Becel Margarine Case Analysis

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Becel Margarine Case Analysis I. Executive Summary Becel needs to adjust their promotional efforts to address both a heart healthy and great tasting product, while expanding their target market to the twenty-five and above demographic. Becel’s current customers are largely empty nester households where the customers tend to be affluent with high incomes and over sixty-five years of age. By adjusting their promotional efforts to address both a heart healthy and great tasting product, Becel will be able to meet the needs of the twenty-five and above demographic. Becel’s strengths include a strong reputation as a leader in heart health and nutrition education, being the premium priced margarine, and the highest consumer loyalty of any margarine category. Among some of the weaknesses of Becel are lack of a strong presence in Western Canada, not positioned as great tasting, and a low advertising awareness. Opportunities include the consideration of health and taste when selecting margarine, selling in bulk quantity to large family households, and increased awareness of health issues. Canola Harvest positioning their margarine as the healthiest and best tasting and offering it at a lower price, competitors gaining market share at a faster rate than Becel, and regulations on the margarine category are among the threats facing Becel. Three alternatives were developed to help solve Becel’s problem. “Run Canada, Run” portrays Becel as the margarine that is geared towards a heart-healthy lifestyle. “Body by Becel” conveys how Becel can help you lose weight and stay healthy. “Now We’re Cooking with Becel” demonstrates how Becel can be used in a variety of healthy, day-to-day recipes. Innovative Solutions’ educated recommendation is “Now We’re Cooking With Becel”. This will allow Becel to expand their target market, while promoting their product as heart healthy and great tasting. By implementing this recommendation, Becel will have the opportunity to create a competitive advantage and gain market share. II. Introduction Unilever was formed in 1930 when British soap maker Lever Brothers merged with the Dutch company Margarine Unie. This merger “allowed both companies to benefit from many raw materials and resources that they had in common” (Kerin and Robertson 600). Unilever Canada is a division of the international Unilever group, headed by two paren... ... middle of paper ... ... BUDGET “Now We’re Cooking With Becel.” Cos Cost of production $2000 X 2 Commercials $4,000.00 Commercial Placement Costs Food Network (11months, 14 spots/wk at $232.13 each) $142,992.08 CBC Quebec, (10 months, 10 spots/wk $200) $80,000.00 CBC Western (10 months, 10 spots/week $170 ) $68,000.00 Sponsorship of Cooking Thin television show (negotiable) $1,000,000.00 Total $1,294,992.08 Works Cited Canadian Broadcasting Corporation www.cbc.ca Chum Limited Media www.chumlimited.com Nielsen’s Canada http://64.233.161.104/search?q=cache:5qd-mM60xAUJ:www.digital-adventure.com/pdf/TVLNielsens_4thQtr_BCAdult.pdf+food+network+canada+rank&hl=en Weight Watchers Canada www.walmar.com Food Network Canada www.foodtv.ca The world Fact book http://www.cia.gov/cia/publications/factbook/geos/ca.html#Geo Information from these sources as well: http://www.hackcanada.com/canadian/other/adbusters.html http://www.dietfacts.com/html/items/17014.htm http://thesoydailyclub.com/Food/becel01072003.asp http://www.corporatewatch.org.uk/profiles/food_supermarkets/unilever/Unilever-profile.rtf

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