1. 2. 3. 4. There is no global standard in place for natural foods and functional foods, which makes it difficult for consumers to make informed purchasing decisions. Capilano has to be careful that it does not make false or exaggerated claims to project a healthy image for its honey than is warranted by actual practice. In the food industry, health claims are commonplace, but they are often broad, poorly defined and unsubstantiated by easily accessible, supporting information or by reliable third-party certification. The issue for Capilano is how does it differentiate honey from refined sugar? What are consumers' perceptions of honey? How can it market the health properties of honey without contravening the Trade Practices Act? Summary Capilano has successfully stimulated sales by increasing the brand's users and by increasing usage rate per user. This case study shows how targeting new market segments, developing new products and new forms of packaging, can deliver results. However, new challenges remain on the horizon. The backlash against sugar may have ramifications for Capilano. Honey promises health benefits, yet is it simply marketing hype and sophistication? Is Capilano building a "natural" brand or just selling a substitute for sugar? How does it make credible promotional claims without contravening the Trade Practices Act?

Discussion Questions Identify the characteristics of the mature stage of the PLC. What marketing strategies are appropriate for the mature stage of the PLC? Analyse Capilano's website and promotional literature. What health claims are made and are these claims supported by scientific evidence? Is the company guilty of "green-washing"? Develop marketing recommendations for Capilano.