A-1 Steak Sauce Case Analysis
Case Recap A.1. Steak Sauce is one of the premier brands in the Kraft Foods portfolio, there is little competition, high sales and excellent margins (Kerin & Peterson, 2010). Currently, their closest competitor is Heinz 57 but they are not seen as a direct competitor because they market their sauce as being versatile for all meats. Lawry’s is introducing a steak sauce on April 1, just in time for summer grilling season. They plan on offering a 2 for $5 promotional price. Executives at A.1. need to decide what kind of marketing strategy to use to fight back against Lawry’s. I prepared an analysis of several marketing strategies that can be used by executives at A.1. Steak Sauce. This case analysis will provide a summary of A.1. Steak Sauce and Marinades and its newest steak sauce competitor, Lawry’s. I will also examine the strengths, weaknesses, threats and opportunities of proposed marketing strategies. This analysis will help executives decide what strategies will work best for the company as they move forward toward their goal of remaining the number one steak sauce in the United States.
Problem Identification The issue being addressed by Chuck Smith, senior brand manager at A.1. Steak Sauce and Marinades, is what defense strategy should they use in their marketing against Lawry’s new steak sauce. There are several alternatives to consider such as price matching or increasing advertising for A.1. Whatever strategy they chose, it needs to be planned out over the course of a weekend so Smith can make a recommendation to management on Monday. A.1. makes 10 percent of its annual sales over Memorial Day week so it is very important that they do not lose those sales especially because A.1. is struggling to meet its 10 percent profit growth target this year.
Case Analysis A.1. Steak Sauce is one of the oldest and most recognized brands in Kraft Foods brand line up. It is the leader in the steak sauce category and has high brand awareness. Over 50
Problem Identification The issue being addressed by Chuck Smith, senior brand manager at A.1. Steak Sauce and Marinades, is what defense strategy should they use in their marketing against Lawry’s new steak sauce. There are several alternatives to consider such as price matching or increasing advertising for A.1. Whatever strategy they chose, it needs to be planned out over the course of a weekend so Smith can make a recommendation to management on Monday. A.1. makes 10 percent of its annual sales over Memorial Day week so it is very important that they do not lose those sales especially because A.1. is struggling to meet its 10 percent profit growth target this year.
Case Analysis A.1. Steak Sauce is one of the oldest and most recognized brands in Kraft Foods brand line up. It is the leader in the steak sauce category and has high brand awareness. Over 50
References: American Meat Institute. (2009, April 1). American Meat Institute. Retrieved February 18, 2012, from http://meatami.com/ht/a/GetDocument.Action/i/48781 Dickler, J. (2011, June 10). Summer vacation or bust. CNNMoney - Business, financial and personal finance news February 19, 2012, from http://findarticles.com/p/articles/mi_m3289/is_n5_v163/ai_15433379 Kraft Foodservice - A.1. Thick & Hearty. (n.d.). A.1. Up Your Burger. Retrieved February 17, 2012, from Retrieved February 19, 2012, from http://www.publix.com/about/FactsAndFigures.do