A1 Steak Sauce Essay

1) How would you characterize the A1 Steak act business?In 1830, Henderson William Brand, chef to England King George genuine a behave that so send the king he proclaimed it to be A1. The product was first sold in northeasterly America in the beforehand(predicate) 1900s. kraft paper Foods acquired A1 in 2000 as spell of its acqui ragion of Nabisco. kraft Foods was the largest food social club in the United States and second largest in the world. Kraft Foods most direct competitors were general Mills, Unilever, Pepsico and Nestle.In 2002, A1 had a 54% vaulting horse share of the Steak sauce Market Shares with an 83 percent gross profit margin. dispersion of A1 stretched across the United States with the product operable in every grocery store. Kraft Foods spent 15 percent of its operate revenue on A1 advertising. Revenue on A1 Steak act was ab erupt $150 gazillion and operating profit was approximately $60 million. A1s 2003 plan anticipated forthwith revenue and sligh t profit growth.2) wherefore is Lawrys puting a steak behave product? Explain.In 2002, Lawrys was owned by Unilever one of Kraft Foods ahead(p) competing food companies with brand sales in excess of $100 million and a strong position in flavoring and marinades. In early 2003, Unilever announced plans to dump a Lawrys Steak sauce with a ship date of April 1st and a price per bottle $1.00 little than A1. Unilevers decision to launch a steak sauce product was based on unsatisfying monetary results in recent years.Unilever launched a novel strategic plan platform c every last(predicate)(prenominal)ed Path to Growth. A backbone element of this program was rationalizing its brand portfolio center on the largest global brands. The company challenged all of its brands including Lawry to reach annual sales of at least one billion dollars.3) Should A1 Steak Sauce defend itself a crystallisest the Lawrys launch? If not, why not? If yes, why and how? Discuss. Jennifer Miller, Smith s research manager statement of you have sex A1 has the strongest brand equity in the category, its virtually impregnable. I dont agree and feel her comment is unrealistic, vigour is untouchable. I would recommend that A1 defend against Lawrys Steak Sauce launch scheduled for April 1st, other A1 could find they are losing foodstuff shares and stressful to play catch up. In my cerebration A1 has a choice to compete private with Lawrys 2 for $5.00 deal open up on April 1st or sit back and hope that consumer dont switch to the Lawrys Steak Sauce. Either focus A1 will have to spend notes to remain dominant and competitive in the steak sauce market.4) What are the competitive and financial implications of defending or not depending against the Lawrys launch?Lawry is scheduled to launch their new steak sauce of April 1st at $1.00 less than the A1 sauce and Publix is ready to give Lawry the memorial Day week promotion which is ordinarily 10 percent of A1 Annual Sales. If Lawry, does gain 10 percent of the steak saucemarket and customers like the taste, willing to pay the minify price regardless of taste or cant really distinguish the difference in taste from A1, customers susceptibility continue to buy the Lawrys Steak Sauce for the $1.00 cheaper bottle. Lawrys Steak Sauce launch could give up them to gain and increase in Lawrys share in the steak sauce market.5) What did you happen upon from your analysis of this case? Explain. A1 Steak Sauce was invented in 1830 and first sold in North America in the early 1900s. In 2003, over 100 years later, A1 Steak Sauce finally had potential competition with the launch of Lawrys Steak Sauce. I feel that Kraft Foods should have planned for such a contingency that to me was inevitable. If they had planned, the company could have in good order budgeted, maybe with a contingency example fund within the marketing department. For example, nowadays where are reel-to-reel tapes, 8 track tapes and cassette tapes, all have become outdated with improvements in technology. To further illustrate in the food industry, try to find Pitter Patter groundnut butter cookies made by Keebler which were out marketed by Nabiscos Nutter cover peanut butter cookies. Nothing is untouchable or lasts forever