Oscar Mayer Case Study

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Oscar Mayer Foods Corp. is the maker of one of the most venerable and successful food brands currently available on supermarket shelves. The company's sliced meats and other products are sold across North America and in parts of South America and Asia. Oscar Mayer's product line includes a wide range of popular meats, including hot dogs, bacon, and pre-packaged lunch combinations. In the early 1990s, the company also tried its hand at the restaurant business, in an attempt to find additional outlets for its food products. Oscar Mayer, now part of the Kraft General Foods Empire, grew from a modest family business into an international food giant, maintaining a firm presence
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As neither of these consumer trends favours the current portfolio of the Division, the long term sales will suffer.


According to a survey, the taste of red meat is considered good over white meat by the people. White meat is more nutritious and its price is more alluring than red meat.

4.2 Competition – Adding fuel to fire

As profits of old-time meat-packers who depended on the sales of unbranded, fresh red meat products vanished, they were forced to close down or sell out to big companies.
The result of these closures and acquisitions is a more consolidated meat industry, comprising companies with sophisticated manufacturing and marketing skills, stronger financial positions, and a focus on building value-added brands and market share.
The competition faced by Division is big this time as there are big competitors like ConAgra, Sara Lee, Hormel, etc. and so it has to come up with new ideas and promotional support to achieve industry leadership.

4.3 Slowed Growth in Divisional Sales


The revenue of the division has increased over the years. There has been a marginal change in the revenue generated by Oscar Mayer. The revenues generated by Louis Rich have been substantial because of increase in demand of white meat. The revenue from new products like Stuff ‘n Burgers is negative because this product proved to be a failure in the market.


The sales of Louis Rich products have
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