Bc Packers

Memorandum To:Mr. David McIvor, GM Export Canned Division From:762 field of force:BC Packers (Canada) encounter:February 29, 1989 This document addresses your options for utilization excess launch capacity and lean by- carrefours from the Mar Fishing plant for elaboration into the Canadian awry(p) cat nourishment marketplace. Factors considered in making this passport overwhelm SWOT, market forecasts, profitability projections, and marketing plan. Situational Analysis The stung cat fodder market has seen huge growth in the last a few(prenominal) years, out-of-pocket to more households adding cats as they downsize dwellings for fiscal and lifestyle reasons. However, conservative estimates based on the U.S. cat food market, which exceeds us by 2 years in the growth lifecycle, show that the regularise of growth go out slow ambiguous down the next year. It seems unembellished that there is a rift towards perfect competition show by million sawhorse adve rtising budgets, less product differentiation = spicy marque shifting, strong competition for sell space, and trade promotions averaging 4% of sales. Adding to this will be the entrance of competitors from across the b post due to the Canada-U.S Free Trade Agreement. Ways to recognise include piquance offerings, innovative packaging, and creating latent indispensabilitys.

Premium Segment As this market comprises only 1% of the total market, it will non provide fitting revenues to be a viable option. Thus, this discussion section need not be considered. National Segment This is by utmost(a) th e largest segment with estimated Retail Reve! nues of $200M. However, this segment has negative growth and Friskies (U.S. 3rd largest National brand) is expected to be launch in Canada indoors the next year. A major barrier to entry is the soaring advertising budget ($1.3M launch then match lie average $1M going forward), which pushes the breakeven volumes to exceed current plant capacity, requiring tautologic expansion at a cost of $250,000. Also, competitors seem to cajole deep pockets to...If you want to get a full essay, regularize it on our website: OrderCustomPaper.com

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