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. Target markets:
* The target market for A1 steak sauce consists of educated adults with in the United States who purchase groceries in mass merchandise stores. Since A1 is a premier steak sauce product and our price is considered inelastic due to its high quality, the average household income consists of households with a median income of $60,000. The target market is those men and woman who not only enjoy beef, but enjoy the process of grilling and cooking while adding condiments to their meal. A1 has established a loyal consumer base that prefers quality, they make more than the average household income and their meat of choice is often steak.
* Branding / product line:
* The current lines of A1 products consist of; Bold & Spicy, Thick & Hearty, Smokey Mesquite and Original. * The steak sauce industry is stagnant and due to the maturity of this product the steak sauce industry must expanded to a potential new market. ( However A1’s RMS = 3.375) * By focusing our attention on market penetration of the steak sauce we can persuade our loyal consumer base that there is more than one benefit of the steak sauce and that it can be utilized with other meat product; thus equating to more purchases.
* Product positioning statement:
* “A1 Sauce controls 50 percent of the market share for a reason; they provide a high quality flavor to all steak and meat products...