A.1. Steak Sauce faces a new competitive threat from Lawry's Steak Sauce entering the market and offering a promotional price of two bottles for $5. To combat this, A.1. Steak Sauce has three potential pricing strategies during its own promotional weeks: 1) Maintain its regular promotional price of $4.49 per bottle, 2) Lower the price to $4 per bottle, or 3) Match Lawry's offer of two bottles for $5. Each option has pros and cons in terms of impact on market share, brand perception, retailer profits, and operating revenue for A.1. Steak Sauce. Maintaining the $4.49 price allows A.1. to keep its brand equity while accepting
This document outlines A1 Steak Sauce's objectives, positioning, and marketing strategy to respond to a competitor threat. The objectives are to obtain a Memorial Day promotion spot, increase unit and volume sales, and achieve a 10% profit increase. The positioning strategy is as a complementary sauce for steaks that enhances beef flavor. The marketing strategy includes matching the competitor's $5 promotion through trade promotions and cooperative advertising. Analysis shows the promotion can be executed within budget.
The document summarizes strategies for A.1 Steak Sauce to defend against a promotion by competitor Lawry's. It recommends increasing the bottle size to 12oz to secure more fridge space before peak grilling season. It also suggests dropping the marinade line and focusing all marketing efforts on positioning A.1 as the best product to pair with steak. This strategy meets the dimensions of not jeopardizing the brand equity, leveraging ownership of the word "steak", and maintaining loyal consumers.
A short presentation used to accompany a case for a marketing class at Miami University. The case presented our small team with the challenge of guiding A1, a premier steak sauce brand, through the difficult challenges of an evolving consumer interaction with the product, increased competition, and flat sales growth. Our presentation of the situation, and a preview of our efforts to combat such challenges are included.
Colgate Precision - Harvard Business Case AnalysisUsha Vijay
Colgate is facing increased competition in the toothbrush market and a decline in market share for its Classic and Plus lines. The introduction of the super premium segment has been successful, accounting for 35% of the market. Colgate is considering launching a new toothbrush, Precision, targeted at the super premium segment to focus on gum health. Precision has the potential to increase Colgate's market share to 7.4% in the first year and generate a profit of $14 million in the second year with $15 million spent on advertising. Positioning Precision as a mainstream product could gain an even higher market share and contribution margin for Colgate compared to a niche strategy.
Clean Edge, Non Disposable razor case study analysisASWIN NAMBURI
Paramount has a strong position in the non-disposable razor market but faces challenges from increasing competition and shorter product lifecycles. The market is segmented by price, gender, and consumer behavior. Paramount's current products Avail and Pro face declining and steady market share respectively. Paramount has developed the Clean Edge razor for the super-premium segment based on 5 blade technology. There are arguments for launching Clean Edge as either a niche or mainstream brand. As a niche brand, it could target technologically oriented consumers willing to pay a premium. As a mainstream brand, it could achieve category leadership but would require a larger marketing budget.
Colgate is considering launching a new Precision toothbrush to enter the super-premium market segment. This would require investments of $5.85 million in 1993 and $8.45 million in 1994 to purchase new production equipment. Phasing out the Classic line would allow Colgate to shift these resources to advertising the Precision. The analysis recommends launching Precision at $2.60 to be competitive, and using a marketing strategy that supports Precision to gain 9-13% of the super-premium market share and achieve $16 million in net present value by 1994.
Clique Pens Pricing: The Writing Implements Division of U.S. Home Demin Wang
Clique Pens has experienced a 6% decline in gross profit margins over the past 2 years. There is a debate between the VP of Marketing and VP of Sales over how to allocate the marketing development funds (MDF) budget. The VP of Marketing wants to use MDF for consumer discounts and promotions to build brand equity, while the VP of Sales wants to use it for trade promotions and discounts to retailers. They need to compromise on a plan to satisfy both consumers and retailers.
The pen industry is highly competitive with 50 major competitors. Retailers like Staples, Walmart, and Walgreens have significant bargaining power and prioritize discounts and incentives from manufacturers. Clique will need to decide how
Colgate palmolive the precision toothbrushRajendra Inani
The document discusses Colgate Palmolive's plan to introduce a new toothbrush, the Precision toothbrush, into the market. It analyzes the toothbrush market and identifies a niche for a "super premium" product targeting gum health. It considers mainstream versus niche positioning strategies and recommends a niche strategy to initially target the therapeutic brushing segment. Financial forecasts suggest the niche strategy would be more profitable than mainstream. The implementation plan includes professional endorsements, advertising, competitive pricing, and bundling the toothbrush with a premium toothpaste.
This document outlines A1 Steak Sauce's objectives, positioning, and marketing strategy to respond to a competitor threat. The objectives are to obtain a Memorial Day promotion spot, increase unit and volume sales, and achieve a 10% profit increase. The positioning strategy is as a complementary sauce for steaks that enhances beef flavor. The marketing strategy includes matching the competitor's $5 promotion through trade promotions and cooperative advertising. Analysis shows the promotion can be executed within budget.
The document summarizes strategies for A.1 Steak Sauce to defend against a promotion by competitor Lawry's. It recommends increasing the bottle size to 12oz to secure more fridge space before peak grilling season. It also suggests dropping the marinade line and focusing all marketing efforts on positioning A.1 as the best product to pair with steak. This strategy meets the dimensions of not jeopardizing the brand equity, leveraging ownership of the word "steak", and maintaining loyal consumers.
A short presentation used to accompany a case for a marketing class at Miami University. The case presented our small team with the challenge of guiding A1, a premier steak sauce brand, through the difficult challenges of an evolving consumer interaction with the product, increased competition, and flat sales growth. Our presentation of the situation, and a preview of our efforts to combat such challenges are included.
Colgate Precision - Harvard Business Case AnalysisUsha Vijay
Colgate is facing increased competition in the toothbrush market and a decline in market share for its Classic and Plus lines. The introduction of the super premium segment has been successful, accounting for 35% of the market. Colgate is considering launching a new toothbrush, Precision, targeted at the super premium segment to focus on gum health. Precision has the potential to increase Colgate's market share to 7.4% in the first year and generate a profit of $14 million in the second year with $15 million spent on advertising. Positioning Precision as a mainstream product could gain an even higher market share and contribution margin for Colgate compared to a niche strategy.
