Buzz Marketing Strategy for Al Fresco Product

1. FERRY | FRISCA | DWI | GITA
Group FGD
Kayem
Foods, Inc
Buzz Marketing
Al Fresco
Chicken Sausage
Magister Manajemen Universitas Indonesia
Strategic Management

2. Kayem Foods, Inc., was a medium-sized,
privately held, and family-controlled
meat processing company located in
Chelsea, Massachusetts for almost 100
years
background
The company sold its products primarily
through supermarkets and other retail
food stores, mostly in Northeast.
Kayem’s products were sold under
several different brand names
The marketing strategy had been to
focus its product offerings on high
quality hot dogs and fresh delicatessen
meats.

3. Product
Brands Detail Product
Kayem Hot dogs, bologna, bratwurst, salami, ham, turkey, roast
beer
Genoa Fresh pork sausage, salami
McKenzie Bacon, ham, roast beef
MeisterChef Hot dogs
Schonland Hot dogs, link sausage
Triple M Whole hams, roast beef
AlFreco Gourmet chicken sausage
Co-Pack Product made for other branded processors
Private Label Product made for supermarket private label
Re-Sale Product of other manufacturers, distibuted by Kayem

4. Al Fresco Key Issue
Product
Positioning
Premium Price
1|
2|
3|
Variety of Kayem’ product | “small but fast-growing”
fully cooked chicken sausage as a convenient, all natural, low
carbohydrate, low fat main meal entrée
Al Fresco $4.49 per 12 ounces (at retail), $3.58 per pound (at
factory) with $1.60 per pound contribution margin.

5. Problem Identifications
How to promote the brand on a small buget, but still
impacted to target market?

6. Target Market1|
a) Demographic :
- 25-54 years old woman who was concious of health
and liked gourmet foods and tended to be very
interested in foods and food preparation.
b) Geographic
The resident in Northeast, Mideast, Southeast,
California and Florida

7. Consumer Behavior2|
Q1: What were the most important factors behind Starbucks’ success?
Residents in South
ate the most
sausage, following
by those living in
the Northeast
Sausage sales varied
seasonally with
approximately one-
third of all dinner
sausage sold during
the three summer
months.
Breakfast sausage sales
peaked during the
holiday season
(Nov – Jan).
People have
desire for
variety in the
menu, and in
some cases they
serve sausage
products that
were lower in fat
content.
Consumers had used
sausage as a staple at
all three meals for
many years, as a
main entrée or as a
complement to
other center-plate
dishes
Those who
purchased sausage,
the average
expenditure was
$16,95 annually per
family.

8. 3 | Competitors
Company Value per year Media of Advertising
Hillshire
Farms $ 29 million Mostly on television
Johnsonville $ 13 million $ 8 million on television
$ 3,5 million on radio
Emerill $ 1 million mostly in magazines
Aidell $200,000 magazine campaign

9. Marketing Activities4|
• Special sales promotions
• Low budget ads in magazines
• Low budget TV ads
• Marketing budget for AlFresco in 2004 : $ 90.000
• Buzz Marketing

10. Buzz Marketing5|
• WOM Campaign
• Utilizes volunteers (Buzz Agents) to talk about
product experiences
• Buzz Agent were not paid, but received points
towards different products and could try ‘buzz;
products for free.
• Campaign Cost :
$ 47.000
(52.2% of 2004
marketing budget)

11. Company’Action
Kayem obtained an increased marketing budget of $
185.000, but only had two weeks to decide the best
option of marketing methods.

12. SWOT Analysis
1. Already established (almost 100 years of
experience).
2. Wide variety of products.
3. Many different brands under the company.
4. Established distribution channel.
5. Expanded growth into other markets and
territories.
1. Unavailable at some supermarkets.
2. Lack of awareness among consumers for
some of its products.
3. Lack of advertising and promotion.
4. Low profit margins.
5. Large amount of money spent on
promotional allowance and discounts with
supermarkets.
1. Capitalize on the growth of organic and
grain-fed products.
2. Growth of consumer base demanding
vegetarian sausage choices.
1. Established competition with larger
advertising budgets.
2. Consumer lifestyles shift to healthier living
and may not see sausage as a healthy
product.

13. 1. Invest in Supermarket Trade Ads.
(Cost : $ 80.000)
OPTION for ALTERNATIVES
PRO(S) CON(S)
• Reach required target market
which are supermarket
executives and buyers
• Convince decision makers by
telling them about the brand’s
sales and profit potential.
• It’s costly. The allocation budget
may not be enough.

14. 2. Implement another Buzz Marketing.
(Cost : $72,000 to $75,000)
OPTION for ALTERNATIVES
PRO(S) CON(S)
• More credible for
creating demand
than other media
ads.
• Low cost than other
traditional methods.
• Lack of support from retail store managers
may hinder ability to sustain growth.
• Lack of support from sales executives could
ruin sales force moral, feeling as though they
are unsupported in their efforts.
• Uncertainty over ethical nature of buzz
marketing.
• Potentially to negative publicity.

15. 3. Magazine Ads (Cost : $ 32,000)
OPTION for ALTERNATIVES
PRO(S) CON(S)
• Wide exposure.
• Sustain and built specific
demand.
• Influence supermarket
executives by creating demand
• Costly for full page ads.
• It’s beyond the brand could
support

16. • Discontinue Buzz Marketing.
Since it’s insulted criticsm in public press about ethic in-appropriate.
• Improve its distribution channel in order to ensure the product’
availability.
• Use the data result from BuzzMarketing as a raw data for implementing
CRM.
• Invest in IMC (Integrated Marketing Communication)
Recommendation Picked

17. •How To Video
•Recipes from Chef
•Recipes from Customer
•Nutrional Info
•Coupons
•Comment and Review

18. ThankYou