Chicken Case Study Example | Topics and Well Written Essays - 500 words

Chicken - Case Study Example Problems The increased advertising expenses forced the company to increase the net price of the products. In the article, the writers Belch and Belch point out that in the past 10years, the company paid out most of its promotional spending towards consumers in Free Standing Inserts (FSIs) in Sunday newspapers containing coupon offers. As a result, many consumers were found purchasing tuna from local brands or a brand which was on promotion or which offered the lowest shelf price. Chicken of the Sea as well as other major companies faces increasing competition from local brands which are usually priced lower than the national brands. The company’s call for ‘reduction in media advertising and increased emphasis on sales promotion’, as well as the development of local label brands resulted in a change in power from manufacturer to the retailers (Belch & Belch). The profit earning margin on canned tuna has gone down as retailers demand lower price and more trade allow ances. A big question aroused; whether the company could afford to preserve Jessica Simpson, a rising pop star as a spokesperson for the company since her fame and reputation were at peak so was her remuneration too.