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 handlers are promising him . His goal is to obtain a 15% increase in the operating income from his discrepancy (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 confirm his A&P budget the same as last years, he would save $32MM over the managers projections. thitherfore, one solution could be to effectively usance the strengths of the product lines and the A&P dollars by consolidating his sub-divisions.AnalysisComparing the contributions and be of the three product lines OM, LR and NP as a percentage of the arrive divisions numbers for the three years can fracture a detailed picture on the successes and failures of each sub-division, their strengths and weaknesses. This exercise lets us determine what percent o f 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 being consumed for a 24% of total revenue or 14% of divisions operating income. While contribution to operating income is exponential, it is still little than 1/4th of the total divisions operating income. Oscar Mayer BrandOscar Mayer tarnish has been essential over 100 years. It has a strong firebrand name, brand rightfulness associated with it. It has established marketing and distribution channels. The numbers disposition a resist 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 cannibalizing OM brand.New Product binge 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 unwrap 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 eat 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 affirm Oscar Mayer religious offering choice and variety, fun and relaxation.Extend Product lineThis would claim 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 totality variation. The focus here would be convenience for working people and enjoyable for kids.Pricing StrategyRunning a sales promotion offeri ng two for one package deals. Can sell white perfume products via vending machines at health clubs and give free Samples to women.Cutting expenditure of Oscar Mayer products in order to gain more market share and set about 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 etceteraRussell Winer. Marketing Management 2nd ed. scholar Hall, 2004. ISBN 0131405470.Custom Business Resources. Prentice Hall, 2005. ISBN 0536921288.