Good Food Corporation

Good Food Corporation

I. Describe in yor own words the characteristics of the market served by the Good Food Corporation!

1. National market:

The Good Food Corporation is a specialty foods processor serving nationally with broad product line. They offer their products for sale through a network of food brokers who represent the company to retail stores. Ethnic food specialties including salad dressings, sauces for Italian pasta and condiments such as specialty pickles are in the focus of production.

2. Competitive market:

They spend 2% on advertising, out of their $300 million-yearly-revenue. Good Food Corporation ensures high quality products, but they are not the only one in this market, competition has become intense since other companies started to offer complete product lines, which compete with Good Foods’. According to brokers there is a strong pressure to increase and improve services, because retail buyers have been experiencing stockouts and are raising questions about them.

3. Two production plants:

California at Fresno and Illinois are the two production plants. The corporation buys ingredients from other food suppliers, in this way they can avoid peak seasonal characteristics encountered by food packers. Besides assuring consistent product quality, the company is able to keep low production costs as a result of large production quantities.

4. Warehousing:

When items are packed, they are transported to the market in mixed truckload volumes. Inventories are kept in about 20 public warehouses, which arrange transportation of customers’ orders when food brokers call on them. Their products are packaged and are not considered short-lived items.

5. Small orders on the market:

Orders usually small, between 5-6 cases per order, or 150-200 pounds at a time. The carriers of the delivery are selected individually by each public warehouse, but it is financed by the Good Food Corporation.

6. Varying quality of delivery service:

Since the shipments...