Bc Packers

Memorandum To:Mr. David McIvor, GM Export Canned Division From:762 vitrine:BC Packers (Canada) encounter:February 29, 1989 This document addresses your options for utilization excess deeds capacity and lean by- carrefours from the Mar Fishing plant for refinement into the Canadian awry(p) cat nourishment food market. Factors considered in making this passport overwhelm SWOT, market forecasts, profitability projections, and marketing plan. Situational Analysis The lactating cat provender market has seen huge growth in the last a few(prenominal) years, payable 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 product lifecycle, show that the regularise of growth testament slow fertile down the next year. It seems unembellished that there is a translation towards perfect competition show by million clam advert ising budgets, less product differentiation = spicy marker 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 looking at offerings, innovative packaging, and creating latent deficiencys.

Premium Segment As this market comprises only 1% of the total market, it will non provide equal revenues to be a viable option. Thus, this discussion section need not be considered. National Segment This is by far the largest segme nt with estimated Retail Revenues of $200M. ! However, this segment has negative growth and Friskies (U.S. ordinal largest National brand) is expected to be launch in Canada within the next year. A major barrier to entry is the mettlesome advertising budget ($1.3M launch then match fabrication average $1M going forward), which pushes the breakeven volumes to exceed current plant capacity, requiring redundant expansion at a cost of $250,000. Also, competitors seem to passel deep pockets to...If you want to get a full essay, dictate it on our website: OrderCustomPaper.com

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