Clean Edge, Non Disposable razor case study analysisASWIN NAMBURI
Paramount has a strong position in the non-disposable razor market but faces challenges from increasing competition and shorter product lifecycles. The market is segmented by price, gender, and consumer behavior. Paramount's current products Avail and Pro face declining and steady market share respectively. Paramount has developed the Clean Edge razor for the super-premium segment based on 5 blade technology. There are arguments for launching Clean Edge as either a niche or mainstream brand. As a niche brand, it could target technologically oriented consumers willing to pay a premium. As a mainstream brand, it could achieve category leadership but would require a larger marketing budget.
Colgate is considering launching a new Precision toothbrush to enter the super-premium market segment. This would require investments of $5.85 million in 1993 and $8.45 million in 1994 to purchase new production equipment. Phasing out the Classic line would allow Colgate to shift these resources to advertising the Precision. The analysis recommends launching Precision at $2.60 to be competitive, and using a marketing strategy that supports Precision to gain 9-13% of the super-premium market share and achieve $16 million in net present value by 1994.
Clique Pens Pricing: The Writing Implements Division of U.S. Home Demin Wang
Clique Pens has experienced a 6% decline in gross profit margins over the past 2 years. There is a debate between the VP of Marketing and VP of Sales over how to allocate the marketing development funds (MDF) budget. The VP of Marketing wants to use MDF for consumer discounts and promotions to build brand equity, while the VP of Sales wants to use it for trade promotions and discounts to retailers. They need to compromise on a plan to satisfy both consumers and retailers.
The pen industry is highly competitive with 50 major competitors. Retailers like Staples, Walmart, and Walgreens have significant bargaining power and prioritize discounts and incentives from manufacturers. Clique will need to decide how
Colgate palmolive the precision toothbrushRajendra Inani
The document discusses Colgate Palmolive's plan to introduce a new toothbrush, the Precision toothbrush, into the market. It analyzes the toothbrush market and identifies a niche for a "super premium" product targeting gum health. It considers mainstream versus niche positioning strategies and recommends a niche strategy to initially target the therapeutic brushing segment. Financial forecasts suggest the niche strategy would be more profitable than mainstream. The implementation plan includes professional endorsements, advertising, competitive pricing, and bundling the toothbrush with a premium toothpaste.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
This case study is about Culinarian Cookware, a US cookware manufacturer. Key points:
- The US cookware market is $3.36 billion but potential is unexplored and competition is high. Culinarian lacks marketing funds and brand awareness.
- Culinarian's product lines include CX1, DX1, SX1, and PROX1. In 2004 they ran a price promotion that had a negative effect.
- Data shows their revenue grew 21% in 2006 but they need promotion for slow-moving products. Competitor market shares range from 18% to 3%.
- Culinarian's revenue and ad spending increased from 2002-2006 but distribution is mainly
TruEarth is considering expanding into the $53 billion whole grain refrigerated pizza market but has concerns about viability given health concerns and competition. They conducted market research including 300 mall intercepts and an in-home product test of their basic pizza concept. The research found the concept had purchase intent but identified needed improvements like pricing and crust preferences. Sales volume is estimated at $15 million, above the $12 million needed, so the conclusion is TruEarth should launch the product after addressing identified issues.
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Colgate-Palmolive Company: The Precision Toothbrush Case StudyUttaravalli Abhinav
Colgate-Palmolive developed a new toothbrush called Precision to provide better plaque removal than competitors. The Precision product manager considered whether to position it as a niche or mainstream product. Financial analysis showed greater profits from niche positioning in year 1 transitioning to mainstream in year 2. This minimized revenue losses from cannibalizing existing products. Testing found naming it "Precision" rather than "Colgate Precision" reduced cannibalization. The launch communication strategy included consumer promotions, emphasizing Precision's plaque removal, and sampling to overcome perceptions of its unusual brush head design. Dentist sampling further supported the niche launch approach.
CSP is considering options for pricing, packaging, and demand forecasting for its new weight-loss drug Metabical. Three demand forecasting models were analyzed estimating the potential market between 4.3-9.8 million customers. Packaging and pricing strategies were evaluated using a matrix to determine ROI under different scenarios. Pricing at $150 targeting the ideal customer profile was estimated to achieve a 5.73% ROI, meeting CSP's objective.
Culinarian Cookware case study analysisSaurabh Mhase
Culinarian Cookware is considering adopting a price promotion strategy but is unsure if it will be profitable. In 2004, an external study found price promotions had a negative impact on profits. However, the sales manager believes the 2004 campaign was successful. There is a dilemma around whether price promotions would help or hurt Culinarian's market share and profits. The case analyzes Culinarian's market position, previous promotion results, and makes recommendations around a new product line and limited price promotions to target different customer segments.
This document summarizes a case study analysis of Clean Edge's razor market positioning options. It includes market segment data showing a shift from value to premium segments. Charts project profit under niche versus mainstream scenarios, with mainstream having higher sales and profits but also higher cannibalization costs. Two recommendations are provided: (1) target the niche market to avoid cannibalization and have lower risks, or (2) enter the mainstream with a new product to replace an existing one and take advantage of market opportunities.
Colgate Palmolive: The Precision ToothbrushSAIKAT DAS
Colgate-Palmolive developed a new toothbrush, the Precision, using an innovative design with bristles of different lengths and orientations to provide superior plaque removal, especially at the gumline and between teeth. Clinical trials found it removed 35% more plaque than competitors. After concept and positioning tests, CP decided to launch Precision in 1993 as a niche product targeted at consumers concerned with gum health. This would require lower capacity investment than a mainstream launch and was better suited to the brush's benefits based on consumer research.
