Problem / Issue
A.1. Steak Sauce is a brand of Kraft Foods with little competition in the steak sauce market. The product currently has the majority dollar and volume market shares in the steak sauce market. However, unit and volume sales have remained flat. In February of 2003, A.1. becomes aware of new competition entering the steak sauce market. Lawry’s, which is owned by Unilever, has announced an April 1 launch of its own steak sauce. Lawry’s has approached Publix and requesting the Memorial Day ad with a two-for-$5 price. Publix is requesting that A.1. match Lawry’s pricing or A.1. will lose its place in the ad.
Alternatives and Analysis
A.1.. could mount a frontal attack on Lawry’s. This would require A.1.. to lower its
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o A.1. has never been seriously challenged by another brand. Currently, A.1. has no reason to believe that Lawry’s could become serious competition.
• Disadvantages o A.1. stands to lose part of its current market share due to the extreme price difference between its steak sauce ($0.50 / ounce regularly) and Lawry’s new steak sauce ($0.36 / ounce regularly). o Currently A.1. is guaranteed to receive chief ad placements during the important holiday weekends. If A.1. makes no changes, there is a high probability that A.1. will lose these placements as Publix is already considering Lawry’s for the Memorial Day ad.
Recommendation
I would recommend a combination of two of the alternatives above. First, I would recommend that A.1. strengthen its relationships with its suppliers and distributors. Although A.1. would incur additional expenses in the form of legal fees and sales representative time, the benefits it could gain would be extremely useful in competing against Lawry’s. A.1. would ensure a high quality product, adequate shelf space, and principal display space. These would reinforce A.1. as the preferred steak sauce and provide additional brand awareness. Second, I would recommend that A.1. alter its advertising program for the upcoming year. With Lawry focusing on May, June, and July with its advertising program, A.1. needs to match it to maintain its current brand awareness. A.1. has been the number one brand of steak sauce people
One possible scenario would be If the items that Wanda needed to make the dog food were raised she would also have to raise the prices of her product to cover the cost. If this happened Wanda would have to buy cheaper Ingrediants to make her dog food which would then create a lower quality product.Or
"We wanted to provide a place that the whole family could enjoy," says Taylor. "Texas Roadhouse is about a hearty, good meal with service that is friendly, energetic, and
As mentioned before, charcoal is well in the mature stage of the product cycle in which more advertising would be optimal. Charcoal should be Kingsford’s cash cow in which they can use the funds generated from them and invest it in research and development; so that they may introduce a new product preferably in the gas grilling market in the near future. As with a stagnant price increase, the same can be said of advertising from Kingsford. Their advertising budget has decreased throughout the years, while the gas grilling market has increased its’ advertising budget each year. MMA’s analysis of 1998 spending shown that TV advertising can drive volume increase of around 7% for the current year and even a 3% to 4% increase of volume purchased in the following year. This indicates the importance of advertising. One area which is lacking for the whole charcoal category since Kingsford is the only brand that advertises at all for charcoal. Perhaps advertisements can show how charcoal grilling is the correct and tasty way to grill instead of gas grilling. Kingsford can look to do blind tastings again and publish the findings. If they look to stretch the grilling season they should look beyond just NASCAR events, but perhaps also with NFL sporting events, as well as other events and activities in which grilling is popular. They could become a sponsor in which sports can endorse them
In this case study, we will be analyzing the current position of how well Kingsford is within the marketplace and determine which of the issues are plausible causes in its drop in revenue. We will be creating a comprehensive strategy as well as a marketing plan to evaluate and adjust the matter at hand. First we will begin with identifying the issues and implementing a method to reemphasize the importance of marketing in the business. The goal is to create a marketing plan that will add value to Kingsford’s market share, sales, and profitability.
