Oscar Mayer Essay -- essays research papers

ProblemOne of the key issues faced by McGraw is that thither is a large gap between his projections for next year, and what the managers are promising him . His goal is to obtain a 15% increase in the operating income from his segmentation (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income. If McGraw were to keep his A&P budget the same as last years, he would save $32MM over the managers projections. Therefore, one source could be to effectively use the strengths of the product lines and the A&P dollars by consolidating his sub-divisions.AnalysisComparing the contributions and costs of the three product lines OM, LR and NP as a percentage of the total divisions numbers for the three years can give a detailed picture on the successes and failures of each sub-division, their strengths and weaknesses. This dress lets us determine what percent of the divisions A &P budget is dedicated to Oscar Mayer vs. what percent of the divisions operating income comes from OM vs. LR. Louis Rich Brand Strengths are growing market segment, health conscious segment contributing to the rise in the operating income exponentially. However, a 33% of divisions advertising and promotional budget is being consumed for a 24% of total revenue or 14% of divisions operating income. While contribution to operating income is exponential, it is still less than 1/quaternary of the total divisions operating income. Oscar Mayer BrandOscar Mayer brand has been developed over 100 years. It has a strong brand name, brand equity associated with it. It has established marketing and diffusion channels. The numbers show a decline in the operating income of 18% over 3 years in part this may be receivable to a decrease in percentage of divisions A&P expenses directed towards OM brand. There is a question as to whether LR brand is cannibalizing OM brand. raw ProductStuff n Burge r numbers shows that a proportionately large spending on A&P is still generating no operating income. It is in the red. This points out the difficulty and expense involved in developing new brand or products.One of the key questions to ask is if the Louis Rich Brand is take in away into the Oscar Mayers market share? The two tables below show a decrease in the Oscar ... ...eat Oscar Mayer products. The tag line can say Oscar Mayer go choice and variety, fun and relaxation.Extend Product lineThis would require the company to reposition Louis Rich brand under Oscar Mayer Brand, without loosing its target audience, the health conscious group. (Both division can leverage off of the well reputed brand name Oscar Mayer.)Introduce repackaging, ready to eat lunches including red and white meat variation. The focus here would be convenience for working people and enjoyable for kids.Pricing StrategyRunning a sales promotion offering two for one package deals. empennage sell white meat pr oducts via vending machines at health clubs and give free Samples to women.Cutting price of Oscar Mayer products in order to gain more market share and become more in line with the market competition. Products from Oscar Mayer and Louis Rich under the Oscar Mayer umbrella would need to be priced competitively with products from Smithfield, Ball Park, Hillshire Farms, Butchers, Tyson, Carl Budding and Kelloggs etc.Russell Winer. Marketing Management 2nd ed. Prentice Hall, 2004. ISBN 0131405470.Custom Business Resources. Prentice Hall, 2005. ISBN 0536921288.