Kayem Foods Case Essay Example

to where they currently are.

Another strength they can use to their advantage is the numbers from the previous buzz marketing campaign that include the distribution of the where and the who the conversations took place and the relationship to them. With this they can breakdown the information on the market and see if they think it had a big effect on the sales increase. The fact that the budget for marketing increased about 200% from the previous one gives them more room for different campaigns.

Now that they have more money they can reinstate the buzz marketing campaign as well as add additional small projects to increase sales even more. They can also take the money and use it all towards an advertising campaign that will reach even more people. Weaknesses: In this situation there is no direct evidence or specific information available to show exactly what previous marketing efforts should be credited for Al Frescos new dominant market share.

For instance they know where the buzz marketing took place but there is no way to look at those specific areas to see what kind of sales increases those places had compared to other areas. This means that they cannot use past marketing information to form an even stronger marketing campaign, and have to make decisions based off of speculations. Another weakness that Al Fresco faces is the lack of locations that consumers can find and purchase their products.

In the first buzz campaign many agents said they had trouble finding the product and some could never locate it. When a product cannot be found easily or at all it

presents a big problem because if someone is exposed to the products advertising it does not make a difference if they cannot find it to purchase it. Opportunities: The chicken sausage market is still relatively a small market but it is growing at 12% a year. This is the time to make your name and establish long lasting impressions on consumers to obtain a sense of loyalty with new consumers.

Al Fresco has many different opportunities in front of them to potentially reach millions of consumers. With their newly increased budget they have the opportunity to use new and bigger advertising avenues. For instance they can now afford to have big magazines carry ads that will reach up to around 7. 6 million consumers. The magazine Better Home and Garden would be the most expensive but also reach the most consumers and more importantly the readers are of the same target market as Al Frescos products.

On the other side of things they have the chance to promote once again through buzz marketing and target new areas that have previously not been covered. This would allow them to increase brand awareness and introduce the product to consumers that previously had not heard of Al Fresco chicken sausage. This strategy would not reach the millions of people an ad in a magazine would but the quality of the way consumers would hear of Al Fresco would be much stronger of an impression and more convincing.

Threats: A big thing that Al Fresco would like is more distribution outlets and more shelf space. If they go with the buzz marketing campaign which Matt wants

to they will not get more based on this campaign because the supermarkets don’t see it increasing sales like a traditional campaign would. It goes back to the lack of evidence on the actual influences of the original increase in sales. Another threat they face is the bigger budgets of competitors, and threat of them regaining market share with a more strategic marketing plan.

If Al Fresco makes the wrong decision on how to spend the new budget they could be facing decreased sales and a potential new market share leader after this year. Recommendation and Implementation: With the current marketing budget of $185,000 for Al Fresco, I believe it should be used for the second buzz marketing campaign as well as a price-oriented promotion. The cost of this promotion would total roughly $177,000 with $90,000 for the price-off coupons and $87,000 for the buzz marketing. I believe this would be the most cost effective approach they could make that will have the most lasting results.

The buzz marketing does not reach as many consumers as the big magazine ads would, but it makes a bigger impression on the consumers it does reach and for less money per consumer it reaches. With being the market leader already they should try and reach new users to expand the amount of users, which the buzz marketing campaign will be targeting new areas of consumers. It can be seen in this case that there can be a huge effect from consumer word of mouth. The added price-oriented promotion should help increase current users consumption as well as hopefully creating a decent amount of first time consumers.