Barbecue Blues Sauce Company

Barbecue Blues Sauce Company

Questions

1, Based on the information provided in the Executive Summary below, 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?

 

              I would not like to recommend the new formulation of barbecue sauce. Before they make the new formulation, they should expand the sales area and the share. If the sauce is really loved, the new formulation would be loved too.

They thought it is very different from the original sauce in term of flavor so this new formulation is going to be really different from original one. It means it is very difficult to expect the sales revenue.

2, if you are recommending marketing the new barbecue sauce, use information from the Executive Summary to develop a strong justification for which of the two subbrand names, “Chicago style” or “Spicy Blend,” should be employed.

Now, the people who would be likely to purchase the new barbecue sauce are half of barbecue sauce users (43% / 83%).  I think this is not high rate because the share is 18%.  I could calculate that the number of people who would like to purchase the new barbecue sauce are (43% / 83%)*(1 / 18% share) = about 1/10% so we need to consider some strategies.

Everyone would like to purchase “Chicago style”. However, “Spicy Blend” would depend on person. To develop a strong justification, we need to expand the region and figure out which areas prefer to purchase “Spicy Blend” or not.