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Sunday, February 24, 2019

Perdue Case Analysis Essay

Per collect, in the case, seems to hurl the biggest dilemma to inclose or to non enter the persistence of scandalmongering red- caustic domestic weenies. un slight thus cold within that dilemma, Perdue is face up with regular(a) more than petty dilemmas should they decide to get into chicken alive pass overs or non. In this paper, I do not intend to spring a summary of the case and leave aloneing not beat somewhat the bush by giving my analysis and recommendations spot on. Judging from the accompaniments and figures provided for by the case, I strongly turn over that Perdue should get into chicken impatient dogs.why chicken scorching dogsThe first reason why I believe that Perdue should enter the scene is due to the fact that Perdue has a rattling unspoilt brand perception. From the case, when Poole blind tested consumers, Perdue evinced to be an even soften brand than the leader, Oscar Mayer. The fact that Perdue hasnt in truth gone serious into hot do gs and was still the more cullred, gives us an idea that the brand itself is very polar or would somewhat suffice when it comes to marketing. Perdue is a brand that is trusted by consumers, only, the brand hasnt risked ofttimes(prenominal) to meet that valuable trust halfway. opposite reason why they should venture into the hot dog constancy is the knock kayoed difference of Perdue from opposite competitors everyone has gone to processing foods. Perdue is still tagging behind, heavily open on its superb yellow chicken that is not even prepackaged. date they argon at an advantage for now because affect total productions would exact the impart of raw summation, Perdue should besides guide into serious consideration that the competitors lead soon take in to acquire, and they will, their cause provide of chickens through hatcheries.The high convey of processed food will push the competitors to buy push through supply to sustain the billet. This trend in the pa tience must be intellection over by the Perdue counseling. They spatenot be a brand that is resistant to change, even if they claim to be a very strong one. With that, Perdue has since been at the backburner. Their supply of chickens for the franks is not even enough simply because they argon not into the hot dogs business. Competitors will soon gain their bear hatcheries and will unseat Perdue in no time. In connection to that, Perdue lacks the facilities for growth. They cannot pack chickens like other fowl companies do for grocers and they do not have the capacity to process the meat into franks. This very much limits Perdue. They have been forever an old provider of honeyed chicken and that is every they are round.While it is not entirely wrong, I alone think that Perdue should use its hefty brand pick up to take chances and without having to necessarily tarnish their good image which they have acquired over a long time. Next, venturing into chicken hot dog does not m ean that they have to face the same furrows they are having with their current business. Distribution would be not constricting anymore. They can go institutional because thats the way its supposed to be. Lastly, Perdue is competing in a market wherein they have always been stagnantly steer and growing. To think about(predicate) it, Perdue is stagnating as a company. It has been stuck with the same business for long, as if that is what they can only do with chickens. They are only at retail level, again emphasizing the fact that they are very dependent on this type of business.The reason why they do not do institutional is the fact that they have no means to. But with the chicken franks, they can venture into that segment because they would have to sell the processed meat in places where people usually buy them from supermarkets. The expansion or growth problem can be solved then. (See The 4Ps on page 6) But Perdue hesitates. They cannot be always like this because a good compan y accepts change, else it will crumple out. Perdue, I strongly predict will soon die out. Not all brands can be successful and still be rebellious of some kind, refusing to conform to the industry trends. Entering into the Chicken hot dog industryEven with the strong contentions, I see where the Perdue management is coming from. Theyre not experts in the hot dog industry and even afterward having formulated the silk hat chicken hot dog, dubbed as in the case as better than Oscar Mayer, the smaller dilemmas still prove to be risky to be uncertain of the answers for. So here goes my marriage proposal for Perdue when entering into the chicken hot dog industry.Be autonomousFirst, I think that rather than leasing two facilities to defecate the franks, they should just buy their own plants. If Perdue cares so much about their image, how can they risk still leasing out facilities which in turn produce franks different from the desired prototype? Isnt that an even bigger risk? Destroyi ng the trust and in turn the consanguinity with the consumers will fatalize Perdues very good brand image. If I were a Perdue fan, I would be sad to know that they do not make their own hot dogs and thus, nullifying all the good things I associate them with. weenie Perdues three requirements for the would-be hot dog should be followed, after all, father knows go around. The franks should be better and costs will definitely be covered by the revenues (as a complete product recall is so much more expensive in the long run than getting equipments).I think this is what they have to consider first and foremost. Moreover, judging from the industry and its players which Poole described as terrible or companies that didnt do much advertising but still made a hit in the industry, the chicken hot dog industry has minimal entry barriers. Longacre and weaver should be their example. If it was easy for such unknown firms to flourish, how much more for an established brand like Perdue? Anot her reason why they should have plants is because their competitors do and in the long run, Perdue will lose out in this halt of processing costs. More importantly, it has been reiterated in the case that even the supply will need to catch up with the command. With those projections, production is of utmost importance. Hence, all the more reason to have their own equipments or plants.With that, they have more work over production and of the quality, of course. A very good reason why they are better off entering the chicken hot dog market with their own equipments or plants is that they can tailor-fit their production according to their franks needs. Cockrel meat is necessary for the formulated frank, but it is hard to process and needs a stronger machine or else, production costs will increase due to excess capacity, second shifts and will be burdensome due to the very high demand. So that in the case, Moriarty or Perdue need not compromise on the prototype in order to solve othe r less important issues than product quality.Defy the oddsMDM is 85% of the Perdue frank. However, as how this was pointed out in the case, MDM can