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Oscar Mayer Case Study

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Oscar Mayer: Strategic Marketing Planning
-Summary: Marcus McGraw is the president of food Production Company specifically to do with various types of meats. He has just received a report from a consultation firm stating that the marketplace for meat was changing drastically and it would have an effect on the company’s profits. The report suggests that the company should “broaden and contemporise its product lines against emerging health and convenience trends” (Quelch, et al. 1997) McGraw is faced with a range of different options from his team of business managers to achieve this task and struggles to decide on an option. On review of the options McGraw realises that any of the alternatives would be successful as the team he has surrounding him care and always get the job done.
-Situation analysis:
Strengths:
-Strong team of business managers
-Strong consultation firm providing advice
-Acquisition of a strong company in a profitable sector of the market
-President with lots of experience within the company
-Extensive product range
-Positive growth rate
Weaknesses:
-Failure to launch successful new product in past (stuff n’ burger)
-Failure to recognise changing consumer preferences in past
-Availability of money to fund advertising and/or product development (states they would need to operate at a loss if this was the case)
Opportunities:
-Consumers demanding healthier food alternatives
-Consumers demanding faster food alternatives
-Smaller companies that are already in these two industries
Threats:
-Changing consumer preferences towards healthier food alternatives
-Consumer backlash on new products
-Copycat brands
-Assumptions and missing information:
-We have to assume that the alternatives suggested by the various managers will in fact all work and that there are no ‘better alternatives’
-Missing information about the proportion of the business involved in white versus red meat which would indicate the amount of investment tied up in each
-How much market share the ‘louis rich’ chicken branch of the organisation had in the white meat sector
-Current rate of advertising, which would be useful in determining if it needed to be extended
-Problem definition:
-The market for food products, in particular the market for meat is changing due to consumer preferences. Oscar Mayer is required to change its business strategy to remain profitable
-Development of alternatives:
-McGraw was faced with a number of alternatives, bellow is a summary:
-Alternative 1: Boost brand awareness to capture as much of the market for whites meats as possible. This can be done by increasing the advertising and promotional budget
-Alternative 2: Borrow funds and acquire some further small white meat companies, to once again capture a large proportion of the market
-Alternative 3: Develop two new products that are designed to meet the needs of changing consumer expectations
-Alternative 4: Incorporate all of these ideas to a certain extent in the one plan (Quelch, et al. 1997)
-Evaluation of alternatives:
-In the article McGraw himself comes to the realisation that all the alternatives are good and whatever one he chooses he knows the team will make work. (Quelch, et al. 1997) So McGraw should therefore use alternative 4 which incorporate all of the ideas. By combining all the alternatives it will strengthen all parts of the company and not just one section, eg. White meats. (Kotler & Keller, 2011)

Bibliography
Kotler, P. & Keller, K., 2011. Marketing Management. 14 ed. s.l.:Pearson.

Quelch J.A, et al. 1997. Oscar Mayer: Strategic Marketing Planning, Harvard Business School, pp. 1-14

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