Grokë, Paul O.||Butcher, Benjamin B.
M.S. (Master of Science)
Department of Marketing
Marketing; Aluminum foil
Problem and procedure: The problem involves an analysis of the marketing of household aluminum foil in Switzerland. The purpose of this study is to make a contribution to the knowledge regarding the marketing of household aluminum foil in Switzerland. The study analyses the marketing of household foil by Alu-Vertriebestelle, a simple company without legal entity formed by four Swiss aluminum rolling mills. The study also offers constructive criticism which would be beneficial to individuals actively involved in the marketing of foil. The solution to the problem of this study required analysis of data which contained the actual circumstances of the marketing of household foil in Switzerland. An important source of data was the individuals involved in the marketing of household foil in Switzerland. The researcher's actual work experience in the marketing of household foil in Switzerland provided the final source of data. Conclusions: A consumer market survey of the household foil market indicated that the German and French sectors of Switzerland offer the greatest sales and profit potential for Alu-Vertriebsstelle. The high price of household foil was criticized by one-fourth of the foil users. A seed for consumer education concerning aluminum foil, its uses, and its advantages is shown in the survey. The researcher can justify a change in Alu packaging because of the significant decrease in sales and market share. The Alu package should be increased in size to help justify the higher price to the consumer. A different packaging material would project quality and justify the higher cost to the consumer. A metal or plastic strip would facilitate the tearing and use of aluminum foil. A new brand name, one that can be protected from generic use, would increase brand differentiation. The household foil cartel consisting of the four aluminum rolling mills formed Alu-Vertriebsstelle to function as a "central processing unit." Alu-Vertriebastelle spends a small amount of time calling on prospective wholesalers when one considers that the key to expending a brand's market share is through acquiring additional retail outlets. The policy of not visiting contracted wholesalers ignores the possibility that regular visits might stimulate greater efforts by the wholesaler which might result in greater sales. The Alu-Vertrlebsstelle promotional program consists of television advertising, publicity, and informative enclosures in the packages of foil. Alu-Vertriebsstelle's policy of advertising equally in all three language sectors of Switzerland does not seem logical when one considers that the German sector contains 71 per cent of all television receivers. A more logical program would be to have more advertising in the German sector than in the French and Italian sectors. A larger advertising budget might prove beneficial in Alu-Vertrlebsatelle's marketing program. Primary advertising might expand the demand for aluminum foil by developing new customers and increasing the use of the product among present customers to the extent that the advertising would be profitable to Alu-Vertriebsstelle. Its selective advertising would experience difficulty in reaping the major share of returns because the competing brands are difficult to distinguish from one another, and the consumer considers the competing brands to be easily substituted with one another. The publicity releases of Alu-Vertriebsstelle were effective and well done. In the first six months of 1967 it has had seventy-four publicity releases with a circulation of 4,900,000 persons. The informative enclosures Alu-Vertriebsstelle inserts in the packages of aluminum foil may result in expenses which are greater than benefits derived because the package illustrates the uses and recipes for aluminum foil. The sales of household foil may be categorized in rolls, meters, and types of retail outlets. The figures concerning the number of rolls sold may be misleading since brands are marketed in varying sises. Therefore, a comparison between the sales of different brands does not enable an accurate evaluation to be made until statistics are converted to a common basis to enable comparison. To get an accurate picture of sales one mast change the number of rolls sold to the number of meters sold; this enables a comparison of the different brands. In 1966, the introduction of four new brands of aluminum foil caused a change in the sales volume and margin between Migros and the Alu ten and twenty meter rolls. The entrance of the new brands had little or no effect on Migros, a private labeler with its own retail outlets. Alu, however, lost a large portion of its market share. The retail outlet rather than the brand is the most important marketing factor. The short-term pricing strategy of Alu-Vertriebsstelle is to make a profit of 5 to 10 per cent of manufacturers' cost. Its longterm objective is to cover cost. Alu-Vertriebsstelle has a skim pricing policy. Their initial prices are considerably higher than those expected to be reached later. A penetration price policy that establishes prices near the bottom of the pricing range would be more effective. This would enable the aluminum foil to have the widest distribution and usage—an important goal for a convenience item like aluminum foil for which no particular product differentiation exists in the consumer's mind.
Bane, Ronald Lee, "An analysis of the marketing of household aluminum foil in Switzerland" (1968). Graduate Research Theses & Dissertations. 1142.
Northern Illinois University
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