Ken Davis Products, Inc

Cesar Del RosarioPei Li

Brittany McCartanCASE D-15: KEN DAVIS PRODUCTS, INC.

"Hey, Baby, I'm Ken Davis."

CASE D-15: KEN DAVIS PRODUCTS, INC.

About Ken Davis Products, Inc.

• Opened a restaurant in the 1960’s in Minneapolis, MN

• Great barbecue sauce originated by his grandmother.

• No Recipe• Minnesota’s favorite barbecue sauce.• Barbara Jo Davis now runs the company.


CASE D-15: KEN DAVIS PRODUCTS, INC.Corporations are used only for educational purposes.

Competitors• Kraft

– A.1. Steak Sauce– Bull’s Eye: Kansas City, Memphis, Texas, Carolina

• Heinz – Jack Daniels Barbecue Sauce– Heinz Original

• HV Food Products Co. – KC Masterpiece: Hickory Brown Sugar, Honey, Hot N’

Spicy, Mesquite, Original, Smoky Bourbon, Southern Style, Sweet & Tangy


• Northfield, Illinois • 2010 Net Earnings: $4.139 Billion • Operations in 75 countries• Sales in 170 countries• 127,000 employees • 15 research and development centers

CASE D-15: KEN DAVIS PRODUCTS, INC.Information provided by www.kraftfoodscompany.com

http://www.kraftfoodscompany.com/


• Sharpsburg, Pennsylvania• $10.7 billion in Sales• 35,000 employees • Products in over 50 countries• 650 million bottles of Heinz Ketchup sold

every year.

CASE D-15: KEN DAVIS PRODUCTS, INC.Information provided by www.heinz.com

Heinz Brand Map

CASE D-15: KEN DAVIS PRODUCTS, INC.Information provided by www.heinz.com

SWOT Analysis


Strengths

• Taste• Personalized• Regional • Experience


Weaknesses

• Margins – Getting into local

supermarkets

• Uncompetitive Pricing• Advertising


Taken 3/16/2012 at Met Foods 84-05 Parsons Blvd.Jamaica, NY 11432


Margin• Food Brokers 2.5%-3.5%

– Higher demands if products are slower moving– Higher Margins during off season

• Not found on local grocery food shelves• Grocery stores buy from large Food Distributors

– Supervalu– C&S Wholesale Grocers– C.H. Robinson


Uncompetitive PricingProduct Price ($) Ounces Price per Ounce

KEN DAVIS PRODUCTS, INC

Ken Davis Original $ 5.99 18.5 $ 0.32 product website

Ken Davis 2 Carbs Classic $ 5.99 17.5 $ 0.34 product website

Ken Davis Sweet & Sassy $ 5.99 18.0 $ 0.33 product website

KRAFT A1 Original $ 6.39 15.0 $ 0.43 Key Foods

A1 Zesty Steak Sauce $ 7.49 10.0 $ 0.75 www.amazon.comBulls Eye $ 2.39 18.0 $ 0.13 Key FoodsKraft Original $ 1.99 18.0 $ 0.11 Key Foods

HEINZJack Daniels Original No. 7 $ 2.49 19.0 $ 0.13 Key FoodsHeinz Original Barbecue Sauce n/a n/a n/a

OTHERSKC Masterpiece $ 2.29 18.0 $ 0.13 Key FoodsSweet Baby Rays $ 2.59 18.0 $ 0.14 Key Foods


http://www.amazon.com/

Why the Uncompetitive Pricing?


• Base: – Bull’s Eye– Kraft– Heinz

• Premium: – Jack Daniels– KC Masterpiece, – Sweet Baby Ray’s

• Super Premium: – A1– Ken Davis (The Ferrari of Barbecue sauce that YOU can afford).


Advertising (Weakness)

• Door-to-door• Word of Mouth*• In-Store Sampling

– Costco

• Meeting Customers• Parties • http://www.youtube.com/watch?

v=rWUpdI45pK0


Opportunities

• Put into local diners, barbecues, waffle-houses, restaurants

• There is a large market in New York City• Very little true competition between Super

Premium Brands.


Threats

• Kraft and Heinz unlimited resources and funding.

• Pricing• Nationwide Company vs. Regional• New York Diverse Population• Advertising Costs



Which do you prefer?

Corporations are used only for educational purposes.CASE D-15: KEN DAVIS PRODUCTS, INC.




Consumer Purchase Decision Process and Experience



PROBLEM RECOGNITION/INFORMATION SEARCH


“the best way to get people hooked is to put the product in their mouths,” – Ken Davis

ALTERNATIVE EVALUATION


Why Choose Ken Davis Products?

