Increase Top Line Growth
Shifting resources to near-term sales promotion is starting to show results
Notes:
- To increase our revenue growth we are pursuing several initiatives. The first has been to shift some, but not all, of the marketing dollars that we had earmarked for longer-term brand building over to promotional spending. In practice this has meant we’ve delayed advertising campaigns for Woodbridge and Robert Mondavi and redirected those dollars to strengthen our display presence in the market.
- In the second half of fiscal ‘03 our marketing expenditures were essentially flat from the first half of the year, while our sales spending went up more than 15%. This is where the dollars need to go in this environment where you need to get your products “on the floor” and in front of the consumer.
- Recent ACN results have shown some improvement. Our volume growth as reflected in the 13-wks ending 8/30/03 has accelerated slightly compared to the trend over the last year, with
- RMW and Imports posting nice turnarounds from their respective 52-week trends
- RMPS and WB, however, are running below plan
- ACN Category: 13wk 52wk
- DM varietals +3.8% +2.1%
- Imports +12.8% +13.1%
- Total +6.1% +4.9%