A1 Case Blabla

A1 Steak sauce Case

1. SWOT Analysis

Strength:

* Brand Awareness is HUGE (9/10 Steakhouse serve A1)

* Brand equity “grounded in steak” ( = strong association with steak)

* 54% Dollar Share (N°1)

* 46% Volume share (N°1)

* Large distribution channel(every grocery store, , most mass merchandisers and club stores)

* Brand loyalty is high

* Strong financial position of Kraft Food

Weaknesses:

* Difficult brand extension

* Consumers only uses small amount of A.1. with meal (a serving size/tablespoon – 1bottle= 17sering size)

* A1 is priced higher than competitor sauces ($4 .99 vs 3.99 to 4.79 depending on the competitors)

Opportunities

* Expand its current relationships with distributors and suppliers

* Provide coupons and price cuts for consumers to increase the brand loyalty and catch other consumer segments ( other brand switchers, new customers, ..)

* Expand its current distribution Network

* Match Lawry’s price and secure the key holiday promotional

Threats

* Lawry’s entering the market with a new steak sauce at a lower price

* Losing a vital partnership with Publix

* Lawry’s popularity with marinades may help steak sauce market shares

* Lawry’s is backed by the financial strength of Unilever

* Growing competition

Internal analysis:

A.1. steak sauce is an exclusive brand of Kraft foods. Kraft foods are currently ranked as the second largest food company in the world. Since A.1. sauce is a product of Kraft food it has been able to expand pass it competitors. A.1. sauce in recent years has had little competition, with great margins. The product itself has been around for over a 100 years and has developed strong brand awareness. A.1. sauce has been the clear leader in the steak sauce category with over 50% of the market share. Loyalty to steak sauce has been high, and competition has been limited. A.1. sauce is well distributed and can be found in nearly every...