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’s price of$4. which is in direct competition with A.1.99 per 11-ounce bottle. The unit and volume sales of the sauce had remained flat though the dollar sales had increased due to price rises. A. Heinz 57 was the largest branded competition though they were different in taste and appearance A.1.99 for a 10-ounce bottle. is launching a new steak sauce with a similar taste and appearance to A.1. Lawry is asking with the Publix to run an exclusive Memorial Day advertisement with a two-for-$5 promotional price point.1. Steak Sauce. major chunk of revenues were due to Original. . Steak Sauce line included many varieties.’s product Lawry’s is looking to charge $3. Lawry’s. Additionally. one of the premier brands of Kraft food with a market share of 50% and has high brand awareness.
Thick and hearty and Smoky Mesquite • Price: $4. Bold & spicy.99 • Sales: 10% in each holiday week Marinade Facts • Introduced in 2001 Figures • 10% share • New item in 2003 .Steak Sauce Facts • (premier brand) • Since 1980 • First sold in America in the 1900’s • Acquired by Kraft Foods in 2000 Figures • Market share>50% (9 out of 10 steak houses sold it) • Servings in a 10 ounce glass bottle • Variations: Original. sweet and tangy.
1 marinades A.1 steak sauce A.99 >50% 10 oz glass Packaging Offering TBD 2 for $5 .723 ml $6.Table 1 (operating profit) 2002 A.041 ml $2.398 $48.270 ml $5.441 (10) 50 (7) 55 Table 3 Difference between A.1 total 60 2003 plan 62 Table 2 (financial results ‘02) Kraft foods Unilever Total revenue Operating income Income after taxes $29.1 Steak Sauce Since Mfg by Price Market share Size of offering PGDM Sec B Lawry’s 2003 Unilever <16% 11oz plastic 4/7/2013 1830 Kraft foods $4.1 Steak sauce and Lawry’s A.114 ml $3.
’s past efforts to expand into the poultry category were extremely unsuccessful.STRENGTH : • The company has a large market share. • A.1. .1. WEAKNESS : • Consumer only uses small amount of A1 sauce in meal. • A1 is priced higher than competitors sauce. • Nine out of ten steak houses serve A. • High quality and Brand image.
OPPORTUNITIES : • A. Steak Sauce has the opportunity to develop more strategic alliances. • • Price competition from Lawry’s new sauce. • Conduct more research about customer.1. THREAT: • The Launch of Lawry’s Steak Sauce. • Expand its relationship with distributors and suppliers. . The company is facing the threat of losing a vital partnership with Publix supermarket due to the introduction of Lawry’s.
package: Packaging of Lawry sauce was in a transparent plastic bottle and the texture was thick and dark . which was little similar as the A.1.1. Similar taste. Supported by heavy advertising: Lawry’s planned to put considerable marketing weight behind its new steak sauce. Low cost: Cost of Lawry steak sauce 11-ounce was $1 less than that of A. steak sauce except bottle. . texture. steak sauce of 10 –ounce. Promotions: The introduced Lawry’s Live! Which was an interactive cooking show.
thereby expanding its own product line and closing off any entry points into the market. Could also attempt to develop its relationship with its consumers through marketing research and targeted promotions. Combo offer of steak sauce and marinades (two for $7). Advertising Would produce various new products. Introduce a new variant and also attach free sample ($5) .