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Bc Packer

In: Business and Management

Submitted By catalyze
Words 1330
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To: Mr. Mclvor,

From: Echo - im89011

Subject: B.C. PACKERS CASE MEMO

Date: May 5, 2011

Case Background

Canadian cat food market showed arising opportunity in 1987. B.C. Packer, the famous market leader in both canned salmon and tuna provider was considering the possibility of entering the Canadian cat food market, in order to get more profit from its by-product instead of just cover its cost by selling commodity bulk of fish meal. Therefore, a study with detail analysis based on all the information collected, is necessary for indicating a direction for the management of the company.

Market Overview

Cat population in Canada in creased 4.6% during the period of 1983 to 1987. More and more people would like to feed a cat rather than a dog since cats require less space and care than most dogs.

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The changing consuming behavior of the cats owners lead Canadian cat food market to more clearly segmentation by classifying different brands in the past 2 years. See EXHIBIT 1 for the market allocation in 1989.

The gourmet class was just developed since 1987. The major customers, female age 35 and over, affluent, upper income, believe higher price means higher quality. This group was growing very fast in these two years, which resulted in booming of gourmet brands market at the beginning. The price class was also growing at 2 digital these years by taking share from National brand…...

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