Comprehensive Learning Note comprising of:
Performance Analysis
Past Decisions and Implications
Comparison of Key Metrics
Trends and Scenarios
Indicators (Lead and Lag)
Learning Experience
Flare Fragrances - Harvard Business Case by Priyanka Samtani, Seneca CollegePriyanka Samtani
This is an assignment that we did for the course Strategic Marketing Management. Savvy is a new fragrance that a company called Flare Fragrances is about to launch, and this presentation describes the best target audience, positioning and branding for the new product.
Note: Every decision is based for the year 2008, because that's when the case is dated.
Brannigan Foods is developing a strategic marketing plan to increase profits by 3-4% as their sales, market share, and profitability have been declining. The document provides an analysis of their situation including the Five C's, Porter's Five Forces, and a SWOT analysis. It evaluates four alternatives for their strategy: investing in growing sectors, acquiring complementary product lines, investing in organic growth from new internally developed products, and investing in their core product line. The recommendation is to invest in both their core product line and new internally developed products to drive long term growth while continuing to finance new product development.
Colgate case study- Harvard Business ReviewHarish kumar
This document discusses strategies for launching Colgate's new Precision toothbrush. It recommends initially targeting niche "therapeutic and cosmetic brushers" and entering the super-premium market. An advertising campaign would promote the brush's effectiveness at preventing gum disease. In the long term, it recommends moving to the mainstream market to broaden availability and profits, as niche positioning cannot be maintained and competitors may emerge. The niche approach mitigates downsides like cannibalizing existing brush sales.
This presentation contains the following for Eileen Fisher, Retail Fashion Brand:
Problem Statement
Decisions to be Made
Company Introduction
POP and POD
Competitive Advantage
Brand Elements
Re-positioning Strategy
Keller Model
Colgate- Palmolive:The Precision Toothbrush case analysisNavdeep Jain
This is a case analysis of Harvard Business School case, Colgate-Palmolive Company: The Precision Toothbrush prepared under the guidance of Prof. Sameer Mathur
The document discusses Metabical's demand forecasting, packaging, and pricing strategy. It presents three approaches to demand forecasting, with Approach 2 forecasting the highest demand. It recommends packaging Metabical in 12-week blister packs with day-of-the-week labeling. For pricing, it considers three options and selects $125 for a 4-week supply, as this prices Metabical above similar products to signal its value as a prescription drug, while still achieving strong demand and financial returns.
Brita was the market leader in pour-through (PT) water filters but lost market share to PUR's faucet-mounted (FM) filters. Brita's strategies to target bottled water and tap water consumers directly were ineffective. To regain market share, Brita should 1) partner with a bottled water company to sell Brita-filtered bottled water, 2) improve the design and functionality of its FM filters, including an indicator that shows when filters need changing, and 3) invest in R&D to develop products aligned with trends. This winning strategy would use partnerships and new product innovations to increase Brita's sales and market share.
Colgate Palmolive - The Precision Toothbrush - Case Study AnalysisSharanya Ray
Colgate Palmolive is analyzing the launch of its new Precision toothbrush. The Precision toothbrush provides triple brushing action and is more effective at plaque removal than rivals. It is positioned in the super-premium market segment at a higher price point. While the toothbrush market has grown steadily, Colgate aims to target the niche segment of therapeutic brushers with the Precision. Colgate's recommendations include providing free samples to dentists to promote the Precision as the professional's choice and offering refund guarantees to build customer loyalty for the new product.
Kayem Foods was a family-owned meat processing company that had operated for almost 100 years. It sold various hot dogs, sausages, and deli meats under several brand names, primarily in Northeast US supermarkets. One of its products was Al Fresco chicken sausage, positioned as a premium, convenient meal. With a small marketing budget, Kayem considered options to promote Al Fresco, including supermarket trade ads, another buzz marketing campaign, or magazine ads. An analysis of strengths, weaknesses, opportunities, and threats was conducted to inform the decision.
The document provides an overview of private label (PL) trends in the flavor enhancers category. Key points include:
- PL has grown in some categories but declined in others, with the largest declines at specific retailers.
- PL accounts for about 15-20% of dollar sales and 21% of unit sales in the US, indicating room for growth.
- Heavy PL buyers, 28% of buyers, account for over half of PL dollar sales, showing the concentration of sales.
- For ABC Spice's flavor enhancer portfolio specifically, PL has not eroded their brands as badly as in some other categories, but price increases have not kept pace, leading to a decline in branded unit volume.
-
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
This case study is about Culinarian Cookware, a US cookware manufacturer. Key points:
- The US cookware market is $3.36 billion but potential is unexplored and competition is high. Culinarian lacks marketing funds and brand awareness.
- Culinarian's product lines include CX1, DX1, SX1, and PROX1. In 2004 they ran a price promotion that had a negative effect.
- Data shows their revenue grew 21% in 2006 but they need promotion for slow-moving products. Competitor market shares range from 18% to 3%.
- Culinarian's revenue and ad spending increased from 2002-2006 but distribution is mainly
TruEarth is considering expanding into the $53 billion whole grain refrigerated pizza market but has concerns about viability given health concerns and competition. They conducted market research including 300 mall intercepts and an in-home product test of their basic pizza concept. The research found the concept had purchase intent but identified needed improvements like pricing and crust preferences. Sales volume is estimated at $15 million, above the $12 million needed, so the conclusion is TruEarth should launch the product after addressing identified issues.
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Colgate-Palmolive Company: The Precision Toothbrush Case StudyUttaravalli Abhinav
Colgate-Palmolive developed a new toothbrush called Precision to provide better plaque removal than competitors. The Precision product manager considered whether to position it as a niche or mainstream product. Financial analysis showed greater profits from niche positioning in year 1 transitioning to mainstream in year 2. This minimized revenue losses from cannibalizing existing products. Testing found naming it "Precision" rather than "Colgate Precision" reduced cannibalization. The launch communication strategy included consumer promotions, emphasizing Precision's plaque removal, and sampling to overcome perceptions of its unusual brush head design. Dentist sampling further supported the niche launch approach.
