Strategic Product Marketing
Project: COMACO was facing severe competition in the market place and sales of its products were being negatively impacted. The problem was most defined in peanut butter sales where they had lost 50% of their market share in the prior three months to cheaper competitors with lower quality products, but the issue was seen across their other two leading products as well. Their rice product suffered under competition from cheaper imported Asian rice, and the organization was still trying to develop a market for corn soya blend. COMACO wanted to develop a costing model, more efficient production processes, and an effective marketing strategy for all three products to become more competitive. The organization’s costing system was extremely rudimentary and did not allow for easy manipulation of data and sensitivity analysis. The SGE Immersion team examined the competitive pressures on COMACO products and created more sophisticated costing models that would allow the organization to easily determine profits at a given sales price and volume of sales. The team conducted market research to determine what pricing model would be most appropriate without compromising customer perceptions of COMACO’s products.