Within Kayem Foods, Matt Monkiewicz the director of marketing is facing a critical decision that could have a big affect on sales and market share. Al Fresco chicken sausage is one of their products that has recently gained majority market share in its category. The budget for which is dedicated towards the marketing of Al Fresco has been doubled due to the growth of the brand. What Matt needs to do is decide whether to pay for another buzz marketing campaign or to use more traditional marketing strategies suggested. Matt believes the original buzz marketing campaign had a significant part in building the brand to the market leader but no definite evidence of this being true. He must review the costs of each strategy
In a review of the Taco Bell lawsuit, the information presented indicates that a lawsuit was filed against the company by a disgruntled customer in 2011, questioning the quantity of beef in their products. The claims of the lawsuit were that there was “more filler than beef” (Crandall, Parnell, & Spillan, 2013) in the company’s taco meat product. As a result, Taco Bell in January 2011 met with their crisis management team and devised a media campaign acknowledging the issuance of the lawsuit filed against the company. This campaign included print as well as social media ads acknowledging the issuance of the lawsuit against the company. In the Newsprint ads which were posted in national carriers, the company thanks, those responsible for filing
Another issue is that although A.1. Steak sauce has more brand equity than Lawry’s product one must consider pricing and promotional/discount rates. Specifically, if Lawry’s acquires the ad at Publix and they are selling bottles of steak sauce substantially cheaper than Kraft’s product with the way the economy is now, people will go with what’s fiscally more viable, as opposed to taste in some cases.
Is there a way to estimate the cost of services and product to customers such that Stuart’s Branded Foods can be competitive in their market? Use the illustrations of the two customers to demonstrate your approach. What would be the selling price per kit or per cup for each customer?
1. Change the signature When you think of Red Lobster, they wouldn't say lobster is their signature or they'd say cheddar biscuits. While everyone loves these carb filled delicious wonders, they're not going to draw diners to an affordable sit-down establishment. Instead, Red Lobster needs to find a new signature dish or two (think Chili's baby back ribs , Outback's Bloomin' Onion or Applebee's half-price late-night appetizers) these will draw people to the restaurant.
If Uptown Pizza decides to take legal action, they would first have to establish a plan on what the company is trying to achieve and how they will execute this lawsuit. Once a plan is established- in this case Uptown Pizza is trying to receive compensation or elimination of the unused space- a lawyer with adequate experience should be hired at an average cost of $250 per hour. Uptown Pizza and the landlord may try to settle the dispute out of court by using a few processes such as mediation, settlement conference and trial conference. Mediation is a neutral third party that may help both sides find a solution to the dispute. A settlement conference is when the two parties can sit with a provincial court judge and explore the ways they can settle
Bordeaux has inexpensive food for a steakhouse at approximately thirty-sixty dollars a person, especially since their food continues to be exceptional, it could go for a higher price. I ordered a medium rare ten-ounce prime chateau cut. I enjoyed it immensely, the steak was flavored the way I wished, and I wish I could enjoy another bite pronto. Bordeaux steakhouse is worthy of being a lionized Manhattan restaurant.
There is a high threat of new entrants entering the casual dining industry; therefore the company needs to address the issue by creating entry barriers through product and service differentiation and economies of scale. Considering substitute products fill the same need as Panera's products, the company needs to differentiate its products and services to create a want for Panera's product instead of a need. The bargaining power of suppliers may be a potential weakness for the company, because the company has contracts with all of its suppliers.
The rivalry in the competing seller market involves the number of competitors to increase and become more equal in size and capability. Let’s keep in mind that the pizzas industry is dominate by four companies: Pizza hut, Domino’s, Papa John's and Little Caesars. In 2012, the pizza market for Pizza Hut gained the most market share, capturing 14.68% of pizza sales (Barret, 2012). In 2013, Pizza hut earned 11.65% market value, while Domino's earned 7.60% and Papa John's 4.23% (he, Zha& LI, 2013). Little Caesars dropped 1,000 outlet and $600 million in sales. Papa John's added more than 500 Units and $700 million in sales over the last decade. Some of the rivalry are fast casual restaurants like Chipotle and Panera that decrease the pizza industry market over the last ten years (Barret, 2012). Another competitive rivalry are prices and menu changes. We know that Pizza Hut and Domino’s are the top two in the pizzas industry. However, there store sales has increase once they re-elevate there price menu. Pizza Hut offers pizzas for the low starting at $ 8.00 and $10.00 pizzas any sizes. But want Pizza Hut is doing is attracting more customers and
Strategy #2 seems to be too risky for a company who saw a major decrease in cash on hand from ’08 to ’09 (see Appendix B), and Strategy #1 will most likely dilute DF’s brand identity within the snack industry. Diamond’s stock price has been strong, but has not shown significant growth since the acquisition of Pop Secret in September 2008 (see Appendix C). Until this acquisition shows a better translation into shareholder value, Diamond must focus its efforts on its current products and organic growth.