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Marketing - Sunshine Foods, Inc - Case Study Example

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Secondly, multiproduct-line policy requiring high operating costs portrays unhealthy business. Thirdly, decline in sales is also…
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Marketing - Sunshine Foods, Inc
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Institute 30 January Marketing - Sunshine Foods, Inc For Sunshine Foods Inc, the most evident problem is the decreasingtrend of overall profits, including low profits on shareholders’ returns. Secondly, multiproduct-line policy requiring high operating costs portrays unhealthy business. Thirdly, decline in sales is also evident. Next, unplanned growth of the organization causing limited product offerings to the customers. In addition to these, Sunshine Foods’ uncompetitive pricing policy challenges its sustainability in the market. In addition to these problems Sunshine Foods Inc also faces lack of co-ordination between manufacturing and sales teams; is unprepared to sustain its position in lieu of increased external competition.
The main cause identifiable with these problems is inappropriate business strategy that is not aligned with the changing market demands. Market demands include customer preferences and competitors’ offerings. Sunshine Foods Inc lacks focus on consumer requirements in terms of choice of quality, quantity and variety. Thirdly, its business strategy stalled at products with high potential sales volume resulted in limited sales potential by confining to bigger shops and excluding smaller retailers. This created limited market for the wide variety of Sunshine Foods’ products because the smaller retailers could not conform to the high volume sales policy, unaffordable in terms of cost and space. Next, lack of ownership is also a major contributor of low profits attributable to lack of focus on reducing operational costs. Lack of focus on employee retention and motivation caused the downfall of Sunshine Food Inc. Lack of co-ordination between production and sales department added more problems. Lack of diversified expertise in the staff is one of the major problems in Sunshine Food Inc as most of its staff was from its parent company.
Recommendations to improve the situation include strategic changes in different aspects of business; this should include change in corporate strategy, marketing and sales methods, research, and human relations. Firstly, the corporate strategy has to be aligned to the organizational goal of improving profits. Next, developing a research team to check profitable and non profitable products on a periodic basis will help the company assess customer requirements, market performance and efficiency of the strategies followed. This research can be used to formulate sales and marketing strategies accordingly. Sunshine Foods needs to expand its offerings to all kind of stores including smaller stores through competitive business offers. Quality control mechanisms such as Total Quality Management and Lean methodology can help in attaining vertical growth of business by improving their quality, reducing costs, and improving operational efficiency. Building and improving relationship with suppliers, appointing quality-certified suppliers, defining quality standards and appropriate measurement of quality and efficiency also help in maintaining quality in large volume production. From a human relations’ perspective, diversified sales teams have to be developed; decent incentive schemes, healthy performance measurement system, greater employee engagement, learning and development opportunities can help in retaining their best talent besides promising good business. Overall, objectives and measures of sales, marketing, operations, and human resources have to be aligned to the corporate and business strategy in order to achieve desired results. Read More
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