Goodman Fielder’s Wonder White is facing problems due to low market shares. This is because of the higher competition in the food process market. This decreases the capability of Asia and other markets which are developing. The market shares show the percentage of the industry which means the total sales which Wonder White is earning in a specific time. The market share of Goodman Fielder’s Wonder White is 29.60 per cent (Romaniuk 2018). This metric provides an idea of the overall size of Wonder White in terms of its competitors.Market share is very important for Wonder White since it is linked with its profit potential. The more the market share the more Wonder White can gain profit.
In other words, it can be said that if Wonder White is developing efficiently and increases its market share then it is keeping the competitors away from taking business from them.There are many reasons for a market share to move up or down. Some of the reasons are interest rate, economy, investors, demand and supply, political climate, short and long term investors etc. Each of these reasons can cause a serious issue. To build a market share is an expensive and risky task for Wonder White which can ignite reactiveactivities by the competitors. For companies like Wonder White having a low share, it is difficult to build the shares due to restrictions of market impact or resources.
If the market share of Wonder White will rise, its business will increase a greater profit margin. Also, it will decrease the purchase-to-sales ratio and marketing prices as a proportion of sales. It is also required to examine the strategic implications of the market-share. There are mainly three strategies which can be used by Wonder White to recover market share. These include product modifications, promotional modifications and pricing modifications(Collar 2008). All of these strategies have their benefits as well as risks. It is important to understand that market share matters the most to Wonder White since it pushes system effects which eventually runs competition out of the marketplace.
It will also form the opportunity for monopoly rentals. Profits are on low priority than the market share since profit is the only thing that can drive novelty. Market share of Wonder White is the significant metric which marketers can utilise to review the efficiency of advertising campaigns. It also assists Wonder White to do comparative measurement against external standards. It helps to know about the progress of business related to competitors.
Innovation: The innovation which can be done in Goodman Fielder’s Wonder White Bread is to produce OAT bread.
Problem Statement: Due to high competition in the food process market, there are limited shares of Goodman Fielder’s Wonder White Company.
Collar, C. 2008.Novel high-fibre and whole grain breads.In Technology of functional cereal products (pp. 184-214).Woodhead Publishing.
Romaniuk, J., Dawes, J. and Nenycz-Thiel, M. 2018.Modeling brand market share change in emerging markets. International Marketing Review.
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