Ingredient Branding at the Caesan Cheese Cooperative Case Study Help
InApril2019,DeidraKelly,thevicepresidentofmarketingandproductdevelopmentfortheCaesanCheeseCooperative(Caesan),wasreviewingaproposalforanewbrandofartisancheeses.Theproposalincludedanewlineofartisancheesesthatusedbrandedingredients,alicensingagreementwithPernodRicardUSA(PR–U),aleadingdistributorofspiritsandwineintheUnitedStates.DeidraKelly has to decide whether to support launching the new product with or without the branded ingredients.(HARTMAN & QUELCH, 2019).
One of the strengths of CaesanCheeseCooperative is comprised of almost 300 families as well as a well-knownmastercheesemakerwhospecializedincheddar. The company uses different almost all channels in order to distribute its products i.e. retailor, whole seller and selling via the internet. The company has a number of items in its product line. Itsproductlineswereclassic,flavored,andartisancheddars,alongwithnon-cheddars. In2018,Caesangeneratedmore than$50millioninrevenue,withavastmajorityofsales(98%)fromitsretailchannels. a strong relationship with the supply chain members is one the major strength of the company that enables the company to maintain its consumer base and competitive position in the market. The company has won the number of awards. By2018,Caesanhadwon11awardsfromtheAmericanCheeseSociety,theNationalMilkProducersFederationChampionshipCheeseContest,andtheWisconsinCheeseMakersAssociation (Sammut-Bonnici & Galea, 2015).The company is continuously focusing on innovation and trying to bring new flavor to the market that meets the consumer need. In2018,Caesan produced alimited-edition Farmstead Irish WhiskeyCheddar thatwonfirst placeintheflavoredcheddarcategoryandsecondplaceoverallatanationalcompetition.
Caesanhadalowbrandawarenessrelativetoother nationalbrandsamongitstargetmarket,withonlya25%unaidedbrandrecall;othernationalbrandshada recallof45%to55%. The company is facing pressure in order to reduce its price in order to remain competitive which ultimately impacts on the profitability of the company. The company has a small portfolio in comparison to its competitors. The company offers its products in the U.S market only.
One of the underlying opportunities for the company is to improve its brand awareness in the target customers which ultimately impacts the profitability of the company as well as allows the company to maintain its competitive position in the market. The company has an opportunity to offer its products internationally and as well as an increase product line. Another underlying opportunity for the company is to performa merger with the PR-Uand add products in its product line.
The U.S cheese market is composed of the number of dominating player which is one of the major threats for the company. The competitor has a strong brand image with a variety of product which attracts the customers and ultimately reduce the consumer base of the company.
Porter’s Five Forces Model:
The threat of the New Entrance:
The threat of new entrants in the U.S cheese market is considered to be moderate. One of the reasons behind the moderate threat is that the market is composed of numerous players witha strong brand image. The quality, packaging, processing, innovative taste andbrandimage play an important role in consumer buying. High skills are required in manufacturing the cheese which is another reason that moderate the threat of new entrants in the cheese industry. However, the cheese industry has a high growth rate which ultimately attracts newcomers to enter the cheese industry. Mostconsumerslikedtotrydifferenttypesofcheese(81%)which is another factor that attracts the newcomers to come in the industry and offer a variety of products.Therewerealsoindependentandgovernment-sponsoredassociationstosupportthecheeseindustrythat attracts the new comes to enter into the marketwhich ultimately improves the threat by the new entrants. (Bruijl, 2018)…………………………..
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