Question

exercise 9.5 Deli Meat Producer Case

You have been hired by a producer of deli meats to investigate their recent decline in market share. The client wants an action plan to reverse the trend.

Details

The firm produces packages of sliced deli meats at all price levels (generic, mid-level, and premium). The market share loss is primarily in the premium category. The brand is relatively well-known.

The higher-priced premium products carry a higher profit margin. Competitors maintained their price levels during the company’s recent loss in market share. The products are sold in grocery stores and delis. Grocers maintained the same placement of the product on their shelves during the decline period.

The company continued the same advertising and marketing campaigns as before the drop in market share. The three other major competitors did not make any noticeable changes in their promotional efforts during the period, and all four companies use the same distribution channels. Each of the competitors has about 20 percent of the market and the client has 40 percent. The market is growing moderately in all three price point categories.

The profile of customers buying the premium deli meats has not changed, but a survey of customers indicates there is more variability in product quality than that of the competition. Some customers changed to the competition due to this difference.

In the space below, write up your process for working toward a recommendation. Then, describe your recommendation and its potential results and effects.