Perdue Case Analysis Essay

Per due(p), in the case, seems to rescue the biggest dilemma to enter or to non enter the industry of scandalmongering white- torrid dogs. But even within that dilemma, Perdue is faced with even to a greater extent petty dilemmas should they decide to pick up into sniveller hot dogs or non. In this paper, I do not intend to give a summary of the case and go forth not beat around the chaparral by giving my analysis and recommendations spot on. Judging from the facts and figures provided for by the case, I soakedly see that Perdue should get into moaner hot dogs.Why red jungle fowl hot dogsThe first reason wherefore I believe that Perdue should enter the scene is due to the fact that Perdue has a very good fire pock perception. From the case, when Poole blind tried and true consumers, Perdue proved to be an even better brand than the leader, Oscar Mayer. The fact that Perdue hasnt accreditedly gone honest into hot dogs and was still the more preferred, gives us an ide a that the brand itself is very important or would some suffice when it comes to marketing. Perdue is a brand that is trusted by consumers, only, the brand hasnt risked much to meet that priceless trust half stylus. Another reason why they should venture into the hot dog industry is the stark inequality of Perdue from other competitors eitherone has gone to processing solid foods. Perdue is still tagging behind, heavily dependent on its superb yellow bellyacher that is not even pre leadaged. While they ar at an advantage for now beca economic consumption processed spunk intersections would film the supply of raw essence, Perdue should alike take into serious consideration that the competitors go forth soon have to acquire, and they volition, their proclaim supply of lily-livereds through hatcheries.The high demand of processed food will push the competitors to buy turn out supply to sustain the business. This trend in the industry must be thought everyplace by the Pe rdue management. They cannot be a brand that is resistant to change, even if they claim to be a very crocked one. With that, Perdue has since been at the backburner. Their supply of chickens for the clicks is not even enough simply because they argon not into the hot dogs business. Competitors will soon gain their own hatcheries and will unseat Perdue in no time. In connection to that, Perdue lacks the facilities for growth. They cannot pack chickens like other poultry companies do for grocers and they do not have the capacity to process the tenderness into franks. This very much conditions Perdue. They have been forever an old provider of fresh chicken and that is all they are about.While it is not only when wrong, I except think that Perdue should use its good brand part 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 mean that they have to face the analogous problems they are having with their incumbent business. dissemination would be not constricting anymore. They can go institutional because thats the way its suppose to be. Lastly, Perdue is competing in a market wherein they have always been stagnantly leading and growing. To think about 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 pack commonly 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 company accepts change, else it will clog 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 after 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 regretful to be uncertain of the answers for. So here goes my proposition for Perdue when immersion into the chicken hot dog industry.Be autonomousFirst, I think that rather than leasing two facilities to make 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 diverse from the desired double? Isnt that an even bigger risk? Destroying the trust and in turn the kinship with the consumers will fatalize Perdues very good brand image. If I were a Perdue fan, I would be disturbing to know that they do not make their own hot dogs and thus, nullifying all the good things I fit in them with. Frank Perdues three requirements for the would-be hot dog should be followed, after all, father knows best. 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 acquiring 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 much(prenominal)(prenominal) unknown firms to flourish, how much more for an established brand like Perdue? Another reason why they should have plants i s because their competitors do and in the long run, Perdue will lose out in this game of processing costs. More importantly, it has been reiterated in the case that even the supply will need to catch up with the demand. With those projections, occupation is of intent importance. Hence, all the more reason to have their own equipments or plants.With that, they have more control 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 other less important issues than product qu ality.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 might abolish the brand image Perdue has and of course, it might lessen their power to demand for a premium. But according to studies and ex officio food and drug authorities, MDM is very safe. There were really just some few extreme cases where oversight 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 upon 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 mostly processed food and not really organic. Even strawberries are dangerous to eat, even more dangerous to eat than a hotdog. The market is very quick to judge that a slight mistake will be noisome to the industry. Yet they fail to recognize the fact that even the supposedly healthy foods w e strive to eat every day have their own impurities.In this case, I think Perdue should push through with their tested prototype. If the druthers is better, the people will buy it. Moreover, this is not in the business of supplying 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 rival using MDM as destroying their customers loyal base. MDM does not mean that Perdue put some hormones in their chicken. It does not also mean that they changed them in every bit of way. The franks will still be ampere-second% Perdue meat MDM is just a matter of acquire 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 are eating, Perdue has to counter this possible dullin g 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 carbon% Perdue meat. The frank should also have nutrients present in chicken and in bone marrows much(prenominal) as iron and the recommended doses of calcium. The frank also 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 best-tasting, so the frank should be the best in taste too. (see The 4Ps on page 6) MarketingThe 4Ps harvest-feast * 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 make Perdues good brand image Place * Distribution (include concessionar y) 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 lucre at $1.23 per pound 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 lot of reassuring. Perdue can even make a story just to set the mood that hot dogs are unhealthy, but cheap and easy to cook thats why people love them. But Perdue cannot bear the fact that its consumers are not eating healthy or are being cheated on. Hence, the Perdue chicken frankPerdue can maintain and even expand its horizons by getting into c hicken 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 remote as employing a research institute to assure consumers, particularly loyal 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 aggressive 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. kind of 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 support 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 notify the tagline Only the best chickens make great franks. Only Perdue can.PositioningSo the crucial question is whether this newly chicken frank should be positioned as an entirely new product or as an alternative to conventional meat hot dogs. I think that Perdue should position it as the latter.domestic fowl is far healthier than pork and beef, and chicken franks are not that main stream yet. So, Perdues ending 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 expanding 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 experience about substantial 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 attached 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 monetary resource 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 remain 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 comp etitors will do some backward and vertical integration too. 2 . Johnson, Mark H. Perdue Farms, Incorporated. Diss. Darden Graduate educate of Business Administration, University of Virginia, 1978. University of Virginia Darden School Foundation. p.19