Toppits Foods Ltd.
INDUSTRY: Grocery
PRODUCT: Garlic & Herb Cubes
COMPANY/BRAND: Toppits Foods Ltd.
SOURCE: Richard Ivey School of Business Foundation
WRITTEN BY: Elizabeth M.A. Grasby, Robert de Vooght, Stephen Rene Frey
PUBLICATION DATE: May 06, 2008
PROD. #: 908A05-PDF-ENG
Reader’s comments would be much appreciated and replied to!!!
Analysis:
1. How does competition affect Toppit’s marketing plan?
SOLUTION:
Toppits has competition from 3 major areas:
A. Substitute traditional products
B. Indirect competition – Backyard herb gardens
C. Direct competition
a. Gourmet Garden
b. McCormick
c. Derlea Jars
Traditional products:
This product is not a direct competitor to Toppits since they have existed in
marketplace for many years and targets a completely different segment (that has time
to wash, chop, etc). This segment is not likely to buy or consume pre-packaged
convenience food like garlic and herb cubes. (Table 1)
Market share 40% to 50% (Assume 50%)
No. of prospects 18,750,000 i.e. 18.75 million
However, given the size of the market Toppits should try to poach some of these
customers through better in-store promotions where these products are sold
Indirect Competition:
These products are not sold but grown by consumers in their backyard herb gardens.
Therefore, these consumers are not part of target market.
Given below is a direct competitor review and analysis (Table 2):
Competition Strengths Weaknesses
Gourmet Garden International brand
Australia market knowledge
New company
Tube product
Shelf life is 3
months
Preservatives
used
Product contains
milk solids and dairy
derivatives (allergens)
McCormick Major multinational
Large product base
Good brand recognition
Large distribution network
Tube product
Lower quality
ingredients
Derlea Jars Garlic imported from China
so higher margin
Small business so low
overheads
Small family
owned business
Limited product
line
Small distribution
network
Raw material
dehydrated
Preservatives
used
Product not fresh
and natural
Product lost
flavor once jar is opened
Flavor different
from Toppits product
Toppits Foods Ltd. (Parentage Review):
1. Long industry experience (Started in 1899)
2. Good understanding of local market (Operating out of Toronto, Canada)
3. Large product base
4. Profitable (All division sales – $25million)
Toppits Garlic and Herb Cube product review (Table 3):
Feature Customer
segment
addressed
Prospects Competition affected
Ease of use Women and
students (See
table 4 & 5)
14 million + 4.48
million
Indirect
competition
Traditional
products
Derlea Jars
Convenienc
e
Pre-
proportioned
Students (See
Table 5)
4.8 million Derlea Jars
Freshness All 77% consumers
want high quality
produce (See
Derlea Jars
Table 6)
Shelf life – 2 yrs Students (See
Table 5)
4.8 million Gourmet Garden
Awards won All (If used in
Promotion
Strategy)
All segments All
All natural
Preservative
free
Nut-free
All 77% consumers
want high quality
produce (See
Table 6)
Gourmet Garden
McCormick
Derlea Jars
Kosher (does not
contain dairy
derivatives)
Jewish (See
table 5)
0.32 million Gourmet Garden
Large distribution
network
Students and
Jewish (See
Table 5)
4.8 million +
0.32 million
Derlea Jars
Inspite of having so many strengths Toppits is unable to capture market due to one
very apparent reason (Table 4)
Strategy Problem Suggestion
Specially designed freezer
display
Limited exposure in
stores
Store stocking and
placement MUST be
