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OSCAR MAYER : STRATEGIC

MARKETING PLANNING
CASE DISCUSSION BY :
RONAK SHARMA
MOUKTIK ADAK
SHAGUN BHATNAGAR
SANKET ROY
POOJA RAWAT
UTKARSH PRASAD
NIKHILESH S
AMBER A.

SO WHAT IS IT ALL ABOUT ?


Marcus McGraw ( President , Oscar Mayer Food Division )
is facing a complex business challenge :
McTiernan corp. ( consulting firm ) has come out with an
alarming market research report.
Different opinions and views by 4 of the best managers
at Oscar Mayer to control the situation.

Market Research Report : Highlights


Processed meat market is undergoing turbulent changes :
Traditional red meat products are under attack for
being too high in fat content.
Recent acquisition of Louis Rich Inc. (turkey based/
white meat product line) has paid off . However , the costs
to build the second brand is high. Also, the growth rate is
slow.
Growing competition
Target audience constantly looking for new products
that are faster and easier to use.

The division should continue to focus on broadening and


contemporizing its product lines against emerging health and
convenience trends , while carefully allocating its investment
monies to deliver both short run and longer run profits .
Suggestions
Add new benefits to current products
Strengthen / Diversify product lines via acquisitions
Internally develop new products that tap the new needs
Mike
McTiernan

HERE COME THE COWBOYS !

ROB GOODMAN LOUIS RICH CATEGORY


MANAGER
White meat products are on trend
Boost our brand awareness-Switch to Rich
Campaign
Introduce new products-LR turkey bacon
&Great Roast Turkey
Increase Advertising and Promotion Budget by

JANE MORELY DIRECTOR , FINANCE &


PLANNING
Focus on Acquisitions of small
companies
Chicken Rite Inc.
Turkey Time Ltd.
Crabbies Inc.
My Opinion: Turkey Time
Closest to our know how
LR Expansion

JIM LONGSTREET
Address changing consumer life
styles
Invent a new category of food :
Zappetities: Miniaturized family
favourites, Fast food at home

Freezer to microwave to mouth in


60 Seconds
Lunchables: Ideal for working moms.

ERIC STANGER VP , OSCAR MAYER


Get back to the basics on OM Business :
Take 10% per package price cut on top 3 OM
branded items
Increase the A&P Budget by $ 25 MM
Reinstitute the Wienermobile promotional
programme
Formulate a low fat & salt line of OM Brand through
R&D

WHITE
MEAT

RED MEAT

ZAPPETITES
LUNCHABLES

BCG
Model
OSCAR MAYERS
STUFFS N BURGERS

STRATEGIC DECISION MAKING


WHAT CHANGED THE PRESIDENTS PERSPECTIVE ?
WHAT STRATEGIC DECISION MAKING PROCESS DOES
McGRAW PURSUE?

The report produced by McTiernan showcases the


challenges OM is likely to face in the near future.
The responses given by the 4 managers regarding
the present scenario changes the perspective of the
President.

WHAT STRATEGIC DECISION MAKING PROCESS DOES


McGRAW PURSUE?
Assessing the present scenario
Review the market and bets as presented by
consultant
Evaluate the alternatives provided by the four
managers
Final Decision

NEGATIVE EFFECTS AND THEIR MITIGATION


Favoured
Department

Louis Rich

Oscar Mayer

Louis Rich

Oscar Mayer

Shift in focus from


current consumer
trend

Innovation
Department

Risk of losing
market share

Risk to the product


in cash cow
category

Acquisitions

Reduction in A&P

Reduction in A&P

Slowed growth rate

Innovation

Acquisitions

Funds required for


innovation will
reduce due to A&P

Difficulties in LR
expansion

No new products in
the pipeline

Product range on
offer stays
constant

Funds not available


as operating
income takes a hit

Development of in
house product gets
affected

COMPETITION
Strength of competitor
Products according to market
trend
New technology
Lower prices
Effect on Oscar Mayer

Weakness of competitor
Low on market share
Low quality products
compared OM/LR
Effect on Oscar Mayer
If prices are reduced lost

Reduction in Market share

market share can be

Loss in brand value

regained

Investment

Investment

A&P

R&D

Acquisitions

A&P

R&D

VIABILITY OF OPTIONS
VIABILITY

STRATEGY

Most viable

Eric StangerOscar Mayer

Second most viable

Jane Morely-Acquisitions

Least viable

Rob Goodman- Louis Rich

VIABILITY OF OPTIONS
VIABILITY

STRATEGY

Eric Stanger- Reduction in prices may lead to higher market share


Oscar Mayer R&D resources to formulate a low fat line for OM products

Jane MorelyAcquisitions

Expansion of LR is possible
Healthy & convenient product at relatively low risk

LUNCHABLES OR ZAPPETITES?
PRODUCT

STRATEGY

Lunchable
s

More likely to succeed


Easy to pack
Ideal for working moms
High appreciation, Low effort

Zappetites Less likely to succeed


Similar to failed frozen product-OM Stuff N Burgers
Same old fast food.