PORTUGAL REPORT

Joao, Pablo, Billy

This report is about the subsidiary of Fred-Winter-Homes in Portugal.
As the head-office advices, we should cut some amount of our advertising budget. Analysing the market, we know that Fred-Winter-Homes market declined at least 30% in sales.
Our subsidiary has a budget of one million Euros per year to spend in advertising.

The main objective is to reduce the similar percentage of our profits decreased in the last year, its mean that we have to reduce our advertising budget in 30 %.

Figured out of statistics results, our budget’s percentage spent in newspapers haven’t been effective. We had spent 30% of our budget but we only have the 15% buyers heard in this kind of media.

In conclusion, we strongly recommend reducing our total advertising budget 30% off, Newspaper and Magazines by 15% each one. This decision could be the most effective to cut our budget without any reduction in our annual sales. We suggest that the company can reduce in 3m advertising budget in Germany.