Giant Consumer Products Incorporated
When considering the ever-changing and highly competitive globalized landscape of today's food industry, firms must stay at the cutting edge of their respective fields in order to sustain profitability in the long-term. Accordingly, companies are faced with the continuous task of finding new ways to understand and subsequently accommodate the shifting needs of customers and shareholders, while simultaneously securing lucrative business models and job environments. The Giant Consumer Products Corporation (in particular its frozen food division, which is also its driving operational force) is facing a multitude of barriers on the road to the sustainment of profitability. While trying to contend with growing levels competition and the emergence of countless convenient organic alternatives, this firm must find a way to reach these emerging market segments and compete profitably with young progressive market entrants. For, despite this organization's historic dominance in the frozen food sector, countless new trends are emerging which are encouraging the consumption of healthier, fresher and more locally sourced produce. Several of these movements have attracted the attention of governments, which have granted subsidies to those choosing to patronize healthy food sources like farmer's markets and farmers choosing to cultivate organic produce . What is more, this movement is also being supported by several highly recognizable celebrity chefs, like Jamie Oliver, who are offering several new and convenient alternatives to frozen meals . Therefore, with the genuine emergence of this movement in the food industry and the increasing amount of negative press being directed at more traditional food companies (that is, those who do not produce chiefly organic products), it certainly seems like Giant Consumer Products Inc. needs to reevaluate its strategic approach and diversify its product lines.
The Giant Consumer Products Corporation has maintained a solid market share (more than 40%) in the frozen food industry for several years and has been a Wall Street favorite through its maintenance of an above-industry average growth rate for an equally significant period . However, as the recession began to strike the globe in 2008, the company began to realize a substantial diminishment in sales numbers and marketing margins . While many companies were in the same boat, the organization simply attributed this to the tight financial times. Nevertheless, as the firm took some protective actions and waited out the worst of the fiscal storm, they began to realize that their frozen food numbers were not rebounding at the same pace as some of their other departments and non-food industry counterparts. This was certainly alarming and the firm began to discuss new options, especially in the field of marketing. While executives at Giant Consumer Products Inc. were concerned about the cheapening of the brand through extensive promotional expenditures, the profitability shortfall that the organization was facing caused them to open the door to further marketing channels . Noting the significant differences in each of Giant Consumer Products Inc.'s frozen food product lines, the decision of which line to promote became absolutely critical. The two frontrunners were undoubtedly Dinardo's, a line of Italian meals, and Natural Meals, more sophisticated, expensive and healthy fare . The Dinardo's products were already available in a variety of sizes and represented the greatest share of Giant Consumer Products Inc.'s traditional frozen food department . Natural Meals, on the other hand, were only available in one size and were created to accommodate the needs of a niche market . Nevertheless, while focusing almost exclusively on growth numbers throughout this relatively rough patch, the company ultimately decided to initiate a nationwide promotion for Natural Meals, as this brand exhibited much greater growth statistics.
Without question, this was the right decision for the Giant Consumer Products Corporation. The emergence of organic produce as a genuine alternative was close, and consumers were growing evermore cognizant of the quality of their food . Therefore, it seems clear that the promotion of their healthier alternative was certainly in line with the changing times. Nevertheless, knowing the momentum that the organic foods movement has gained since the time of the initial recession and being that this certainly seems more like a true revolution as opposed to a passing fad, Giant Consumer Products Inc.'s decision does seem a bit sectarian and segregative . Surely this strategic move was a means of resuscitating stunted growth projections and climbing out of a difficult financial hole. However, noting the lasting nature of the aforementioned revolution, it would behoove the Giant Consumer Products Corporation to take a more comprehensive approach to this healthy shift. In other words, it would...
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