Case Study: The Oscar Mayer Company

INTRODUCTION

The Oscar Mayer company is a company owned by Kraft foods which deals in meat products. It is known for its hot dogs, bologna, bacon and ham products. It was founded by Oscar F Mayor (1859-1955) born in Bavaria. While working in Chicago Oscar founded a retail market which specialized in sausages and westphalian hams. As Oscar emphasised primarily on quality and considered price secondary he soon became a well-known producer of meats in around Chicago.

Timeline of Oscar Mayor

1883 – Oscar F Mayor founded a sausages and westphalian ham specialized market in Chicago, Illinois.

1970 – Oscar Mayor purchased C F Claussen and sons which was a distributor for packaged fresh pickles, sauerkraut, relish etc.

1979 – Oscar Mayor then acquired

We would also have to increase our investments in research and development department. Therefore for developing a market share for the white meat we will have to increase our expenditure.

(2) According to Jane Morely (director of finance and planning)- According to the alternative suggested we can increase our profitability by acquiring companies that offer products in line with the customer requirements. For example customer requirements include healthier and convenient products and companies such as Chicken rite Inc. Turkey Time Ltd. , Crabbies Inc effectively satisfy such consumer requirements. Therefore acquisition of such companies will lead to greater profitability in the short run.

(3) If we choose to diversify our product line in order to serve our existing customers better and create new customers, we will have to invent a fourth major category of processed meat. This fourth new category of processed meat suggests two products that will address the consumer requirements more efficiently and effectively.

➢ Zappetites: This product will cater to a market segment in which consumers are likely to consume fast foods at home with utmost

• Eric Stanger (VP of OM bands) suggests that it’s time they get back to basics on the Oscar Mayer business by introduction of various schemes such as 10 percent per package price cut on top 3 OM branded items in each category, Increasing the A&P budget by $25 MM, Reinstituting the Wiener mobile promotional program, Increasing operational efficiency to offset price cuts and makind it clear the Oscar Mayer’s goal should be to reenergize the existing brands. These points will help to turn around the volumes while holding the line on operating income.

Recommendations

The best course of action for Marcus will be to go along with the Lunchables idea of Jim Longstreet. Since Lunchables will cater to a huge market of working moms who require ready and packed food for their family, it has tremendous potential and can give high reward and growth rate to the company and has both short run and long run