Good Food LTD went through several periods in their business: - Period 0 they raised prices assuming high price = high quality but lost market share. - Period 1 they lowered prices and cut costs/advertising to recover. - Period 2 they increased marketing for their better performing product (Candy) and became more efficient, stabilizing the business. - Later periods saw improvements to Candy and Cake, focusing online sales, which led to growth and higher profits.

1. Good Food LTD
Markops Presentation
By
Lyle, Sam, Iona and Dani

2. Objectives
 To target products at relevant and profitable segments
 To create a new product to target missing segments
 To become cost efficient with experience
 To maximise profits by segmentation and positioning

3. Period 0 – Young and Stupid
What we did
- Raised the price of Cake and Candy to increase
profit margins
- ‘High Price = High Quality’ theory
- Increased our advertising budget massively

4. Period 1 – FREE FALLING!
What happened?
• Lost market share
• We were priced out of all our target markets
What we did
• Lowered price of both products
• Created a cost-effective formula for Candy
• Cut our advertising spending

5. Period 2 - Assume the Recovery Position!
What happened?
• Our money stopped plummeting
What we did
• Increased management time and advertising
for Candy
• Reduced marketing in unused areas
• Utilised channel management
• Utilised positioning

6. Period 3 – Nothing is changing!
What happened
• We were now stable but not growing
• Cake production costs reduced
What we did
• Invested in improving Candy formula
• Candy price further reduced
• Took Cake off E-Markets
• Distributed Candy online

7. Period 4 – I can see clearly now
What happened
• Cost decrease due to experience
• Cake improved quality
• Candy performing well in E-boutiques
• Profits remained stable
What we did
• Increased management for online accounts
• Removed Candy from E-grocers
• Increased Cake price due to improved quality

8. Period 5 – I think they got it!
What we did
• We put Cake online in E-Grocers
• Increased promotion for Candy online
• Offered margins to online sellers
• Production level to full capacity
• Reduced Cake price
What happened
• Candy performed well on E-boutique
• No huge profits but small growths
• Maintained regular profits to use
• Cake lost considerable market share due to increased price

9. Period 6 – Super Recovery
What happened
• We made huge improvements in sales, revenue, ROI and profits
• We earned a bigger budget
• We had an exceptional cost due to improved product
• We increased market share online
What we did
Invested further into E-markets
Increased advertising
Increased capacity

10. Evaluation
• We didn’t get to develop our new product to target
the mid income families which was a big segment
• We worked well as a team

11. Competition Analysis
• Savor and Tasty flew ahead
• Whippet stumbled in launching a new product
• We managed to overtake Whippet near the end

12. Questions?