CSP is considering options for pricing, packaging, and demand forecasting for its new weight-loss drug Metabical. Three demand forecasting models were analyzed estimating the potential market between 4.3-9.8 million customers. Packaging and pricing strategies were evaluated using a matrix to determine ROI under different scenarios. Pricing at $150 targeting the ideal customer profile was estimated to achieve a 5.73% ROI, meeting CSP's objective.
Culinarian Cookware case study analysisSaurabh Mhase
Culinarian Cookware is considering adopting a price promotion strategy but is unsure if it will be profitable. In 2004, an external study found price promotions had a negative impact on profits. However, the sales manager believes the 2004 campaign was successful. There is a dilemma around whether price promotions would help or hurt Culinarian's market share and profits. The case analyzes Culinarian's market position, previous promotion results, and makes recommendations around a new product line and limited price promotions to target different customer segments.
This document summarizes a case study analysis of Clean Edge's razor market positioning options. It includes market segment data showing a shift from value to premium segments. Charts project profit under niche versus mainstream scenarios, with mainstream having higher sales and profits but also higher cannibalization costs. Two recommendations are provided: (1) target the niche market to avoid cannibalization and have lower risks, or (2) enter the mainstream with a new product to replace an existing one and take advantage of market opportunities.
Colgate Palmolive: The Precision ToothbrushSAIKAT DAS
Colgate-Palmolive developed a new toothbrush, the Precision, using an innovative design with bristles of different lengths and orientations to provide superior plaque removal, especially at the gumline and between teeth. Clinical trials found it removed 35% more plaque than competitors. After concept and positioning tests, CP decided to launch Precision in 1993 as a niche product targeted at consumers concerned with gum health. This would require lower capacity investment than a mainstream launch and was better suited to the brush's benefits based on consumer research.
Comprehensive Learning Note comprising of:
Performance Analysis
Past Decisions and Implications
Comparison of Key Metrics
Trends and Scenarios
Indicators (Lead and Lag)
Learning Experience
Flare Fragrances - Harvard Business Case by Priyanka Samtani, Seneca CollegePriyanka Samtani
This is an assignment that we did for the course Strategic Marketing Management. Savvy is a new fragrance that a company called Flare Fragrances is about to launch, and this presentation describes the best target audience, positioning and branding for the new product.
Note: Every decision is based for the year 2008, because that's when the case is dated.
Brannigan Foods is developing a strategic marketing plan to increase profits by 3-4% as their sales, market share, and profitability have been declining. The document provides an analysis of their situation including the Five C's, Porter's Five Forces, and a SWOT analysis. It evaluates four alternatives for their strategy: investing in growing sectors, acquiring complementary product lines, investing in organic growth from new internally developed products, and investing in their core product line. The recommendation is to invest in both their core product line and new internally developed products to drive long term growth while continuing to finance new product development.
Colgate case study- Harvard Business ReviewHarish kumar
This document discusses strategies for launching Colgate's new Precision toothbrush. It recommends initially targeting niche "therapeutic and cosmetic brushers" and entering the super-premium market. An advertising campaign would promote the brush's effectiveness at preventing gum disease. In the long term, it recommends moving to the mainstream market to broaden availability and profits, as niche positioning cannot be maintained and competitors may emerge. The niche approach mitigates downsides like cannibalizing existing brush sales.
This presentation contains the following for Eileen Fisher, Retail Fashion Brand:
Problem Statement
Decisions to be Made
Company Introduction
POP and POD
Competitive Advantage
Brand Elements
Re-positioning Strategy
Keller Model
Colgate- Palmolive:The Precision Toothbrush case analysisNavdeep Jain
This is a case analysis of Harvard Business School case, Colgate-Palmolive Company: The Precision Toothbrush prepared under the guidance of Prof. Sameer Mathur
The document discusses Metabical's demand forecasting, packaging, and pricing strategy. It presents three approaches to demand forecasting, with Approach 2 forecasting the highest demand. It recommends packaging Metabical in 12-week blister packs with day-of-the-week labeling. For pricing, it considers three options and selects $125 for a 4-week supply, as this prices Metabical above similar products to signal its value as a prescription drug, while still achieving strong demand and financial returns.
Brita was the market leader in pour-through (PT) water filters but lost market share to PUR's faucet-mounted (FM) filters. Brita's strategies to target bottled water and tap water consumers directly were ineffective. To regain market share, Brita should 1) partner with a bottled water company to sell Brita-filtered bottled water, 2) improve the design and functionality of its FM filters, including an indicator that shows when filters need changing, and 3) invest in R&D to develop products aligned with trends. This winning strategy would use partnerships and new product innovations to increase Brita's sales and market share.
Colgate Palmolive - The Precision Toothbrush - Case Study AnalysisSharanya Ray
Colgate Palmolive is analyzing the launch of its new Precision toothbrush. The Precision toothbrush provides triple brushing action and is more effective at plaque removal than rivals. It is positioned in the super-premium market segment at a higher price point. While the toothbrush market has grown steadily, Colgate aims to target the niche segment of therapeutic brushers with the Precision. Colgate's recommendations include providing free samples to dentists to promote the Precision as the professional's choice and offering refund guarantees to build customer loyalty for the new product.
Kayem Foods was a family-owned meat processing company that had operated for almost 100 years. It sold various hot dogs, sausages, and deli meats under several brand names, primarily in Northeast US supermarkets. One of its products was Al Fresco chicken sausage, positioned as a premium, convenient meal. With a small marketing budget, Kayem considered options to promote Al Fresco, including supermarket trade ads, another buzz marketing campaign, or magazine ads. An analysis of strengths, weaknesses, opportunities, and threats was conducted to inform the decision.
The document provides an overview of private label (PL) trends in the flavor enhancers category. Key points include:
- PL has grown in some categories but declined in others, with the largest declines at specific retailers.
- PL accounts for about 15-20% of dollar sales and 21% of unit sales in the US, indicating room for growth.
- Heavy PL buyers, 28% of buyers, account for over half of PL dollar sales, showing the concentration of sales.
- For ABC Spice's flavor enhancer portfolio specifically, PL has not eroded their brands as badly as in some other categories, but price increases have not kept pace, leading to a decline in branded unit volume.
