Maple Leaf Consumer Foods – Fixing Hotdogs A Essay Sample

and agriculture.

EXTERNAL ANALYSIS

Opportunity: The adult segment is growing by 11%. Hot dog consumption remains consistent across all income levels, and there is an increase in consumption at sports events.
Threat: There is a regional preference for hot dogs in western Canada and Ontario.

Quebec. Atlantic Canada )Larger households consume more hot dogs. Younger households consume more hot dogs. Consumers want all-meat hot dogs (no mystery meat). Consumers want by-product-free hot dogs. Many consumers buying adult section hot dogs. Consumers are price sensitive. More hot dogs consumed in summertime. Hot dogs associated with events and gatherings (sports, parties, camping). Porters 5 Forces.

Menace OF NEW ENTRANTS (LOW)

Capital intensive production facilities. Established participants using economies of scale. Experienced and adept competition. Strong brand identities. Would have to compete for shelf space.

Power OF BUYERS (HIGH)

Many available brands. Many substitute products. Hot dogs are not an important item to many consumers.

Power OF SUPPLIERS (LOW)

Easy to switch to competition. Other uses for supplies (other processed meat).

Menace OF SUBSTITUTIONS (MODERATE TO HIGH)

Other consumer meats. Many things can be eaten at an event: hamburgers, nachos.

Chicken. Satay. Pizza. Competition provides hot dogs with subtle variations. They are easy to switch to another brand, and they are more affordable compared to potential replacements. The product faces high demand and competition due to entry barriers, limited supplier power, and a high threat of new entrants.

The overall attractiveness of this industry is low to moderate, at best. Excessive trade names have spread corporate resources thin and underutilized the Maple Leaf trade name, leading to a lack of national identity for their hot dog section. This has resulted in productivity issues and rising costs, both operational and production related.

THE ALTERNATIVES

Analysis:

ProfessionalsCon
The alternatives are more profitable IOCs that can be used to subsidise the selling budget. The ability to focus on a smaller assortment of trade names helps in gaining market portion and reducing production costs like manual labor and operating expenses. The money saved from eliminating poorly performing trade names will be used to improve the overall appearance.Increased research and advertising efforts allow for a stronger focus on healthier sausages. This means that more money can be invested in successful brands without borrowing from other IOC's. It also provides an opportunity to establish a strong national presence. However, there is a risk of losing customers who are used to purchasing the hot dog brands that will be eliminated, such as Shopsy's in Ontario and Hygrade in Quebec. There are also potential risks in assuming that existing brands will be as successful as expected. By eliminating underperforming brands, MLF can allocate capital towards marketing existing brands and gaining market share. MLF is a well-known brand and with educated employees, they have the ability to focus on and effectively market their few chosen brands. This presents both opportunities and threats, including the chance to gain market control and advantage, become a leader in specific market segments, and create value for customers. However, they also face increased competition from other manufacturers like JMS. As an alternative, they could eliminate poor performing hot dog brands and promote a nationwide brand called Maple Leaf Top Dogs.MLF has developed a healthier version of Top Dogs called Maple Leaf Top Dogs Light. By conducting market research to understand consumer preferences in taste and quality, MLF will utilize

this information to enhance the Top Dog brand and promote it as the new national brand, Maple Leaf Top Dogs. Additionally,

_Maple Leaf Top Dogs Light_ is a new trade name that will be marketed nationally. It is a lighter version of the previously marketed Lean ‘n’ Light and will be sold in mainstream and household sections. Along with _Maple Leaf Originals_, MLF will also continue selling regional trade names such as _Hygrade_ and _Shopsy’s_. The money saved from eliminating other trade names will be used to support MLF's development and marketing campaign.

Analysis OF ALTERNATIVE:

By continuing to manufacture hot dogs in-house, MLF can save on costs.

