This document discusses strategies for Oscar Mayer Foods Corporation to address challenges facing the company. It begins with a brief history of Oscar Mayer from its founding in 1883. It then outlines issues identified in the McTiernan report, including changing consumer preferences for healthier and more convenient products and increased competition. Various managers propose strategies like focusing on white meat products, acquisitions, new product lines, price cuts, and marketing. Students are assigned questions to analyze the strategies and recommend a course of action.

1. MARKETING MANAGEMENT
Oscar Mayer: Strategic Marketing
Planning
Avishek Bhattacharya
Divya Marwah
Mukul Attri
Nayana Unni
Prashant Patro
Siddharth Patro

2. Journey of Oscar Mayer
Food Corporation

3. 1979:
Acquired nation’s largest
manufacturer of
1909:
processed turkey product,
Oscar G Mayer, founders
Louis Rich, Inc.
son joined the company
and acquired a
cooperative meat
packaging plant
1970:
Purchased C F Claussen &
Sons, Inc. which was a
1883:
distributor for packaged fresh
pickles, saurekraut, relish etc.
Oscar F Mayer founded a
sausages and Westphalian
1981:
General Foods Corporation
acquired Oscar Mayer, In
1985 Phillip Morris
Companies, Inc purchased
General Foods.

4. McTiernan Report

5. According to the report of McTiernan Corp, Oscar Mayer Foods is facing the
following major challenges that are going to affect company’s future profitability:
 The increasing popularity of healthier products with less fat and salt content.
 The increasing demand of products that are more convenient to cook and easy to
consume.
 More consolidated meat industry, comprising companies with sophisticated
manufacturing and marketing skills, stronger financial positions and a focus on
building value-added brands and market share.
 Innovation not being targeted in the right direction.

6. Suggestions

7. Rob Goodman-Louis Rich
Category Mgr.
• Shifting focus to white meat i.e. “switch to rich”.
• Develop R&D in white meat products
• Increase Advertising & Promotion budget by
about $22 million.

8. Jane Morely-Director of Finance
& Planning
Acquisition of companies that offer healthier and
more convenient products
 Chicken Rite Inc.
Turkey Time Ltd.
 Crabbies Inc.

9. Jim Longstreet-Direct
Management Team
• Invent a 4th major category within processed
meats that can address changing consumer
lifestyles
• Two new products
 Zappetites: A line of miniaturized “fast foods at
home”.
 Lunchables: Pre-packaged RTE lunch packs.

10. Eric Stanger-VP of OM Brand
• 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 A&P budget by $25MM.
• Reinstitute the Wiener mobile promotional program.
• R&D to develop a low fat and salt line of OM products.
• 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.

11. Que. 1- Change of Perspective
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.
Eventually, he pursued the following strategic decision-making process:
•Problem identification via the McTiernan report,
•Situation analysis on the basis of the cost, convenience, customer and
competitiveness,
•Analysis of the proposed solutions,
•Selection of a concrete solution adding all proposed solutions,
•Preparation of a rough P & L Account based on selected solution.

12. Que 2- Dept. Vs Dept.
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.

13. Que 3- Effect of Competition
• 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.

14. Que 4- Analyzing Strategies
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.
He has taken the current market situation into account
and proposed solutions that seem feasible.
Marketing suggestions such as restoring the
Weinermobile campany are innovative and thus, can help
to capture market.
The solution also takes into account the recent changes
in consumer preferences to advise R&D in red meat
products

15. Jane Morley’s strategy of acquisitions is the second most
feasible strategy.
The acquisition of plants suggested by Jane Morley would
help Oscar Mayer in two ways:1. It would help them strengthen their foray into white
meat industry.
2. One of the plants Turkey Time Ltd. has excess
capacity which can be used for R&D purposes of Oscar
Mayer and Louis Rich with products like LR Turkey
Bacon, Great Roast Turkey and Gravy dinner line

16. 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.

17. Que 5-Recommended Strategy
• Leave the Oscar Mayer brand as it is because the sales of the Oscar
Mayer brand was still higher than the industry standards for red meat.
• Consumers choose red meat for its taste, hence taste should not be
compromised.
• Acquire Turkey Times Ltd as it is closest to their know-how and thereby
eliminate competition and capture west-coast market.
• Invest more in A&P for Louis Rich products as it has great potential for
growth.
• Increase investment in R&D to formulate low fat and salt line of OM
products.
• 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.

18. Que 6- New Product Idea
Zappetites is the product less likely to succeed because:
It is similar to Stuff ‘n Burgers, a precooked and frozen
hamburger patty with cheese and condiments inside.
There are plenty of players already in frozen food segment
Frozen food loses its flavour and texture
Not suited to the preferences of already health-conscious
population

19. THANK YOU