• Healthier Choices• Personalized Products for Consumers• New York City

– Niche Marketing – Guerrilla Marketing

• Super Premium Brand


Healthier ChoicesProduct Calories per 15ml Fat per 15ml Protein per 15ml Carbohydrates

per 15ml

Ken Davis Original 15 0g 0g 3.5g

Ken Davis 2 Carbs Classic 5 0g 0g 1g

Ken Davis Sweet & Sassy 10 0g 0g 2.5g

A1 Original 30 0g 0.3g 7.6g

A1 Zesty Steak Sauce 12 0g 0.2g 2.6g

Bulls Eye 20 0g 0g 5g

Kraft Original 30 0g 0g 7g

Jack Daniels Original No. 7 23 0g 0g 5g

Heinz Original Barbecue Sauce 21 0g 0g 5g

KC Masterpiece 30 0g 0g 6g


Nutrition Facts derived from www.dietfacts.com and www.myfitnesspal.com

http://www.dietfacts.com/

http://www.myfitnesspal.com/

Ken always said that his competitors spent money on advertising, but his money went back into the product,

which used only the very finest ingredients.

ALTERNATIVE EVALUATION


Personalization

• Regional Company• Minnesota’s Favorite Barbecue Sauce• You, as the consumer are the most important

factor to our success.


New York CityCASE D-15: KEN DAVIS PRODUCTS, INC.

Americas West Indies/Caribbean African European Asia

American Haitian African-American Albanian Afghan

Colombian Jamaican Creole Czech Arab

Dominican West African Georgian Bangladeshi

Ecuadorian German Chinese

Guayanese Greek Filipino

Mexican Hungarian Indian

Puerto Rican Irish Pakistani

Trinidadian Italian Russian

Kosher Uzbek

Polish

Romanian

Ukranian

Types of Delicacies Found


Delicacies are based on research done through wikipedia.org

• Population: 8,175,133– White: 2,722,904– Black: 1,861,295– American Indian/Alaskan: 17,427– Asian: 1,028,119– Native Hawaiian/Other Pacific Islander: 2,795– Some Other Race: 57,841– Two or More Races: 148,676– Hispanic or Latino: 2,336,076

CASE D-15: KEN DAVIS PRODUCTS, INC.Data is based on US Census Bureau 2010


Data is based on US Census Bureau 2010


NYC vs. Top 10 Cities by PopulationNew York Top 10 Cities

White 33.31% Phoenix 46.52%

Black 22.77% Philadelphia 42.22%

American Indian/Alaskan 0.21% Phoenix 1.61%

Asian 12.58% San Jose 31.72%

Native Hawaiian/Other Pacific Islander

0.03% San Diego 0.40%

Some Other Race Alone 0.71% Los Angeles 0.32%

Persons reporting two or more races

1.82% San Diego 3.28%

Hispanic or Latino 28.58% San Antonio 63.20%


Data is based on US Census Bureau 2010.

Top Zagat Foods in Top 10 Cities

• San Antonio: Tex-Mex, American, Tapas, Steakhouse

• San Jose: Japanese Steakhouse, Indian, Teppanyaki.

• Phoenix: Southwestern, Mexican, American, New Mexican

• Philadelphia: Southern, Soul, Tapas, South Philly, Steakhouse

Research was based upon a general search of 10 miles within the epicenter of the city on the Zagat website. It was filtered through percentage of customer likeness.



Niche Marketing


Guerrilla Marketing


• Base: – Bull’s Eye– Kraft– Heinz

• Premium: – Jack Daniels– KC Masterpiece, – Sweet Baby Ray’s

• Super Premium: – A1– Ken Davis (The Ferrari of Barbecue sauce that YOU can afford).


Recommendations

• Differentiation (More Choices to Consumer)– Will help increase sales– Cheaper Product– It will increase R&D but can help with future profits.

• Increase Advertising• Restaurant Marketing• Know the target consumer• Local Marketing


Mock up coupon. Does not work.

PURCHASE DECISION/POSTPURCHASE BEHAVIOR


Advertising (Solutions)

• Instead of door-to-door• More Actual Advertising ie: Billboards,

Television, Paper Advertising, Social Networking.

• In-store coupons• NYC: Advertise to many local restaurants and

hopefully some restaurant giants. • More in-store sampling


If you have any questions, please do not hesitate to ask. There is a survey passed out. Please take the time to fill it out. It will help us complete our research.


Case D-15Cesar Del Rosario

Pei LiBrittany McCartan


Date post:	19-Nov-2014
Category:	Business
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Ken Davis Products, Inc

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