-
The document discusses a group's plan to start producing and marketing non-vegetarian pickles. It summarizes that pickles are an important part of Indian cuisine and enhance the taste of meals. The group's mission is to provide quality non-veg pickles to meet market demand and ensure customer satisfaction. While non-veg pickles are more nutritious and tasty than vegetarian options, they have shorter shelf lives and are more expensive. The group plans to promote their chicken, fish, prawn, and mutton pickles in Gurgaon through direct distribution, retailers, and sampling. They see market potential due to current low availability of non-veg pickles and aim to boost sales.
Natureview Farm is a small yogurt manufacturer founded in 1989 that produces refrigerated cup yogurt. It has experienced significant growth in revenues from $100,000 to $13 million from 1989 to 1996. The company is considering options to further grow revenues by over 50% in 22 months to satisfy venture capital investors. The options under consideration are to expand product offerings and distribution channels to supermarkets, increase the size of existing products, or stay within the natural foods channel by introducing new multipacks. Expanding the 8-ounce size yogurt line to new supermarket regions in the Northeast and West is identified as the highest potential option to meet revenue goals and provide first mover advantage for the company in the supermarket channel.
Natureview Farm produces refrigerated cup yogurt and aims to grow revenue 50% by 2001. It faces choosing between expanding product lines into supermarkets or natural food stores. Option 1 is expanding 6 SKU's into selected supermarket regions, which offers the largest market but highest competition. Option 2 expands 4 SKU's nationally in 32oz cups with fewer competitors. Option 3 expands children's packs in natural stores with established relationships. The recommendation is Option 1 to pursue higher revenue, investor confidence, and market penetration, starting with top flavors, hiring supermarket expertise, and developing distributor relationships.
The document summarizes a yogurt company's options for expanding its distribution and sales channels. It is currently in the natural food store channel but sees an opportunity in the larger supermarket channel, which accounts for 97% of yogurt sales. However, there are challenges to expanding into supermarkets, including established competitors, high marketing costs, and potentially conflicting with its natural positioning. The company is considering expanding regionally within supermarkets or continuing to focus on growing its natural food store business.
This presentation regarding a case study of the Natureview Farm was created by Tejus Vamshi K of NIT Trichy during a marketing management internship under Prof. Sameer Mathur of IIM Lucknow.
Launching Krispy Natural : A Case StudyZain Rizwan
Pemberton, a snack food division of a beverage and snack company, launched a new cracker brand called Krispy Natural. Market testing showed strong results in Columbus with 18% market share achieved through promotional activities and advertising. In Southeast cities, the brand only achieved 10% share with little category growth due to a relatively low introductory discount. While retailers responded positively to consumer research and inventory projections in Columbus, competitors argued the brand's taste claims were inflated and pricing was only successful due to temporary discounts that were unsustainable. It is recommended that Pemberton focus more marketing in Southeast cities, engage consumers better, and tailor Krispy Natural to different consumer needs.
Natureview yogurt was founded in 1989 and has found success due to its longer shelf life and high quality taste. It currently sells primarily through supermarkets but is considering expanding into other channels. Expanding its 8oz, 32oz, and children's multipacks into supermarkets could bring both advantages like filling market needs and disadvantages like increased competition. Moving first into natural food stores with a children's multipack may allow time to prepare for supermarkets while maintaining strong relationships in natural stores. Financial projections show the various product sizes have different costs, prices and profit margins. Adjustments are recommended around pricing, costs and partnerships to improve competitiveness.
A Harvard Business School Case Study- Launching Krispy Natural: Cracking the ...Sumedha Uppal
Analysis of the Case Study giving answers to probable questions for deep understanding of the case. Looking at the marketing strategies and unlocking the management code.
The presentation was made under the guidance of Prof. Sameer Mathur of IIM Lucknow
Launching Krispy Natural: Cracking the Product Management CodeDhwani Kothari
This is a presentation on a Havard case named "Launching Krispy Natural: Cracking the Product Management Code prepared during an internship under Prof. Sameer Mathur."
This document discusses Pemberton's launch of a new salty snack brand called Krispy Natural in the cracker market. It provides an overview of the US cracker industry and competitors. A marketing strategy is outlined which includes product, pricing, distribution and promotion plans. Test markets in Columbus and Southeast regions exceeded expectations in Columbus but saw limited growth in Southeast. The success in Columbus is attributed to promotional activities generating buzz, while resistance in Southeast may be due to discounts not being sustainable long term. Recommendations include further marketing in Southeast and tailoring the brand to different consumer needs.
Krispy Natural is a cracker brand that was relaunched by Pemberton Beverage Division with improved taste, quality, and packaging. Market testing in two regions showed strong initial sales and share increases, though competitive response was a concern. While large retailers and buyers responded positively, some analysts questioned the sustainability of promotional discounts. Moving forward, the strategy is to position Krispy Natural as a premium, healthier cracker and use comparative advertising to differentiate it in competitive markets. If Frito Lay enters the category, Pemberton will emphasize Krispy Natural's natural ingredients and premium positioning to avoid direct competition.
This case study examines the options for expanding the sales of Natureview Farm yogurt. Natureview Farm is a yogurt manufacturer founded in 1989 that saw significant growth from $100,000 to $13 million in revenue between 1989 and 1999 by offering natural yogurt products. To attract further investment, it needs to grow revenues over 50% by 2001. The options considered are expanding distribution of its 8oz yogurt cups through supermarkets, expanding its 32oz size offerings, or introducing multipacks targeted at children into the natural food store channel. Financial analysis shows expanding the 8oz cups through supermarkets in option 1 would yield the highest revenue growth of 164% and be the most profitable approach.
This document discusses options for a yogurt manufacturer to grow revenues by 50% in 2 years. It provides an overview of organic market trends, the yogurt market which is concentrated among a few major players, and the company's position in natural/organic stores. Option 1 involves expanding 6 SKU's into 1-2 supermarket regions for higher visibility but also costs. Option 2 expands 2 larger SKU's nationally but with challenges of high fees and distribution. Option 3 focuses on the natural foods channel through a children's multi-pack. Financial details are given for each, and recommendations note the risks but also opportunities in supermarkets.
