The Deluxe Foods Ltd. case study explores marketing segmentation issues involved with a Canadian subsidiary and its marketing manager, Jessica Walters, of a large U.S. based consumer packaged-food company. The U.S. based parent corporation is seeking to move towards a global strategy for the entire firm, while Jessica has been supporting a Canada-wide plan and is faced with a request from one of her product managers, Marie LeMans, to re-evaluate the marketing approach to the Quebec market. This request stems from a lag over the past two years in the Quebec market, which had closely followed national increasing growth trends. The world-wide sales for Deluxe Foods were $2.3 billion (2003) with Canadian sales being $450 million of which Quebec and Ontario combined to represent 69%. This equals to $310.5 million or 13.5% of the world-wide sales and makes the Quebec market an important segment for the company. The company has been successfully introducing six new products each year for the last five years. It enjoys brand preference throughout Canada, including Quebec, and its products are known for high quality. Jessica Walters has been the marketing manager for the Canadian subsidiary, Deluxe Foods, for the past four years and sales have increased every year under her.
Deluxe Foods Ltd.’s present strategy:
Deluxe Foods Ltd.’s present strategy is a Canada-wide strategic plan coinciding with the international parent corporation’s movement towards a global strategy. Top management has the objective of “achieving standardization whenever possible –one global strategy for Canada, on the way to one worldwide global strategy” (Tamila, p21). This represents a combined target market approach in its strategy formulation. “Combiners try to increase the size of their target markets by combining two or more segments” (Perreault, McCarthy, Meridith, & Ricker, 2008, p.65). This is done in order to create a strengthened brand that conveys a uniform message to a...
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