In this case, that Neal Middleton is trying to decide why Golden Valley Foods, inc., isn’t as profitable as it once was. I would suggest to Neil Middleton to do a big change in the company’s policy, and do market segmentation. Golden Valley Foods has a line-forcing policy, requiring any store that wants to carry its brand name to carry most of 65 items in the Golden Valley Foods line. This policy, resulted in a decreasing in its sales. Unfortunately, smaller stores are not generally to accept the Golden Valley Foods policy. Then most of their sales come from major supermarket chain store such as Safeway, Kroger, and A$P. According to the last president of the company said “The influence of our old parent company is still with us.
As long as new products look like they will increase the company’s sales volume, they are introduced. traditionally, there has been little, if any, attention paid to margins. we are well aware that profits will come through good products produced in large volume.” I think that, by reducing the large amount of items in the policy Golden Valley Foods could increase its sales; marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then, in turn, expanding the demand. Goods and services do not move automatically from the makers to the users. A marketing segment is a meaningful buyer group having similar wants. Market segmentation is the process of grouping buyers into different categories having common desires or needs. Thus, segmentation is a consumer oriented marketing strategy.; that could increase the sales as well.