J M Smucker Company Marketing Essay

J. M Smucker Company has been providing the product quality products to consumers since 1879. Jeromer Monroe Smucker, the founder of Smucker Company introduced the business with limited products of jams, jellies, and preserves. To grow existing brands, introduce new products, and make strategic acquisitions is the key J. M Smuckers corporate strategy. These three strategies are focus mainly on the North America. Today, Smucker Company exceeds in manufacturing and marketing of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened, condensed milk, and health insurance and natural beverage all over THE UNITED STATES.

J. M Smucker has its own house brand and are the owners of all trademarks except Pillsburry, the Barrelhead logo. Its house brand includes Smucker, Folgers, Dunkin Donut, Jif, Crisco, Eagle, R. W. Knudsen, Hungry Jack, Cafe Bustelo, White Lily, Five Roses, and Carnation etc. With all the policy of "Owning and Marketing #1 1 brand sold all over the North America", Smucker Company has been able to stay in the most notable quartile of Fortune's magazine since the magazine created the ranking.

SWOT Analysis

Strengths

The Company is able to become No. 1 food brand Company in THE UNITED STATES because of its remarkable strengths. Smuckers is definitely cautious in the series of the acquisition of new Company. Smucker's tries to acquire only established brands than building a new brand from scratch. In addition they focus on the only brands they think they could develop globally and reduce the quantity of unwilling items. Smuckers Company has the ability to shift sales to products with higher margins increasing the efficiency and pulling down the unit costs. J. M Smucker never online backup themselves as it pertains with competing branded food manufacturers or private-label manufacturers. Smucker's strengths also include its ability to keep employees happy and it remains Fortune Magazine's top 25 companies.

Weakness

Even though the Company was doing better in USA, Canada, and Australia; however, globally the business was becoming less relevant. THE BUSINESS'S 2001 twelve-monthly sales were much less comparatively to other big company's sales. THE BUSINESS small size and limited product line managed to get less capable in competitive bargain advantages and waiting for you production. THE BUSINESS was lacking house-sale product and also lacking of effective marketing because of their low sugar free jams. There may be a possible vunerable to lawsuits from product mislabeling.

Opportunity

J. M Company has been producing attractive products and brands. But huge competitors with the big scale such as Nestle were also encouraging Smuckers Company to travel from limited product line to consolidation in order to truly have a smooth flow in the business. Thus co-branding with others, overtaking the Multifoods, and targeting seniors those were looking for peanut butter substitutes makes the the majority of the opportunity. In addition they got the ability of something division to restaurant, schools, hospital, university students, corporate, private schools, and country club. Through the 90's the woman working outside was increasing remarkably; they were eating their lunches outside their houses that helps increase significant percentage in grocery store. The Company increase overall profitability.

Threat

There were many external threats to the Smucker Company; major one includes the competition such as Kraft, Nestle, and Campbell. Another threat concludes the fierce competition between the branded food manufacturer and private label manufacturer. Private manufacturers' price was attractively below then your branded label. There is a significant upsurge in the fruit prices from growers leading the Company use less real fruit decreasing the grade of the merchandise. Consumer tastes were also considers a substantial psychological threat which will make the customer substitute the Smucker's product with others.

Recommendation

Smucker is a little Company comparing to the giant Company like Nestle. Within the competitive market, Smucker's did its best performance by acquiring the other company making the Company looks bigger. But such rapid consolidation can result in a lot of problem. The latest addition of Crisco and Jiff, as well as much other small and big company has created much concern for the Smuker's company. Smucker's sales was projected to go up from $ 651 million in 2001 to 3$ billion in 2002, almost four times larger. Such marketing plan can cause the Corporate's culture and management problem. Smucker's Company need to take it easy in the acquisition process and shouldn't rush looking to boost the majority sell. Smucker's must bring change in the management and make certain of the Company's better culture. The management of each unit must be reorganized with a fresh division.

The second recommendation to Smucker's Company is while making a decision weather which product to keep on the market. Company should only concentrate on the profitability unit and get rid of the product that hasn't added any value to the business's operation. Doing this, Company will have a solid control into its operation. Company should try its better to regulate on further horizontal integration until it is well establish and ready for the vertical integration.

For the continued success of the company, research and development would be very important. R &D has made it possible for the company's most significant growth segment in their Un-Crustable products. Improvement in the technology and innovation will offer you the Company with best packaging design that will raise the volume of customers. They should also investigate the price saving measures in production, marketing, and distribution because the marketplace for Smucker's is quiet cost sensitive. Product and process innovation will definitely bring the price benefit to the company.

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