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Words: | Submitted: Mon Jun 19 2006
... capacity of their current target market to increase usage or consumption rates and the availability of new buyers? Current Situation Becel's main competitor in the spreads market is butter with just over 50% of the market in Canada. In both 1998 and 1999, Butter distributors spent at least $2 million more on advertising than Becel, but e ven with all the new corporations emerging Becel still had the highest consumer loyalty of any brand at 32% of the margarine market. Research has shown that a substantial portion of the volume of margarine purchases is by people with large families, particularly ones with four or five members, who tend to have a lower than average income. At the same time butter consumers tend to be families without children. Becel shows that from 1998 to 1999, they decreased their advertising spending by $1,400,000 but kept the promotional budget the same. From 1998 to 1999, advertising awareness ...
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