A1 Steak

A1-Steak Sauce Lawrys Defense Problem Statement A1 Steak Sauce is a brand of Kraft Foods with little competition in the steak act market. The point of intersection currently has the majority dollar and volume market piece of grounds in the steak sauce market. However, unit and volume sales have remained flat. Lawrys, which is owned by Unilever, has announced an April initiative launch of its own steak sauce. Lawrys has approached Publix and requesting the Memorial Day ad with a 2-for-$5 price. Now Publix is telling A1 to either match Lawrys ad or lose its place.Target markets * The target market for A1 steak sauce consists of educated adults with in the United States who purchase groceries in mass merchandise stores. Since A1 is a premier steak sauce produce and our price is considered inelastic due to its high quality, the average household income consists of households with a median income of $60,000. The target market is those men and woman who not only enthrall beef, but en joy the process of broiling and cooking while adding condiments to their meal.A1 has established a loyal consumer base that prefers quality, they make more than the average household income and their midpoint of choice is often steak. Product strategy * Branding / product line * The current lines of A1 products consist of Bold & Spicy, Thick & Hearty, Smokey Mesquite and Original. * The steak sauce industry is dead(prenominal) and due to the maturity of this product the steak sauce industry must expanded to a potential new market. ( However A1s RMS = 3. 75) * By focusing our help on market penetration of the steak sauce we can persuade our loyal consumer base that there is more than one benefit of the steak sauce and that it can be utilized with other meat product thus equating to more purchases. * Product positioning statement * A1 Sauce controls 50 percent of the market share for a reason they provide a high quality flavor to all steak and meat products which cannot be replicat ed by Heinz, Lawrys or private labels. * motto You deserve the best. Promotion Strategy Advertising 16 Million Budget Process of allocating prices to combat competition such as Lawrys while at the same time growing the steak sauce market itself. * Utilizing a Pulsing advertisement plan where advertisements are shown throughout the year but at very low levels, past boasting the majority of the advertising budget during the summer months when grilling is at its peak. * Lawrys stating that it is planning to spend 20 million on advertising, concentrated in the months of May June and July (pg. 5) would be completely over shadowed if A1 were to shift to a pulsing marketing strategy rather than a continuous. Strategy Using a humor appeal, and a testimonial appeal from professional grillers that express theres no comparison when you want to add the best flavor to your meats. * television receiver * Advantages It reaches a large target audience, and engages consumers with visual effec ts. * Since we are following the pulsing strategy in terms of advertising we want to concentrate most of our television exposure in the summer months, while significantly limiting the television ads throughout the rest of the year. TV provides visuals, and ads should concentrate on barbeque scenic grilling events, full of friends and family. Primarily showed during the summer grilling months. * TV 12Mil * Magazines * Advertisements in Magazines much like television can be catered to a specific audience. Focusing on common magazine such as Sports Illustrated, ESPN, TIME and FORBES to name a few can garner a lot of the grilling demographic who ordain be interested in purchasing A1 sauce. * Magazines also provide long-term ad exposure seeing as they can be view sporadically throughout the year. Advertisements Should focus on family grilling events, A1 predominately on the picnic table surrounded by all different meats including chicken, steak, beef to emphasize that A1 is a habitual product. * Magazines 2 Mil * Internet * Utilize Search Engine Optimization to increase traffic towards the main A1 website. * Become more interactive with the consumer on their website shopwindow the diverse ways to utilize A1 sauce on different meat products. * Lawrys Live provides the hottest grilling trends. (pg. 5) * Internet/Online 2 MilConsumer Promotions 5. 5 Million * Sweepstakes pass water a way for consumers to become more interactive with the product by creating a sweepstakes to get an entire meal catered by A1, or free A1 sauce for a portion of time. * FSIs (Free Standing Inserts) An FSI is an advertisement within a group of Ads within a print publication (Mass merchant Coupons) Utilize these during the prime grilling months such as Labor Day and Fourth of July. (2mil) (1mil each) * Consumer Promotions 6 Mil Trade Promotion 23 Million Utilizing dapple of sale displays in checkout lines will prompt consumers to purchase steak sauce. * Acquire higher amount of shelf sp ace to distinguish itself away from the competition, this can be done by utilizing promotional allowances to create discounts. * Maintain the Publix ad by matching Lawrys 2 for 5 dollar deal during Memorial Day. seemingly Publix will choose A1s ad over that of Lawrys due to their close business relationship. * Trade Promotions 23 Mil Distribution * Continue proviso of A1 sauce to all restaurants to carry on the 9 to 10 ratio. Continue utilizing intensive distribution within all mass merchandisers and grocery stores within the US maintain the ease of purchase by consumers. (They should never feel like they cant locate the product) Pricing * 4. 99 per 10oz bottle. * Utilizing a pricing order on what the competition does specifically Lawrys. * Using this competition oriented pricing strategy to benchmark A1 sauce is no good, maintain price above the competition. * Lawrys is set to rival A1 sauce yet it is below market standards in price, this should not play a significant factor in purchasers decision due to high brand loyalty of the A1 sauce product.