GU COMPANY

GU Company

GU Company

Introduction

GU has announced a UK re-launch of the brand so as to enhance its appeal among consumers. Who have not yet tried its products and make the brand more relevant to everyday eating occasions. The re-launch by GU highlights that even lucrative brands cannot rely on past success to sustain subsequent momentum, and instead must continue to evolve in order to stay "on-trend." The premium dessert maker GU has announced plans to re-launch the brand in the UK, which it claims will enhance its appeal among both new and loyal consumers, and in doing so increase its share of the ready made premium desserts market. The re-branding effort is in response to 2010 research, carried out by Pretty Little Head on behalf of GU, which suggests that consumers are shopping for desserts that align with a number of different eating occasions including group entertaining, sharing with someone, and an indulgent treat for one.

To capitalize on this consumer trend and make the brand more suited to everyday dessert occasions, GU has simplified its brand proposition by consolidating its two dessert brands, GU Chocolate Puds and Fruity Puds, under the single umbrella brand of GU Puds. To further encourage occasional purchasing, GU has also introduced a new product packaging, which displays a series of self-indulgent character illustrations and product descriptions that are associated with different eating occasions.

The simultaneous launch of GU Singles, a new range of four "anytime" mousses that are presented in single-serve pots and have a plastic spoon inside, will also enable GU to tap into the extensive trend towards on-the-go consumption and thereby widen its consumer penetration.

Although the recession-proof nature of the premium desserts market and consumers' enduring desire for affordable luxuries have enabled GU to maintain strong sales in recent years, the brand continues to recognize the need for relentless product innovation. Indeed, GU's 2011 revamp shows that due to the fluidity of contemporary consumer needs, even today's most famous brands cannot afford to rest on their laurels if they are to retain a competitive market positioning.

Porter's Five Forces

The threat of substitute products and services

Providing products at a cheaper cost are the main factor for the GU Company as they rely on cost leadership. They provide products at a lower price than their competitors, to make their customer loyal to the company and satisfy them with quality products. They major threat for the company is that if another company launches same Athletes Products to the market they might face a tremendous competition. There is a chance to lose their customers. GU Company have to control on their price and quality as if the other company also started providing products on low rates, GU Company might face an enormous loss (Michael, 2008, p.86-104).

The threat of the entry of new competitors (barriers to entry)

As GU Company, is the famous company and have a lot of market share in US as well as in UK other new entrants would start copying their products and start ...