Lucas Foods Case Analysis

LUCAS FOODS CASE ANALYSIS

Problem:

The Marketing Manager of Lucas Foods must decide on a marketing strategy for Gold Medal Crumpettes that will best capture the available market opportunities and support the company's mission, The product is in the beginning of the life cycle and is a success in Alberta. The problem is whether Lucas Foods should maintain the products existing geographic coverage, or should it expand?

Company Overview

Lucas Foods is a food manufacturing and wholesaling business with a broad product line.

They have recently entered the market with a new product called Gold Medal Crumpettes which is targeted toward the "Upscale Buyer"

Primary Customers:

Ð'* Five major national food wholesalers.

Secondary Customers:

Ð'* Smaller regional wholesalers and independent grocery stores

Environmental Analysis:

Competition:

Ð'* Direct competition from crumpets, scones, english muffins, tea biscuits, and substitute products (toast, doughnuts, muffins)

Ð'* Strong brand name recognition of competitors like Weston, McGavin Foods,

SB Thomas

Demographics

Ð'* Target market is the "Upscale buyer"

Ð'* Gold Medal Crumpettes is seen as a luxury item but is marketed to all

age groups

Economics

Ð'* Canadian Dollar is on the rise and can affect exports to the U.S.

Option B is the best alternative.

Option B is the best alternative because even though Lucas Foods has the production capacity, there is not enough market potential to allow it to achieve