Oscar Mayer Case Analysis
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Oscar Mayer: Strategic Marketing Planning
INTRODUCTION
Oscar Mayer Foods is an American meat and cold cut production company, owned by
Kraft Foods, known for its hot dogs, bacon and lunchable products. The company depends heavily on the sales of red meat.
The Division has recently acquired Louis Rich, a small brand of concentrated on sales of white meat.
Report from McTiernan Corp
The division head of OM Foods, has received an alarming report from the consulting firm
McTiernan. According to this report, OM Foods is facing two key challenges that may affect the future growth of the division:
a. Market trends suggest that consumers are moving away from red meat products, which are the forte of OM Foods towards a seemingly healthier option of white meat.
b. Increase in consumer demand for more convenient options that are easier to cook and consume. The consumption of red meat throughout the country has decreased while there has been a dramatic increase in the consumption levels of white meat.
These trends have affected Oscar Mayer Foods negatively while Louis Rich product lines, which specialize in white meat products have flourished.
The main concern for the division is stop the downtrend being experienced by OM Foods division and to check the slowing growth of LR Foods division.
Analysis
We use SWOT analysis to get a better understanding of the current situation Oscar Mayer finds itself in.
Strengths:
1. Brand value that Oscar Mayer food commands in the market is immense.
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2. Controls and influences a huge distribution network.
3. R&D capabilities.
Weaknesses:
1. Unable to innovate new products according to changing market trends.
2. Products being conceived as unhealthier than other market substitutes.
Opportunities:
1. Demand for Louis Rich white meat products.
2. Demand for more convenient products.
3. Financial capability to acquire more companies to increase market share.
Threats:
1. Change in Market trends away
1
Oscar Mayer: Strategic Marketing Planning
INTRODUCTION
Oscar Mayer Foods is an American meat and cold cut production company, owned by
Kraft Foods, known for its hot dogs, bacon and lunchable products. The company depends heavily on the sales of red meat.
The Division has recently acquired Louis Rich, a small brand of concentrated on sales of white meat.
Report from McTiernan Corp
The division head of OM Foods, has received an alarming report from the consulting firm
McTiernan. According to this report, OM Foods is facing two key challenges that may affect the future growth of the division:
a. Market trends suggest that consumers are moving away from red meat products, which are the forte of OM Foods towards a seemingly healthier option of white meat.
b. Increase in consumer demand for more convenient options that are easier to cook and consume. The consumption of red meat throughout the country has decreased while there has been a dramatic increase in the consumption levels of white meat.
These trends have affected Oscar Mayer Foods negatively while Louis Rich product lines, which specialize in white meat products have flourished.
The main concern for the division is stop the downtrend being experienced by OM Foods division and to check the slowing growth of LR Foods division.
Analysis
We use SWOT analysis to get a better understanding of the current situation Oscar Mayer finds itself in.
Strengths:
1. Brand value that Oscar Mayer food commands in the market is immense.
`
2
2. Controls and influences a huge distribution network.
3. R&D capabilities.
Weaknesses:
1. Unable to innovate new products according to changing market trends.
2. Products being conceived as unhealthier than other market substitutes.
Opportunities:
1. Demand for Louis Rich white meat products.
2. Demand for more convenient products.
3. Financial capability to acquire more companies to increase market share.
Threats:
1. Change in Market trends away
References: -Wikipedia (en.wikipedia.org/wiki/Oscar_Mayer) -Kraft Foods (kraftfoodscompany.com) -Harvard (harvard.edu)