A.1. Steak Sauce: Lawry’s Defense

Abstract

In “A.1. Steak Sauce: Lawry’s Defense,” Chuck Smith, brand manager of A.1., learned that Lawry’s was entering the steak sauce category. Smith needed to determine if his company should defend their market share and if so, what the defense plan should include.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit 1: Steak Sauce Market Shares, 2002

Dollar Share

Volume Share (lbs.)

A.1.

54%

46%

Heinz 57

16%

13%

Private Label

14%

19%

Others

16%

22%

Exhibit 2: A.1. Original Steak Sauce Ingredients

Tomato puree (water, tomato paste), distilled vinegar, corn syrup, salt, raisin paste, spices and herbs, crushed orange puree, dried garlic and onion, caramel color, potassium sorbate, and xanthan gum.

Exhibit 3: Steak Sauce Shelving, 2002

Items Carried

Shelf Facings

A.1. Steak Sauce: Original

3

6

A.1. Steak Sauce: Flavors

4

8

Heinz 57

2

4

Private Label

1

3

Other Brands

5

8

Category Total

15

29

Exhibit 4: Financial Results, 2002 ($ in millions)

Kraft Foods

Unilever

Total Revenue

$29,723

$48,270

Operating Income

6,114

5,041

Income After Taxes

3,398

2,441

Exhibit 5: Lawry’s Steak Sauce Ingredients

Tomato puree (water, tomato paste), distilled vinegar, raisin paste, high fructose corn syrup, salt, orange juice concentrate, malodextrin, modified food starch, dried garlic and onion, spices, caramel color, citric acid, molasses, yeast extract, potassium sorbate and sodium benzoate, xanthan gum, tomato powder, vinegar solids, natural flavor, tamarind, anchovies, and sugar.

Exhibit 6: Retail Everyday Shelf Pricing, 2003

Retail Shelf Price

Size (oz)

Retail Shelf Price/oz

A.1. Steak Sauce

$4.99

10

$0.50

Heinz 57

$4.79

10

$0.48

Private Label Steak Sauce

$3.49

10

$0.35

Lawry’s Steak Sauce

$3.99

11

$0.36

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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