1. A.1. Steak Sauce Lawry’s Defense
Presented To : Robert Carroll
Presented BY : Anita Sharma & Simon Ma
Date: Feb 11 2014
2. All 3 proposed strategies does not properly defend against
Lawry’s April 1 promotion
Increase spending on more
advertising and marketing
Price reduction to 2 for $5
• Price reduction will pollute Brand equity.
• Simply cannot afford to do so, resulting in -$3,876,582lost
• Unilever will spend $20million in marketing plus
$5million on FSIs concentrated in the summer months.
Create a new Line Extension
• A1 Original makes up bulk of sales despite existing line
extensions.
• Time restriction
3. A.1 has been successful in establishing itself as the category
leader with 54% dollar share, and 46% volume share
Dollar Share Increase
Volume Share Flat
• Over all industry trend suggest
that consumers are willing to
spend more on a high quality
product to pair with steak.
• Steak sauce is perceived as a
specialized product exclusively
complimentary to steaks.
• Willingness to pay.
• Increase demand for
quality.
• Low usage rate.
• Low frequency of
purchase.
4. A.1 has ownership over the word STEAK in the mind of target
segment
Steak Purist Steak Believer Meat Eater
Reason to Consume • Status • Special
Occasions
• Hunger
Point of sale • Butcher shop
• Steak House
• Grocery Store
• Steak House
• Grocery store
• Restaurant
USDA Grade • USDA Prime • USDA Choice • USDA Select
Preferred Cut • Short Loin
• Filet mignon
• Kobe
• Round
• Sirloin
• Anything on sale
• Shank
• Flank
Preferred Pairing • Salt and Pepper • A1 Steak Sauce • Whatever the mood
calls for (ketchup)
• Lawry’s
THE LAW OF FOCUS: “the most powerful concept in marketing is owning a word in your prospect’s mind”
The 22 immutable laws of marketing
5. A.1 Steak Sauce must dominate consumer Fridge Space before
peak grilling season
• Steak is a celebratory dish for our target segment, not a daily consumption
• No more than 1 bottle of steak sauce in every fridge.
• Due to the small serving size of 1 table spoon (0.5oz), each bottle of A1 steak sauce
can be used up to 17 times.
• A.1 marinade is competing with the category leader at a disadvantage despite
category growth.
6. Recommendation must meet all 3 dimensions
Cannot jeopardize brand equity
• Leverage the word Steak
• Maintain target consumer loyalty
7. A.1 Steak Sauce should take on an aggressive strategy to
secure fridge space before April 1
Increase bottle size to
12oz
Encourage usage in
all things steak via
marketing material
Drop marinade line
A.1 = Steak
Bottle size
• Available for purchase 2 weeks prior to Lawry
• Maximize consumer loyalty
• Demonstrate more value to consumer, not cheaper.
Drop Marinade Line
• A.1 marinade is competing with the category leader at a
disadvantage despite category growth.
• Time , money and quality assurance can be put to better
use.
Encourage Usage with A1
• Instead of promotional discounts, majority of marketing
effort will be used to bring focus onto A.1 Steak Sauce,
this is the best product in association with steak.
