Due to increasing competition, the primary issue faced by Maple Leaf Foods is their ability to
increase and, even more importantly in the here and now, maintain market share along with solidly
defining their brand image as a result of their proliferation of brands.
Although their average selling
price per kilogram was increasing, they were selling less as an aggregate.
All of this comes on the
heels of their major competitor being aggressive on pricing and the smaller players swallowing up
more of the niche markets.
MLF will have to find a way to boost their sales and brand image in the
hot dog industry if they want to capture any loss that they have incurred and gain on their
Other issues of concern are the lack of marketing research available to aid with
strategic decisions and, to a lesser extent, low employee morale.
Objectives and Goals
MLF’s strategic direction is shaped by 7 core principles (see exhibit 1 on page 164).
notably, these value focus on market leadership, operation efficiencies, brand equity and being the
Kelly Gervin, the newly appointed senior marketing director of the packaged
meats group in the consumer foods division, has discovered that the previous marketing director had
a goal to become the lowest-cost producer and yet, was nowhere near achieving this.
Tying some of
these principles together, it becomes quite evident that MLF can become the market leader in some,
if not all, market segments through a cost leadership strategy, as it is more sustainable in the long run
if relatively stable, no-frills products of reasonable quality are involved which, in this situation, is the
In addition, economies of scale come in to play and MLF, with their ability to produce large
quantities of hot dogs, have the ability to obtain this.
Given the volatility of their market position,
this strategy must be considered carefully if MLF wants to increase their performance in the hot dog