Kayem Foods
Kayem Foods, Inc.: Al Fresco Chicken Sausage
Case Questions, Group Two
1. Provide a brief SWOT analysis for Kayem Foods, Inc. (specifically addressing the market opportunity for Al Fresco Chicken Sausage).
STRENGTHS • Kayem owns other brands that have been acquired and retained due to regional brand loyalty. • Kayem brands are known for freshness and high quality. • Taste tests show that consumers consider Kayem products to be equivalent in taste and quality to leading brands. • Al Fresco Chicken Sausage is seen to be a part of a healthy lifestyle. • Buzz marketing put Al Fresco in the number one market share spot for Chicken Sausage. • Kayem brands are strong at the deli counter because of freshness and quality.
WEAKNESSES • Not a lot of funds available for marketing, compared to competitors. • Kayem products do not currently have any distinguishing characteristics in the market place. • There have been no major marketing awareness campaigns for the Al Fresco name yet. • Retailers are reluctant to give a relatively unknown brand much shelf space. • Kayem’s profit margins have been eroding recently because of supermarkets gaining the power to demand greater discounts and promotional allowances. • Kayem has a relatively weak bargaining position as a brand with retailers and shop owners.
OPPORTUNITIES • 80% of Kayems sales volumes have been at deli counters. This leaves opportunities to expand the brand’s presence in the refrigerated and frozen isles of the grocery stores. • Sausage sales as a dinner option are rising with the fastest growing segment being specialty sausage. • Low fat and lean sausage sales are also growing fast. • Americans in the South buy more sausage, this is a market share that Kayem has not yet broken into in a significant way. • Consumer markets indicate that a “demand brand” of sausage would do well. Kayem has an opportunity to fill that
Case Questions, Group Two
1. Provide a brief SWOT analysis for Kayem Foods, Inc. (specifically addressing the market opportunity for Al Fresco Chicken Sausage).
STRENGTHS • Kayem owns other brands that have been acquired and retained due to regional brand loyalty. • Kayem brands are known for freshness and high quality. • Taste tests show that consumers consider Kayem products to be equivalent in taste and quality to leading brands. • Al Fresco Chicken Sausage is seen to be a part of a healthy lifestyle. • Buzz marketing put Al Fresco in the number one market share spot for Chicken Sausage. • Kayem brands are strong at the deli counter because of freshness and quality.
WEAKNESSES • Not a lot of funds available for marketing, compared to competitors. • Kayem products do not currently have any distinguishing characteristics in the market place. • There have been no major marketing awareness campaigns for the Al Fresco name yet. • Retailers are reluctant to give a relatively unknown brand much shelf space. • Kayem’s profit margins have been eroding recently because of supermarkets gaining the power to demand greater discounts and promotional allowances. • Kayem has a relatively weak bargaining position as a brand with retailers and shop owners.
OPPORTUNITIES • 80% of Kayems sales volumes have been at deli counters. This leaves opportunities to expand the brand’s presence in the refrigerated and frozen isles of the grocery stores. • Sausage sales as a dinner option are rising with the fastest growing segment being specialty sausage. • Low fat and lean sausage sales are also growing fast. • Americans in the South buy more sausage, this is a market share that Kayem has not yet broken into in a significant way. • Consumer markets indicate that a “demand brand” of sausage would do well. Kayem has an opportunity to fill that