When was the last time you ate a frozen meal? For many consumers, it has been a

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When was the last time you ate a frozen meal? For many consumers, it has been a long time. That's not good news for Stouffer's, a Nestlé brand of frozen prepared foods. Sales in the U.S. have dropped 5 percent between sales of $8.48 billion in 2008 and sales of $8.04 billion in 2013. The new national focus on health and nutrition that emphasizes fresh foods is a key factor for this decline in sales. To fight this trend, Stouffer's is starting a new promotional campaign to change consumer's perceptions of the taste and nutritional value of its processed frozen meals The Stouffer brand began in 1922 when Abraham and Mahala Stouffer opened a small coffee shop in Cleveland, Ohio Building on its early success, the family developed what would eventually become a national chain of restaurants. Ultimately the company expanded into three areas: Stouffer Foods Corpo- ration, Stouffer Hotels Corporation, and Stouffer Restaurants Corporation. Nestlé acquired the brand in 1993 with the inten- tion to focus on the food products. Some of Stouffer's popular choices include lasagna, macaroni and cheese, meatloaf, ravi- oli, and Salisbury steak. They offer items in both individual and family-size portions. Additionally, the company offers the Lean Cuisine line of reduced-fat products. According to Kantar Media, Stouffers has an advertising budget of nearly $40 million. It is using a portion of these re- sources for a new advertising campaign centered on families gathered around the dinner table. One execution focuses on a young girl's reaction as she absent-mindedly puts a forkful of lasagna into her mouth. The commercial voice-over says, "She realizes that Stouffers lasagna is topped with fresh cheese that browns beautifully." Eventually, the scene reveals that her1 parents are also at the table, and the voice-over says, "Made for you to love." Eric Weisberg, executive creative director of J. Walter Thompson New York, the fourth-largest advertising agency network in the world, says, "Stouffer's has been sort of this classic, warm brand, but what this campaign does is it

Explanation / Answer

13-35: The main decision facing the stouffer's are about the increase in revenue. Though the company has increased in marketing campaign it should now devise strategies to increase revenue. The company strongly believe that there the decline in revenue are due to consumer misconceptions. Hence the company will have to now take efforts in clearing the misconception that is existing among consumers.

13-36: The factors that are important in understanding this decision situation are to determine the amount of money that Stouffer's needs to spend in marketing and advertising. In an effort to increase the goodwill among the consumers, the company will not be able to afford a loss in revenue in the long run. Hence the company should consider the earnings to expenditure ratio.

13-37: The alternatives that the Stouffers can follow are that they can ask their customers to give feedback and they can take efforts to record them and telecast online. There should be a feedback form wherein the customers should be allowed to present their feedback. The company should also take efforts in reaching out to the customers directly so that the miconception among the consumers wade away.

13-38: The decisions that I recommend are as follows:

13-39: All these decisions can be implemented based on the Management's view and thought process. Management will have to set aside a budget for their marketing and advertising campaigns there by settle on an earnings ratio. By this way the company will be able to implement their decisions.

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