To: Mr. Vave Joint
From:
Subject: B.C. Packers
Date: September 04th, 2005
Identify issues
The main issue in this case is whether or not B.C. Packers should enter into the canned cat food market. If the analysis shows that B.C. Packers should go ahead with this proposition then it must also be determined which segment of the market that they should target.
Analysis
Market analysis must be performed on the individual markets before any financial analysis can be performed. This is in order to provide adequate information to estimate the various market shares. The first segment to analyze is the Gourmet brand. The Gourmet segment holds the smallest share of the market in grocery stores but it has a significant share of the market in specialty stores. It is seen as having high quality as a result of its higher price and its consumers tend to have higher incomes (see case). The Gourmet market even though it is not the largest has good potential as a result of it higher margins. The National brand segment has the largest share of the market across all retail types, is price sensitive but does have some brand loyalty, and it also has the most competition (see case). Although the most competitive the National market holds a great deal of potential as a result of its overall market share. The Price brand segment does not have a significant share of the market, it is highly price sensitive and has little brand loyalty, it is comprised mainly of no-name and store brands (see case). As a result of it being made up mainly of store brands store owners may be reluctant to introduce a product that will compete against there’s making it hard to gain market share. Finally the Premium segment, it is only sold through specialty stores (see case). ...