Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats.However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market.As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well.Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category.As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal.
-(Scenario 15-4) General Mills allowes its retailers to deduct 2$ from every box of cereal in the shipment it receives. This is an example of a(n) .

Question

Quizplus · Accepted Answer

An off-invoice allowance is a discount offered by the manufacturer to the retailer at the time of invoicing for a particular product. In this scenario, General Mills is offering a $2 discount on every box of cereal in the shipment received by the retailer. This is an example of an off-invoice allowance. Slotting fees are fees charged by retailers to manufacturers for shelf space, while merchandise allowances and bill-back allowances are both types of promotional allowances offered by manufacturers to retailers.

Scenario 15-4 General Mills, a Breakfast Cereal Brand, Faces Strong Competition in Competition