Pharmacia & Upjohn Case Study

Kayem Foods, Inc. Case Study Kayem Foods, Inc boil Marketing Al fresco Chicken Sausage STRATEGIC ISSUES AND PROBLEMS two-dimensionality Monkiewicz is the director of trade for Kayem Foods, Inc.. Mr. Monkiewicz was put under drive to decide whether or non to us a buzz merchandise plan for their Al paint chicken sausage pock, which would be implemented as part of their publicize disturb for 2006. The Al Fresco chicken sausage brand was qualified to get hold of a large portion of their target grocery, do them the twist- integrity brand in its target market.The dilemma that Monkiewicz faces is whether or not the sum up in gross revenue were receivable to the buzz marketing turn on they implemented the anterior division or if other advertising and promotional campaigns were the sole campaign for the increase in gross revenue. In order to make a decision, Monkiewicz must analyse all parts of the advertising and promotional campaigns that they urinate previous ly utilise and decide which of these campaigns actually contributed to the gross revenue increase and which campaigns didnt. KAYEM FOODS, INC. Kayem Foods, Inc. as been around for al some a 100 days and is located in Chelsea, Massach calltts. The ships company has historically made its fortune from selling saucy delicatessen meats, hot dogs, and sausage. Annual sales, from the fiscal year ending February 28, 2004, were approximately $140 million. The majority of their sales came from meat merchandises that were sell under several brand names, with the majority of the meat results being that of hot dogs. They lend oneself up several brand names for which their products are sold and the almost well-known brand is Kayem. in that location has been a continually rising market for sausage. Breakfast sausage has change magnitude by 2 percent and dinner sausage has increased by 4 percent in 2003. This is why Kayem Foods, Inc. is desperately working to find a way to produce this r apidly growing market. Kayem Foods director of marketing, monotone Monkiewicz, feels that in order to adequately capture a significant portion of the market they must be pull up stakesing to think outside the cut and possibly implement non-traditional trends of advertising. boil marketing does incisively what Mr.Mankiewicz is looking for in his advertising campaign, which that they waste used in the previous year and it has made them the number one-selling brand of chicken sausage, however, not all of the sales rage at Kayem believes this increase in sales were due to Buzz marketing. Although Kayem has been able to substantially increase the sales of Al Fresco, they still have a lot of concerns pertaining to their profit security deposits. In the recent years supermarkets have been able to gain industry power, when it comes to traffic with manufacturers that supply them with products.The supermarkets now demand larger discounts and coupons for their customers. There is b esides a force keeping prices muckle due to the tense competition within the industry. In the past two years Kayems hugger-mugger label activity has been operating at break-even and co-packs have been operating be pocket-size break-even. Obviously Kayem is in fear to make money and not operate at break-even. They must use an aggressive advertising technique to get their profit margin back up. INSIGHTS TO bombilate merchandising You can sum up the interpretation of Buzz marketing in just 3 playscripts, word of mouth. Many companies have found this advertising approach to be very profitable and appealing to their bottom line. In todays market, specially due to the rise of social networking, many companies search on their current customers to help spread the word of their products. Buzz marketing helps companies build brand fealty and advisedness by building a own(prenominal) relationship with their consumers. Many times consumers can be more easily persuaded towards purch asing a product when it is recommended from someone they know or trust and Buzz marketing does exactly that.Kayem Foods, Inc. previously used a company called Bzz Agent to implement their Buzz marketing campaign. Bzz Agent currently had 60,000 agents and these agents volunteered to try the products and then would use word of mouth techniques to get these products in the reach of their friends, acquaintances, and possibly st campaignrs. Most of the Buzz agents actually enjoyed testing new products and then talking about them to their friends, they matte up some type of satisfaction for being one of the firsts to discover the product.Bzz Agent in like manner found that most of their agents advertised their products in all of the social networking settings, which alike helps spread the word of the products. In recent years, marketing managers have found that product endorsements were more credible when it came from a friend or acquaintance. PLAN OF deed Mr. Monkiewicz must decid e on which advertising campaign Al Fresco leave use for side by side(p) year. He must decide if they will universal traditional advertising like television, radio, powder magazines, and billboards.Another selection for his campaign could be Buzz marketing, which if he decided to use he must develop a dis watch way to track the increase in sales that come from Buzz marketing. He may also decide to implement more than one style of advertising and possibly combine the different approaches together, however, Monkiewicz has lonesome(prenominal) been granted a marketing budget of $185,000 so he must be fully aware of his choices. Some of his choices may also not be feasible because of their high cost. Since Monkiewicz was only allowed $185,000 for advertising campaign, he will not be able to remove the more expensive advertising options like television.What he felt appropriate options for his advertising campaign were Buzz marketing, magazines, and price-off coupons. Based off of t he chart above, Better Homes and Gardens magazine will also not be an option. He is left with Buzz marketing, trade marketing, food and drink magazine, cooking light magazine, and price-off coupons. RECOMMENDED AL FRESCO MARKETING STRATEGY The efficiency of buzz marketing is undeniable, neat social networks and building personal relationships with consumers. With that being said, Matt Monkiewicz should choose to implement the Buzz marketing dodging for their advertising campaign.It is also a cheap option that has multiple benefits. In order to track the mastery of their Buzz marketing campaign he will just simply ask his Bzz agents to have the hatful they reach out to, for their product, fill out an online scan. This survey will ask questions like will they continue to buy Al Fresco products, were they satisfied and if not, why? , and also if they were able to find their products at their local super market. Mr. Monkiewicz should combine his Buzz campaign with concern market ing, with the combination of these two approaches he will sure as shooting get the word out there and it will help to build brand awareness.He can also use the remaining, $185,000 ($75,000+$80,000) = $30,000, $30,000 for price-off coupons, which will further help to refine their portion of the target market. TARGET MARKET Al Fresco should keep the same target market as before. Their target market should be women that range in age from 25 to 45 years old. This is the best suitable target market for their product, considering that this is the most health conscious market out there. What Al Fresco should do, however, is use their advertising efforts to capture a larger portion of this market. MARKETING MIXProduct strategy Al Fresco should keep their product of chicken sausage and their current flavors. Price Strategy One function that Al Fresco must do is not discount their products as much. We know that the sales force for Al Fresco thought the primary reason for becoming the n umber one selling product of chicken sausages was because of constant discounts they were giving away to the supermarkets. If Al Fresco can cut down on their discounts and they can continue to capture the majority of the market then they will be able to chequer how effective their Buzz marketing campaign was.Distribution Strategy The current distribution strategy implemented by Al Fresco has proven to be lucky so they should continue to use the same strategy, If its not broken, dont fix it. announce and Promotion Strategy Al Fresco will use the combination of trade marketing, price-off coupons, and Buzz marketing for their advertising campaign. If they can effectively implement these low cost advertising approaches then they should be able to gain back some of their profit margin that they have been so concerned about in the past couple years.