MEM Company, Inc.

Issue
How to increase sales of the company¡¦s line of men¡¦s toiletries.


Discussion
Gary Mayer, president of MEM Company Inc. and other MEM executives believed that periodic new product introductions were essential in the men¡¦s toiletries market to maintain consumer and trade interest and to sustain sales growth. It had been over two years since Racquet Club had been introduced in 1978. A new brand, tentatively name Cambridge, was under consideration for introduction in 1981.
Mayer believed Cambridge would gain sales primarily at the expense of British Sterling and other brands in the $7 to $10 range.
Yet, the level of advertising expenditures which would support a Cambridge introduction was still unresolved. The company¡¦s advertising agency had been asked to develop three media plans for high, medium and low expenditure. Mayer believed that the lowest expenditure level represented the minimum necessary to achieve this 1981 target of $3 million in factory...