Kayem foods, inc. buzz marketing
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Transcript of Kayem foods, inc. buzz marketing
FERRY | FRISCA | DWI | GITA Group FGD
Kayem Foods, Inc
Buzz Marketing
Al Fresco Chicken Sausage
Magister Manajemen Universitas Indonesia
Strategic Management
Kayem Foods, Inc., was a medium-sized, privately held, and family-controlled meat processing company located in
Chelsea, Massachusetts for almost 100 years
background
The company sold its products primarily through supermarkets and other retail
food stores, mostly in Northeast.
Kayem’s products were sold under several different brand names
The marketing strategy had been to focus its product offerings on high
quality hot dogs and fresh delicatessen meats.
Product
Brands Detail Product
Kayem Hot dogs, bologna, bratwurst, salami, ham, turkey, roast beer
Genoa Fresh pork sausage, salami
McKenzie Bacon, ham, roast beef
MeisterChef Hot dogs
Schonland Hot dogs, link sausage
Triple M Whole hams, roast beef
AlFreco Gourmet chicken sausage
Co-Pack Product made for other branded processors
Private Label Product made for supermarket private label
Re-Sale Product of other manufacturers, distibuted by Kayem
Al Fresco Key Issue
Product
Positioning
Premium Price
1|
2|
3|
Variety of Kayem’ product | “small but fast-growing”
fully cooked chicken sausage as a convenient, all natural, low carbohydrate, low fat main meal entrée
Al Fresco $4.49 per 12 ounces (at retail), $3.58 per pound (at factory) with $1.60 per pound contribution margin.
Problem Identifications
How to promote the brand on a small buget, but still impacted to target market?
Target Market 1|
a) Demographic : - 25-54 years old woman who was concious of health
and liked gourmet foods and tended to be very interested in foods and food preparation.
b) Geographic The resident in Northeast, Mideast, Southeast, California and Florida
Consumer Behavior 2| Q1: What were the most important factors behind Starbucks’ success?
Residents in South ate the most
sausage, following by those living in
the Northeast
Sausage sales varied seasonally with
approximately one-third of all dinner
sausage sold during the three summer
months.
Breakfast sausage sales peaked during the
holiday season
(Nov – Jan).
People have desire for variety in the menu, and in some cases they serve sausage products that were lower in fat content.
Consumers had used sausage as a staple at all three meals for many years, as a main entrée or as a complement to other center-plate dishes
Those who
purchased sausage, the average
expenditure was $16,95 annually per
family.
3 | Competitors
Company Value per year Media of Advertising
Hillshire Farms $ 29 million Mostly on television
Johnsonville $ 13 million $ 8 million on television
$ 3,5 million on radio
Emerill $ 1 million mostly in magazines
Aidell $200,000 magazine campaign
Marketing Activities 4|
• Special sales promotions
• Low budget ads in magazines
• Low budget TV ads
• Marketing budget for AlFresco in 2004 : $ 90.000
• Buzz Marketing
Buzz Marketing 5|
• WOM Campaign
• Utilizes volunteers (Buzz Agents) to talk about product experiences
• Buzz Agent were not paid, but received points towards different products and could try ‘buzz; products for free.
• Campaign Cost :
$ 47.000
(52.2% of 2004
marketing budget)
Company’Action
Kayem obtained an increased marketing budget of $ 185.000, but only had two weeks to decide the best
option of marketing methods.
SWOT Analysis
1. Already established (almost 100 years of experience).
2. Wide variety of products. 3. Many different brands under the company. 4. Established distribution channel. 5. Expanded growth into other markets and
territories.
1. Unavailable at some supermarkets. 2. Lack of awareness among consumers for
some of its products. 3. Lack of advertising and promotion. 4. Low profit margins. 5. Large amount of money spent on
promotional allowance and discounts with supermarkets.
1. Capitalize on the growth of organic and grain-fed products.
2. Growth of consumer base demanding vegetarian sausage choices.
1. Established competition with larger advertising budgets.
2. Consumer lifestyles shift to healthier living and may not see sausage as a healthy product.
1. Invest in Supermarket Trade Ads.
(Cost : $ 80.000)
OPTION for ALTERNATIVES
PRO(S) CON(S)
• Reach required target market which are supermarket executives and buyers
• Convince decision makers by telling them about the brand’s sales and profit potential.
• It’s costly. The allocation budget may not be enough.
2. Implement another Buzz Marketing.
(Cost : $72,000 to $75,000)
OPTION for ALTERNATIVES
PRO(S) CON(S)
• More credible for creating demand than other media ads.
• Low cost than other traditional methods.
• Lack of support from retail store managers may hinder ability to sustain growth.
• Lack of support from sales executives could ruin sales force moral, feeling as though they are unsupported in their efforts.
• Uncertainty over ethical nature of buzz marketing.
• Potentially to negative publicity.
3. Magazine Ads (Cost : $ 32,000)
OPTION for ALTERNATIVES
PRO(S) CON(S)
• Wide exposure.
• Sustain and built specific demand.
• Influence supermarket executives by creating demand
• Costly for full page ads.
• It’s beyond the brand could support
• Discontinue Buzz Marketing.
Since it’s insulted criticsm in public press about ethic in-appropriate.
• Improve its distribution channel in order to ensure the product’ availability.
• Use the data result from BuzzMarketing as a raw data for implementing CRM.
• Invest in IMC (Integrated Marketing Communication)
Recommendation Picked
•How To Video •Recipes from Chef •Recipes from Customer •Nutrional Info •Coupons •Comment and Review
ThankYou