Activia has trademarked the name for the bacteria

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Unformatted text preview: Astro Jeunesse $ 5.57 N/A N/A N/A $ 1.97 Source Yoplait N/A N/A N/A $ 6.77 $ 2.97 Fang, Mike. "Call to Walmart." Telephone interview. 27 Sept. 2010 The price of Activia is discussed in the FAQ section of the website, and it explains that the higher price is due to the development of the trademarked bacteria that it is contained within the product. Activia has trademarked the name for the bacteria within the product, and combined with the 14 day guarantee, the value of the product is perceived as a more effective tool to stay healthy than the competitors. At the time of printing, no promotions or bundles were offered. Place: The product is distributed all across North America and the retailers that carry the Activia brand include: • Wal-Mart • Loblaw’s • Metro • No Frills • Various other food retailers. In the store, it is located at the cold produce section where all dairy products are kept, where it has shelf space dominance because it is placed high on the shelves, and it is stocked more prominently than the competitors. It is also worth to mention that the bright green and yellow packaging also makes it stand out more than the other brands. There are no POP displays at the retailers. 8 | P a g e Product Analysis Summary: Based on the above findings, Activia Yogurt’s product status can be summarized the following way: Three strengths that the product possesses are: • The exclusivity (and trademark) of the BL Regularis bacterium has positioned the product as the best available for a consumer’s health, and it’s backed by a 14 Day Challenge/Guarantee. • It has shelf dominance at retailers and it’s more noticeable due to its packaging. • Having the largest budget of all, it can maintain dominance in advertising over its competitors. Three weaknesses that can be attributed to the product are: • It is, on average, priced higher than all other products, which might deter potential consumers. • Too much emphasis and information on the bacteria that it contains might be confusing to consumers who want a simple product explanation, and might even raise more questions from them (as shown by the type of FAQ’s on the website). • Highly competitive market, with a lot of brands. 9 | P a g e Market Analysis: Economic Trends: Since a consumer desire for health products has been developed by social trends, it is predicted that by 2015, the global yogurt market will have projected sales up to $67 billion12. Three companies including the producers of Activia, all together produce 83% of the yogurt market in Canada13. Between the year 2000 and 2005, yogurt sales have increased by 43%14. The chart above depicts the continuing increment of yogurt production in Canada from 2001 to 200515....
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