McGraw initially thought the strategic challenge facing Oscar Mayer was very complex. However, after reviewing four memos from department managers, he realized the solutions were not as difficult as expected. The memos proposed focusing on core red meat products, acquisitions, increased advertising, or operational efficiencies. Absent resource constraints, returning to the brand's basics would be the most viable strategy, followed by acquisitions. Increased competition underscores the need for new product development and advertising investments. The strategic plan should focus on the Oscar Mayer brand and boosting growth of the Louis Rich line through price cuts and efficiency. Lunchables has less likelihood of success than Zappetites due to its narrow customer base and higher price.

1. OSCAR MAYER:
STRATEGIC MARKETING PLANNING
Presented by:
Geeti Gourav Pati
14DM022
Sec-A,PGDM

2. Q.1
 In the beginning of the case McGraw thinks he has “ Never encountered
such a complex business challenge” as the one he currently faces. By the
end of the case, after he has read the ideas listed in the four memos,
McGraw can’t believe he ever thought the investment issue was “ Going
to be hard one”. What changed the president’s perspective? What
strategic decision making process does McGraw pursue?

3. ANS.1
 The major issues McGraw had to struggle with were
• Poor sales growth within the brand.
• Comparatively inexperienced new product development department.
• And managers of four different divisions providing four different solution.
McGraw’s strategic decision-making process is:
 Problem identification via the McTiernan report.
 Situation analysis with managers’ input taking into consideration the cost, convenience, customer, and
competitive analyses.
 Analysis of the proposed solutions.
 Selection of a mix of solutions.
 Preparation of a rough P&L based on selected solutions

4. Q2 :
 If McGraw chooses a strategic direction that favours only one department, What
negative effects could this have on other departments? How can McGraw
mitigate the damage?

5. ANS.2
 For example, if McGraw chooses the fourth strategy of going back to basics, there may be strong problems
for the Finance department of the company.
 Negative Impacts:
 Demands huge investments in R&D and promotional campaigns,
 Asking for slashing prices to increase consumer base
 Put a dual pressure on Oscar Mayer.

6. Q.3 :
What effects is the change in the strength and weaknesses of competition
having on the Oscar Mayer division? How does this impact the investment
decision?

7. ANS.3
 A more consolidated competition with sophisticated machinery and better financial backing will make the
situation even tougher for Oscar Mayer
 The investments should be more into the R&D department of Oscar Mayer in the following two areas:-
1. Developing new line of red meat products, which goes with the traditional products of the company
2. Develop new products keeping in mind the changing consumer preferences
 Additionally, more budget should be allocated for advertising purposes.

8. Q.4
Absent any resource constraints, which of the four departmental
directions which of the four department directions do you think is most
viable? Which is the second best strategy? Which is the least viable?

9. ANS.4
 In our opinion, Eric Stanger’s strategy best suits the growth plans of the company.
 The company needs to go back to the basics and focus more on its red meat products.
 Marketing suggestions such as restoring the Weinermobile campany are innovative and thus, can help to capture
market.
 It is important to continue to grow the OM brand with healthy, affordable and relevant products for a fast paced
society.
 Jane Morley’s strategy of acquisitions is the second most feasible strategy.
 It would help them strengthen their foray into white meat industry.
 The least viable option would be plainly pumping in money for Advertising & Promotion.
 Without creating new “value” for the customers, it seems unlikely that only a push through advertising would
achieve the long term growth strategy of the company.

10. Q.5
Given the information in the case, what strategic course do you think the
Division should pursue?

11. ANS.5
 Leave the Oscar Mayer brand as it is because the sales of the Oscar Mayer br
 and was still higher than the industry standards for red meat.
 Consumers choose red meat for its taste, hence taste should not be compromised.
 Invest more in A&P for Louis Rich products as it has great potential for growth.
 A 10 cent per package price cut on the top three OM branded items in each category to get back in line with
competition
 Increase operational efficiency to offset price cuts
 Make it clear to the entire organization that the only goal is to reinvigorate Oscar Mayer brand growth.

12. Q.6:
Which of Jim Longstreet’s new product ideas is less
likely to succeed? Why ?

13. ANS.6
Jim Longstreet suggested on launching two new product lines Zappetites and Lunches.
Lunchables is least likely to succeed because of the following:
 It is covering a very narrow target customer base.
 The price of Lunchables is more as compared to Zappetites.
 Time required to prepare is more than Zappetites.

14. THANK YOU