Honey Baked Ham Case Study

MK 4620

February 3rd, 2010

Case Study #1

Bruce Horovitz’s “HoneyBaked Ham Struggles through Tough Holiday Season” puts USA Today’s spotlight on the high-class, high-value deli company. The article is divided into segments, therefore putting emphasis on different strategies that HoneyBaked Ham is considering taking to increase their sales volume as well as particular reasons for the company’s recent struggles. Beginning by addressing whether or not discounting is the answer to HoneyBaked Ham’s downward spiral, I will shed my opinion of what measures are necessary to increase profits, save jobs, and still maintain an image of market superiority in a resistant economy.

I agree with Jez Frampton, CEO of consulting firm InterBrand, when it comes to marking down the prices of HoneyBaked Ham’s products. Being able to sell your hams for one-hundred and fifty dollars is a great advantage in the market, but that same benefit begins to diminish in the midst of a recession and your company is being compared to one that sells for lower prices and whose products are lower quality. Consumers are purchasing other holiday meats, knowing that HoneyBaked’s are clearly superior, for a quarter of the price just because they can no longer afford to buy luxury items. The Swine Flu epidemic may have had a great influence over 2009’s holiday sales, but the outbreak shouldn’t have had so large of an impact.

Ignorance is bliss. That is, until it can lead to bankruptcy and unemployment. Reaching out and educating the public on the negative correlation between pork products and the swine flu can only benefit production. Placing comments addressing the irrelevance on the company’s website is, sadly, not a great enough effort. While the internet has become a great form of advertising and communication, that’s only if people are actually interested in reaching you or have interest in what you care to express. If no one has a reason to visit your website, then no one will...