(Instructions: Enter your answers in the appropriate rows. Do not exceed one page)
Name: Chris Henry
Student Number: 0767728
Case # & Name: 8 – Lucas Foods
Date Submitted: 29/10/11
The three most important key facts in this case /are:
1: Lucas Foods just entered the biscuit market; to date they have a 16% share of the Alberta market since they have introduced the gold metal crumpettes into the market.
2: If expanding the gold metal crumpettes to all of Canada and United States they would potentially make $126’500’000 in yearly sales according to exhibit 1.
3: Lucas Foods business mission is to reach annual sales level of $50 million and become a major national food manufacturer, wholesaler and exporter.
The Main Problem / Task to solve/do is:
Should Lucas Foods attempt to gain a greater share of the market by going national to meet there marketing mission, or keep with the market that they are already established in.
The three most promising alternatives are:
1: Keep the market they have already established.
2: Expand their market across Canada and slowly make way into United States once established in Canada.
3: Expand their market aggressively across North America and try to capture a large market share.
The three most important Evaluation Criteria are:
1: How profitable will the alternative be.
2: What possible risks will the company face as it enters into new markets.
3: Is the alternative actually possible within the company’s limitations.
My recommendation and its justification is the following:
My recommendation for Lucas Foods is to expand their market across Canada and once established make way into the United States. This alternative is feasible as they already have established their name in parts of Canada and have the capability to enter into other regions. This solution, if successful will get Lucas foods well on track to reach their…