Marketing Expense Budget Total Expense Budget – 28 Million Dollars The snack food industry is highly competitive. Increased competition and new products entering the market are a factor when deciding how fast to implement Tostitos marketing strategy. To compete with Tostitos competitors, Tostitos must implement their marketing strategy immediately.
Tostitos wants to increase sales for the financial year 2014. Focusing their marketing and advertising budget by utilizing a percentage of sales or profits tactics should be related to the quantity of goods sold. Tostitos plans on implementing their marketing strategy immediately by using the percentage of sales method to avoid problems that could result from using profits as a base. For example, if the profits during a certain marketing strategies implantation are low, likely it will not be the fault of the sales and advertising programs. Tostitos bottom line in implementing their marketing strategy is to ensure funding is not cut from next years budget. Tostitos, using the percentage of sales method, allows their advertising to be in direct relation with sales volume.
Tostitos is a large, industry-leading brand. To stay relevant in the highly competitive market in which they operate, Tostitos must allocate a larger portion of their marketing expenses to paid media advertising. Choosing to spend more on paid media advertising will ensure higher visibility of the brand. In turn, paid media advertising is also the most expensive marketing tool.
To effectively advertise to Tostitos target consumer, their marketing and advertising strategy should carry messages that appeal to consumers when they want to buy and reach them through their preferred media outlets. Choosing to spend marketing resources must be inline and campaigns timed for when the customer wants to buy, not based only on when Tostitos wants to sell. Effective advertising entails selling items that are popular with customers, allocating money to promote products must tout customer benefits.