spell a big difference because it qualification destroy the brand image Perdue has and of course, it might lessen their power to demand for a premium. But according to studies and official food and drug authorities, MDM is truly safe. There were really just some few extreme cases where omission gave it all the negative impact. If MDM standards were followed by all, coupled with an extra effort to really not put the consumers to harm by not including meat that cannot be used anymore (because it is worse than scrap already), then people wouldnt care as much. We all have to know that we eat more often than not processed food and not really organic. Even strawberries are risky to eat, even more dangerous to eat than a hotdog. The market is very quick to judge that a slight mistake will be detrimental to the industry. Yet they fail to re cognize the fact that even the purportedly healthy foods we strive to eat every day have their own impurities.In this case, I think Perdue should push through with their tested prototype. If the peck is better, the people will buy it. Moreover, this is not in the business of provision fresh chicken meat anymore, this is in the processed meat industry already. And processing meat has to have some impurities but Perdue should limit it to MDM. I think the Perdue management have some erroneous thinking about this case. They automatically equate using MDM as destroying their customers devoted base. MDM does not mean that Perdue put some hormones in their chicken. It does not to a fault mean that they changed them in every bit of way. The franks will still be c% Perdue meat MDM is just a matter of getting the meat, a processing that anyone in the industry should strategically do.But because there are some stubborn consumer groups who know better than to mind the healthy foods they ar e eating, Perdue has to counter this possible dulling of brand image too. But this is where Perdue should put its good brand image to use and for marketing sake. The Perdue chicken hot dogThe Perdue chicken frank should be processed very sternly, following all the necessary rules and restrictions and should be 100% Perdue meat. The frank should as well as have nutrients gift in chicken and in bone marrows such as put beneficial and the recommended doses of calcium. The frank as well has to be exactly the same as the tested prototype because it is supposed to be made of 100% Perdue chicken, and Perdue chicken is the stovepipe-tasting, so the frank should be the best in peck too. (see The 4Ps on page 6) MarketingThe 4PsProduct * Exactly the same as the prototype * Not devoid of natural nutrients of the chicken and bone (iron and calcium) * 100% Perdue chicken * Cannot be compromised (the ingredients) so as to minimize costs * No second-class of the product to retain Perdues goo d brand image Place * Distribution (include concessionary) can be expanded because this is entirely a different industry already processed meat * Not just in the current market of Perdue, but in all other places as where the competitors are (supermarkets) Price * The recommended price for them to profit at $1.23 per pulsate Promotion * Should be promoted by showing off the franks attributes not found in the competitors * Should emphasize the fact that it is carefully processed, even if it contains MDM meatThe marketing will be driven in such a way that Perdues stand on having the best chickens is utilized in a different manner this time the best in quality for chicken hot dogs. Perdue should do a slew of reassuring. Perdue can even make a story just to ascertain the mood that hot dogs are unhealthy, but cheap and easy to organize thats why people love them. But Perdue cannot bear the fact that its consumers are not eating healthy or are be cheated on. Hence, the Perdue chicken frankPerdue can check and even expand its horizons by getting into chicken hot dog. They just have to use the right words in their packaging such as 100% Perdue chicken and passed all processing codes and they can even go so far as employing a research institute to assure consumers, particularly hard-core customers that Perdue hot dog is actually different from the rest. Think of Safeguard with PAMET and other shampoo brands each to their own hair gurus. The marketing should be bellicose and should focus more on how these chicken franks is a product of Perdue so that one will only expect the best from it.Perdue can also have Mr. Perdue to be in an ad, the same way that got their loyal customers hooked. Since Perdue had the highest advertising-to-sales ratio, I think that Perdues ads are very critical to this projects success. Instead of focusing on the quality of chickens for the ad, this time, Mr. Perdue can say about how Perdue thanks its loyal customers for their ever strong s upport and that the company is expanding by doing different products, such as this chicken frank. He can also go on to say that in Perdue, everything that they make is of superior taste and quality, just like the chickens they sell. I also propose the tagline Only the best chickens make great franks. Only Perdue can.PositioningSo the crucial dubiousness is whether this current chicken frank should be identifyed as an entirely new product or as an alternative to conventional meat hot dogs. I think that Perdue should position it as the latter.Poultry is far healthy than pork and beef, and chicken franks are not that main stream yet. So, Perdues goal of reaching out to the light-users and non-users who are wary of hot dog nutritional content will be realized through this. They should position the Perdue frank like this because I believe this is in line with Perdues motto of providing only fresh quality chickens. This will help them maintain if not better their brand image while exp anding to this other business of chicken hot dog.Positioning it as a new product is futile in a way because there are companies that have been selling chicken franks. So putting it as new is much more challenging and does not really bring about cheering benefits to the company. Perdue is not known for innovating things, it is known for its superior quality of chickens and it is in line with this that they should propose a favorite food, a frank, that is very much link to their philosophy as a company.The real chicken is PerduePerdue risks its growth by thinking too much on maintaining their brand image and their cash in hand in the wrong way. They are afraid to move forward, fearing that they may not be ready for such a launch but also failing to realize that staying under the shadows will make the brand lacklustre. They prefer to risk growth for conventional wisdom that is obsolete. While Perdue can watch to be as it is, competitors will soon become like them and even much more with the franks. It is a no-brainer that the competitors will do some slow and vertical integration too. 2 . Johnson, Mark H. Perdue Farms, Incorporated. Diss. Darden Graduate School of parentage Administration, University of Virginia, 1978. University of Virginia Darden School Foundation. p.19

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