SAGE Business Cases
Capilano is the market leader in Australia’s honey processing sector. The company exports to 52 countries, accounting for over 90 per cent of all retail-packed honey exported from Australia, making Capilano one of the most widely distributed Australian food brands internationally. Capilano differentiates itself on quality — the unique and premium taste of Australian honey. However, it has faced many challenges on the road to market leadership. As the product is in the mature stage of its product life cycle, targeting new segments, developing new uses and new forms of packaging, is essential. In recent times, health-conscious consumers and watchdog groups have called attention to sugar’s negative health consequences, linking high levels of consumption to diabetes, obesity, heart disease and high blood pressure. Capilano has, to date, escaped the backlash against refined sugar and has managed to successfully differentiate its product from other sugar substitutes. However, it has to be careful that it does not contravene Federal or State advertising laws.
Case Learning Outcomes
This case is intended for use in undergraduate courses in marketing. It explores the development of a successful marketing mix strategy in the context of honey. It prompts discussion and learning about the management of a product that is in the mature stage of its product life cycle (PLC). Targeting new segments and developing new uses for the product is essential. The primary teaching objectives for this case are to:
• Describe the product life cycle concept; • Describe the marketing strategies that are appropriate in the mature stage of a product’s life cycle; • Describe the challenges faced by food companies in making health claims for their products.
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