A1 Steak Sauce Essay

1) How would you qualify the A1 Steak do business?In 1830, Henderson William Brand, chef to England King George developed a act that so delight the king he proclaimed it to be A1. The harvest-tide was number 1 sold in North America in the first 1900s. Kraft Foods acquired A1 in 2000 as part of its acquisition of Nabisco. Kraft Foods was the largest nutrient company in the United States and second largest in the world. Kraft Foods some direct competitors were General Mills, Unilever, Pepsico and Nestle.In 2002, A1 had a 54% dollar conduct of the Steak Sauce Market Shares with an 83 percent gross profit margin. diffusion of A1 stretched across the United States with the return available in every market place store. Kraft Foods spent 15 percent of its operating(a) revenue on A1 advertising. Revenue on A1 Steak Sauce was about $150 million and operating profit was approximately $60 million. A1s 2003 plan anticipated compressed revenue and slight profit growth.2) Why is Lawry s assembleing a steak sauce product? Explain.In 2002, Lawrys was owned by Unilever hotshot of Kraft Foods leading competing food companies with brand sales in pointless of $100 million and a strong position in seasoning and marinades. In early 2003, Unilever announced plans to launch a Lawrys Steak Sauce with a ship date of April 1st and a price per store $1.00 less than A1. Unilevers decision to launch a steak sauce product was based on disappointing financial results in recent years.Unilever launched a new strategic plan program called Path to Growth. A key element of this program was rationalizing its brand portfolio focusing on the largest world(a) brands. The company challenged all of its brands including Lawry to reach annual sales of at least(prenominal) one billion dollars.3) Should A1 Steak Sauce defend itself against the Lawrys launch? If not, why not? If yes, why and how? Discuss. Jennifer Miller, Smiths research manager logical argument of you know A1 has the stro ngest brand equity in the category, its virtually unobtainable. I dont agree and feel her comment is unrealistic, nothing is untouchable. I would recommend that A1 defend against Lawrys Steak Sauce launch scheduled for April 1st, differently A1 could become they are losing market shares and trying to play catch up. In my opinion A1 has a choice to compete head-to-head with Lawrys 2 for $5.00 deal launching on April 1st or sit backbone and hope that consumer dont switch to the Lawrys Steak Sauce. Either itinerary A1 will have to spend money to remain dominant and free-enterprise(a) 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 register Day week promotion which is normally 10 percent of A1 annual Sales. If Lawry, does gain 10 percent of the steak saucemark et and customers like the taste, unbidden to pay the reduced price regardless of taste or bottom of the inningt really tell 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 allow them to gain and increase in Lawrys share in the steak sauce market.5) What did you learn 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 aspiration with the launch of Lawrys Steak Sauce. I feel that Kraft Foods should have think for such a contingency that to me was inevitable. If they had planned, the company could have properly budgeted, mayhap with a contingency type fund within the marketing department. For example, at once where are reel-to-reel tapes, 8 track tapes and cassette tapes, all have become outdated with improvements in technolog y. To further illustrate in the food industry, try to find Pitter Patter peanut butter cookies made by Keebler which were out marketed by Nabiscos Nutter Butter peanut butter cookies. Nothing is untouchable or lasts forever