Proposed alternatives for Eclipse to perform better in its second year
Positioning: Eclipse should either reposition where there is a higher appeal to buy or either reconsider its position to bad breath and provide unique benefits that appeal more consumers to buy or think of reformulating to rank itself better in eliminating strong odors against its competitors.
Segmentation and Targeting: Wrigley products in general and Dentyne Ice are popular among teenagers, which implies that it would have been beneficial if Eclipses target segment included teenagers.
Eclipse can continue to target consumers age 25-54 for year 2 and can expand its age group to target teens 10-17. Wrigley should maximize market by targeting 10-54 years to capture all the primary purchasers of the product.
Pricing: Wrigley should remove pre-pricing of Eclipse and incentivize the retailers by providing higher commissions and special discounts on large orders. Wrigley can accept stores to determine their own selling price at a 69% trade margin either by increasing the selling price to 89c and increase its margin by 2.
7% or maintain the same price of 79c and sacrifice 8.8% of their margin. Since convenience stores have 29% of the consumer gum sales, it is reasonable to estimate that the increased sales will offset the 8.8% margin sacrifice (Exhibit Table 3).
Channel and Distribution: Optimize supply chain efforts to increase single and 3-packs in food-store distribution from the current 80% to 100%, convenience stores from 40% to 80% (Exhibit Table 1, 2).
Product: Eclipse should re-formulation the product to provide better taste and increase its ability to eliminate bad breath.
Also, run a large-scale production test to ensure there is no loss in product quality (Exhibit Table 1, 4).
Advertising: Eclipse should launch a new ad campaign introducing Polar Ice that resonates with key positioning and concentrate more on long-lasting taste and flavor to improve brand awareness, increase conversion ratios and strengthen association with the brand. Target teenagers along with the current age group and use the right promotional strategy by considering who uses the gum the most. Providing freeosk at stores can increase brand awareness. A low awareness-to-trail conversion ratio indicates that people did not try the brand though they are aware of it. Providing free samples or introducing a trial pack with the highly purchased Wrigleys products at the grocery or food store would increase the number of people try and purchase the brand. (Exhibit Table 2, 4).