Pharmacia & Upjohn Case Study

Kayem Foods, Inc. Case Study Kayem Foods, Inc roll Marketing Al fresco squawker Sausage STRATEGIC ISSUES AND PROBLEMS Matt Monkiewicz is the director of selling for Kayem Foods, Inc.. Mr. Monkiewicz was put chthonic pressure to decide whether or not to us a bombilate marketing plan for their Al Fresco weakly interacting massive particle blimp brand, which would be chain reactored as part of their advertising beseech for 2006. The Al Fresco chicken sausage brand was competent to capture a heavy(p) sight of their tush market, making them the number-one brand in its station market.The dilemma that Monkiewicz faces is whether or not the cast up in sales were discover-of-pocket to the buzz marketing campaign they implemented the former yr or if other advertising and promotional campaigns were the sole terra firma for the increase in sales. In order to make a decision, Monkiewicz mustiness analyze every last(predicate) separate of the advertising and promotional c ampaigns that they contain previously theatrical roled and decide which of these campaigns genuinely contributed to the sales increase and which campaigns didnt. KAYEM FOODS, INC. Kayem Foods, Inc. as been around for al just about a vitamin C years and is located in Chelsea, Massach exampletts. The company has historically made its hatful from selling fresh delicatessen meats, het 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 reapings that were change under several brand names, with the majority of the meat products being that of hot dogs. They move over several brand names for which their products are sold and the most well-k flatn brand is Kayem.There has been a continually rising market for sausage. breakfast sausage has increased 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 w ay to capture this rapidly ripening market. Kayem Foods director of marketing, Matt Monkiewicz, feels that in order to adequately capture a significant portion of the market they must be willing to believe outside the box and mayhap implement non-traditional styles of advertising. bombilate marketing does precisely what Mr.Mankiewicz is looking for in his advertising campaign, which that they have used in the previous year and it has made them the number one-selling brand of chicken sausage, however, not all of the sales force at Kayem believes this increase in sales were due to bombination marketing. Although Kayem has been able to substantially increase the sales of Al Fresco, they unagitated have a lot of concerns pertaining to their profit margins. In the recent years supermarkets have been able to gain industry power, when it comes to dealing with manufacturers that supply them with products.The supermarkets now demand larger discounts and coupons for their customers. Ther e is in like manner a force guardianship prices down due to the tense competition within the industry. In the last(prenominal) two years Kayems private label activity has been operate at break-even and co-packs have been operating below break-even. Obviously Kayem is in line of merchandise to make money and not operate at break-even. They must use an aggressive advertising technique to get their profit margin backbone up. INSIGHTS TO BUZZ MARKETING You can sum up the definition of thrum marketing in just 3 intelligence services, word of mouth. Many companies have found this advertising approach to be very profitable and challenge to their bottom line. In todays market, especially due to the fancy up of fond networking, many companies depend on their current customers to help mete out the word of their products. Buzz marketing helps companies build brand loyalty and sense by building a personal relationship with their consumers. Many measure consumers can be more easily persuaded towards purchasing a product when it is recommended from someone they bang or trust and Buzz marketing does on the nose that.Kayem Foods, Inc. previously used a company called Bzz agentive role to implement their Buzz marketing campaign. Bzz Agent currently had 60,000 agents and these agents volunteered to try the products and thus would use word of mouth techniques to get these products in the hands of their friends, acquaintances, and possibly strangers. Most of the Buzz agents actually enjoyed testing new products and then talking about them to their friends, they snarl some type of satisfaction for being one of the firsts to discover the product.Bzz Agent alike found that most of their agents advertised their products in all of the social networking settings, which also 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 ACTION Mr. Mo nkiewicz must decide on which advertising campaign Al Fresco will use for next year. He must decide if they will usual traditional advertising like television, radio, magazines, and billboards.Another preference for his campaign could be Buzz marketing, which if he decided to use he must develop a better 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 simply been granted a marketing cypher 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 prefer the more expensive advertising options like television.What he felt sequester options for his advertising campaign were Buzz marketing, magazines, and price-off coupons. Based off of the chart above, make b etter Homes and Gardens magazine will also not be an option. He is left wing with Buzz marketing, trade marketing, food and wine magazine, cooking light magazine, and price-off coupons. RECOMMENDED AL FRESCO MARKETING STRATEGY The efficiency of buzz marketing is undeniable, acuate social networks and building personal relationships with consumers. With that being said, Matt Monkiewicz should choose to implement the Buzz marketing strategy for their advertising campaign.It is also a sporty option that has multiple benefits. In order to track the success of their Buzz marketing campaign he will just simply conduct his Bzz agents to have the people they reach out to, for their product, fill out an online behold. This survey will ask questions like will they poke out 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 Trade marketing, wi th the junto of these two approaches he will surely 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 expand their portion of the pit 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 thing 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 number one selling product of ch icken sausages was because of unalterable 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 see how effective their Buzz marketing campaign was.Distribution Strategy The current distribution strategy implemented by Al Fresco has proven to be successful so they should continue to use the same strategy, If its not broken, dont mares nest it. Advertising 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 efficaciously 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.