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Essay A.1. Steak Sauce Case Analysis

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A.1. Steak Sauce Case Analysis
Arnell M. Carmichael
Bellevue University
MBA 652: Marketing Strategy
Professor Adrianne Agulla

Case Recap The authors stated that, “Kraft Foods was the second largest food company in the world and the largest food company in the United States,” (Kerin & Peterson, 2010). A.1. Steak Sauce is a condiment “power house” in the Kraft portfolio that made incomparable profits for the company. Lawry’s, one of Kraft’s long-lasting competitors, endeavors to get a jump on the Holiday weekend (Memorial Day) at Publix to attain the ad and market their new product. Once notified, Kraft must lucidly make calculated decisions (SWOT analysis) as to how they will counteract Lawry’s new launch so they don’t …show more content…

A.1. is a household name for steak sauce; nevertheless, if Lawry’s secures the ad at Publix with better promotional rates than Kraft, they could drastically lose a small portion of their customer base if the quality of the sauce is in any way comparable to that of A.1. (Kerin & Peterson, 2010).
Another issue is that although A.1. Steak sauce has more brand equity than Lawry’s product one must consider pricing and promotional/discount rates. Specifically, if Lawry’s acquires the ad at Publix and they are selling bottles of steak sauce substantially cheaper than Kraft’s product with the way the economy is now, people will go with what’s fiscally more viable, as opposed to taste in some cases.
SWOT Analysis
Strengths:-High brand awareness within the marketing world.-Extensive distribution of product throughout United States-A.1.Steak is sponsored by largest food company in U.S.-Product quality/longevity helped to perpetuate company name|Opportunities:-Can test piloted promotional rates for future pricing-Can assess manager’s ability to generate “on-the-fly” marketing strategies-Opportunity to test new steak sauce flavors in the market-Consumers continue to be satisfied with quality of old A.1. taste|
Weaknesses:-Recent declining rates in marinade sales-Failure of poultry sauces…may show signs of weak product diversification-Arrogance as to think

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