Grand Foods Ltd - Case Study Example

? Case study: Grand foods, Ltd Grand foods, Ltd Executive summary The Grand Foods Limited is experiencing poor performance with someof the company’s products in the Quebec market. Despite this, the stack holders aren’t that much concerned about this. Marie Lemans brings this issue to the limelight during the monthly stack holders meeting. Of all the possible reasons suggested that it is behind this, the marketing approach to the Quebec market pops up as the dominant and perhaps the main cause of the company’s product poor performance in the market. The product managers now bear the greatest responsibility of coming up with the best solution that could look into the matter. The discussion sparked some other issues that may be behind the poor performance. These issues include; the pricing structure, sales promotion, cooperative advertising and food distribution in market. Jessica Walters, the marketing manager isn’t against the solutions raised but is concerned with the possible effects that this would have on the company’s policies and its structure. Background Grand Foods Limited is a Canadian company and has its international headquarters in Minneapolis, in Toronto. The company has its subsidiary branches all over Canada and also in the U.S. Quebec and Ontario are the main largest markets of the company, where it accounts for 69 percent of the $350 million sales in Canada. The worldwide sales of the company in 1991 were more than $2 billion. Jessica Walters is the marketing manager of the company and has been in the position for four years. His efforts towards the success of the company are tremendous and this has seen an overall improvement in the company’s sales. Products from the Grand Foods Ltd are enjoyed by the people in the entire Canada and Quebec province. These products include cake mixes, pie fillings, puddings, and frozen dinners among others. To do away with monotony of the food preference, the company has introduced six new products into the market in the last six years. These products were gladly received by the consumers. Problem statement In the previous month, the company saw poor performances in some of its products. The main region hit by this problem is the Quebec province, which is largely dominated by the French. This means that the consumers did not buy the products and the reason behind this is subject to thorough investigation and coming up with necessary recommendations. According to Marie Lemans, a product manager, the problem was with the marketing of the products. Quebec, as stated before is largely dominated by the French speaking people. Leman suggested that this region should then be treated differently from the rest of the Canada population. This then would be done by coming up with an appropriate marketing plan for the French-speaking people. The company’s products would therefore be advertised in the French language in the Quebec region and in English in the rest of Canada. Jessica Walters needed to have a closer look and a bit of analysis on the implications of the matter before implementing it (Canada Business Network, 2012). Food distribution across the Quebec province is another problem discussed by the managers. They argued that most of the bigger supermarkets and big stores had low market shares. The only advantage that the company has on food distribution in Quebec province is that the products are stored on best selling stores. The managers raised concerns on including the big supermarkets in selling these items since they have more customers. This, they said will help raise the sales. The company has also done less in boosting attraction of customers in the discount policies and pricing structure of the products. The prices need to be reviewed and at least introduce some discounts. This issue has made the customers to shun away and hence the drop in the amount of sales. Jessica Walter is the major player here since he is the manager. The issues raised might look simple and easy to implement but the effects that it will have on the entire customers. Analysis Lemans’ issue about marketing approach in the Quebec province needs more considerations on it. Clear solutions that will help salvage this problem should therefore be developed. In order for the products to reach the consumers easily, these products should be advertised more to the people. More education on the quality of the foods produced in the company should be done (Board of Trade of Metropolitan Montreal, 2012). Advertising educates the consumers on the products sold and the possible changes that may be made on the products. Different forms of advertisement should be used in reaching the consumers. In Quebec, the consumers aren’t receiving enough information about the products. They will not bother consuming these goods since they do not understand their importance. Marie Lemans argues that since the Quebec population is majorly occupied by the French nationals, products should be advertised in French in order for them to understand. However, it is more important to consider the effects that this might have on the top managerial staff and the entire Canada population that speak in English. For proper working of the company and for it to ensure rise in sales, then the customers need to be appreciated. There are various forms of customer appreciation. It includes selling the products at discounted prices and also checking on the prices of the commodities (Canada Business Network, 2012). The Grand Foods Limited has never done any of this. The prices of the products have remained the same all over the period. Alternatives Marie Lemans suggested that advertisement should be made differently in that one in French language and another advertisement in English language. This will raise speculations on the nature of the advertisement and the level of discrimination on the people of the entire Canada population. The company should instead make one advertisement that will be in both languages. The company also has only focused on one form of advertisement, verbal advertisement yet there are many more forms of advertisement. They should therefore consider venturing into other forms of advertising their products. Example, they should create posters and t-shirts that have brands of the company and its products. These should then be distributed all over the country and majorly the province of Quebec that has poor performance in its sales (Canada Business Network, 2012). Rebranding the products name is also an idea that should be considered. Some of the company’s products have been in the market for quite a long time, retaining its original name. Changing the name and perhaps the physical appearance of the products will make customers associate more with the product (Board of Trade of Metropolitan Montreal, 2012). The sense of change will bring an increase in the sales. Generally, the company should not draw all of its attentions on only one region, the Quebec province. The product managers should bear in mind that other regions in the entire country are consumers of its products. Lastly, the company should venture on the external market. The company has only considered the regions of Canada. Setting up markets in the neighboring countries will help increase the overall sales of the company. Recommendation Having considered all the issues that came up, these are some of the recommendations to the company: 1. The external market; the company needs to set up external markets in other countries outside of Canada. This will expand the company and thus increase in the overall sales. If the market is diversified, then the products will reach many people. 2. Employing other forms of advertisement; we have seen how the stack holders of the company get a head ache in trying to work out on the correct and right form of advertising its products. Instead of focusing on only verbal communication, they should consider other possible forms of advertising (Board of Trade of Metropolitan Montreal, 2012). 3. Reviewing the prices of products; the company should check regularly on the prices of its products and regulate them. Commodities should not have a fixed price or constant price for quite a longer time (Canada Business Network, 2012). When the prices are reviewed, more customers shall be attracted since they will realize that they are spending less money on quality foodstuffs. 4. Motivation of the workers; the workers, especially from the regions that experience poor performances needs to be motivated, not to give up. They should be encouraged that their efforts in the company are felt and are useful. This will make them to continue working hard despite the poor performances in their work. Implementation plan An effective implementation plan of all the raised issues should be as follows 1. Creating other forms of advertisement. This should be the first plan to be implemented where the company should come up with physical posters. This will also include clothing’s that bear the names of the foodstuffs, the name of the company and the official logo of the company. The posters shall then be distributed in cities and organizations. Clothing’s shall be distributed to the workers 2. The next plan will be regulation of the prices. Here, the company should reduce the prices of most products. This will attract more people to buy these products. 3. Promotion of the products is the next plan to be implemented. The company needs to come up with various promotions and offers of its products. 4. Conduct a general meeting with the customers and make it an annual event; the company needs to organize a general meeting where the consumers are given a chance to raise some of the issues that affects them and needs to be addressed. This will enable the company to know of the exact problems that the immediate consumers experience and change them. References: Board of Trade of Metropolitan Montreal (2012). Advertising-The Basics. Retrieved 17/11/2012, from http://www.infoentrepreneurs.org/en/guides/advertising-----the-basics/ Canada Business Network (2012). Guide to Market Research and Analysis. Retrieved 17/11/2012, from http://www.canadabusiness.ca/eng/page/2691. Read More