Advice GMF whether they should implement the campaign strategy.?

Question

GMF Fats Co. Ltd. Who have been operating in the Kenyan Market for one year, established that they have enjoyed 30 percent of the cooking oil market by the end of 2005. Their closest rival, Modern Fats Ltd. (MF) enjoyed 20 percent share of the market. By the end of 2005, the total consumer pool was 2 million households and the pool was expected to increase linearly at the rate of 400,000 per annum up to the end of 2010 after which the pool is projected to be fairly stable. Each household in the consumer pool is estimated to spend an average of Kshs. 400 per year on the cooking oil.

GMF Fats Co. Ltd. Intends to implement a promotion campaign strategy at the beginning of 2007 at s cost of Kshs. 5 million. The campaign is expected to increase consumer shift to GMF from MF and other competitors by 10 and 5 percent from the current 30 and 25 percent and reduce the shift from GMF to MF and the other competitors by 5 and 6 percent from the current 25 and 14 percent per year respectively.

Advice GMF whether they should implement the campaign strategy.

Answer 1

By implementing the campaign the movement MF to GMF is going to be 40 and 30 percent and the movement from GMF to MF is going to be only 25 and and 8%. Which works out to positive movement towards GMF of 15 and 22 percent.
If it is not implemented the positve movement works out to only 5 and 18 percent.
Since implementation of campaign strategy gives a better positive movement of customers towards GMF they have better way of maintaining and enhancing market share. So go ahead implement.
I believe the second percentage number is the lower limit and ther first one the upper bound.