This is a case study about Oscar F Mayer, a Bavarian immigrant, founded a retail market in Chicago in the year 1883 specializing in sausages and Westphalian hams. With the passage of time his business grew in Chicago and his sausages and products became quite famous. Then his son Oscar G Mayer, Harvard graduate, expanded the business by the ways of promotional activities and the acquisitions of many small and mid-sized companies and subsequently it becomes one of the major brands of the country in f & b. PRODUCT LINE
Oscar Mayer started as a retail market specializing in sausages and hams. Traditional red meat products such as bologna , hot dog, bacon were introduced over a period of time under Kraft Food Inc. After acquisition of Louis Rich Inc. they diversified their product line into white meat products which were lower in fat content and price. CASE OVERVIEW
Marcus Mc Graw , president of Oscar Mayer division at kraft food was facing the most complicated business challenge in his 22 years at the company. McTeirnan a trusted consultant for years had submitted an alarming market research report showing the changing consumer trends in the processed meat market which was affecting the sales growth of the division. The consumer preference had shifted from red meat product due to nutrition and health factors as well as an increased pace of life. Acquisition of Louis Rich inc and their turkey based line of products had helped them to survive in the current market. To solve the problem of decreasing revenues and market share, there were four memos which he got via email, suggesting future course of action on how to deal with the problem. 1. Rob Goodman – Lotus Ritch Category Manager
Rob emphasized on changing the investment strategy.
a.Increasing the budget for the advertising so as to create the brand awareness about the products b.To shift from the red meat to the white meat as people have become aware about the health...