Marketing Case Study: Becel Margarine
Becel Margarine: Reinvigorating Growth 1. Problem Statement/IdentificationWhat changes should Becel make to its marketing strategy to increase sales, market share, profits and maintain rapidly growing trend in the long run?
The current strategic objectives and goals of the margarine giant Becel are to: Deliver strong short and long-term growth
Sustain and consolidate current record market share
Deliver a brand that helps consumers meet their health heart needs However, in order to achieve its strategic aims the firm must consider the following overriding factors: Limited growth potential in a thoroughly competitive marketing environment.
Rapidly changing demographic landscape of Canadian consumer and households.
Tight and stringent federal and provincial government regulations stifling growth and innovation
Incompetent and grossly inefficient communications strategy failing to effectively target vital consumers.
The company’s pricing strategy is becoming incompetent as it’s product move through its life cycle. 2. Analysis of the Situation 2.1 Market Analysis
The Canadian consumer market consists of around 31 million people who purchase many billions of dollars of goods and services each year making it one of the most attractive consumer markets in the world. Lipton Foods, a division of Unilever Canada in 1978 decided to launch a healthy and credible alternative spread for consumers wishing to consume a margarine spread which looked after the needs of their heart.
2.2 Cultural and social factors
During the last decade Canadians have noticeably become more health conscious and aware of the consequences of poor dietary intake through the increased number of illnesses such as heart disease, cancers and strokes. A new demand for delicious, nutritious and healthy products has grown and consumers want to gain a healthy lifestyle by balancing calories with reduced saturated fat and trans-fatty acids in their diets.
2.3 Demographic trends
The current strategic objectives and goals of the margarine giant Becel are to: Deliver strong short and long-term growth
Sustain and consolidate current record market share
Deliver a brand that helps consumers meet their health heart needs However, in order to achieve its strategic aims the firm must consider the following overriding factors: Limited growth potential in a thoroughly competitive marketing environment.
Rapidly changing demographic landscape of Canadian consumer and households.
Tight and stringent federal and provincial government regulations stifling growth and innovation
Incompetent and grossly inefficient communications strategy failing to effectively target vital consumers.
The company’s pricing strategy is becoming incompetent as it’s product move through its life cycle. 2. Analysis of the Situation 2.1 Market Analysis
The Canadian consumer market consists of around 31 million people who purchase many billions of dollars of goods and services each year making it one of the most attractive consumer markets in the world. Lipton Foods, a division of Unilever Canada in 1978 decided to launch a healthy and credible alternative spread for consumers wishing to consume a margarine spread which looked after the needs of their heart.
2.2 Cultural and social factors
During the last decade Canadians have noticeably become more health conscious and aware of the consequences of poor dietary intake through the increased number of illnesses such as heart disease, cancers and strokes. A new demand for delicious, nutritious and healthy products has grown and consumers want to gain a healthy lifestyle by balancing calories with reduced saturated fat and trans-fatty acids in their diets.
2.3 Demographic trends