Oscar Mayer Essay -- essays research papers

ProblemOne of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the theater directors are promising him . His goal is to obtain a 15% increase in the operating income from his grade (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income. If McGraw were to apply his A&P budget the same as last years, he would save $32MM over the managers projections. thitherfore, one solution could be to effectively habit the strengths of the product lines and the A&P dollars by consolidating his sub-divisions.AnalysisComparing the contributions and cost of the three product lines OM, LR and NP as a per centumage of the broad(a) divisions numbers for the three years can spread a detailed picture on the successes and failures of each sub-division, their strengths and weaknesses. This exercise lets us determine what perce nt of the divisions A&P budget is dedicated to Oscar Mayer vs. what percent of the divisions operating income comes from OM vs. LR. Louis Rich Brand Strengths are growing market segment, wellness conscious segment contributing to the rise in the operating income exponentially. However, a 33% of divisions advertising and promotional budget is beingness consumed for a 24% of total revenue or 14% of divisions operating income. While contribution to operating income is exponential, it is still less(prenominal) than 1/4th of the total divisions operating income. Oscar Mayer BrandOscar Mayer blade has been real over 100 years. It has a strong smear name, brand impartiality associated with it. It has established marketing and distribution channels. The numbers surface a surrender in the operating income of 18% over 3 years in part this may be due to a decrease in percentage of divisions A&P expenses directed towards OM brand. There is a question as to whether LR brand is cannibalizi ng OM brand.New Product press n Burger numbers shows that a proportionately large spending on A&P is still generating no operating income. It is in the red. This points start the difficulty and expense involved in developing new brand or products.One of the key questions to ask is if the Louis Rich Brand is consume away into the Oscar Mayers market share? The two tables below show a decrease in the Oscar ... ...eat Oscar Mayer products. The tag line can guess Oscar Mayer oblation choice and variety, fun and relaxation.Extend Product lineThis would quest the company to reposition Louis Rich brand under Oscar Mayer Brand, without loosing its target audience, the wellness conscious group. (Both division can leverage off of the well reputed brand name Oscar Mayer.)Introduce repackaging, ready to eat lunches including red and white means variation. The focus here would be convenience for working people and sweet for kids.Pricing StrategyRunning a sales promotion offering two for one package deals. Can sell white philia products via vending machines at health clubs and give free Samples to women.Cutting monetary value of Oscar Mayer products in order to gain more market share and rifle more in line with the market competition. Products from Oscar Mayer and Louis Rich under the Oscar Mayer umbrella would need to be priced competitively with products from Smithfield, Ball Park, Hillshire Farms, Butchers, Tyson, Carl Budding and Kelloggs and so onRussell Winer. Marketing Management 2nd ed. apprentice Hall, 2004. ISBN 0131405470.Custom Business Resources. Prentice Hall, 2005. ISBN 0536921288.