LaC Barbecue Blues Sauce Company Background Information virtually no growth in u
ID: 379476 • Letter: L
Question
LaC Barbecue Blues Sauce Company Background Information virtually no growth in unit sales, and increases in revenue were largely attributable to inflation. To assist her in Shamara Williams was an accountant in Peoria, Illinois, and had two hobbies about which she was very passionate, devising a strategy for sales growth, Ms. Williams hired a marketing director, Heather Cohen. collecting blues music and perfecting her homemade bar- Ms. Cohen advocated extending the line of barbecue becue sauce recipe. She regularly entertained guests by playing her music and feeding them dishes prepared with sauces, so Ms. Williams created a new "Chicago style” her barbecue sauce. Four years ago, at the urging of her barbecue sauce. She gathered together the group of friends friends, she abruptly quit her job to pursue a life-long who had originally encouraged her to enter the barbecue dream of owning her own business. Using her savings and sauce business. After sampling the new sauce, all of them money borrowed from family members, she purchased a thought it was very different from the original sauce in small food processing facility and began bottling her sauce. terms of flavor, but of the same level of quality. This posi- Because her two hobbies had always been inseparable, Ms. tive initial response led Ms. Cohen to commission a mar- Williams decided to employ the name Barbecue Blues as her keting research study to be conducted by InfoGather to brand. Thus, Barbecue Blues Sauce Company was born. determine consumer reactions to the new sauce. The initial strategy was to sell the sauce through retail Shortly before the marketing research report was grocery stores and specialty food markets within a three- completed, Ms. Cohen resigned from Barbecue Blues state region. Indeed, the strategy was so effective that after Sauce Company to take a position at a larger food pro- three years, Barbecue Blues had captured an 18% share of cessing company, so Ms. Williams needs your assistance the retail barbecue sauce market in the region. The third in interpreting the study's findings. The Executive and fourth years of operation were stable, but there was Summary of the report is presented in Exhibit 1. Exhibit 1 InfoGather: Barbecue Blues Restaurants Study Executive Summary Marketing Problem To determine whether the new barbecue sauce formula should be marketed, in addition to the original Barbecue Blues sauce, through retail grocery and specialty stores; and if so, which of the following two brand names should be used: Barbecue Blues Chicago Style Sauce or Barbecue Blues Spicy Blend Sauce? Summary of Findings Of the 728 study participants: Approximately 83% claimed to use barbecue sauce at home (i.e., 56% use it frequently and 27% use it occasionally). Of these 604 barbecue sauce users ... Approximately 41% use barbecue sauce exclusively when cooking outdoors, 24% use barbecue sauce exclusively when cooking indoors, and 35% use barbecue sauce for both indoor and outdoor cooking. The average number of times in the last month barbecue sauce was used while cooking at home was 2.67. Approximately 52% reacted favorably to the new barbecue sauce (i.e., 21% liked it and 31% liked it very much). Approximately 49% reacted favorably when "Chicago Style" was the subbrand name (i.e., 12% liked it and 37% liked it very much). Approximately 53% reacted favorably when "Spicy Blend" was the subbrand name (i.e., 29% liked it and 24% liked it very much). Approximately 43% indicated they would be likely to purchase the new barbecue sauce (i.e., 25% were likely and 19% were very likely). Approximately 45% indicated they would be likely to purchase the new barbecue sauce when "Chicago Style" was the subbrand name (i.e., 27% were likely and 18% were very likely). This case was prepared by Jon R. Austin, Ph.D., Associate Professor of Marketing. Cedarville University, 251 North Main Street, Cedarville, OH 45314.Explanation / Answer
Barbecue Blues
Barbecue Blues - Chicago Style Sauce or Barbecue Blues - Spicy Blend Sauce Brand Name
Chosen Brand Name: Barbecue Blues Spicy Blend Sauce
55% of those willing to buy have agreed to purchase the Barbecue Blues with the Spicy Blend Sauce brand name.
53% reacted favourably to Spicy Blend brand name, liking or liking very much.
% of those surveyed using the sauce:
41 + 24 - 35 = 30
30% of those who use the sauce, use it for indoor or outdoor cooking.
Shamara should choose to market Barbecue Blues Spicy Blend Sauce because a greater percentage are willing to pay for the sauce, when that is the brand name. 45% are willing to pay for the other sauce. Willingness to purchase is the percentage that is higher for the spicy blend sauce brand name.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.