Oscar Meyer Case Study
Oscar Meyer Case Study Analysis Marketing Management 3301
Main Protagonist: Marcus McGraw head of Oscar Meyer division at Kraft.
Receives three different letters from:
Jane Morely head of finance
Rob Goodman Louis Rich Manager
Jim Longstreet Head of new product development
Eric Stanger Head of Brand Management.
Issues:
Increasing trend towards less fatty and salty meats that are more health conscious.
Increasing demand for easy to cook and quick meals that can satisfy the needs of working and busy moms.
The report by McTieran corporation suggests that OM is not making a sufficient effort to offer healthier snack options as hot dogs and red meat products are becoming less popular.
As suggested by the case the 5 year Annual Per Capita Pounds data of white and red meat. White meat has had an overall increase in sales of 33.73% in the past 5 years whereas red meat has decreased by (7.28%) 1
Diagnosis: The decrease in red meat sales means that OM is having difficulties reaching its 4% annual growth rate target. McGraw must therefore decide how to reach this goal while addressing the loss of sales.
Further complicating the issue is the other brand of Louis Rich white meats which has had increasing overall sales of 10.9% in the past year. However, as argued by McTieren the growth has slowed from the previous years where it was reaching growth rates of 13.4% and 14.2%.
Suggestions:
McGraw’s objective is to increase growth by 4% (currently 2.6%) and to increase operating income by 15%.
1) Morely suggests the company adopts a new company line that focuses more on healthy food. Chicken Rite, Turkey Time, or Crabbies.
2) Longstreet believes the company should focus more on the easy and simplicity of meals that the consumer desires. He suggests two lines Zappetites and Lunchables.
3) Stanger suggests the company continues on its path of working on the core of Oscar Meyer to improve its quality. He believes that if the company cuts
Main Protagonist: Marcus McGraw head of Oscar Meyer division at Kraft.
Receives three different letters from:
Jane Morely head of finance
Rob Goodman Louis Rich Manager
Jim Longstreet Head of new product development
Eric Stanger Head of Brand Management.
Issues:
Increasing trend towards less fatty and salty meats that are more health conscious.
Increasing demand for easy to cook and quick meals that can satisfy the needs of working and busy moms.
The report by McTieran corporation suggests that OM is not making a sufficient effort to offer healthier snack options as hot dogs and red meat products are becoming less popular.
As suggested by the case the 5 year Annual Per Capita Pounds data of white and red meat. White meat has had an overall increase in sales of 33.73% in the past 5 years whereas red meat has decreased by (7.28%) 1
Diagnosis: The decrease in red meat sales means that OM is having difficulties reaching its 4% annual growth rate target. McGraw must therefore decide how to reach this goal while addressing the loss of sales.
Further complicating the issue is the other brand of Louis Rich white meats which has had increasing overall sales of 10.9% in the past year. However, as argued by McTieren the growth has slowed from the previous years where it was reaching growth rates of 13.4% and 14.2%.
Suggestions:
McGraw’s objective is to increase growth by 4% (currently 2.6%) and to increase operating income by 15%.
1) Morely suggests the company adopts a new company line that focuses more on healthy food. Chicken Rite, Turkey Time, or Crabbies.
2) Longstreet believes the company should focus more on the easy and simplicity of meals that the consumer desires. He suggests two lines Zappetites and Lunchables.
3) Stanger suggests the company continues on its path of working on the core of Oscar Meyer to improve its quality. He believes that if the company cuts