STRATEGIC MARKETING PLANNING: OSCAR MAYER FOODS
Submitted By: Sahil Bhambri (12 DCP-097) Saksham Sharma (12 DCP-098) Sandeep Bedi (12 DCP-100) Sawan Gupta (12 DCP-104) Tanuj Arora (12 DCP-117) Abhishel Bansal (12 DCP-134)
1. IDENTIFYING THE PROBLEM
Oscar Mayer was a well-known food company, which had been operating for more than a 100
years in the meat market and was indeed very successful. The major problem it was facing in the recent years was that its sales were declining. The reasons behind the decrease in sales were increase in market competition, decreasing market share, failure of the newly launched products and the inability to cater to the customer needs. Other companies were coming in the meat market, which in turn increased the competition in the market to supply meat products. These companies had products catering to the consumer needs, including microwaveable products, which helped them attract and steal Oscar Mayer’s customers. The result of this was that Oscar Mayer’s market share was dropping and thus it was witnessing a gradual fall in its sales. Also the demand started to shift towards consumption of white meat & more healthy food products, it happened not only because of their sudden desire of becoming health conscious but also because of the rising prices of the red meat being offered majorly by Oscar Mayer. Their main products included Hotdogs, Bacon and Bologna. These products were made out of red meat, which had a high fat count, making people to favor the healthier white meat products. The consumer’s wanted products that could cater to their breakfast, lunch and dinner needs. Their want was meat, be it red or white but healthy & full of nutrition. Their target audience was working mothers and children. Packing food early in the morning for five days a week was a tiring job, which was never appreciated. Also packed food dint taste that well. So working women required products, which could be consumed on the go, and just heating them in a microwave would be all the effort required. The corporation thus faced the problem of investment in a manner, which would get the corporation back on track & help it recapture its market share & sales. The central
2. FORMULATION OF ALTERNATIVES
Marcus McGraw was given four alternatives from each of his four managers and he has to choose either one among them or a combination of these alternatives. The key points of each alternative are described below: THE FIRST ALTERNATIVE: The first alternative has two key points. • Adopt the marketing strategy. Increase the investment in advertising to boost the brand awareness and use the “Switch to Rich” campaign. • Introducing the new products being developed by R&D like LR Turkey Bacon, Great Roast Turkey etc. This strategy will require huge budgets for both A&P and R&D. Thus, although short-term profits will be reduced but would provide huge volumes and profit in the long run. THE SECOND ALTERNATIVE: The second alternative focused on acquiring new companies that focus on healthy and convenient products- the three companies suggested (Chicken Rite Inc., Turkey Time Ltd., Crabbies Inc.). Turkey Time was the company suggested by Jane Morely to be focused on as its plant might support further LR expansion. THE THIRD...