A.1. Steak Sauce is one of the premier brands in the Kraft Foods portfolio. Developed in England during the 18th century its name originated from King George declaring the Steak Sauce as “A.1.”. A.1. Steak Sauce was first sold in North America in the early 1900s. A.1. Steak Sauce was obtained as a part of the portfolio when Kraft Foods acquired Nabisco, another food company, in 2000. A leader in the Steak Sauce category, A.1. Steak Sauce, with a market share of 54% experienced little competition, high brand awareness, substantial sales, and excellent margins. As the clear leader in the Steak Sauce category it was served in approximately nine out of ten steak houses. A.1. Steak Sauce experiences strong brand equity in its category and is considered a tier-one one company in a premium market. Facing competition from its strongest competitor, this marketing plan outlines how Kraft Foods’ A.1. Steak Sauce brand will respond to competing brand, Lawry’s Steak Sauce’s launch. Strategic Focus and Plan
This section covers the aspects of the corporate strategy that influence the subsequent marketing plan for A.1. Steak Sauce. Core Competency and Sustainable Competitive Advantage
The competitive advantage of the A.1. Steak Sauce is their high brand awareness, availability at virtually every grocery store, mass merchandiser, and club store. In these stores A.1. incorporates product facings in a large part of the Steak Sauce shelf facings. An additional competitive advantage is the fact that nine out of ten steak houses serve A.1.. The core competencies, of A.1. Steak Sauce, rest in their ability to have a clear and distinctive brand position focusing on the meat seasoning category. A.1. also experiences strong retailer relations as shown by contact from a major retailer providing A.1. priority in advertising during the release of Lawry’s competing Steak Sauce. This core competency in retailer relations is derived from its ability to secure the key holiday week promotions at retail locations. Situation Analysis
Figure 1 (Appendix ___) shows the internal and external factors that affect the market opportunities for A.1. Steak Sauce. This SWOT analysis summarizes the strength and weaknesses in the areas of financial, marketing, research and development, offerings, manufacturing, and management/personnel. As well as the opportunities and threats in the areas of consumer/social, competitive, conditions – technology, conditions – economic, conditions – legal/regulatory, and marketing channels. Industry Analysis: Trends in Steak Sauce and Meat Marinades
Steak Sauce. Loyalty in the Steak Sauce category is high. While Private label products have less than 20% of the market share, they have the potential to grow in popularity (Lodish & Mela, 2007). The reason: more people are realizing the private label brands are similar, if not the same, product as the brand name products. Therefore, consumers are benefiting from better pricing on the Private label brands for the same product. The consumption of Private label brands has the potential to increase due to price sensitivity and the slight differentiation between Brand label items and Private labels. The majority of sauce consumption is in the steak market, and consumers use a limited amount of sauce on steak. One serving size is approximately a tablespoon. Therefore, a 10- ounce bottle of Steak Sauce would have approximately 17 servings. A family of four would be able to enjoy four separate steak dinners from one bottle. With consumption of beef stabilizing and with a possibility of experiencing a further decline with health concerns, the Steak Sauce industry may realize a further decline. Studies showing the health risks associated with red meat and a resurgence of Bovine Spongiform Encephalopathy (BSE) or “Mad Cow Disease”, beef consumption would decrease, further harming sales in the Steak Sauce industry. Meat Marinades. The meat marinades...