Oscar Mayer

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CASE ANALYSIS

ON

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

 problem
  concentrates
 on
 the
 decision-­‐making
 about
 the
 investments
 so
 that
 all
 these
 problems
 can
 be
  removed
 and
 the
 demand
 and
 sales
 can
 be
 increased.
 There
 are
 basically
 four
 solutions
 being
  considered
 and
 a
 management
 decision
 has
 to
 be
 taken
 as
 to
 which
 solution
 would
 benefit
 the
  company
 the
 most
 given
 all
 the
 constraints.
 These
 solutions
 would
 be
 discussed
 further
 on
 in
 the
  case
 analysis.

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...
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