Keith: OK, let’s get started, shall we? Now, I think you’ve both seen the agenda and we are all aware of the problems facing Goldleaf at the moment. (yes, yes) I’d like to begin the meeting by asking you both for suggestions you may have, and then I’d like us to discuss our possibilities and, if possible, decide on a course of action for this department. Jane, what are your thoughts? Jane: Well Keith, as I see it Goldleaf is at a turning point. We’ve lost 30% of our market share in three years and this is largely due to competition from the large supermarket chains. I’d like to propose two courses of action. Firstly, I feel that it’s time to deal directly with the big supermarkets and let them sell our tea under their own label. Bob: Now wait a minute Jane, I really don’t think…. Keith: Let Jane finish please, Bob. Jane: I know you’re keen to protect our brand image Bob. We all are. But we simply cannot reduce our product price enough to compete with the big supermarket chains. Keith: You said you had two suggestions, Jane? Jane: Yes, we could also use our brand image of a top-end luxury product and stretch the brand to other manufacturers. Keith: Could you be more specific, Jane? Jane: In other words, we charge a fee to other firms in related industries who have an interest in using the Goldleaf brand to promote and sell their products. We could approach kitchen appliance manufacturers, sugar refiners, biscuit and cake producers; basically anyone who could be connected to tea. Keith: Bob, what’s your view on that? Bob: Yes, stretching could work for us, but I think that selling our tea under another label is a big mistake. For one thing, we could never cover our manufacturing and transport costs. Keith: Jane? Jane: Actually we could. If we can negotiate a price of 93 pence a kilo, we’d still be making a 12% overall profit and we’d be saving on packaging the product which of course would be done by the supermarket. Keith: So Bob, which way would you go? Bob: I’m convinced we need to invest in advertising, Keith. Our agency has come up with a new campaign that could give us the sales boost we need. Keith: What kind of campaign? Bob: Mainly TV and radio. They’d like to talk to us about their ideas next week.