ConAgra Foods has decided to move their headquarters to downtown Chicago. They had previously taken residence in Omaha and Naperville near Chicago. This decision is to have the main office under one roof. The main reason for this move is the tax incentives that are placed in Chicago. They have recently had a hard time selling their processed foods to a more educated consumer base. Healthy and beneficial foods are on the rise. This has been an issue for the unhealthy foods that ConAgra provides. They have also had to let go of many workers just like many other large corporations. This move has become a political move as well. The governors and mayors have issued inputs into the final move. They have pretty much begged the company to either stay or move to where they would benefit the most. ConAgra has studied consumers based on behavioral segmentation. They have had to recognize how their segment reacts to their unchanging foods. They divide on whether the new educated user will keep buying their product or will decide to move on with the rest of the modern society. ConAgra is using an undifferentiated targeting strategy. They are targeting a broad spectrum of people in their marketing. The action that the company is taking could be very beneficial. They get to take advantage of the tax incentives and also get to appeal to a more diverse group of consumers. In Chicago, they will have a more collective and unified company which usually results in higher morale. In the long-run they will end up saving money. Many cities were wanting the headquarters to reside in their city. This gave them a competitive advantage of a location for their business. They will be able to have their marketing department focused on the unity of the corporation. Instead of dividing up attention for each line of production, they can put forth the effort of minimalizing costs. One risk that they could run into is letting go of too many workers. There could be many risks in doing this. They might not have enough workers to do the necessary jobs for the business. Another risk would be entering into a market that might not be quite what they are used to. ConAgra has normally had a segmented corporation in that they have different lines within separate cities. Combining everything into one building could be a bit more overwhelming to the workers.
Work Cited
"ConAgra Moving HQ to Chicago, Changing Cities as It Faces Changing Tastes." Chicagotribune.com. N.p., n.d. Web. 02 Oct. 2015.