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Marketing Case Study On Becel Margarine. This Essay Is An Excellent Example Of How To Set Up A Marketing Case Study.

2144 words - 9 pages

Problem IdentificationUnilever, is one of the world's largest consumer products companies. This company was formed in 1930 when the British soap-maker Lever Brothers merged with the Dutch company Margarine Unie. In 1978 Unilever, launched a premium priced product, positioned as the heart healthy margarine choice, called Becel Margarine.Throughout Becel's first five years running they were only able to achieve 8.1% share of the market, and had a limited growth at only 1-25 per year. In 1991 Becel came up with a strategy that made them the market leader within a relative short time frame. The strategy that the brand manager at Unilever came up with was the developing of a communication strategy that revolved around the notion of "living a life that is young at heart." This meant that Becel was a margarine that was good for you heart, and allowed seniors to live an active, fit, outgoing life while enjoying a heart healthy diet.By 1999 Becel had the leading market share but, unfortunately for Ross Hugessen, the brand manager at Unilever, other brands attracted by the success of Becel began producing products that focused on healthy living. Ross new that after New Years he was going to have to come up with a new strategy to follow up the old strategy implemented by his boss back in 1991. Other brands were growing fast and soon they were going to be stealing business from Becel.With the successful campaign that Hugessen's boss launched in 1991 Becel was able to raise market share from 17.7 in 1992, up to 31.9 in 1999. However the rate of growth had fallen below what was expected for 1999. The old strategy of targeting older, educated and affluent adults may not be what Becel needed in present day to keep raise or even keep their market share. Becel's main competitor was butter with just over 50% of the market in Canada. Dairy Bureau was a company that positioned themselves by saying its primary benefit was great tasting "naturalness" over "processed food". In order for Becel to grow Hugessen must come up with a strategy that will be able to take some of the butter users and turn them into Becel Margarine users. Aside from butter taking Becels market there is also many new corporations getting into the margarine business. Parmalat is margarine producer, which concentrates gaining market shares by saying, "the makers of great tasting butter now bring you great tasting margarine." Canola Harvest another margarine producer claimed that they had healthier better tasting margarine because it contains canola oil. Recently health professionals have been recommending the use of olive oil and Olivina is an olive oil using corporation who marketed their margarine by using a "Mediterranean diet" association. Even with all these new corporations emerging Becel still had the highest consumer loyalty of any brand at 50%. This proves that Becel's current "healthy heart" message had gotten through and that a substantial amount of people believed Becel is a healthy...

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