Perdue Farms, Incorporated
Perdue Farms, Inc is planning to diversify by venturing into the processed food market. It is specifically looking at entering this new market with Chicken hot dogs. Previously, Perdue has successfully transitioned from selling hatching eggs to live chicken and then to the dressed poultry market. Now with this new idea, Don Mabe called upon Mike Moriarty to decide if Perdue should get into the chicken hot dog market or not.
The purpose of this analysis is to: * Recommend if Purdue should get into the chicken hot dogs market or not * Evaluate the marketing strategy proposed by Moriarty * Suggest if the product has to be introduced as new or as an alternate to the existing meat hot…show more content…
* Perdue can easily capture this segment as it is already well known for its quality. Now, by creating awareness and interest about its nutritional lower calorie (in comparison to beef) chicken hot dog, it can easily grow in this segment. Characteristics of Non Consumers * Non consumers also buy hot dogs, but do not consume! This segment accounts for $20,452,000 of the total estimated sales of 1976. * These consumers are highly health conscious and it’s usually the head of the household making the buying decision and the amount bought depends on the household size. These are the DMU’s. The DMP is the nutritional value. * These consumers are highly brand loyal and price is of very little importance for them. * For Perdue to capture this segment, it has to create the same kind of brand image that it has for the dressed poultry. Industry/Competition Analysis: A few major competitors for Perdue in this market are Tyson’s Inc, Bayshore Inc, Long Acre, Holly Farms, Oscar Mayers and Weaver; the strongest competitor among these is Oscar Mayer. The hot dog industry is made up of many small and regional players that make up almost 60% of the market. Since hot dogs are seasonal, small companies seem to make more profits. Also some of the regional players have better brand loyalty. So, when Perdue enters the market, it should try to appeal to customer segments in these regional levels. Company SWOT Analysis: Strengths *