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Pei Preserves

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Submitted By bbaallday
Words 1717
Pages 7
Background:
Prince Edward Island Preserve Company Ltd (PEI Preserves) was established in 1985 and has made it their mission to produce high quality specialty foods using only the highest quality farm gate produce and ingredients. PEI Preserves began by only making specialty foods and have expanded to a wider range of services including restaurants, gift shops and gardens. The company founder and majority stakeholder, Bruce MacNaughton, needs a feasible product-market strategy to turn around his company which had gone into receivership in May 2007. Given the heavy time constraints and lowest net income to revenue ratio, Bruce has some major decisions to make. He must decide firstly whether to sell the restaurant to focus on the more profitable divisions of the company and secondly if he should continue to target the Japanese market for a long term focus as part of growth and set up more automatic production system to increase the capacity of his manufacturing plant. Due to the tight time constraints and importance of producing a feasible product-market strategy, Bruce must also consider hiring a sales/marketing manager to provide the company with focus on this direction.

Current Strategy
Prince Edward Island Preserve Co Ltd (PEI Preserves), is anticipating annual sales of one million dollars for the first time in its short history. Over the first four years of its existence it has expanded from one retail outlet at its manufacturing plant in New Glasgow to include a second retail outlet and two restaurants. It is anticipated that expansion will continue in the future.
Consideration is being given to a wide range of options for future growth. PEI Preserves retail outlets in Tokyo and Toronto are possibilities. Increased wholesaling and use of distributors is an alternative. Expansion of the mail-order business has also been proposed. As well hotel chains

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