MLF can supervise quality and maintain unity in production by integrating market research, reducing the chances of failure as testing ensures product acceptance. MLF will gain a first-mover advantage by offering a product not currently carried by JMS. By eliminating underperforming brands, MLF can allocate funds to improve better-performing brands. Creating a national brand incurs various expenses, and there may be potential losses if the market rejects the new Top Dogs Lite. Market research is expensive and time-consuming. MLF's low-fat hot dog option may be easy to replicate, resulting in low barriers to entry. The reallocation of resources allows for better execution of brands, ensuring consistent customer association with the MLF name. MLF already has the necessary resources to create Top Dogs Lite. Despite a previous failure with Lean 'n Lite due to a lack of market research and poor taste, MLF has a strong and established market presence to support a new launch.Introducing a new trade name into our merchandise line may result in the loss of some

clients and decrease brand loyalty. This could confuse clients and reduce the credibility of our brand. Additionally, if we eliminate poorly performing hot dog brands, we will also lose market share. It is crucial to conduct market research and develop a business plan to address these challenges. This is an opportunity as well as a threat, as 70% of the market is seeking a healthier alternative to hot dogs, which is also a major focus for our competitor, JMS.

The wellness-conscious market has not yet been targeted by MLF, giving them an advantage as the first mover. In order to create brand awareness, the Maple Leaf logo will be placed on all packaging for each sub-brand of hot dogs. Market research provides an opportunity for MLF to improve their products based on customer preferences. The Lite version of Top Dogs may be perceived as having poor taste, but consumers may see it as a relaunch of Lean 'n Lite. If a product fails, it may affect the sales of other products in the Consumer Foods IOC, which generates a large amount of revenue from hot dogs. Introducing a new national MLF brand may have a negative impact on the sales of other hot dog brands. Retailers may perceive the new MLF brand as having a terrible taste compared to the old ones. As an alternative, MLF could outsource the production of hot dogs based on market research and sales statistics. This way, they can eliminate poorly performing brands and lower production costs by outsourcing to countries that offer lower costs.

Analysis of Alternative:

Professionals

Strength

• Reduced production costs and packaging costs will;be decreased
• Sets the phase for planetary growing
  

which is one of the nucleus rules

Weakness

• Cannot vouch quality of merchandise because MLF is unable to supervise production
• Cannot vouch seasonably bringing because MLF is dependent on the agenda of the other company
• Additions shipping/delivery costs which may outweigh nest eggs from production cost
• Social and labour jobs in the country could detain production wholly

Opportunity

Menace

• Allows MLF to concentrate entirely on selling, making trade name consciousness and developing new and improved formulas for the hot Canis familiariss
• The expression for the hot Canis familiariss and other trade secrets can be stolen and offered to rivals, both major and minor

DECISION CRITERIA

0. It allows us to accomplish our short and long term ends. This option maintains quality and improves trade name consciousness which will finally drive MLF’s bottom line.

To get down with, MLF`s direction will incorporate many sections.

MLF will stop producing underperforming brands, such as those with poor sales, production, and gross revenues, as part of the proposed scheme. This will occur within a year in the short term.

The selling section must conduct market research to better understand client demand. In an effort to boost morale, management will also allow employees to participate in this research. By involving them, it will empower them to feel that their opinion is important in the design process. Not having market research will have negative consequences, reducing the chances of our national brands failing.

The market research results will help the R team develop better options for popular dogs. Choosing Option 2 will require changes in the MLF system. Creating two national brands will involve adjusting production schedules and reallocating resources. Staff members who were previously involved in producing

the eliminated brands can be reassigned to the production of the national brands, resulting in potential changes to their production schedule. Additionally, other adjustments may be necessary.

Production agendas will need to be established for the national brands as well. Management in all areas will also need to be appointed to facilitate decision making for the national brands. Our new differentiation strategy will require us to update the core 7 principles outlined at the end of the MLF case. For example, we can no longer compete as low-cost producers due to the financial barriers that will arise from the changes associated with option 2.

To improve the quality and reduce defects in the production of hot Canis familiaris, we will adopt the 5 sigma scheme. In the overall MLF civilization, we must establish a global mindset that encourages all employees to expand the brand globally. Ultimately, as new and improved formulas are developed over time, this approach will help us achieve our goals.

MLF is planning to start production of the national trade name and will also promote it aggressively to increase brand awareness. The management will regularly monitor market share to assess the effectiveness of this strategy. Milestones will be established to accurately evaluate the progress and success of the strategy.

Continuous monitoring of market trends and adapting to any external changes will lead to consistent success. The main objective is to prevent the decline in market share within a maximum of 12 months following the introduction of the new product.