Pharmacia & Upjohn Case Study Essay

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Kayem Foods, Inc. Case Study

Kayem Foods, Inc
Buzz Marketing
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
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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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