The factors include the amount of calories and taste. The brand name is secondary to the two. The company’s new brands have addressed consumer preferences in terms of taste and minimized calories. However, consumers never understood the changes in the new brands. The sustained market share is mainly due to the traditional brand image, as opposed to the new changes in the new brands. Most consumers perceive the new brands as absolutely new products. Consequently, besides meeting the customers preference needs, the company has to strategize to ensure customers are well informed about the new brands.
Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.
The two main strengths are Wide Geographic presence and Strong Brand Portfolio. For the wide geographic presence, the company markets these products in more than 200 countries and territories and manufactures thousands of food products in plants on six continents. The company operates through five segments which include operating 63 owned and 7 leased principal food processing factories, out of which 15 are owned and 4 are leased in North
The company constrained itself within the already available marketing budget that significantly cut down the cost that could have used to advertise the new company plans, that in turn increased the revenues. The company also succeeds due to the unique flavor that it offered in the yoghurt, which was organic and naturally made unlike the competitors who at time incorporated artificial flavors. Finally the company focused on the target consumer group that comprised of women and children. This helped the company to increase its sales that contributed to its success.
Although there is a high potential for A.1 to lose its market share to competitors, their product is distinct in its flavour, name and packaging. A.1’s market tests
Woolworths has capitalized on the idea of becoming ‘the fresh food people’. They have implemented various different ways to approach the customers by informing them of healthy food choices, as well as fresh food facts. They have created a website that informs them of how and where their produces are made. They create commercials of ‘Fresh Market Update’, which summarizes which fruits and vegetables are in season. Their magazines, the Fresh magazine and Australian Good Taste, are a monthly magazine that shows healthy recipes to recreate. This marketing push on their slogan reassures the customers that their choice in retailer to buy from is the healthiest choice.
Due to high levels of rivalry in the food industry there is always an incentive to be innovative and continuously improve. There is also always the chance that any differentiation could be copied by competitors. Therefore, innovation remains a huge part of CPK’s
The focused differentiation strategy largely depends on a buyer segment that seeks special product attributes (i.e. healthier food, lower comparative cost, quick service) and on the company's ability to stand apart from its rivals (Thompson et. al, 153). In its uniqueness, Zoës Kitchen has the ability to be different and had no national rivals emulating its format or menu.
Natureview Farm is a small yogurt manufacturer with annual revenues of $13 million. It produces three different size cups – 8 oz. cup, 32 oz. and 4 oz. cup multipack. However, Natureview’s goal is to increase its annual revenue to $20 million in two years. With a solid relationship with its current, successful strategy in the natural foods channel it is considering expanding into the supermarket channel. Conversely, it does not want to hurt the company brand it has created as a premium yogurt brand in the natural foods market and betray those loyal, natural foods customers who made their business what it is today.
In 2007 and 2008, Dannon, the #2 yogurt provider, was losing valuable market share to its top competitor Yoplait. Despite the growth opportunity in the domestic U.S. yogurt market, Dannon’s growth had surprisingly slowed. At the end of 2008 Yoplait was the U.S. yogurt market leader with 35.4% of the market dollar share while Dannon only held 28.9% of the market. Yoplait held a competitive advantage over Dannon
It has been held in the United Brands case that product differentiation acts as a barrier to entry. Product differentiation is the development or incorporation of properties such as pricing, style etc. that the intended buyers of a product perceive to be different from others and therefore desirable. In the instant case the product differentiation has been made by different annual fee for licence of patented product.
The central pit of this article was to briefly describe the process in which Greek yogurt is made and the leftover asset in which many industries discard, in this case the whey. Based on the information presented, this article is meant to tell its readers about the unwanted whey, which is drained from yogurt and leads us to think from a different perspective of Greek yogurt. I feel that the way industries display Greek yogurt in society shows how they lack common sense and understanding. Not only are industries wasting precious economic opportunities with whey, but also they are oblivious of the fact of how it can be used for a variety of uses that can fulfill many people’s needs with the nourishment that is contained in them. Without it being
“Even the lid is good for you.” Yoplait’s “save lids to save lives” is a very good and effective advertisement. It is so much, in fact, that it makes you want to buy the yogurt not only to eat it, but to help out in a good cause. The purpose of this article, which is to inform its readers about their product, was greatly accomplished. It gives the reader compassion for what this company is trying to do. The company of Yoplait holds great credibility because of their background. The message being sent out is very strong. The ad has great effectiveness making this a very successful magazine advertisement.
The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products.
In contemporary China, people not only focus on what’s delicious, but also the health benefits that the food product had to offer. Frozen yogurt is a hybrid food, offering both a delicious taste and health benefits. The usage of fresh fruit and lower calorie ingredients has thrust frozen yogurt into popularity amongst dessert lovers worldwide, while still capturing the health food sector of the market. High quality and healthy food defined the Yogen Fruz culture and allow the company to appeal to its target market.