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Maple Leaf Consumer Foods Fixing Hotdogs A

2188 words - 9 pages

ADMS 4900 Group Project Report"Maple Leaf Consumer Foods - Fixing Hot Dogs (A)"Background InformationMaple Leaf Foods (MLF), a result of many mergers and amalgamations, has been in Canada for over 100 years. Its operations focus on three core areas: meat products, agribusiness and bakery products. The meat product group is the largest, with sales to about $2.5 billion in 2000. Each business is made up of independent operating companies (IOCs), with each IOC run by a president and encouraged to follow a common set of values. Efforts are underway to optimize vertical coordination of the IOCs. A major concern for the meat product division is the loss of market share in the hot dog industry where average price per kilo is increasing while volume sold by MLF is decreasing.Current StrategyWhile trying to be a cost leader and cater to multiple segments in the hot dog market, with multiple products in each segment, MLF has become stuck in the middle.Internal analysisCore Competence:MLF is currently trying to become a low cost producer and potentially have the resources to become one of the best hot dog producers given their vast available resources.
Strengths (Resources and capabilities)


Strong financials
Historical brand presence
Market expertise
Integrated Suppliers
Strong performing regional brands
New team of marketing personnel
Good distribution channels

Losing market share due to multiple brands and focus
Lack of current market research
Increasing costs leading to rising prices
Changes in formulas compromising quality of product

Key Success Factors and Financials:Over the years, MLF has been successful due to its knowledge of the market, obtained through market research and flavour testing. The company also possesses a large financial base due to its reach in its 3 core business areas of meat products, bakery goods and agribusiness.External Analysis


Adult segment increasing by 11%
Hot dog consumption is consistent throughout all income levels
Increase consumption at sporting events
Younger families (<35yrs) are buying more
64% of Canadian sales are pork and meat hot dogs, 12% are poultry and 70% of consumers buy low fat hot dogs

Schneider's prices are going down and mainstream products lower to $1.99 thus taking market shares from MLF
Schneider viewed as better quality product.
Schneider only has a few products in each segment, giving them a better focus and allowing them to contain costs

PEST Analysis:

Canadian Food Inspection Agency (CFIA) concerned about calcium in Top Dogs
Only muscle meat is allowed to be used in hot dogs
Hot dog sales transcend income levels
Consumers are price sensitive to hot dogs
More efficient machinery to lower production costs

Regional preferences for hot dogs (western Canada, Ontario, Quebec, Atlantic Canada)
Larger families consume more hot dogs
Younger families consume more hot dogs
Consumers want all-meat hot dogs...

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