Case Study National Mayo – Breaking A Monopoly

Question 1:
Which strategy
At this position, National Foods already have a strong hold on
do you think marketing campaigns. Its competitors lack behind in marketing
so National Foods do not have to invest more money in this.
National Foods
should move
forward with and But strategy 3 can be an

why? efficient choice. By

introducing more variety of
On the other hand, pouches
At this position, National On the other are the most convenient packaging
hand, pouches
sauces, National can not only
expand its product line but
as compared to squeezable
Foods already have a strong
hold on marketing
are the bottles. They are easy to carry and
most convenient
packaging as compared to
can also target the population
they have not already
store, so strategy
campaigns. Its competitors 2 will
squeezable bottles.also not be as effective.
They are targeted. People who buy
lack behind in marketing so easy to carry and store, so other brands of these sauces
National Foods do not have strategy 2 will also not be as will convert to National
to invest more money in this. effective. Foods also increasing the
customers of Mayonnaise
because they can find a wide
variety of products at one
place.
But strategy 3 can be an efficient choice. By introducing more
variety of sauces, National can not only expand its product line
but can also target the population they have not already
targeted. People who buy other brands of these sauces will
convert to National Foods also increasing the customers of
Mayonnaise because they can find a wide variety of products at
one place.
Question 2:
In the “Go-to- In the go-to-market strategy, distribution and production quality
market” strategy plays a vital role.
mentioned in the
case study, what
do you think is
the role of
If the product is not placed at the right place in the market and
distribution and distribution of the product is not strong, people will jot be able to
production find the product which will eventually result in lower sales. The
stronger the distribution, the higher will be the sales.
quality?

If the production quality is not good, the company will not be able
to meet customer expectations of superior product quality. Hence,
customers will not switch from their present brand and will not buy
your product. The brand will fail to acquire customers.
Question 3: Threats of new entrants
Applying Porter’s • Expensive research and development process.
Five Force Model, • High cost of brand switching.

what do you • High cost for advertisement and promotions.

• Price sensitive market.
think were the
barriers to entry Bargaining power of suppliers

into the • Bargaining power is low, as National is a giant itself.

Mayonnaise Purchasing power of customers

market for • Low purchasing power due to which National has to keep its
National Foods? prices low.

Rivalry among competitors

• Young’s rule the market with 93% market share.

• Brand loyalty of Young’s is high.

Threats of substitute

• No substitute for mayonnaise in the market.

Question 4:
If you were Murad had also planned a great product launch but if I was in his
shoes, I would have spent more money on advertisement and
Marketing promotion of the brand through mobile marketing and social media
Manager instead marketing. As technology is advancing, people are using their mobile
phones and social media more than ever before.
of Murad, what
would you have
done differently Secondly, I would have introduced more economical packaging
in the launch of besides the standard packaging that every brand offers. Introducing
sachet packs would have helped the brand target the lower classes of
National the society too!
Mayonnaise?
What would be
your future plan
People are more into different condiments to satisfy their taste buds.
for this line Keeping this in mind, my future plans would be to extend the product
extension? line by introducing different sauces to meet the needs and customers
and grab an extended market share.
Thank You!