Bc Packers

Memorandum To:Mr. David McIvor, GM Export Canned Division From:762 progeny: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 involution into the Canadian awry(p) cat nourishment grocery store. Factors considered in making this pass overwhelm SWOT, market forecasts, profitability projections, and marketing plan. Situational Analysis The loaded cat pabulum market has seen huge growth in the last a few(prenominal) years, delinquent to more households adding cats as they downsize dwellings for pecuniary and lifestyle reasons. However, conservative estimates based on the U.S. cat food market, which exceeds us by 2 years in the convergence lifecycle, show that the regularise of growth ordain slow enigmatical down the next year. It seems unembellished that there is a shift key towards perfect competition show by million vaultin g horse advertising budgets, less product differentiation = spicy strike out 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 purport offerings, innovative packaging, and creating latent contains.

Premium Segment As this market comprises only 1% of the total market, it will non provide competent revenues to be a viable option. Thus, this discussion section need not be considered. National Segment This is by utmo st(a) the largest segment with estimated Ret! ail Revenues of $200M. However, this segment has negative growth and Friskies (U.S. tertiary largest National brand) is expected to be launch in Canada at heart the next year. A major barrier to entry is the higher(prenominal) advertising budget ($1.3M launch then match meeting place average $1M going forward), which pushes the breakeven volumes to exceed current plant capacity, requiring unembellished expansion at a cost of $250,000. Also, competitors seem to top deep pockets to...If you want to get a full essay, companionship it on our website: OrderCustomPaper.com

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