This document discusses Pemberton's launch of a new salty cracker brand called Krispy Natural in the US market. It provides an overview of the US cracker industry and competitors. A marketing strategy is outlined focusing on product, marketing, distribution and pricing. Test markets in Columbus and Southeast cities showed strong initial results in Columbus but more modest gains in Southeast. The recommendations suggest further marketing investment and tailoring the brand to different consumer needs.
Quality Promise Program: Empowering Consumers As Your Quality-Control AgentsFeliciaRogers
Presented at Private Brand Movement 2010. A quality monitoring program that utilizes your retail customer base - product users - as QA agents. An effective way to monitor quality and publicize your corporate commitment to quality.
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1. A.1. Steak Sauce: Lawry’s Defense
MKM805 – Strategic Marketing Management
To- Duncan Reith
From- Kush Rathod
Student ID -102108172
Email ID- Krathod2@MySeneca.ca
Date - 28Th March 2018
1
2. What measures should A.1. Steak Sauce take to increase dollar market share in long run while competing from
new entrant in category and maintain 20% of sales during promotional weeks ?
Challenges Assessment
A.1. Steak Sauce A.1. Steak Sauce faces challenge to increase consumption
of steak sauce per occasion
This problem can’t be dealt with on immediate basis
Competitors A.1. steak sauce doesn’t face any threat from existing
competitors as A.1. has been successful to establish itself
over years
Existing competitors are minimal threat to business as Heinz 57
is not a direct competitor and Private label products have
market share less than 20%
Promotions Promotional weeks is the time when A.1. spends most
revenue on its marketing and bears loss of reducing prices
during this weeks
Promotions are necessary to increase its sale in market and
maintain it’s brand awareness during promotional week. It can
not be changed and has to bear loss
Channels Retailers have power to dictate their margins.
Margins are same during the promotional week and
manufacturer covered cost for price reduction.
Manufacturers need to secure their position in flyers during
the promotional week as retailers tend to only have one
product per category
Channel margins cannot be negotiated and has highest shelf
facing which is in company’s interest to face to any new
competition
Lawry Lawry is a brand of Unilever which gives them strong recall
in the minds of consumers
Lawry is going to spend 20 million dollars for its advertising
while coming up with 2 for 5$ promotional offer to enter
into steak sauce market
Lawry’s Live is one the initiative to attract consumers and it
can lead to help them gain market share
Lawry’s launch will affect market share of A.1. steak sauce due
to Unilever’s strong brand presence.
Promotions offered by Lawry has potential to capture new
customers and needs to be looked after to sustain in market.
Consumers Consumers are highly brand conscious and they are more
likely to buy from premium brands during an occasion.
Lawry’s advertising and promotional efforts can change
behavior of an consumer to buy new product at cheaper
price
Consumers can be affected by heavy advertising and result into
trial purchase among consumers
Consumers may not change it’s brand preference but there are
high chances they might try Lawry’s steak sauce through Lawry’s
Live
2
3. A.1. Steak Sauce has a strong brand presence in market with minimum competition, it faces an immediate risk
from Lawry’s Steak who is set to launch on April 1 with its promotional offer of 2 for 5$ on memorial day
A.1 .Steak Sauce
• A.1. is the longest and well established player
in the steak sauce market with dollar share
more than 50%
• It has a high consumer value in steak sauce
market compared to other brands
• Expansion of A.1. failed while launching
“Poultry sauce
Competitors
• There was limited competition in steak sauce
market
• Heinz 57 was largest brand competitor in
market
• Private Label were sold at 3.49$ in retail stores
but were least famous in steak sauce category
• Lawry is one of the upcoming competitor with
an leading market share in Marinades
category
Channels
• Retailers had strong channel power with
commission of 30% for all items in category
• 9/10 steak houses served A.1. Steak sauce
which created high brand awareness among
consumers
• A.1.Steak sauce is available in all grocery
store, mass merchandisers stores and club
stores
• Retailers earn 123 million$ from all its brand
Consumers
• Volume sales has been flat in recent years
• Steak sauce was consumed in a lesser
quantity per occasion
• Consumers tend to buy more during holidays
like memorial day and fourth of July
• There is strong loyalty in steak sauce market
Lawry
• Lawry is owned by Unilever which has a
strong position in Marinades and seasoning
industry
• Lawry’s Marinades category is growing 15%
annually
• Considerably low pricing of Lawry’s steak
sauce compared to A.1. Steak sauce at 3.99$
• Lawry’s steak sauce is spending 20 million $
and dropped 5 FSI focusing on May, June and
July
Promotions
• 20% of A.1. steak sauce revenue come during
promotional week
• A.1. steak sauce had promotional price of
4.49$
• A.1. steak sauce uses 10% of revenue in in-
store promotion
• There is strong loyalty in steak sauce market
• FSI of 1 million dollar are dropped in each
quarter by A.1. Steak Sauce
A.1.has advantage of first mover in the market
thereby having power to dominate price in
market as it also matches perceived value of
consumers
Over years there are no new competitors in
industry as the growth of units and volume is
stagnant irrespective of price
Promotional week are most important as steak
sauce is an occasional product and it is the best
time to grab attention of consumers
Retailers have strong influence on brands as
their margins are hardly negotiable and only
support one product per category during
promotional week
Consumers can only be attracted during point of
purchase as it is more of an impulsive behavior
and prices of product are not much affected on
their purchasing decision as it’s occasional
product
Lawry being of the successful brand in
Marinade; it is trying to capture market and risk
entering steak sauce as it has financial power
3
4. Retailers play important role to steak sauce business and A.1. plays important part in retailers business
4
-Retailers earn $62,997,424
from A.1.Steak sauce overall
-A.1.Steak Sauce has highest
shelf spacing of 6 and
overall 14
-Retailers margin is as high
as 30% which remains to be
same during promotional
week
-Manufacturers are tend to
sponsor in-store promotions
during promotional week
-11.5 million $ is earned only
through one product during
2 weeks which shows high
demand of A.1. Steak sauce
among consumers
5. A.1. Steak Sauce has high perceived value compared to Lawry’s Steak Sauce due to it’s well established brand
image and can offer 3 pricing to compete with Lawry’s Steak Sauce during its promotional week
Perceived value by consumer based on
everyday pricing
Quality
Price
Brands Prices per Piece
A.1. Steak Sauce 4.99$
Heinz 57 4.79$
Private Label 3.49$
Lawry’s Steak Sauce 3.99$
A.1.Steak Sauce
Heinz 57
Lawry’s Steak
Sauce
Private Label
Products
Brands Prices
A.1. Steak Sauce 4.49$
A.1. Steak Sauce 4.00$
A.1. Steak Sauce 2 piece for 5$
Lawry’s Steak Sauce 2 pieces for 5$
Perceived value by consumer
based on promotional pricing after
launch of Lawry
Price
Quality
A.1. Steak Sauce’s
4.49$
A.1. Steak Sauce’s
4.00$
Lawry’s 2 for 5$
A.1.Steak Sauce’s
2 for 5$
