Hlg Nutrifusion Analysis

2076 words 9 pages

· increasing concern about healthy lifestyle
Larson’s Father has connections in the retailed food industry
Loblaws are willing to cooperate with HLG

· Plenty of indirect competitor
· Economy recession
· Need 2 years for CFIA inspection

· Long shelf life
· Patented product, and has exclusive right to resell in Canada
· High nutrition value 99.7%
· Strong relationship with Loblaws
· History of success in selling this product
· Tasteless as an ingredient, so it can increase the nutrition value without affecting the taste

The company should emphasize that nutrifusion contains natural ingredients that can increase the nutritional value
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Qualitative (Industry and company)
Brand image in canada: new product in new market. canadian not familiar with the product. porters 5 forces:

Decision Criteria
 Achieve target profit $50,000 in 2011 fiscal year end
 Increase product and brand exposure
 Obtain sufficient cash flow during year 2011
Possibility of future sales growth

Options Option 1: Cooperating with President’s Choice
Since President’s Choice already has a stable customer base for its products, cooperating with Loblaws could ensure HLG’s first year sales volumes will not lower than the breakeven point (5252 g), also HLG can take this advantage to introduce its product to public without paying more on advertising. In addition, adding the Nutrifusion powder to President’s Choice products will make them differentiate with other competitors, therefore, once the demand of these products increases, the sales of HLG will increase as well. However, adding the Nutrifusion powder to the products may increase their price because of the increase of the price, so the demand of these products may not as high as they predict. Therefore, the sales of HLG will be lower than they expected. Option 2: Expanding Product Lines
The proposed strategy is supply nutrition to only three products of Loblaw's president choice product line. These three products are bagels,