CASE: INTERFOODS INC,VALLEY BUTTER

But according to the in home tests on valley butter

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Unformatted text preview: duced, would have to face a strong competition from the already market leader in Butter, Ahoy. Ahoy butter, which supposedly sells because of its taste, is also sold at pretty low prices in the market and to have a competitive advantage over Ahoy, Valley butter would have to be low priced. But, according to the in- home tests on Valley Butter, and in the pursuit to make it taste better than Ahoy, the cost of producing it is increased significantly and thus it doesn’t seem to be profitable enough to be introduced as a new product. Thus pricing would be a challenge for this product. Target Market and Consumer Oriented Approach: - From the current market situation, it seems that the butter industry is mainly based in just three cities of Bogota, Medellin and Cali. Also, for Valley butter, because of its high quality and high cost to produce, the company has chosen its target market to be just the 10%(the top economic class) of all people...
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