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A1 (1)

Anu Sharma
Anu Sharma

The document summarizes strategies for A.1 Steak Sauce to defend against a promotion by competitor Lawry's. It recommends increasing the bottle size to 12oz to secure more fridge space before peak grilling season. It also suggests dropping the marinade line and focusing all marketing efforts on positioning A.1 as the best product to pair with steak. This strategy meets the dimensions of not jeopardizing the brand equity, leveraging ownership of the word "steak", and maintaining loyal consumers.

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A.1. Steak Sauce Lawrys Defense Presented To : Robert Carroll Presented BY : Anita Sharma & Simon Ma Date: Feb 11 2014
All 3 proposed strategies does not properly defend against Lawrys April 1 promotion Increase spending on more advertising and marketing Price reduction to 2 for $5 Price reduction will pollute Brand equity. Simply cannot afford to do so, resulting in -$3,876,582lost Unilever will spend $20million in marketing plus $5million on FSIs concentrated in the summer months. Create a new Line Extension A1 Original makes up bulk of sales despite existing line extensions. Time restriction
A.1 has been successful in establishing itself as the category leader with 54% dollar share, and 46% volume share Dollar Share Increase Volume Share Flat Over all industry trend suggest that consumers are willing to spend more on a high quality product to pair with steak. Steak sauce is perceived as a specialized product exclusively complimentary to steaks. Willingness to pay. Increase demand for quality. Low usage rate. Low frequency of purchase.
A.1 has ownership over the word STEAK in the mind of target segment Steak Purist Steak Believer Meat Eater Reason to Consume Status Special Occasions Hunger Point of sale Butcher shop Steak House Grocery Store Steak House Grocery store Restaurant USDA Grade USDA Prime USDA Choice USDA Select Preferred Cut Short Loin Filet mignon Kobe Round Sirloin Anything on sale Shank Flank Preferred Pairing Salt and Pepper A1 Steak Sauce Whatever the mood calls for (ketchup) Lawrys THE LAW OF FOCUS: the most powerful concept in marketing is owning a word in your prospects mind The 22 immutable laws of marketing
A.1 Steak Sauce must dominate consumer Fridge Space before peak grilling season Steak is a celebratory dish for our target segment, not a daily consumption No more than 1 bottle of steak sauce in every fridge. Due to the small serving size of 1 table spoon (0.5oz), each bottle of A1 steak sauce can be used up to 17 times. A.1 marinade is competing with the category leader at a disadvantage despite category growth.
Recommendation must meet all 3 dimensions Cannot jeopardize brand equity Leverage the word Steak Maintain target consumer loyalty
A.1 Steak Sauce should take on an aggressive strategy to secure fridge space before April 1 Increase bottle size to 12oz Encourage usage in all things steak via marketing material Drop marinade line A.1 = Steak Bottle size Available for purchase 2 weeks prior to Lawry Maximize consumer loyalty Demonstrate more value to consumer, not cheaper. Drop Marinade Line A.1 marinade is competing with the category leader at a disadvantage despite category growth. Time , money and quality assurance can be put to better use. Encourage Usage with A1 Instead of promotional discounts, majority of marketing effort will be used to bring focus onto A.1 Steak Sauce, this is the best product in association with steak.
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A1 (1)

  • 1. A.1. Steak Sauce Lawrys Defense Presented To : Robert Carroll Presented BY : Anita Sharma & Simon Ma Date: Feb 11 2014
  • 2. All 3 proposed strategies does not properly defend against Lawrys April 1 promotion Increase spending on more advertising and marketing Price reduction to 2 for $5 Price reduction will pollute Brand equity. Simply cannot afford to do so, resulting in -$3,876,582lost Unilever will spend $20million in marketing plus $5million on FSIs concentrated in the summer months. Create a new Line Extension A1 Original makes up bulk of sales despite existing line extensions. Time restriction
  • 3. A.1 has been successful in establishing itself as the category leader with 54% dollar share, and 46% volume share Dollar Share Increase Volume Share Flat Over all industry trend suggest that consumers are willing to spend more on a high quality product to pair with steak. Steak sauce is perceived as a specialized product exclusively complimentary to steaks. Willingness to pay. Increase demand for quality. Low usage rate. Low frequency of purchase.
  • 4. A.1 has ownership over the word STEAK in the mind of target segment Steak Purist Steak Believer Meat Eater Reason to Consume Status Special Occasions Hunger Point of sale Butcher shop Steak House Grocery Store Steak House Grocery store Restaurant USDA Grade USDA Prime USDA Choice USDA Select Preferred Cut Short Loin Filet mignon Kobe Round Sirloin Anything on sale Shank Flank Preferred Pairing Salt and Pepper A1 Steak Sauce Whatever the mood calls for (ketchup) Lawrys THE LAW OF FOCUS: the most powerful concept in marketing is owning a word in your prospects mind The 22 immutable laws of marketing
  • 5. A.1 Steak Sauce must dominate consumer Fridge Space before peak grilling season Steak is a celebratory dish for our target segment, not a daily consumption No more than 1 bottle of steak sauce in every fridge. Due to the small serving size of 1 table spoon (0.5oz), each bottle of A1 steak sauce can be used up to 17 times. A.1 marinade is competing with the category leader at a disadvantage despite category growth.
  • 6. Recommendation must meet all 3 dimensions Cannot jeopardize brand equity Leverage the word Steak Maintain target consumer loyalty
  • 7. A.1 Steak Sauce should take on an aggressive strategy to secure fridge space before April 1 Increase bottle size to 12oz Encourage usage in all things steak via marketing material Drop marinade line A.1 = Steak Bottle size Available for purchase 2 weeks prior to Lawry Maximize consumer loyalty Demonstrate more value to consumer, not cheaper. Drop Marinade Line A.1 marinade is competing with the category leader at a disadvantage despite category growth. Time , money and quality assurance can be put to better use. Encourage Usage with A1 Instead of promotional discounts, majority of marketing effort will be used to bring focus onto A.1 Steak Sauce, this is the best product in association with steak.