Sara Lee Case Study

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Over the years, Sara Lee was broadly known for their catchy slogan of “Everybody doesn’t like something, but nobody doesn’t like Sara Lee,” which mainly pertained to the companies bakery group; but Sara Lee Corporation was so much more. The Sara Lee Bakery Group was a division of a larger Sara Lee Corporation which had product lines including such categories as packaged meats, coffee, tea, underwear, intimate apparel, body care, air care, shoe care and air fresheners. In 2006, the slogan was changed to “the joy of eating” to go along with a major transformation of the company into a smaller number of core businesses which focused more tightly on food, beverage, and household products. In February 2005, Brenda Barnes, Sara Lee’s…show more content…
During 2010, Sara Lee had engaged in further retrenchment with the divestiture of its International Household and Body Care business that produced and marketed Kiwi shoe care products, Sanex personal care products, AmbiPur air fresheners, and various insecticides and cleaning products sold outside North America [Arthur A. Thompson…[et al.] 2012]. On January 28, 2011, Sara Lee announced that its board of directors had agreed to divide the company into two separate, publically traded companies. Hillshire Brands, which include the Hillshire Farm, Jimmy Dean and Ball Park brands as well as frozen desserts and other bakery products. The other company to emerge from Sara Lee will be an international coffee and tea company called D.E. Master Blenders 1753 [The Associated Press, 2012]. Although Sara Lee Corporation focused on cutting back business operations between 2005 and 2010, the company’s has continued to utilize a broad differentiation strategy. Sara Lee does not aim to have the lowest price product or to only sell to a small niche of the market. They aim to differentiate themselves from other brands by showing the value of their brand name and their higher quality products. From 2008 to 2010, Sara Lee’s net profit margin has trended positively from loss to profit. In 2010, every $1.00 in sales provided $0.05 in net profit. This shows

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