A1 Steak Sauce Essay
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1) How would you characterize the A1 Steak Sauce business?
In 1830, Henderson William Brand, chef to England’ King George developed a sauce that so delight the king he proclaimed it to be “A1”. The product was first sold in North America in the early 1900s. Kraft Foods acquired A1 in 2000 as part of its acquisition of Nabisco. Kraft Foods was the largest food company in the United States and second largest in the world. Kraft Foods most direct competitors were General Mills, Unilever, Pepsico and Nestle. In 2002, A1 had a 54% dollar share of the Steak Sauce Market Shares with an
83 percent gross profit margin. Distribution of A1 stretched across the United States with the product available in every grocery store. Kraft Foods spent 15 percent of its operating revenue on A1 advertising. Revenue on A1 Steak Sauce was about $150 million and operating …show more content…
A key element of this program was rationalizing its brand portfolio focusing on the largest global brands. The company challenged all of its brands including Lawry to reach annual sales of at least one billion dollars.
3) Should A1 Steak Sauce defend itself against the Lawry’s launch? If not, why not? If yes, why and how? Discuss. Jennifer Miller, Smith’s research manager statement of “you know A1 has the strongest brand equity in the category, it’s virtually untouchable.” I don’t agree and feel her comment is unrealistic, nothing is untouchable. I would recommend that A1 defend against Lawry’s Steak Sauce launch scheduled for April 1st, otherwise A1 could find they are losing market shares and trying to play catch up. In my opinion A1 has a choice to compete head-to-head with Lawry’s 2 for $5.00 deal launching on April 1st or sit back and hope that consumer don’t switch to the Lawry’s Steak Sauce. Either way A1 will have to spend money to remain dominant and competitive in the steak sauce
1) How would you characterize the A1 Steak Sauce business?
In 1830, Henderson William Brand, chef to England’ King George developed a sauce that so delight the king he proclaimed it to be “A1”. The product was first sold in North America in the early 1900s. Kraft Foods acquired A1 in 2000 as part of its acquisition of Nabisco. Kraft Foods was the largest food company in the United States and second largest in the world. Kraft Foods most direct competitors were General Mills, Unilever, Pepsico and Nestle. In 2002, A1 had a 54% dollar share of the Steak Sauce Market Shares with an
83 percent gross profit margin. Distribution of A1 stretched across the United States with the product available in every grocery store. Kraft Foods spent 15 percent of its operating revenue on A1 advertising. Revenue on A1 Steak Sauce was about $150 million and operating …show more content…
A key element of this program was rationalizing its brand portfolio focusing on the largest global brands. The company challenged all of its brands including Lawry to reach annual sales of at least one billion dollars.
3) Should A1 Steak Sauce defend itself against the Lawry’s launch? If not, why not? If yes, why and how? Discuss. Jennifer Miller, Smith’s research manager statement of “you know A1 has the strongest brand equity in the category, it’s virtually untouchable.” I don’t agree and feel her comment is unrealistic, nothing is untouchable. I would recommend that A1 defend against Lawry’s Steak Sauce launch scheduled for April 1st, otherwise A1 could find they are losing market shares and trying to play catch up. In my opinion A1 has a choice to compete head-to-head with Lawry’s 2 for $5.00 deal launching on April 1st or sit back and hope that consumer don’t switch to the Lawry’s Steak Sauce. Either way A1 will have to spend money to remain dominant and competitive in the steak sauce