Arctic Gardens: Give them some vegetables

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Arctic Gardens (Bonduelle)

Situation analysis

Overall assessment

Sales have been slipping (-3.5%) in the category of frozen vegetables for the past three years. This is an undifferentiated category led by price sensitivity where 54% of sales are generated through discounts and where private brands dominate. In addition, the consumption of fresh vegetables is continuously growing. In 2013, 90% of the vegetables consumed in Canada were fresh, which represents a 3% increase over the previous year. [1] The frozen food section, in grocery stores, is less and less attractive to consumers and isn't visited as often. A total sale of all products was down 2% in 2013. [2]

In 2014, Arctic Gardens decided to modify its packaging to present its products as "recipe ideas" rather than simply frozen vegetables. An advertising campaign was then needed to enhance the perceived value of the brand and its products as compared to the other players in the category and help the brand escape the negative perception attributed to "frozen products."