A-1 Steak Sauce Case Analysis Essay
Identifying the Root Problem Components Chuck Smith was surprised when he received an email from one of his sales managers on February 14 that Lawry’s was introducing a steak sauce to the public on April 1. Lawry’s was asking Publix, one of the 10 largest-volume supermarkets in the US, for the Memorial Day ad to promote their newest product with a price of 2 for $5.00 (Publix, 2012). Publix wants to know if A.1. will match the price or if they should go with Lawry’s. Smith knows that 10 percent of their annual sales come from Memorial Day week and it is imperative that the company does not lose those sales. Dollar sales of A.1. have increased over the last few years due to an increase in price, however volume sold has not increased. A.1. needs to develop a strategy to increase sales volume if they want to see increased revenue.
Evaluation of Alternatives There are several alternatives for A.1. to consider when developing a marketing strategy to defend itself against Lawry’s over the long term. The immediate concern is what to do about the Memorial Day ad at Publix, they want A.1. to match the promo price of Lawry’s Steak Sauce if they want the ad