The aim of this report is to find how A.1 can retain its position as the market leader in the steak sauce segment in the face of growing competition with the impending launch of, the new Lawry's Steak Sauce. The report touches upon the different factors that must be kept in mind in order to be prepared for the eventuality of facing such competition. This report is divided into three distinct parts. The first part presents a Marketing Audit with the internal and external analysis of the company. It is a summary of the company's positioning and its environment (customers, market and competitors).
[...] Steak Sauce and Marinades has two to three main products lines: A.1. Original Steak Sauce (this is the basic steak sauce); A.1 Flavored Steak Sauce, and the new line of marinade sauces. The first represents 3 products and the second 4 products if we consider the Steak Sauce available on shelves in 2002. Another line of marinade sauces was launched in 2003. This was an improved version of the sauces introduced in 2001. However the Original Steak Sauce remains the best selling product External Analysis To evaluate the external environment, we need to study two variables: the macroeconomic and the microeconomic. [...]
[...] This company has been a leader in the steak sauce market for many years. Indeed, their dollar share has shown more than a 50% increase. This echo's the growth achieved by A.1 and justifies the top place secured by it in the market. The company produces a large range in steak sauce and marinades. In the last few years however, the company has been facing stiff competition from new entrants like Unilever, Heinz, Private label, and so on. In 2003, Unilever announced the launch of a new steak sauce in the market at a very attractive price and accompanied by some very creative advertising. [...]
[...] is the market leader in the Steak Sauce segment. This company owned 46% of the market share in 2002. - The firm does not have a lot of competitors. - A.1. sells their products at a price slightly higher than their competitors but they frequently offer discounts or promoted prices. The price for a 10-ounce product is about $ 4.99 but often carries a discount is of $ The final price is thus $ b. Threats: - Kraft Foods has lot of competitors in the market. [...]
[...] This was a terrible drawback for A.1 as most of its sales were dependant on steak sauce. A population that did not eat beef and steak also did not buy their products. Nowadays, American people buy less steak sauce than they did in the 1980s because they eat less meat. Most people buy beef on special occasions, for example, on Memorial Day or on 4th July. Eating grilled food on such occasions, is a long-standing tradition mostly because these events are celebrated in summer. [...]
[...] They had to increase their advertising budget to improve the image of the marinade products. A.1 has made a large investment million) for the advertisement in 2003. - The cost of a national FSI in terms of media fees is about $400,000, plus the cost of the redeemed coupons. - Consumer promotions represent of the operating revenue in 2003 million). Distribution: - The company is not present in the Asian and European markets. They sell their products only in the United States External Analysis a. Opportunities - The market: A.1. [...]
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