Becel Margarine Case Study
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 Bezel 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 Bezel 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 Bezel could be possibly losing revenue. Ere second alternative is for Bezel 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 excel was to cut the price they could gain more of a competitive advantage over other margarine companies. Bezel has always advertised themselves as the “best regain for heart health”.
New competitors are now using similar positioning at a price point below the premium price level of Bezel.
The strengths to this alternative are you could gain a competitive price advantage over other health margarine. The Insaneness are you are losing possible money by decreasing the value of the product, and you are losing the prestige. This may result in the higher income buyers Changing to a more premium status brand. This gives you an opportunity to sell more margarine. The only threat is that other brands could also decrease their price in attempt to compete with Bezel.
Bezel is also most commonly used in high-income households, whereas other margarine are most prominent in lower income households.
By decreasing Bezel margarine price more low-income houses would ¶ay it, and therefore the target audience would increase. Secondary Problem- Increase of competitors in their target market. Secondary Alternatives- Immediate Problem- Margarine has tight food regulations which limit innovation. Immediate Alternatives- 1 . Use regulatory approved ingredients that have proven health benefits to expand cell’s product line.
Ere margarine category has many tight food regulations.
For example, margarine in Quebec has to be white- not butter colored – and no dairy ingredients could be added. This limits the potential for Bezel and other margarine brands to have innovation. Certain ingredients like omegas and olive oil are approved to be used in the making of margarine. Bezel could these ingredients to create new margarine, unlike those of any other company.
These margarine could offer the same benefits, but the ingredients are cheaper so it could be sold at a better price. Health professions are also starting to favor recommending olive oil over margarine.
With this alternative you could also create Joint advertising with Bezel margarine, and excel oils. Bezel stated any advertising budget would have to support the margarine as well as the newly launched line of cooking oil and exposable dressing. By creating an olive oil margarine Bezel would also be advertising and supporting the Bezel oils. excel needs to adjust their promotional Otto arts to address boot a heart healthy and great tasting product, while expanding their target market to the twenty-five and above demographic.
Bezel’s current customers are largely empty nester households
Inhere the customers tend to be affluent with high incomes and over sixty-five years of age. By adjusting their promotional efforts to address both a heart healthy and great tasting product, Bezel will be able to meet the needs of the twenty-five and above demographic. Bezel’s strengths include a strong reputation as a leader in heart health and nutrition education, being the premium priced margarine, and the highest consumer loyalty of any margarine category. Among some of the weaknesses of Bezel are lack of a strong presence in Western Canada, not positioned as great tasting, and a low advertising awareness.