's space, for an unproven, untested product. It may be necessary to offer higher profit margins to the frozen food buyers, to encourage them to free up space to sell Show Circuit. The following graph demonstrates the selling price and the contribution margins.CANNED CASECANNEDTUBSEMIMOIST CASESEMIMOIST TUBPrice to Consumer$18$1.50$11.16$0.93Price to Retailer$13.50$1.13$8.37$0.70Broker Commission-$0.95-$0.08-$0.59-$0.05Other Variable Costs-$6.37-$0.53-$6.37-$.53Contribution Margin$6.19$0.52$1.41$.12In order for TPF to break even in the introductory year, they would have to garner 12.6% of the market with the premium priced canned dog food with the $600,000 budget and $30,000 slotting fee. If TPF chose the $400,000 budget, with the $30,000 slotting fee, they would have to get 8.36% of the market of canned dog food. For the semimoist dog food, they would have to get more than 100% of the market.To attain this level of market share would be great, but I do not think that it is likely in the first year. I do not feel that TPF will break even in the first year, and it may be a year or two before TPF achieves a 15% return on sales.VI. PROMOTIONThe General Media Strategy has several advertising objectives. They are:1.Create awareness of new brand2.Obtain distribution through grocery outlets3.Motivate trial through coupon redemption4.Motivate trial through emotional impact of televisionIn order to achieve objective 1, TPF will have to sell the brokers on the product and make sure that the brokers are fully educated on the product before the brokers try to sell the product to the supermarkets. One way to get them fired up about the product is to give them incentives to sell the product.As for objective 2, the brokers will have the sales packets mentioned in the case. As I mentioned earlier, Frosty Paws did the pioneering work with their frozen dog treats. This objective will be the critical stage of the campaign. If TPF cannot get the su...
