Directions: Read the following case and accompanying materials (It is also located in the text on pages 513-514). Answer the questions thoroughly and completely using the information provided in the case, information you learned in the module, and outside research as support for your answers. Complete this assignment in report form using APA style and formatting. Cite any and all references and sources you utilized. Your homework submission should be at least 3 pages in length.
Note: Please visit the Academic Resource Center for concise APA guidelines.
Case 1 - Barbecue Blues Sauce Company
Case Perspective:
Shamara Williams was an accountant in Peoria, Illinois, and had two hobbies about which she was very passionate: collecting blues music and perfecting her homemade barbecue sauce recipe. She regularly entertained guests by playing her music and feeding them dishes prepared with her barbecue sauce. Four years ago, at the urging of her friends, she abruptly quit her job to pursue a life-long dream of owning her own business. Using her savings and money borrowed from family members, she purchased a small food processing facility and began bottling her sauce. Because her two hobbies had always been inseparable, Ms. Williams decided to employ the name Barbecue Blues as her brand. Thus, Barbecue Blues Sauce Company was born.
The initial strategy was to sell the sauce through retail grocery stores and specialty food markets within a tree-state region. Indeed, the strategy was so effective that after three years, Barbecue Blues had captured an 18% share of the retail barbecue sauce market in the region. The third and fourth years of operation were stable, but there was virtually no growth in unit sales, and increases in revenue were largely attributable to inflation. To assist her in devising a strategy for sales growth, Ms. Williams hired a marketing director, Heather Cohen.
Ms. Cohen advocated extending the line of barbeque sauces, so Ms. Williams created a new "Chicago style" barbecue sauce. She gathered together the group of friends who had originally encouraged her to enter the barbeque sauce business. After sampling the new sauce, all of them thought it was very different from the original sauce in terms of flavor, but of the same level of quality. This positive initial response led Ms. Cohen to commission a marketing research study to be conducted by InfoGather to determine consumer reactions to the new sauce.
Shortly before the marketing research report was completed, Ms. Cohen resigned from Barbecue Blues Sauce Company to take a position at a larger food processing company, so Ms. Williams has hired you to interpret the study's findings and make a recommendation.
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).
• o Approximately 49% reacted favorably when "Chicago Style" was the sub-brand name (i.e., 12% liked it and 37% liked it very much).
• o Approximately 53% reacted favorably when "Spicy Blend" was the sub-brand 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).
• o Approximately 45% indicated they would be likely to purchase the new barbecue sauce when "Chicago Style" was the sub-brand name (i.e., 27% were likely and 18% were very likely).
• o Approximately 41% indicated they would be likely to purchase the new barbecue sauce when "Spicy Blend" was the sub-brand name (i.e., 22% were likely, 19% were very likely).
Case Analysis - Part I
1. Based on the information provided in the Executive Summary, would you recommend the new formulation of barbecue sauce be marketed, in addition to the original sauce, through retail grocery and specialty foods markets? Why or why not? Be sure to provide as much information and explanation as possibly to justify your recommendation(s) and be sure to utilize the research data to support your answers.
2. Assume you are recommending marketing the new barbecue sauce, use information from the Executive Summary to develop a strong justification for which of the two sub-brand names, "Chicago Style" or "Spicy Blend," should be employed.
Case Analysis - Part II
The data below shows how the company performed after introducing the new sauce.
Market Share
|
Quarter
|
0
|
1
|
2
|
3
|
4
|
5
|
6
|
|
Original Sauce
|
25%
|
22%
|
17%
|
15%
|
15%
|
16%
|
15%
|
|
New Sauce
|
0%
|
5%
|
12%
|
19%
|
7%
|
4%
|
3%
|
3. Thoroughly discuss the changes you see in the market share by introducing the new sauce.
4. Considering the fact that you had been hired as part of Barbecue Blues marketing team, do you feel your initial interpretation of the data created a favorable impression of you, considering the importance of the decision to the company? Knowing what you know now, what specific questions might you have asked about the marketing intelligence BEFORE using it to make a final recommendation to the company? Be sure to list possible questions in the following areas:
a. (a) Type of Study
b. (b) Study Participants
c. (c) Study Setting
d. (d) Tasks Performed by Participants
e. (e) Questions Asked and Answered
f. (f) Data Analysis