Oscar Mayer Case

624 Words3 Pages
Introduction: Oscar Mayer was founded in 1883 and developed on the principle of quality over price. The key philosophy being “There’s always a better way”. The company rapidly grew and Oscar Mayer became the leading manufacturer of processed meats. In 1979 the company acquired Louis Rich, Inc. to broaden its product portfolio to include white meat. Shortly after the acquisition, Oscar Mayer was purchased by General Foods Corporation (parent company of Kraft Foods) and is currently the fastest growing division at Kraft. Marcus McGraw is the president of food Production Company specifically to do with various types of meats. . McGraw received an annual market research report from McTiernan, Corp., a consulting firm highly regarded by Oscar Mayer. The report detailed several significant changes occurring in the marketplace for processed meats. The report also gave a strong opinion about the changes in consumer demand for processed meats, and how these changes could threaten Oscar Mayer’s profits over the next 3-5 years. Several of McGraw’s top managers submitted responses to the McTiernan report explaining their views on the best course of action. Each manager had a different recommendation, and varied by department. On review of the options McGraw realizes that any of the alternatives would be successful as the team he has surrounding him care and always get the job done. The main issue is that Oscar Mayer’s current product portfolio is not aligned with changing consumer preferences for low fat, healthier meat. Sales from red meat are decreasing due to increased health awareness. In addition, a large group of Oscar Mayer’s target audience is working moms, however current product offerings do not appeal to this group. Problem definition: The market for food products, in particular the market for meat is changing due to consumer preferences. Oscar Mayer is
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