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Submitted by tomdavis on April 17, 2008
Category: Miscellaneous
Words: 1619 | Pages: 7
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(a.) Referring to the “Elements of a Competitor Analysis” we used in class for the Southwest Airlines case, what could the short-run and long-run objectives be for Unilever in launching the new steak sauce? Why? 10 points
SHORT-RUN OBJECTIVES:
What drives this company?
• They already compete aggressively with Kraft in many other product categories, so why not do the same in steak sauce product category.
• They specialize in spices and marinades, so they already have capital that will support the steak sauce product line.
• Unilever described Lawry’s as “…USA’s leading provider of premium spice and seasoning blends, marinades, and other flavorings.”
What is the competitor doing and can do?
• April 1st is the first ship date in order to gain full distribution before the peak summer grilling season.
• They are matching the majority of the A.1. Steak Sauce’s ingredients and color for a similar taste and texture.
• Pricing of the new steak sauce will be about 1/5th lower than A.1. Steak Sauce.
• Unilever will be offering a promotion for the upcoming Memorial Day that is said by some to be almost impossible for A.1. to meet or exceed in pricing.
• They plan on dropping five FSIs (Free Standing Inserts) in 2003 and spending $20 million on advertising concentrated in May, June, and July.
• They will be supporting a large sampling program called Lawry’s Live! which compares its new steak sauce to A.1. Steak Sauce and others in the market. The program also features their Chef Brian Mannet cooking at several festivals and fairs, sharing recipes, and showcasing the ease and versatility of their marinades, spices, and (most importantly) their new steak sauce.
LONG-RUN OBJECTIVES:
• “Path to Growth” program will rationalize its brand portfolio focusing on the largest global brands. Their new steak sauce will have to...
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