Introduction to marketing case study Sunnyvale food INC Presented by: Ayesha Ahmad Khadija Mehmood Misha Noor Tehreem Zafar Zahida Pervaiz Umul Baneen introduction Sunny vale foods, Inc. and current food processing industry accordingly. For the history of sunny vale food, Inc. it is a 127years-old California based processor which has some influence of old parent company. It is one of the largest food processor in the U.S but is facing serious decline in its profit. Sunnyvale’s Food Company is facing severe decline in profits because of its strategies, policies and planning. Its first mistake is that it has full line forcing policy and it is growing horizontally which means that they insists dealers to carry all of its products it is offering but only big stores can afford it to but not the smaller ones. The other reason of its declining is that its competitors are growing vertically which means that they are producing their own production material and utilizing their own raw material and they have full control on its quality, input Sunnyvale Foods has a line-forcing policy, which requires that any store wanting to carry its brand name must be willing to carry most of the 65 items in the Harvest Farm Foods line. Smaller stores are generally not willing to accept the policy In the past 13 years, Sunnyvale Foods' closest competitors had an average profit return on shareholders' investment of 5 to 9 percent, while sunny vale Foods average only 1.5 percent. SWOT analysis Strength Sunnyvale Company has a line-forcing policy, which requires that any store wanting to carry its brand name must be willing to carry most of the 65 items in the Sunnyvale Foods Line That means the Sunnyvale company line expanded horizontally, and It’s easy for the Sunnyvale company make profit Weakness The consumers are time bounded and are not very selective. If they can’t find the brand of food they are looking for, they will pick up another brand rather than go to food store This is a reason that by only offering their products at large stores they are losing the market share which they could earn from the retail stores. Opportunity Sunnyvale Foods’ manager prefer the new-product development and promotion as the target in the next few years that way may became new opportunity to promote sale and make profit Threats The threat the Sunnyvale Company have to face with competitors can grow their own raw material and make all of their packing materials. Then they will get the advantage in the field of product and price. Threats The second threaten for the growth of the profit for Sunnyvale Food company. Company competes with the local food product the local food product will have a lower price. Recommendation the company need to expand market in retail store and make some adjustments to its line-forcing policy by providing various products for retail stores because though the policy resulted in 88%of the sales Company should grow raw materials and making all of their packing materials like its competitors did, cut the budgets on facilities and save money for promotions on products. Moreover, it is important to advertise more for its products The only advice to Tron Faulk is success lies behind the risks if you will not take risks you would not be able to face the true competition Tron Faulk should choose every type of market, store and customers to introduce its products and should not focus much on full line forcing policy. He should introduce new innovative products it doesn’t matter that it has low sales potential Thank you…!!!