A1 Steak Sauce

A1 Steak Sauce

  • Submitted By: ll300
  • Date Submitted: 12/10/2008 5:39 PM
  • Category: Business
  • Words: 364
  • Page: 2
  • Views: 2679

About Kraft Foods

--> Second largest food company in the world, and the largest food company in the US

--> 67 major brands, each with more than $100 million in annual sales

--> Products including: coffee, yogurt, lunch meats, frozen pizza, salad dressing, barbecue sauce, cheese, boxed dinners, candy, cookies, crackers, nuts, cereal, mayonnaise, stuffing, and rice

--> Kraft Foods put strong consumer marketing efforts behind A.1.Steak Sauce.

-The brand spent 15% of its operating revenue on advertising
-Consumer promotions were 5% of operating revenue
-In 2004, A.1. planned to drop 4 FSIs (free standing inserts): one in each quarter, cost of $1million each. Each FSI included a $0.50-off coupon which could be used for one A.1. Steak sauce product.

--> In 2002, Kraft's revenue on A.1. Steak Sauce was about $150 million and operating profit was approximately $60 million.

-->Launched a line of marinades in 2001 in order to broaden the brand beyond steak sauce. It failed on that year but was successfully relaunched in 2002.

--> End of 2002, revenue of A.1. was $15 million, and the line had 10% share of the marinades category

--> First developed in about 1830 by Henderson William brand, chef to England's King George

--> Sold in North America in the early 1900s

--> Kraft Foods acquired A.1. in 2000 as part of its acquisition of Nabisco

--> Little competition, substantial sales, and excellent margins (strength)

--> High brand awareness (strength)

--> High Brand Equity

--> "Nine out of ten steak houses serves A.1."

--> Product packaged in heavy glass bottle
Current Promotion Strategy

--> About 10% of A.1's revenue was spent on in-store promotional efforts or trade promotions

--> In-store promotions with discounted pricing only at the key holiday weeks of: Memorial Day and Fourth of July, which were considered as important holidays for the steak sauce category due to the peak...

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