Oscar Mayer

Assignment-2

A lka S in g h
K h u sh n u d K h a n
Pa rve sh C h o u d h ry
S a rve sh S in g h
 Background

• Oscar Mayer is in the business of Processed food industry , which

is health sensitive to consumers and dynamic in nature.
•
• In this scenario Oscar Mayer though an established player in the
industry, finding itself on the verge of changing market
scenario and shifting consumer behavior, leading to change in
buying pattern
•
• Here comes an alarming Market research report which highlights
the change coming around
•
• Now, Oscar Mayer has a challenge to respond to changing market
to ensure its growth and sustainability in the business
• Who is their Customer :
 The Boston Consulting Group’s Growth-
Share Matrix for
Oscar Mayer
20%
-
18%
- Star Question
s 4 marks
?
16%

?2 1
Market Growth

-
3
?
14%
-
12% 5

?
Rate

-
10% Cash Dog
-
cow s
8%- 8
6%-
6
4%-
7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
2%-
0
Relative Market
 Current Position

 Oscar Mayer’s current position is edging at Cash cow, which

can further if they have an action plan and execute to
respond to changing market they can continue to be there,
else they will move to “dogs” and other player will emerge


 Problem facing Oscar Mayer is, the Change taking place in

consumer choice, out of the health consciousness


 Action that Oscar Mayer needs to take is to identify among

each of its products, which of them falling from demand
 Financial health of different units

2008 2009 2010 Oscar Mayer 2008 2009 2010

Over all Business Revenue 1443 1428 1378

Revenue 886 916 934
Revenue per Pound 2.15 2.15 2.12
Revenue per Pound 1.91 2.05 2.05
Operating Income 105 107 110
Operating Income 105 118 134
Operating Margin 7.3% 7.5% 8.0%
Operating Margin 11.9% 12.9% 14.3%
Adv & Promo Expenses 254 235 236
Adv & Promo Expenses 330 358 385

Adv & Promo Exp Vs Sales 37.2% 39.1% 41.2% Adv & Promo Exp Vs Sales18% 16% 17%

Growth 11% 12% 14% Growth 2.10% 1.90% 2.80%

Louis Rich 2008 2009 2010

Revenue 412 455 511

Revenue per Pound 1.91 1.86 1.87

Operating Income 7 14 29

Operating Margin 1.7% 3.1% 5.7%

Adv & Promo Expenses 133 113 106

Adv & Promo Exp Vs Sales 32.3% 24.8% 20.7%

Growth Strategy- Ansoff’s Product Market
expansion grid

O sca r
Existin M a ye r
g New stra te g y
produ produ
cts cts

Existin
g 1. Market 3. Product
market penetration development
s

New
market 2. Market 4. Diversification
s development
 Action Plan

• Oscar Mayer needs to Launch new product to meet varying

consumer requirement, in White meat
•
• A new white meat based product to be made and made
available to consumer
•
• New product should be launched after detailed consumer
survey