Given Maple Leaf Consumer Foods’(MLF) current performance, strategy and scope in addition to
their internal capabilities and external environment, this report will prove that MLF should divest ML
Beef, Overlander and Burns hot dog brands and focus on growth of other brands (such as better
tasting, low fat hot dogs), rather than trying to support
current brands. Investing in brands in the
adult segment that have good potential to grow will only improve profits, employee morale, customer
satisfaction regarding taste and price. MLF should build brand equity nationally instead of by region.
This report will also analyze alternative options for MLF and why they are not fitting as a solution.
To begin, the issue at hand must be defined in order to determine the correct course of action. The
issue that MLF is facing is that they have nine hot dog brands, of which five are losing significant
market share and another one is declining. The main competition, Sneider Foods (JMS), has gained an
increase in market share, while keeping their prices, quality, taste and product lines intact. MLF needs
to determine how much they would like to increase their market share. Clearly, MLF needs to improve
their economies of scale and revisit their strategy. This issue is urgent and requires this strategic
strategy implemented in less than 3 months.
MLF’s objectives are to improve market share and brand equity across Canada and create and sustain
a leadership position with a market-based view
while improving employee morale in the Consumer
Foods unit. MLF’s scope covers two markets, the adult and family markets. Within the family market,
MLF offers one premium, four mainstream, four value and one economy hot dog and three
mainstream hot dogs in the adult market. In contrast, JMS only has one mainstream hot dog in the
adult market and two mainstream hot dogs in the family market with a 10 to 20 percent price
advantage over MLF’s
products. Additionally, MLF emphasizes different brands for different
geographic regions, such as Ontario, Western Canada, Quebec and the Maritimes, providing no
national presence. Immediately, this presents a red flag, that MLF has too broad of a scope resulting in
. Berkshire: McGraw Hill
Companies, 2005. 9-157.