A.1. Steak Sauce has 3 possible
pricing option to compete with
Lawry’s promotional price in
grocery stores
• A.1. Steak Sauce can sell it’s
product for 2 for 5$ which will
attract consumers who are
looking to buy more and might
change perception of quality of
its product
• A.1. Steak Sauce can sell it’s
product for 4.00$ and give
consumers a product which is
well established at all time low
price with highest perceived
quality in market
• A.1. Steak Sauce can sell it’s
product at it’s original
promotional price of 4.49$,
which will not hamper brand
reputation among consumers
thereby not changing it’s
perceived value
A.1. Steak Sauce has highest perceived quality of steak sauce among all of
its competitors in market 5
6. Possible alternative options affects retailers profit as 20% number of steak sauce is sold in 2 promotional weeks
Customer wants and needs Customers are more likely to buy products during
weeks of Memorial day and 4th of July
Customers are willing to pay price but are looking for
products which tastes good and can’t ruin their day
by having imperfect meal
Customers consume steak sauce in less quantity as
low as one tablespoon per serving
Companies like Heinz 57 distinguish themselves by its
taste and appearance
Channel Capabilities and cost A.1. steak sauce is available in most of the groceries ,
mass merchandisers and club stores
Retailers have a margin of 30% which is to be
changed rarely
Channel power and influence Retailers only run one promotion per product per
category during promotional week
Retailers margin doesn’t change during promotional
week
Competitive postures and actions A.1. has most amount of shelf spacing compared to
other brands
A.1. has been market leader and there are no new
entrants in market
Forces affecting channel 11.5 million $ is earned in promotional week by
retailers by selling A.1. Steak Sauce at 4.49$
Alternatives Effects on Retailers
A.1. Steak Sauce 2 for 5$ Retailers tend to make earnings of
6.4 million $ which is a huge loss
of 5.1 million dollars compared to
its original promotional price
As Steak sauce is consumed in
less quantity it is more likely
people are looking to buy one
product irrespective of price
which completely fails motive of
promotional price
A.1. Steak Sauce 1 for 4$ Retailers earn around 10
million$ which has a bearable
loss of 1 million$ compared to
its original promotional price.
Selling it for 4$ taps into the
wants of consumers which
might increase sales
A.1. Steak Sauce selling at
original promotional price of
4.49$ for 1 piece
A.1. Steak sauce selling at
original promotional price
might affect its market share
due to new entry from Lawry
Retailers play important role during promotional week as they have power to
support one brand and consumers tend to buy more through retailers during this
weeks
6
7. Price Sensitivity helps us to evaluate buying behavior of consumer during promotional week and their motive
towards buying steak sauce
Consumer economics • Steak Sauce bought during all year round is tend to be
used by consumer itself , on other hand , Steak sauce
bought during holiday weeks are tend to be used
during feasts and social gatherings
• Higher price doesn’t necessarily indicate higher
quality but the quality of brand plays an important
role while buying this product as customers are
looking for good experience of meal during holidays
and won’t think much about prices during this period
• Price of the steak sauce is minimal compared to the
earnings of a consumer and can be afforded by
consumers
Customer Search and Usage • Buyers doesn’t have to pay much while switching
brands
• Consumers can easily compare prices with other
competitors as most the products are available in
same location
• Consumers can taste other steak sauces only after
buying them. Lawry’s Live can be possible factor to
attract consumers by trying them taste the product
• Time of purchase play vital role as consumers tend to
buy products during holidays of memorial day and 4th
of July
Competition • Steak sauce offering by Heinz 57 is considered to be
different in taste and appearance compared to others
• Product testing showed us that Lawry’s product isn’t
good as compared to A.1. original
• A.1. Steak Sauce matches value as perceived by the
consumers
• A.1. is one of the long established brand which brings
trust among consumers
• Lawry’ Steak sauce can leverage it’s brand image as it is
globally known for many of its product
Alternatives Price sensitivity affecting
during promotional week
A.1. Steak Sauce 2 for 5$ Price is not an important
consideration during
holiday period as they are
looking for taste and
reliable brand
2for 5S might dilute quality
of product
A.1. Steak Sauce 1 for 4$ 4$ for 1 during promotional
week can attract consumers
while maintaining the
perception of quality of
product and has less impact
on brand equity in long run
A.1. Steak Sauce selling at
original promotional price
of 4.49$ for 1 piece
Stable prices over years
during promotion doesn’t
hamper brand equity and
this deal is less attractive
than 4 $ as people are
looking to spend less while
getting higher quality of
product
7
Consumers are not price conscious but
looking for quality of products
8. A.1. Steak Sauce can sell 2 pieces for $5 during promotional week and price match with its competition Lawry’s
steak sauce
Evaluating Criteria Assessment
Consumer’s purchasing behavior Consumer tend to buy same amount product as their
consumption per occasion is less
Effect on competitor It might help us to gain more market share dollars by
competing at price of private labels
Long term effect This might destroy our brand equity in market
thereby giving Lawry a chance to capture market by
leveraging it’s parent brand
Short term effect This will help A.1. Steak sauce increase market share
while taking a hit in operating revenue
Effects on channel Retailers may demand higher margin due loss of 5.1
million dollars
Brand Perception In long run it brand perception might be hampered
regarding quality of product
Change in Operating Revenue A.1. Steak sauce has to make additional promotional
cost of 12 million dollar to compete with Lawry’s
promotion activities
Insights
• Discounting products will not
lead to more consumption as
required quantity is low per
serving
• A.1. Steak Sauce is considered a
good quality of brand which is
generally perceived as high
prices but due to this pricing it
can be perceived as a brand
having reduced brand quality
• 12 million dollar loss will only
help to tackle competition in
short run while hampering
brand’s overall image
• This move indicates that we are
the follower of price according
to competition which will
tarnish brand image which are
established over long time
8
9. A.1. Steak Sauce can continue its original promotional strategy by selling one piece for $4.49 during promotional
week and not be bothered by new entrant in the market because of it’s brand equity
Evaluating Criteria Assessment
Consumer’s purchasing behavior Consumer tend to opt for same brand as they tend to be
highly brand loyal and same prices increases brand recall
about the product
Effect on competitor A.1. Steak Sauce might lose dollar share to Lawry’s Steak
sauce due to its derived brand value and high promotion
which might just motivate consumers to try new
products
Long term effect Selling at original promotional price helps to withstand
its brand equity in long run
Short term effect A.1. Steak sauce has a loss of 2.5% market share which
gives them a loss of 4.3 million dollars
Effects on channel Retailers earn most revenue in all 3 possible scenarios of
11.5 million dollars.
