Case Analysis: Oscar Mayer: Strategic Marketing Planning

The Intensity of Rivalry among Competitors in an Industry (High): Equally balanced competitors exist within the industry such as BCF and KMD; these firms also face competition from retailers and wholesalers. The growth of the industry is relatively agile in both financial and technological aspects. The intensity or rivalry is further accentuated by relatively high storage and fixed rental costs, extensive product differentiation and minimal switching costs.

With up to date analysis of competitors marketing strategy and tactics Kudler can keep its own marketing strategy and tactics prepared to do whatever is necessary to market better quality and win the satisfaction of consumers over its competitors. Whether it is producing a larger selection of wines, expanding its bakery products, finding new ways to make its meats and seafood tastier than its competitors, or even lowering prices, Kudler can lower its prices to gain market advantage only if it has up to date information about competitor’s prices. Same with its products, Kudler can only differentiate its products if it knows sufficient information about competitor’s products (Business Marketing Plan.net, 2011).

Based on this analysis, there is more to loose if the Oscar Mayer brand is allowed to wilt over the Louis Rich Brand. Giving up on Oscar Mayer would mean loosing it’s well established, well recognized OM brand name and its equity. May be even future profitability may be lost if the trend towards white meat is only a temporary one. This can be seen in McTiernan’s Report on consumer satisfaction survey,

The first individual to conceptualize the idea of strategic decision making by upper management and senior officials was Igor Ansoff in the 1960’s. Although Ansoff did not invent the idea of strategy, he did bring the idea of using strategic decision making for large corporations to succeed. In his book, Corporate Strategy, Ansoff identified 4 major decision types every organization must make. Decisions on strategy, policy, standard operating procedures, and programs were the 4 decisions Ansoff believed every organization needed to make (Strategic management, 2005).

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

Lawry’s, A.1.’s largest competitor, currently has 50 percent of the market share. Competition in the market is a considerable concern as competitive lines introduced in previous years, specifically 2000 by Clorox (KC Masterpiece) and Kraft (A.1), have not gained the shares desired. Lawry’s continues to lead in the marinades category. Marinades are not limited to use on red meat. Therefore, the marinade market has little potential of decline.

The authors stated that, “Kraft Foods was the second largest food company in the world and the largest food company in the United States,” (Kerin & Peterson, 2010). A.1. Steak Sauce is a condiment “power house” in the Kraft portfolio that made incomparable profits for the company. Lawry’s, one of Kraft’s long-lasting competitors, endeavors to get a jump on the Holiday weekend (Memorial Day) at Publix to attain the ad and market their new product. Once notified, Kraft must lucidly make calculated decisions (SWOT analysis) as to how they will counteract Lawry’s new launch so they don’t

Upon reviewing the five forces model for Al Fresco, it is noted that competition is pretty high in the industry. Total category sales for the chicken sausage segment were about $75 million per year. The market is growing at about 12 percent a year. This is a growing market, with a few large brands, and rivalry is high. Al Fresco possesses a small 5.3 percent of the market in the New England area. Because the chicken sausage category is small, it is difficult to obtain many specifics about competition. Buyer power is moderate to high, due to the fact of low switching cost and ease of access to the product. Buyers can be brand loyal, which is a benefit to some companies in the industry. Tying in with the high buyer power is a high

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

The current mentality puts launch success of the new Italian sausage and sustainability in the marketplace in jeopardy. Saxonville’s core portfolio items of Bratwurst and Breakfast Sausage are risking diminished market share if management does not recognize and support a marketing based position.

Economic conditions can have a major influence on any company across the globe in today’s world. Panera Bread can be affected by economic conditions in different types of its segments. Panera has many signature soups, pastas, and other food products that are released during the year for certain periods of time for the season. These products can be very rewarding to the company by the seasonal times such as Christmas, when people have a little extra money to spend they go to Panera for their special soup craving. Before the economic downturn of 2008-2009, Panera made three marketing initiatives to try to raise awareness and bring home the idea of “food you crave, food you can trust.” The economic environment of the downturn in 2009 made these 3 marketing initiatives partially successful due to the bad economic environment. The environment was really had on Panera considering they area a commodity for people. The

For any business, changes to the marketplace will have an adverse impact on the products that they are selling to customers. This will affect the approach they are using and the way they are reaching out to cliental. In the case of Show Pet Foods, the firm has an established tradition of serving a unique market of dog lovers. However, the company is not as widely known with consumers and there are an increasing number of competitors. This has placed pressure on their profit margins and position inside the marketplace. ("First in Show Pet Foods," n.d.)

·The shifts in buyer demographics can alter the competition by forcing adjustments in the customer service, or bringing different sales and promotion approaches into play.

The number of Australian food producers are fading quickly, as the number of competition from overseas companies increases (Lynch, 2014). Dick Smith Foods, established in 2000, markets a range of food products that are exclusively made in Australia, by Australian owned companies (Dick Smith Foods, 2014). Dick Smith Foods was created as a means to provide an alternative to the ever increasing foreign owned grocery items. To date, all profits of Dick Smith Foods are donated to charities.

Competitive Rivalry within an Industry Very high – Kraft Foods has to face a lot of competition