Kayem Foods, Inc. Case Study
Kayem Foods, Inc
Al Fresco Chicken Sausage
STRATEGIC ISSUES AND PROBLEMS
Matt Monkiewicz is the director of marketing for Kayem Foods, Inc.. Mr. Monkiewicz was put under pressure to decide whether or not to us a buzz marketing plan for their Al Fresco chicken sausage brand, which would be implemented as part of their advertising campaign for 2006. The Al Fresco chicken sausage brand was able to capture a large portion of their target market, making them the number-one brand in its target market. The dilemma that Monkiewicz faces is whether or not the increase in sales were due to the buzz marketing campaign they implemented the previous year or if other advertising and promotional …show more content…
Buzz marketing does exactly what Mr. Mankiewicz is looking for in his advertising campaign, which that they have used in the previous year and it has made them the number one-selling brand of chicken sausage, however, not all of the sales force at Kayem believes this increase in sales were due to Buzz marketing.
Although Kayem has been able to substantially increase the sales of Al Fresco, they still have a lot of concerns pertaining to their profit margins. In the recent years supermarkets have been able to gain industry power, when it comes to dealing with manufacturers that supply them with products. The supermarkets now demand larger discounts and coupons for their customers. There is also a force keeping prices down due to the tense competition within the industry. In the past two years Kayem’s private label activity has been operating at break-even and co-packs have been operating below break-even. Obviously Kayem is in business to make money and not operate at break-even. They must use an aggressive advertising technique to get their profit margin back up.
INSIGHTS TO BUZZ MARKETING
You can sum up the definition of Buzz marketing in just 3 words,” word of mouth.” Many companies have found this advertising approach to be very profitable and appealing to their bottom line. In today’s market, especially due to the rise of social networking, many companies depend on their current customers to help spread the word of their products.
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This discussion question is based on a case study. As in all case studies, review the facts of the case and consider the various steps of the nursing process in order to address the critical thinking questions.
In our experience with Pharmasim we learned that Marketing decision making must be very sensitive and responsive to everything going on in the industry which is very complex. Consumer responses to marketing tactics can be volatile and unpredictable and no idea is guaranteed to work well. Marketing is a matter of meticulous research, assumptions, planning, and volatility at times. Overall we took away two major points: 1) that it is important to consider the product lifecycle in evaluating how to promote businesses and, 2) that the “Sweet Spot” as a competitive advantage should be the greatest point of consideration when evaluating how to best gain leverage to beat the competition in the minds of
As consultant to Sanders and Myers, I would suggest they rethink the continuation of economic value added (“EVA”) bonus payout process. The proposed EVA bonus payout structure is supposed to be an objective way to gauge and reward employee performance; however, through no fault of their own, the Dermatology group is slated to undergo severe ebbs and flows in their incentive and could potentially wreak havoc on employee morale and retention.
Threats: A big thing that Al Fresco would like is more distribution outlets and more shelf space. If they go with the buzz marketing campaign which Matt wants to they will not get more based on this campaign because the supermarkets don’t see it increasing sales like a traditional campaign would. It goes back to the lack of evidence on the actual influences of the original increase in sales. Another threat they face is the bigger budgets of competitors, and threat of them regaining market share with a more strategic marketing plan. If Al Fresco makes the wrong decision on how to spend the new budget they could be facing decreased sales and a potential new market share leader after this year.
Problem Statement: A1 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. Lawry’s, which is owned by Unilever, has announced an April 1st launch of its own steak sauce. Lawry’s has approached Publix and requesting the Memorial Day ad with a 2-for-$5 price. Now Publix is telling A1 to either match Lawry’s ad or lose its place.
Executives have noted that beef consumption in the US is declining and this explains why volume sales have remained stagnant over the past few years. On the other hand, consumption of chicken and turkey has doubled since the 1970s (AMI, 2009). Considering this information, one recommendation is to offer a sale “Buy one A.1. Steak Sauce, get one A.1. Marinade free”. This type of sale will appeal to customers who plan on grilling both steak and chicken during Memorial Day weekend. Because of the small amount of steak sauce used at one time some consumers do not find it necessary, nor are they interested, in buying 2 bottles of steak sauce for $5. This promotion would also help increase brand awareness for A.1. marinades without spending a lot of money on outside advertising.
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
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Result: a more consolidated meat industry comprising of companies with sophisticated manufacturing and marketing skills, stronger financial positions, and a focus on building value added brands and market share. The race was thus on for new ideas and promotional support to achieve industry leadership. If Om was to remain on top as one of the leading brands, then investments would be needed on promotion and advertisement as well as in research and development. There was a dire need to align the products with consumer trends and satisfy the target audience’s want for products that were faster and easier to use.
Case study: Jamie’s Italian – From Marketing Strategy to Communications Not only do the restaurants provide a cozy environment but also the prices are very reasonable. Oliver says this about the chain, “[It] is all about bringing my food to the public and offering them the best value for money they can get. I’m putting my name on the line. The restaurant will have to offer the best quality meal diners have had at that cost otherwise I will have failed” (Kühn, 2007). The positioning of his restaurant will allow him to reach a market that his other restaurants may not have been able to. His two other restaurants, Barbecoa and Fifteen, are marketed as top-class and fine dining restaurants, where reservations are required. Along with his consistency in using quality fresh ingredients, the rustic and authentic experience, and the new lower-priced strategy in
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