torontoExecutive Summary The marketing challenge before Toppits Foods Ltd. is to create a comprehensive marketing strategy to accomplish several corporate objectives, in the coming year, which include increasing profits, maximizing their products’ listing productivity, and promoting awareness of their product while ensuring that customers are repeatedly purchasing the product. The company has before it a couple of important decisions to make for the future of its business. These include considering the possibility of switching product suppliers from Israel to China, begin selling to mass-merchandizing stores like Wal-Mart and the ability to select a new, or alter their current, target market of women aged 25-54. Toppits Foods Ltd. should implement the following recommendations that would assist them in achieving their corporate goals for next year: • Continue to pursue targeting women aged 25-54 and not students or young professionals aged 18-25. • Toppits should not sell to mass-merchandizing companies like Wal-Mart but rather should continue pursuing grocery stores and target more warehouse stores like Costco and Sam’s Club. • Toppits should not change suppliers from Israel to China. • Toppits should research and develop a diverse product base in cubes. After making operational adjustments to maximize returns on their new operations Toppits should implement the following key marketing strategies: • Toppits should increase their wholesale price by 20% to increase their unit contribution and increase profitability. • Toppits should create new recipes using the cubes and have them published in magazines like Chatelaine and Canadian Home and Living. • Displays to be attached to freezers should be created that will advertise competitive advantages to consumers of cubes versus competition. • Toppits should implement a 2-phase coupon strategy that will not only introduce consumers to products but will encourage the purchase of several different varieties of the cubes after they have become familiar with the product. This report describes in detail the analysis behind the above recommendations as well as their implications. Through this comprehensive assessment Toppits Foods Ltd. will be able to implement a new operational and marketing strategy that has the ability not only achieve but exceed corporate goals. Through this plan Toppits can expect a large rise in their units sold and profit. If they sell a benchmark of 1 million units then they will return a net profit of approximately $570,650. That is 85 times that of the previous year. Toppits has a strong advantage over all it’s competitors and if it maximizes on these then, it will, in the future, become a leader within the industry and make the frozen cubes division a larger profit centre among other divisions in Toppits Foods Ltd.
Marketing Challenge: The marketing challenge facing Toppits Foods Ltd. is to create a comprehensive marketing strategy that will allow the company to fulfil a number of corporate objectives for their garlic and herb cubes products. These objectives include increasing profits, maximizing their products’ listing productivity, and promoting awareness of their product while ensuring that customers are repeatedly purchasing the product. These goals can be achieved through minor operational adjustments as well as the marketing plan outlined below. Currently, Toppits operates through the distribution channels of both grocery stores and a small number of warehouses. It now has the option to consider expanding into mass merchandizing markets like Wal-Mart. Toppits also has the option to switch to a cheaper supplier in China as opposed to its current Israeli producer. This report outlines the key strengths of Toppits Foods and discusses a potential marketing strategy by which it can overcome the challenges it faces in achieving its new corporate objectives. Customer Analysis and Implications Toppits Foods has one main market segment which has purchased...
Please join StudyMode to read the full document