Ken Davis Products, Inc
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Transcript of Ken Davis Products, Inc
Cesar Del RosarioPei Li
Brittany McCartanCASE D-15: KEN DAVIS PRODUCTS, INC.
"Hey, Baby, I'm Ken Davis."
CASE D-15: KEN DAVIS PRODUCTS, INC.
About Ken Davis Products, Inc.
• Opened a restaurant in the 1960’s in Minneapolis, MN
• Great barbecue sauce originated by his grandmother.
• No Recipe• Minnesota’s favorite barbecue sauce.• Barbara Jo Davis now runs the company.
CASE D-15: KEN DAVIS PRODUCTS, INC.
CASE D-15: KEN DAVIS PRODUCTS, INC.Corporations are used only for educational purposes.
Competitors• Kraft
– A.1. Steak Sauce– Bull’s Eye: Kansas City, Memphis, Texas, Carolina
• Heinz – Jack Daniels Barbecue Sauce– Heinz Original
• HV Food Products Co. – KC Masterpiece: Hickory Brown Sugar, Honey, Hot N’
Spicy, Mesquite, Original, Smoky Bourbon, Southern Style, Sweet & Tangy
CASE D-15: KEN DAVIS PRODUCTS, INC.
• Northfield, Illinois • 2010 Net Earnings: $4.139 Billion • Operations in 75 countries• Sales in 170 countries• 127,000 employees • 15 research and development centers
CASE D-15: KEN DAVIS PRODUCTS, INC.Information provided by www.kraftfoodscompany.com
CASE D-15: KEN DAVIS PRODUCTS, INC.
• Sharpsburg, Pennsylvania• $10.7 billion in Sales• 35,000 employees • Products in over 50 countries• 650 million bottles of Heinz Ketchup sold
every year.
CASE D-15: KEN DAVIS PRODUCTS, INC.Information provided by www.heinz.com
Heinz Brand Map
CASE D-15: KEN DAVIS PRODUCTS, INC.Information provided by www.heinz.com
SWOT Analysis
CASE D-15: KEN DAVIS PRODUCTS, INC.
Strengths
• Taste• Personalized• Regional • Experience
CASE D-15: KEN DAVIS PRODUCTS, INC.
Weaknesses
• Margins – Getting into local
supermarkets
• Uncompetitive Pricing• Advertising
CASE D-15: KEN DAVIS PRODUCTS, INC.
Taken 3/16/2012 at Met Foods 84-05 Parsons Blvd.Jamaica, NY 11432
CASE D-15: KEN DAVIS PRODUCTS, INC.
Margin• Food Brokers 2.5%-3.5%
– Higher demands if products are slower moving– Higher Margins during off season
• Not found on local grocery food shelves• Grocery stores buy from large Food Distributors
– Supervalu– C&S Wholesale Grocers– C.H. Robinson
CASE D-15: KEN DAVIS PRODUCTS, INC.
Uncompetitive PricingProduct Price ($) Ounces Price per Ounce
KEN DAVIS PRODUCTS, INC
Ken Davis Original $ 5.99 18.5 $ 0.32 product website
Ken Davis 2 Carbs Classic $ 5.99 17.5 $ 0.34 product website
Ken Davis Sweet & Sassy $ 5.99 18.0 $ 0.33 product website
KRAFT A1 Original $ 6.39 15.0 $ 0.43 Key Foods
A1 Zesty Steak Sauce $ 7.49 10.0 $ 0.75 www.amazon.comBulls Eye $ 2.39 18.0 $ 0.13 Key FoodsKraft Original $ 1.99 18.0 $ 0.11 Key Foods
HEINZJack Daniels Original No. 7 $ 2.49 19.0 $ 0.13 Key FoodsHeinz Original Barbecue Sauce n/a n/a n/a
OTHERSKC Masterpiece $ 2.29 18.0 $ 0.13 Key FoodsSweet Baby Rays $ 2.59 18.0 $ 0.14 Key Foods
CASE D-15: KEN DAVIS PRODUCTS, INC.
