The problem of Sunshine Foods The most important thing of Sunshine Foods is its profits declined significantly. The overhead costs are so high and there is almost no growth. The reasons There are three reasons of this situation. First, the company operates too many products, most of them are not contribute to increase the profits. They run these products without any marketing analysis. Second, Sunshine Foods always want to add the new products which are never test in real market area before.
The manager believed that multipurpose-line can increase revenues. Third, Sunshine Foods has a nine-forcing policy. The company requires any stores must be willing to carry most of 65 items of Sunshine Foods, otherwise the stores are not accepted to carry Sunshine Foods brand. This policy has result in most of the smaller stores can not accept the Sunshine Foods policy. Proposals First, specialize their products. The main reason of their lack of profits is their lack of specialization.
They need to do some marketing research to observe which product is the most profitable. Then, they can simulate Naked pattern. Naked is a very famous company, which produces only 100% Juice. Their Juice is the most expensive and popular Juice in most of supermarkets in United States. The most noteworthy thing is that they show there are how many fruits and which fruits are inside of the bottles in every back of the bottles.
You can obviously know you drink how many fruits every time you drink Naked Juice. That is the most important thing to build the company’s reputation. Furthermore, hire a new manager to change the culture of the company. The company must realize the concept of multipurpose-line policy is not correct in any time. Moreover, they need get rid of the line-forcing policy. They need recognize that the small stores can also build their equity of brand.