Essay on Sara Lee Corporation
1. Executive Summary
This case study provides an evaluation of Sara Lee Corporation and particularly its operations of product lines available through the Wal-Mart stores. To begin with, an effective SWOT analysis of the company was conducted where strengths and opportunities are identified while addressing possible threats and improving its weaknesses to avoid giving the competition an aggressive advantage. Marketing requires effective identification of issues as a key factor in devising the best methods of addressing them. Therefore, Kirk Nelson identifies the BasicHipster style to be a major problem in the market because it was not doing well. Effective establishment of the best …show more content…
Due to the lack of performance from the BasicHipster style, it was temporilary replaced with the New FashionBikini until the New BasicHipster was finished. After watching the sales do well for over a year in all three styles: FashionBrief, FashionBikini and the New FashioBikini, the New BasicHipster was ready for the shelf. Should Sara Lee replace the old or the New FashionBikinis with the BasicHipster or should they consider leaving both FashionBikinis selling side by side and not introduce the New BasicHipster? Of course, that decision depends on how well the FashionBikinis (old and new) are working together. Establishing an effective solution to this problem was a key issue in that the product was expected to be free of cannibalization in the market.
6. Alternative Solutions
Sometimes analysts make important decisions while generating the sought after revenue and steer their products towards maintaining effective competition. Looking at the marketing problems brings to mind several solutions Sara Lee should analyze.
First, Sara Lee management could consider maintaining the status quo as it is, keeping all three lines: FashionBrief, FashionBikini and New FashionBikini. In doing so, they keep their sales steady without risking the loss of market share and shelf space. Since the FashionBrief was preferred by younger girls while the FashionBikini and the New FashionBikini was preferred by the older girls, this