Brand Perception Brand perception will remain same and will be stagnant
due to its long presence in market with no sudden price
changes
Change in Operating Revenue Operating revenue drops to 55.6 million dollars due to
Lawry Steak sauce’s entry in market
Insights
• A.1. Steak sauce is well
established and long
established brand which gives
them first movers advantage of
being judged upon
• Over years A.1.steak sauce has
created brand image with its
unique taste which gives them
satisfaction during special
occasions
• A.1. Steak sauce is considered
to be good quality brand
compared to any Lawry’s steak
sauce
• A.1. Steak Sauce provides good
amount of earnings to channel
through its business which
gives us some power to
leverage channel
9
10. A.1. Steak Sauce can sell one for 4$ while maintaining its brand equity for longer term while minimizing it’s losses
in short term
Evaluating Criteria Assessment
Consumer’s purchasing behavior Selling at 4$ will have no effect on its brand value
while attracting consumers to buy product with
highest quality at least cost available
Effect on competitor Selling at 4$ will nullify effect of the trade promotions
by Lawry’s steak sauce and might be able to capture
market share from other competitors
Long term effect Selling at 4$ will have to protect its market share in
long term while maintaining its brand equity
Short term effect Selling at 4$ will create tough competition to capture
market share during its promotional week.
Effects on channel Channels has to bear minimum loss of 1 million dollars
compared to alternative of 2 for 5$ which is
negotiable due to its relation with retailer over years
Brand Perception Brand perception will remain same as it can be
considered as one of the possible perceived price to
sell high quality of product
Change in Operating Revenue A.1. Steak Sauce has to bear loss of 3 million dollars
which help to compete and survive in market
Insights
• Selling one bottle for 4$ will
help to achieve its long term
and short term goal while
giving a signal to new entrant in
market
• As there are no new
competitors in market and with
perception of high price for
high quality is being developed
in minds of consumers over
year.
• Selling one bottle for 4$ will be
considered as one of the brand
which is willing to give cheaper
price for high quality products
• Due to high loyalty in steak
sauce category consumers are
less likely to change their brand
10
11. 4.49$ - Original promotional price
• Not changing price during promotional week
effects its volume market share with a decline of
2.5%
• Due to loss of market share A.1. Steak Units sold
has to face drop of 466,772 units
• A.1. face loss of 4.3 million dollars while taking no
action against its brand competitor
2 for 5$
• Price matching with competitor will lead to
increase in promotion efforts by 12 million $
• Increase in promotional efforts leads to loss in
operating revenue
• Decrease in consumers cuts affects channel
behavior in longer run
Selling one for 4$
• Promotional cost has to be increase by 2% to
match Lawry’s competition.
• A.1. has to bear loss of 3 million dollars
compared to 2002
• With decent cut of 1.2$ per unit retailers are to
be satisfied by A.1.’s offering
Financial analysis of each possible options helps us to understand loss of company and if it is investing it’s money in precise channel to
select an alternative
11
In worst case scenario A.1. steak sauce can loose market share
of 10% but due to its high brand presence it is difficult to loose
its to entire share to one category. Therefore, 10% is divided
among A.1., Heinz 57 , Private label and other products
12. A.1. Steak Sauce should price itself at 4$ per bottle during promotional week while Lawry is trying to target it’s
consumer at 2 for 5$
• By selling at price of 4$ per bottle A.1. Steak sauce can achieve it’s objective of tackling threat from Lawry’s pricing during
promotional week and maintain it’s brand value in long term
• Selling at 4$ per bottle will give them loss of 3 million $ which can be covered in future years
• Consumers are looking for high quality products and by maintaining reputation of being premium, it will help us to target consumers
• Retailers are being one of the channels having power, during the promotional week of 4$ for 1 they earn 10 million dollars 1 million
less than usual.
• Price doesn’t play important role in purchase decision of Steak sauce during promotional week on other hand quality matters which
is offered by A.1. Steak sauce
12
Fulfilling needs of consumers, providing good percent of margin and offering better perceived value than Lawry’s
Steak sauce during promotion puts us in win win win situation
• As Lawry is being launched on first week of April , A.1. can only play on its pricing tactics which leaves out of option to put
Lawry
• Lawry’s sole motivation is to enter market as it is doing good in marinades line which gives them some room enter other
category
• A.1. being of one well established brand created high brand loyalty among consumers over years which has created
perceived perfect blend taste and quality of sauce in the eyes of consumers