Case Write-Up for Sunshine Foods Marketing

Case Write-up cheer Foods Problem cheer Foods biggest problem is their declining profits. They in any case have had negligible growth and have high bang comprises, which argon a sizeable tell apart of their declining profits. Ca uptakes Sunshine Foods has three major areas that motif to be address in come in to emergence their profits. First, their motto As pertinacious as new products look ex change overable they go out increase the c altogetherer-ups sales volume, they are introduced. This is causing the comp whatever to take on too many a(prenominal) products that dont increase their revenues. It spreads them to refined and makes them too generic.Second, adding to a greater extent than products to use the impudent areas of production. They sine qua non to do a damage analytic thinking to see if using that idle production time has any cost/revenue benefit. Just because it is unused doesnt mean that it will generate much money if it is used. Third, their con tract states a grocer inevitably to carry at least 65 Sunshine Food items. This forces only queen-sized grocers to carry their items, which limits their market area. By alteration their market area to only large grocers they are unable to have expenditure control and they are always competing against all of the other brands that the store carries.Sunshines lack of growth is primarily caused by their lack of specialization. If they spate and freeze all(prenominal)thing and anything therefore a consumer doesnt see them as being the shell in any product. Their lack of expansion into little stores is also holding back their growth. High viewgraph costs are constructd by Sunshines need to use every second of factory time. This is causing them to go on too overmuch to seduce a product that returns very little. If their factories have that much unused time they should just make full a hardly a(prenominal) factories and focus on what is really important.Recommendations I wou ld recommend that they premier(prenominal) do a cost analysis on the products that they are producing. This will support them to see which products sell the most and create the highest return. Once they know this information they need to produce more of those items and stop producing the items that arent helping their bottom line. Along with this, they will be able to identify which factories are the most efficient at producing those items. They can then close the s decline factories and use the money to make the remaining factories more efficient.I would then have them change their contract to a much smaller number of items for stores to carry. If they lower their number to 25 items then they could sell items in more boutique shops that will have lower competition and higher prices. To really increase their profits they should pick a few specialty items and market themselves as having the best in those items. This will help them create more of a brand name, specially if they sel l those items in the boutique shops.