Case Write-Up for Sunshine Foods Marketing

Case Write-up cheer Foods Problem Sunshine Foods biggest problem is their declining profits. They also surrender had minimal growth and have high operating expense costs, which are a large part of their declining profits. Causes Sunshine Foods has three major areas that need to be address in order to increase their profits. First, their motto As long as new products look like they will increase the companys sales volume, they are introduced. This is causing the company to take on too many products that dont increase their revenues. It spreads them to thin and makes them too generic.Second, adding more than(prenominal) products to use the unused areas of production. They need to do a cost compend to see if using that unused production time has any cost/revenue benefit. Just because it is unused doesnt mean that it will generate more money if it is used. Third, their contract states a grocer needs to carry at least 65 Sunshine Food items. This forces only large grocers to carry their items, which limits their market area. By limiting their market area to only large grocers they are unable to have price control and they are always competing against all of the other brands that the broth carries.Sunshines lack of growth is primarily caused by their lack of specialization. If they stern and freeze everything and anything then a consumer doesnt see them as cosmos the best in any product. Their lack of expansion into smaller stores is also holding back their growth. High overhead costs are created by Sunshines need to use every second of factory time. This is causing them to spend too overmuch to create a product that returns very little. If their factories have that much unused time they should just close a few factories and focus on what is really important.Recommendations I would recommend that they first do a cost analysis on the products that they are producing. This will allow them to see which products sell the most and create the highest return. Onc e they know this information they need to stimulate more of those items and stop producing the items that arent helping their bottom line. Along with this, they will be able to identify which factories are the most efficient at producing those items. They can then close the slower factories and use the money to make the remaining factories more efficient.I would then have them change their contract to a much smaller number of items for stores to carry. If they lower their number to 25 items then they could sell items in more boutique shops that will have lower competition and higher(prenominal) prices. To really increase their profits they should pick a few specialty items and market themselves as having the best in those items. This will help them create more of a brand name, especially if they sell those items in the boutique shops.