Sunnyvale Foods is a 127-year old food processor in California that is facing a serious decline in profits. It has a line-forcing policy that requires stores carrying its brand to also carry most of its 65 products, but smaller stores cannot afford this. Its competitors have grown vertically by controlling their own raw materials and production, while Sunnyvale grew horizontally. Recommendations include expanding to retail stores, adjusting the line-forcing policy, growing own raw materials, and increasing promotions.

1. Introduction to marketing
case study
Sunnyvale food INC
Presented by:
Ayesha Ahmad
Khadija Mehmood
Misha Noor
Tehreem Zafar
Zahida Pervaiz
Umul Baneen

2.  Sunny vale foods, Inc. and current food processing
industry accordingly. For the history of sunny vale
food, Inc. it is a 127years-old California based
processor which has some influence of old parent
company. It is one of the largest food processor in the
U.S but is facing serious decline in its profit.
introduction

3. Sunnyvale’s Food Company is facing severe decline in
profits because of its strategies, policies and planning.
 Its first mistake is that it has full line forcing policy
and it is growing horizontally which means that they
insists dealers to carry all of its products it is offering
but only big stores can afford it to but not the smaller
ones.

4. The other reason of its declining is that its
competitors are growing vertically which means that
they are producing their own production material and
utilizing their own raw material and they have full
control on its quality, input

5.  Sunnyvale Foods has a line-forcing policy, which
requires that any store wanting to carry its brand
name must be willing to carry most of the 65 items in
the Harvest Farm Foods line. Smaller stores are
generally not willing to accept the policy

6. In the past 13 years, Sunnyvale Foods' closest
competitors had an average profit return on
shareholders' investment of 5 to 9 percent, while
sunny vale Foods average only 1.5 percent.

7. Strength
 Sunnyvale Company has a line-forcing policy, which
requires that any store wanting to carry its brand
name must be willing to carry most of the 65 items in
the Sunnyvale Foods Line That means the Sunnyvale
company line expanded horizontally, and It’s easy for
the Sunnyvale company make profit
SWOT analysis

8. Weakness
The consumers are time bounded and are not very
selective. If they can’t find the brand of food they are
looking for, they will pick up another brand rather
than go to food store This is a reason that by only
offering their products at large stores they are losing
the market share which they could earn from the
retail stores.

9. Opportunity
Sunnyvale Foods’ manager prefer the new-product
development and promotion as the target in the next
few years that way may became new opportunity to
promote sale and make profit

10. Threats
 The threat the Sunnyvale Company have to face with
competitors can grow their own raw material and
make all of their packing materials. Then they will get
the advantage in the field of product and price.

11. Threats
The second threaten for the growth of the profit for
Sunnyvale Food company. Company competes with
the local food product the local food product will
have a lower price.

12.  the company need to expand market in retail store
and make some adjustments to its line-forcing policy
by providing various products for retail stores
because though the policy resulted in 88%of the sales
 Company should grow raw materials and making all
of their packing materials like its competitors did, cut
the budgets on facilities and save money for
promotions on products. Moreover, it is important to
advertise more for its products
Recommendation

13. The only advice to Tron Faulk is success lies behind
the risks if you will not take risks you would not be
able to face the true competition Tron Faulk should
choose every type of market, store and customers to
introduce its products and should not focus much on
full line forcing policy. He should introduce new
innovative products it doesn’t matter that it has low
sales potential

14. Thank you…!!!