Becel Margarine Case Study
Becel Margarine Case Study
Primary Problem- The Becel brand growth rate is decreasing.
Primary Alternatives-
1. Becel could change their target marketing audience to include a broader market share (I think we should do this one)
2. Becel could decrease their price of margarine
3. I NEED A THIRD ALTERNATIVE
Primary Evaluation-
Under the first alternative, Becel could change their marketing strategy. Becel households consist of people who are usually empty nesters and 65+, whereas other margarine companies have a family audience. Becel could target families and young mothers in their advertisements. Mothers are usually the ones who are shopping for the family, and are usually the ones who decide what products to buy. If you were to target mothers you would in turn be supplying for entire families. The strengths for this alternative are you would expand your target market and create a larger consumer base. A weakness is Becel could possibly be losing their senior audience.
It however gives you an opportunity to sell more margarine and target a greater audience. A threat is that Becel was doing well when they were marketing older audiences. Mothers may not be interested and the ad campaigns may not be successful. By changing their target audience Becel could be possibly losing revenue.
The second alternative is for Becel to decrease the price of their margarine. Margarine has always been considered a cheaper alternative to butter. In customer surveys, the price was the biggest reason people buy margarine over butter. A pound of margarine is almost a dollar cheaper than the price of general butter already. If Becel was to cut the price they could gain more of a competitive advantage over other margarine companies. Becel has always advertised themselves as the “best margarine for heart health”. New competitors are now using similar positioning at a price point below the premium price level of Becel. The strengths to this alternative are you could gain a
Primary Problem- The Becel brand growth rate is decreasing.
Primary Alternatives-
1. Becel could change their target marketing audience to include a broader market share (I think we should do this one)
2. Becel could decrease their price of margarine
3. I NEED A THIRD ALTERNATIVE
Primary Evaluation-
Under the first alternative, Becel could change their marketing strategy. Becel households consist of people who are usually empty nesters and 65+, whereas other margarine companies have a family audience. Becel could target families and young mothers in their advertisements. Mothers are usually the ones who are shopping for the family, and are usually the ones who decide what products to buy. If you were to target mothers you would in turn be supplying for entire families. The strengths for this alternative are you would expand your target market and create a larger consumer base. A weakness is Becel could possibly be losing their senior audience.
It however gives you an opportunity to sell more margarine and target a greater audience. A threat is that Becel was doing well when they were marketing older audiences. Mothers may not be interested and the ad campaigns may not be successful. By changing their target audience Becel could be possibly losing revenue.
The second alternative is for Becel to decrease the price of their margarine. Margarine has always been considered a cheaper alternative to butter. In customer surveys, the price was the biggest reason people buy margarine over butter. A pound of margarine is almost a dollar cheaper than the price of general butter already. If Becel was to cut the price they could gain more of a competitive advantage over other margarine companies. Becel has always advertised themselves as the “best margarine for heart health”. New competitors are now using similar positioning at a price point below the premium price level of Becel. The strengths to this alternative are you could gain a