Cacade Foods Marketing Analys Essay

3129 words - 13 pages

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.Problem Statement 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.SWOT Strengths 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 preferred Cascade's drink over that of its competitors. And since it is the public that ultimately decides the fact of products, this is a strong nod towards Cascade. This goes along well with their distribution, which is very well established and services many supermarkets in the Midwest. Financially, they have made a good decision in that they will be out sourcing the production of their drinks, but yet still maintain very high and strict standards for these manufacturers, therefore reducing the chances that while one manufacturer may do an excellent job in making the drinks, another may decide to cut corners and produce an inferior drink. Cascade has also come to the conclusion that they will be letting others package their drinks using the fairly new Brik Pak aseptic packaging, which is cheaper to produce and fill than glass bottles and aluminum cans. This packaging also brings along many good points with it, including: improved taste, shorter and better sterilization techniques that help preserve the flavours, and since they are square, they stack better therefore making a better display material for the centre aisles of stores. And since this packaging is fairly new in America, it will have some novelty appeal to those who want to try new things. And it is also shown that aseptic packaging has a longer shelf life, therefore reducing the need for frequent expiry date checks and sales before a product does expire. On a non consumer end, it will also help the supermarket conserve energy, lowering their costs for refrigeration for storage and shipment. This small boxes also take up to 2/3 less space on a shelf. This company is also willing to give a product a chance, giving it 2-3 years to break even.Weaknesses With every strength, their...

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