENSE Deodorant, a product that is manufactured by your company, Merit Enterprises. Merit markets a line of consumer personal care products, e.g., Hair-So-Soft Shampoo, Awesome Hair Conditioner, Glisten Toothpaste, Abracadabra Mouthwash, and other similar products. Each product has its own marketing manager and there are a total of 13 products in the corporation's product line, one of which is DEFENSE.

DEFENSE deodorant was introduced in 1993 with the typical corporate fanfare that marks the introduction of a new product. The product never really took off, however; yet, it does have a contingent of seemingly loyal DEFENSE users. Overall corporate sales are $6.3B with DEFENSE contributing sales of $68M in 2011. Gross profitability of DEFENSE in 2011 was $4.4M. DEFENSE in this current year in 2012 has about 2.1% of the total U.S. deodorant market, down from 2.4% in 2007.
Marketing research done by your department within the past three months suggested that those outside the DEFENSE user base see DEFENSE as simply "just another deodorant" in a market that is already brimming with competitive products (e.g., Sure, Mennon, Axe, Right Guard).

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Solution Preview

First and foremost, it is important to note that the personal care products industry is extremely competitive. Often times, smaller entities have a great deal of difficulty making their mark or finding their place in the personal care market. The fact that the overall corporate sales for Merit Enterprise was $6.3B is remarkable! These numbers are fantastic. Additionally, Defense Deodorant offered sales that contributed $68M to the corporation's overall sales. The company brand, obvious has found their place within the personal care products market and thus, should capitalize on future opportunities for increasing sales.

As an employee of Merit Enterprises, it is not surprising that the Marketing Vice President has solicited your help to strategically advance the successfulness of the organization. As a knowledgeable individual, who possesses great business acumen, this is the time to show off your skills. Here's what I would recommend to the Marketing VP...
Defense Deodorant's sales have decreased over the past year and now, this brand own less of the market than in years before. This is problematic considering that from 2007 ...

Solution Summary

The purpose of this solution is to make recommendations regarding a branding decision. The recommendations provided are based upon gross profitability, current market data, market competition, etc. The response details market value, market trends, strategic profitability, etc.