Report: Evaluating Oscar Mayer's Marketing Strategy and Plan

This report analyzes the marketing strategy and plan for Oscar Mayer, addressing competitive pressures and consumer trends. The report begins by highlighting the increased competition and the need for Oscar Mayer to adapt to changes in the market. It suggests that Oscar Mayer leverage its brand image and invest in research and development to create healthier and more convenient products, and to align its product offerings with consumer preferences. The report then delves into the considerations for selecting the best courses of action, emphasizing nutrition and convenience. The recommended strategies include strengthening the Louis Rich product line through increased brand awareness and new product development, and the acquisition of Turkey Time Ltd to meet convenience needs. Alternatively, the report suggests focusing on red meat products by reducing prices and developing low-fat variants, and then implementing strategies to grow the Oscar Mayer brand while ensuring that red and white meat product lines complement each other. The report stresses the importance of adapting to changing consumer preferences and maintaining a strong brand presence in a competitive market. The report makes recommendations on how Oscar Mayer can maintain its market position and improve its profit margins.

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Marketing Strategy and Plan
Name
Institutional Affiliation
Date

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Question 1
It is evident that the current level of competition is higher than it was a few years back.
The market is now consolidated and comprised of companies with sophisticated marketing tools
focused on value-added branding. As you know, the competition now has stronger financial
positions as a result of acquisitions in the industry, especially of old-time companies. With these
multi-billion dollar competitors such asConAgra, Hormel and Sara Lee eating away at Oscar
Mayer’s market share and subsequently its profit, I believe that the division must formulate
strategies to keep up with changing competitive environment. The division is however not short
of competitive advantages. You should leverage and use your established brand image as a
market leader to your benefit. This is prudent to avoid suffering the same fate as many of the
other old-time companies in the industry which ended up being closed or bought out.
After analyzingthe competitor’s strengths and weaknesses, I suggest that Oscar Mayer
should come up with an investment decision that tackles the emerging consumer trends. The
possible decisionsthat I envision include investing in R&D to develop healthier red meat brands,
convenience products and advertising focused on consumer preferences. Through alignment of
products to consumer trends and an aggressive promotion campaign, Oscar Mayer will be able to
maintain its position as a market leader and boost its profit margin.
Question 2
In order to select the best courses of action, I took a number of considerations into
account. I especially focused on consumer trends highlighted in the McTiernan report. The best
courses of action must hence be geared towards nutrition and convenience.Althoughthe

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suggestions forwarded by the management team are all viable courses of action, the best option
will be one that takes into consideration Oscar Mayers’ core strengths, weaknesses,
opportunities, and threats.
Considering all the concerns raised and possible strategic actions suggested by
McTiernan and the three managers, I believe the best course of action will be to strengthen the
Louis Rich product line by boosting its brand awareness and introducing new and related
products developed by the R&D team. The division should pursue a course that is geared toward
the future of the meat products industry. By boosting the brand’s Advertisement and Promotion
budget, the division will be able to acquire a larger market share and increase its sales thus
setting up Oscar Mayer for another decade. This strategy will further be reinforcedby acquiring
Turkey Time Ltd which through their ready-made frozen sandwiches line, will help cater for
yourconvenience concern. Furthermore, as recent financial results show, red meat has had a
7.28% decrease in sales over the last five years, white meat sales have grown by 33.73% in the
same period. Although this strategy will negatively impact the company short term profits, it will
provide long term growth for the division.
Alternatively, I recommend the divisionn to go back to basics and focus on its red meat
products. By slicing the price per package by 10% and developing low fat and salt red meat
variants, Oscar Mayer will be able to acquire back its market share and improve the performance
of its main brand. After rebuilding the brand, I suggest that the division follow Longstreet’s
opinion of ‘Zappetites’ so as to grow the Oscar Mayer brand. While implementing these
strategies, it is important for you to note that the red meat line should be complimentary to the
white meat product line. Since products lines should not place anegative light on each other, I
would strongly suggest against Goodman’s ‘Switch to Rich’ slogan.

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