Why the Uncompetitive Pricing?
CASE D-15: KEN DAVIS PRODUCTS, INC.
• Base: – Bull’s Eye– Kraft– Heinz
• Premium: – Jack Daniels– KC Masterpiece, – Sweet Baby Ray’s
• Super Premium: – A1– Ken Davis (The Ferrari of Barbecue sauce that YOU can afford).
CASE D-15: KEN DAVIS PRODUCTS, INC.
Advertising (Weakness)
• Door-to-door• Word of Mouth*• In-Store Sampling
– Costco
• Meeting Customers• Parties • http://www.youtube.com/watch?
v=rWUpdI45pK0
CASE D-15: KEN DAVIS PRODUCTS, INC.
Opportunities
• Put into local diners, barbecues, waffle-houses, restaurants
• There is a large market in New York City• Very little true competition between Super
Premium Brands.
CASE D-15: KEN DAVIS PRODUCTS, INC.
Threats
• Kraft and Heinz unlimited resources and funding.
• Pricing• Nationwide Company vs. Regional• New York Diverse Population• Advertising Costs
CASE D-15: KEN DAVIS PRODUCTS, INC.
CASE D-15: KEN DAVIS PRODUCTS, INC.Corporations are used only for educational purposes.
Which do you prefer?
Corporations are used only for educational purposes.CASE D-15: KEN DAVIS PRODUCTS, INC.
Which do you prefer?
CASE D-15: KEN DAVIS PRODUCTS, INC.Corporations are used only for educational purposes.
Which do you prefer?
Consumer Purchase Decision Process and Experience
CASE D-15: KEN DAVIS PRODUCTS, INC.
CASE D-15: KEN DAVIS PRODUCTS, INC.
PROBLEM RECOGNITION/INFORMATION SEARCH
CASE D-15: KEN DAVIS PRODUCTS, INC.
“the best way to get people hooked is to put the product in their mouths,” – Ken Davis
ALTERNATIVE EVALUATION
CASE D-15: KEN DAVIS PRODUCTS, INC.
Why Choose Ken Davis Products?
• Healthier Choices• Personalized Products for Consumers• New York City
– Niche Marketing – Guerrilla Marketing
• Super Premium Brand
CASE D-15: KEN DAVIS PRODUCTS, INC.
Healthier ChoicesProduct Calories per 15ml Fat per 15ml Protein per 15ml Carbohydrates
per 15ml
Ken Davis Original 15 0g 0g 3.5g
Ken Davis 2 Carbs Classic 5 0g 0g 1g
Ken Davis Sweet & Sassy 10 0g 0g 2.5g
A1 Original 30 0g 0.3g 7.6g
A1 Zesty Steak Sauce 12 0g 0.2g 2.6g
Bulls Eye 20 0g 0g 5g
Kraft Original 30 0g 0g 7g
Jack Daniels Original No. 7 23 0g 0g 5g
Heinz Original Barbecue Sauce 21 0g 0g 5g
KC Masterpiece 30 0g 0g 6g
CASE D-15: KEN DAVIS PRODUCTS, INC.
Nutrition Facts derived from www.dietfacts.com and www.myfitnesspal.com
Ken always said that his competitors spent money on advertising, but his money went back into the product,
which used only the very finest ingredients.
ALTERNATIVE EVALUATION
CASE D-15: KEN DAVIS PRODUCTS, INC.
Personalization
• Regional Company• Minnesota’s Favorite Barbecue Sauce• You, as the consumer are the most important
factor to our success.
CASE D-15: KEN DAVIS PRODUCTS, INC.
New York CityCASE D-15: KEN DAVIS PRODUCTS, INC.
