Cacade Foods- Marketing Analysis
This is the case of the Cascade Foods company and the analysis of the decision they were trying to come to about introducing a new product using new technology. Before beginning to get into the meat of the case, it should be noted that since the data and all relevant information was presented during the middle 1980's, this analysis shall continue on in that vane and assume that it is still 1984, the period in which the problem was being presented. This case will be broken down into two main parts: 1.) The SWOT analysis and 2.) the financial analysis.The main problem and concern of this case are whether or not Cascade Foods should, given the current conditions, go ahead and launch a new fruit drink line into the market using a relatively new packaging technique. One of the main deciding factors of a company and/or its products are their strengths. One of the main emphases in this case was put upon the quality of the fruit drinks they will be distributing. It is felt that this product is of a higher standard than most of the others on the market, and in fact, the company as very popular public opinion of their drink. When doing a taste test, it was found that 65% of the people preferre
So, it is definitely obvious that sales have increased to a higher level in that 4 year period, but when it is broken down to the percentage increase for each year, we start to see a much different picture, one that is perhaps not as rosy as the previous data might have led one to believe. So, moving on to the specifics for Cascade Foods, they have decided for the introductory phase to go with three flavours: apple, grape, and mixed, and will carry each of them in two sizes of the Brik Paks: 1litre and a 250ml. It was predicted that when they entered the market, they would have a market share between 8.5% and 11.5%, giving an average market share of 10%. Calculating the total average growth for the entire market between 1979 and 1983, the figure of 15.75% increase is found, but considering that in 1983, sales increased by only 7%, a conservative figure of 9% for sales increase will be used. So, in 1983 the sales for the market were 3,040,000 cases, and if we add our 9% increase, than in 1984 our predicted sales for the total market would be 3,313,600. The predicted market share for Cascade was an average of 10%, so that would give them predicted sales of 331,360 for the first year.
Some common words found in the essay are:
Cascade Foods, Brik Pak, Regular Price, Brik Paks, Year Sales, Threats Competitors, Premium Pricing, Sales Force, SWOT Strengths, Sales Type, cascade foods, contribution margin, fruit drinks, fruit drink, regular price, table graph, low price/, price/ normal, premium price, market share, cascade foods break, 4 month trial, specifics cascade foods, fruit drink market, fixed costs advertising,
Approximate Word count = 2110
Approximate Pages = 8 (250 words per page double spaced)
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