Why is Lawry’s launching a steak sauce product? • Should A-1 defend itself against the Lawry launch?

A-1 Steak Sauce
The Lawry’s Defense
Case Analyis Assignment Your task
• Identify the alternative tactics that are
possible for A-1.
• Evaluate the potential impact of each
alternative.
• Examine qualitative and quantitative support
for each alternative.
• Recommend a course of action and defend it. Things to Consider and Analyze
• A-1’s position in the industry and its strengths
Vs. competition.
• Why is Lawry’s launching a steak sauce
product?
• Should A-1 defend itself against the Lawry
launch?
– If so, why and how should it do so?
– If not, why not? • For the above question, think about the stages of the
new product development and consumer adoption
process.
– Market testing
– Full scale distribution
– Consumer awareness
– Consumer trial
– Consumer repeat. • At which stage(s) can/should A-1 be responding, if at all?
• Don’t be afraid to use your textbook Quantitative Issues
• The case gives you the data you need (either
directly or through your calculations) to
develop a simple income statement for A-1
• Use the table on the next page to get started.
• IMPORTANT, PLEASE NOTE CAREFULLY
The case states that A1 revenue is 150M. Instead,
use 160M as your revenue figure. A-1 Steak Sauce Income Statement
In Millions
Revenue
Cost of Goods Sold
Gross Profit (infer from case information) Advertising
Consumer promotion
Trade promotion
Overhead
OPERATING PROFIT
Once you have developed this table, and determined pricing (see

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