MKT 405 third presentation

MKT 405 third presentation - 2. Defining specific...

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Budget: I think the ideal allocation strategy for advertising, promotion, and marketing research is 30% from gross profit. Huggies is under Kimberly-Clark corp. (note: gaz, I couldn’t find the specific financial statement for huggies, so the statement below is the consolidated financial statement for the whole products under Kimberly-Clark corporation) KIMBERLY-CLARK CORPORATION CONSOLIDATED INCOME STATEMENT PERIODS ENDED DECEMBER 31 (Millions of dollars, except per share amounts) Twelve Months Ended December 31 2007 2006 Change Net Sales $18,266.0 $16,746.9 + 9.1% Cost of products sold 12,562.1 11,664.8 + 7.7% Gross Profit 5,703.9 5,082.1 +12.2% So, the budget for advertising, promotion, and marketing research for 2008 would be 30% from 5703.9 millions. It would be a total of 1711.17 millions. We are using the task method which consists of 3 steps: 1. defining the communication objectives/establish objectives (Create awareness of the product to the target market which is USC students and all college students in US)
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Unformatted text preview: 2. Defining specific strategies We will put our advertisement on TV, radio stations, billboards around the campuses, and college newspaper (such as daily Trojan). 3. Estimating the costs associated with these strategies and tasks As described above the total budget would be 1711.17 millions (it is 30% from companys gross profit). Well contribute this number into different categories: TV (20%), radio ad (30%), billboards, college newspaper, and print ad (50%)-TV (since our primary target market is college students, we are not going to spend a lot on the TV ads). 20% from 1711.17 M = $ 342.234 M- Radio ad (We think most of college students listen to the radio everyday. So, we prepare more budgets for it). 30% from 1711.17 M = 513.251 M-Billboards, college newspaper, and print ad (we provide the largest budget for this category because we think it is the most reliable since most of the time students are on campus). 50% from 1711.17M = $855.585 M...
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This note was uploaded on 10/02/2008 for the course BUAD 307 taught by Professor Morristowns during the Spring '07 term at USC.

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MKT 405 third presentation - 2. Defining specific...

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