Sara Lee Case Study Essay
Sara Lee managements should continue focusing on the food -based industries and trying to link those industries as much as possible. One of their main strengths is brand recognition. People can expect to get premium quality products when they purchase anything from the Sara Lee product line. Sara Lee is struggling in the bakery industries, both North American and International with the exception of fresh breads, a narrowing of product lines may help make this brand more profitable.
They are doing a great job in the International Beverage market, with the number one selling item being coffee. The global retail coffee market was expected to grow from $51 billion in 2009 to $62 billion in 2013. With this being said this market is a cash cow and Sara Lee management should focus on Coffee and tea in the International Beverage business and they can also create new products to expand the product line. Since they are already the number one seller in single-serving coffeemakers, a good idea would be for them to make single-serve pods that are compatible with any single-serve coffeemaker. With a current market share of 40 percent, this will only help increase their overall market share.
Since Sara Lee is divesting many of their of their product lines and expect to contain growth in operating expenses through reducing inventory, focusing on promising markets and emphasis on efficiency, they will have more money to use in other places like advertisement. They should do more with putting their name out there. Creating a marketing campaign to bring back name recognition that has been overshadowed by competitors will help product sales. They can bring back their slogan “Nobody does it like Sara Lee.” Focusing on profitable products and expanding product line will help the Company have significant gains in shareholder value and improve the company’s performance.
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