Kayem Foods Inc

441 Words2 Pages
Points to consider; - Very limited marketing budget l calculate how much competitors spend on specialty sausage marketing l Hillshire farms: 29 million on all sausages l Johnsonville: 13 million, with 8 on tv and 3.5 for radio - Need to build retail food outlet relations as they account for most sales l their main competitor of chicken sausage, Aidell (30% mkt share), has strong distribution channel in food specialty stores. l Week bargaining power is causing them to have small retail shelf space, cuz their genoa product just cant compete with the big boys. - The main sausage brand for kayem, Genoa, was operating at a break-even l product has no distinguishing factors. l being priced aggresively low the product has a small margin. l has a low brand awareness. - Pro's of the chicken sausage market l the market is small l profit margins were eroding for kayem foods, with the chicken sausage market the company had opportunity to make higher profit with high margins. l a strong consumer brand allows companies to resist the pressure for price concessions. Make Alfresco chicken a distinctive brand product, well recognized "demand brand", that could potentially obtain higher prices and better margins and open doors in new markets l Al Fresco chicken sausage had 75 percent less fat than traditional pork sausage. l $3.58 per pound with a $1.60 contribution margin l sales were 75 million per year; however, it was growing at about 12 % per year. l target market is 25-54-year-old woman who is health conscious. - Buzz Marketing l bzzagent had 60000 agents, who volunteered to try a n product and then talk with friends and acquaintances about the product and their ecperience l social networkiing is used as a marketing tool, very cost efficient l its a very credibel source as they only market products for companies which demonstrate high quality and differentiation. Their

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