A.1 Case Study Essay

1166 Words Oct 28th, 2012 5 Pages
Case recap
A.1. is the market leader in production and sales of steak sauce in the United States, with the leading competitor (Heinz 57) not being in direct competition with them ( they are quite different in taste and appearance, making their marketing about versatility, not direct competition. A.1.’s Senior Brand Manager (Chuck Smith) has a critical choice to make regarding a counter plan for ad placement in a pivotal time frame, against a newly founded branch of a big name brand (Lawry’s). He needs to decide on the best route to take for the sake of the company.
Problem Identification
Lawry’s (a direct, big name competitor) is launching a new steak sauce product nationally, and is aggressively looking to go head to head with A.1.
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Along with attracting new customers, price matching will give the much coveted Memorial Day ad space, thus cutting off Lawry’s attempts completely. The problem with doing nothing, is allowing a big name company come in a potentially gain market share (by large popular advertising in a densely populated region, with a highly regarded grocery chain). Let’s take a look at the SWOT analysis to get a better picture of matching Lawry’s price point shall we?
SWOT Analysis
Strengths:· Increased sales (probable) · Already established brand recognition, even with consumers who don’t normally purchase the product.· Known quality|Opportunities:· Expanding customer footprint · Ability to introduce a new flavor, or line of products to a large base of people.· Limit the exposure for the leading competitor|
Weaknesses:· Matching Lawry’s lower sales price will result in lower profits.· High cost for prime advertising space· Not a desirable amount of prep time.|Threats:· If decided against, you allow a big name competitor to enter a small market· Open door for Lawry’s to steal customer loyalty· |

Evaluation of Alternatives
A.1 has two primary options that they can go with when handling this particular situation. The first one is matching the price point (2 for $5) of Lawry’s planned price, or they can choose to not defend themselves, and stand their ground. Each choice has

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