Americas West Indies/Caribbean African European Asia
American Haitian African-American Albanian Afghan
Colombian Jamaican Creole Czech Arab
Dominican West African Georgian Bangladeshi
Ecuadorian German Chinese
Guayanese Greek Filipino
Mexican Hungarian Indian
Puerto Rican Irish Pakistani
Trinidadian Italian Russian
Kosher Uzbek
Polish
Romanian
Ukranian
Types of Delicacies Found
CASE D-15: KEN DAVIS PRODUCTS, INC.
Delicacies are based on research done through wikipedia.org
• Population: 8,175,133– White: 2,722,904– Black: 1,861,295– American Indian/Alaskan: 17,427– Asian: 1,028,119– Native Hawaiian/Other Pacific Islander: 2,795– Some Other Race: 57,841– Two or More Races: 148,676– Hispanic or Latino: 2,336,076
CASE D-15: KEN DAVIS PRODUCTS, INC.Data is based on US Census Bureau 2010
CASE D-15: KEN DAVIS PRODUCTS, INC.
Data is based on US Census Bureau 2010
CASE D-15: KEN DAVIS PRODUCTS, INC.
NYC vs. Top 10 Cities by PopulationNew York Top 10 Cities
White 33.31% Phoenix 46.52%
Black 22.77% Philadelphia 42.22%
American Indian/Alaskan 0.21% Phoenix 1.61%
Asian 12.58% San Jose 31.72%
Native Hawaiian/Other Pacific Islander
0.03% San Diego 0.40%
Some Other Race Alone 0.71% Los Angeles 0.32%
Persons reporting two or more races
1.82% San Diego 3.28%
Hispanic or Latino 28.58% San Antonio 63.20%
CASE D-15: KEN DAVIS PRODUCTS, INC.
Data is based on US Census Bureau 2010.
Top Zagat Foods in Top 10 Cities
• San Antonio: Tex-Mex, American, Tapas, Steakhouse
• San Jose: Japanese Steakhouse, Indian, Teppanyaki.
• Phoenix: Southwestern, Mexican, American, New Mexican
• Philadelphia: Southern, Soul, Tapas, South Philly, Steakhouse
Research was based upon a general search of 10 miles within the epicenter of the city on the Zagat website. It was filtered through percentage of customer likeness.
CASE D-15: KEN DAVIS PRODUCTS, INC.
CASE D-15: KEN DAVIS PRODUCTS, INC.
Niche Marketing
CASE D-15: KEN DAVIS PRODUCTS, INC.
Guerrilla Marketing
CASE D-15: KEN DAVIS PRODUCTS, INC.
• Base: – Bull’s Eye– Kraft– Heinz
• Premium: – Jack Daniels– KC Masterpiece, – Sweet Baby Ray’s
• Super Premium: – A1– Ken Davis (The Ferrari of Barbecue sauce that YOU can afford).
CASE D-15: KEN DAVIS PRODUCTS, INC.
Recommendations
• Differentiation (More Choices to Consumer)– Will help increase sales– Cheaper Product– It will increase R&D but can help with future profits.
• Increase Advertising• Restaurant Marketing• Know the target consumer• Local Marketing
CASE D-15: KEN DAVIS PRODUCTS, INC.
Mock up coupon. Does not work.
PURCHASE DECISION/POSTPURCHASE BEHAVIOR
CASE D-15: KEN DAVIS PRODUCTS, INC.
Advertising (Solutions)
• Instead of door-to-door• More Actual Advertising ie: Billboards,
Television, Paper Advertising, Social Networking.
• In-store coupons• NYC: Advertise to many local restaurants and
hopefully some restaurant giants. • More in-store sampling
CASE D-15: KEN DAVIS PRODUCTS, INC.
If you have any questions, please do not hesitate to ask. There is a survey passed out. Please take the time to fill it out. It will help us complete our research.
CASE D-15: KEN DAVIS PRODUCTS, INC.
Case D-15Cesar Del Rosario
Pei LiBrittany McCartan
CASE D-15: KEN DAVIS PRODUCTS, INC.