MM Presentation Group 3:Dhaval ReemaAakriti Rohan BRuhul C Pramay Dipshanka Vineet

History

Founded in 1883 by Oscar F. Mayer and

Gottfried Mayer

Wiener mobile makes its debut in 1936

Oscar Mayer listed on NYSE

in 1971

Louis Rich Inc. was acquired in 1979

Oscar Mayer was acquired

by General Foods

Corporation in 1981

Philip Morris purchased General Foods in 1985

Kraft Foods merged with

General Foods in 1989

Proposals

*The images used in slides 4 to 7 are only for illustration and the persons shown in images have no association with Oscar Mayer

Memo 1

“Switch to Rich” campaign – Increasing the brand awareness of LR products

Introducing a string of new products like LR Turkey Bacon and The Great Roast Turkey & Gravy

Rob Goodman, Louis Rich Category Manager

Memo 2Acquisition of smaller companies that offer healthier and more convenient products:

• Chicken Rite Inc. • Turkey Time Ltd. • Crabbies Inc.

Jane Morley, Director of Finance & Planning

Memo 3

Introduce new products to target a new category of consumers:

• Zappetites (miniaturized Pizza slice, burger, tacos etc)

• Lunchables (pre-packaged ready-to-eat meals that include sliced lunch meats, crackers, condiments and chocolate treat)

Jim Longstreet, Member of Direct Management Team

Memo 4

Revive the Oscar Mayer brand by:• Increase in spending on advertising and promotion including

reinstitution of the Wienermobile promotional programme• Focus on R&D to formulate a low fat & salt line• Price cut on top 3 Oscar Mayer products• Focus on rationalization and capacity utilization in Oscar Mayer

brand

Eric Stanger, VP of Oscar Mayer Brand

Question 1

The following events changed McGraw’s perception:

• The fact that he got diverse opinions from all his managers gave him an opportunity to analyze the growth projections of all the verticals of the company in the coming years.

• Also the memo from his long time colleague and friend Eric Stanger reminded him how they had overcome difficulties in the past which motivated him.

Strategic Decision Making Process of McGraw:

McGraw decided that he need not choose a single option from all the recommendations. He thought of further analyzing all the four recommendations and finally taking a call on how to strategize keeping in mind the future profitability and growth prospects.

Question 21. Negative effects if it favors Oscar Mayer:

• They will miss the new product category which is expected to capture 50% market of the entire meat industry in the coming years.

• They will be pumping resources in a category that has been showing declining trends since the last few years which will not give them adequate Returns.

2. Negative effects if it favors Louis Rich:

• They will be ignoring the crux of the company which is a major revenue generating segment which accounts for 82% of their total profit.

• If Louis Rich fails to capture the market and the company doesn’t focus on Oscar Mayer products then they will lose their revenue generation channel, which may impact the future plans and create a cash crunch in the near future.

Mitigation Strategy:

• The strategy should be balanced in favor of both the SBUs as one business is in the maturity stage which is acting as a cash cow for the company and the other is at a nascent stage which has a huge potential in the coming future.

• Also, It would send wrong signals about the company’s belief in the diversity of their products and create distrust among the two organizations of the same parent company.

• So the company should basically balance and focus on both the verticals.

Question 3

Strengths:• Huge market share (30.9%)• Strong financial position• Dedicated and focused team

Weaknesses:• Reducing brand strength• Failure to identify change in consumer preferences.• Incompetent R&D

Impact on Investment Decision:• Focus on R&D of Oscar Mayer products• Focus on acquiring new companies and getting into new product categories• Focus on advertising and promotion

Question 4 & 5

Acquire Crabbies Inc

Revive Oscar Mayer Brand

Enter into new product category

Boost up advertising of Louis Rich

Question 6

Lunchables is least likely to succeed because of the following reasons:

• Focus only on a single category of customers (Working Mothers)

• Zappetites being on-the-go hand-held portable grazing meals will be preferred over Lunchables that are sit-down meals

• Daily consumption of non homemade food may not be preferred by some

• As the company has failed in a similar category before (Stuff’ n Burgers) so the consumers might be a little reluctant to purchase a similar product from the same company

Thank You