Hormel Foods Corporation
anye101893
Paul Chiro, Andrea Nye, Robert Rizea, & Ryan Slaby
Foods Corporation
Hormel
Historical Analysis
Section 1:
6000 BCE to Middle Ages
Beginning of Food Industry
Late 1800s to Early 1900s
Industrial Revolution
Processed Food Industry
Contemporary Food Processing
1930s to Present
Hormel Foods Corporation
1891
Geo. A. Hormel & Co. Founded
1901
Geo. A. Hormel & Co. Incorporated
After WWI
1928
1929
Embezzlement Scandal Discovered
Geo. A. Hormel & Co. Became Publicly Traded
Jay Hormel Became President
Hormel Foods Corporation
1933
Labor Strike Occurred
1937
SPAM Developed
1942
1946
1954
Hormel Foundation Founded
H.H. Corey Became President
R.F. Gray Became President
Hormel Foods Corporation
1985
Richard L. Knowlton Became President
1985
Labor Strike Occurred
1993
1993
2004
Joel W. Johnson Became President
Geo. A. Hormel & Co. Changed to Hormel Foods Corporation
Jeffrey M. Stringer Became President
Current Analysis
Section 2:
Best-Cost Provider Strategy
Current Generic Strategy
Hormel Foods Corporation
Financial Analysis
Hormel Foods Corporation
Stock
Dividends
Debt-to-Asset Ratio
33.9%
Total Liabilities (2014)
$1,849,941,000
Marketing Analysis
Hormel Foods Corporation
Price
- High Price Competition Leads to Competitive Pricing Strategy
Price
Competition
Close
Substitutes
Low
Differentiation
High
Rivalry
Competitive Pricing Strategy
Place
- United States and Internationally
- Strong Reputation
- Wal-Mart
SPAM®
Promotion
Retail and Sales Promotions
Advertisements and Mass Media
Promotion
- "Life Better Served"
- Partnership with Proof Integrated Communications
- Social Media
- "Sir Can-A-Lot"
- Fun Factory
- Target Market
Management
Jeffrey M. Ettinger
CEO
Jody H. Feragen
CFO
James P. Snee
COO
2005 - Present
2010 - Present
2015 - Present
Competitor Analysis
ConAgra Foods, Inc.
Stagnant Revenues
Declining Net Income
Poor Overall Financial State
Financial Analysis
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Price
Place
Promotion
Product
Competitive Pricing Strategy
Goal
Low Pricing Power
Increasing Pressure
Motto
Wal-Mart
"Better Shelf Space at Retailers"
Partnership with Cargill
Main Customers
Social Media
Partnerships with Sharethrough
"Champions of Joy" Campaign
"Healthy Choice" Campaign
Competition with Hormel Foods Corporation
Three Business Segments
Performance
ReadySetEat.com
Management
Sean M. Connolly
CEO
Diverse and Practical Set of Business Skills to Improve Company Performance
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Numerous Company Acquisitions | Negative Trend in Net Income | Global Expansion | Intense Competition |
| Large Market Share | Overreliance on Major Customers | Growing Health Consciousness of Consumers | Growing Demand for Private Labels |
| Strong Changes | Favorable Trends in Restaurants | Strict Regulations |
General Mills, Inc.
Healthy Gross Profit Margins
Rising Stock Price
Rising Dividends
Financial Analysis
Price
Place
Promotion
Product
Competitive Pricing Strategy
Price of Raw Materials
Maintain Market Share
Over 100 Countries Worldwide
Manufacturer
Main Customers
Joint Venture with Hagen-Dazs
Physical Activity
Television Advertising
"Expecting, I Just Can't Wait to Meet You" Ad
Star Wars
Three Business Segments
Health
Target Markets
Innovation
Annie's Acquisition
Management
Kendall J. Powell
CEO
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Extensive Brand Portfolio | Product Recalls | Growth in Organic Foods | Strict Regulations |
| Long-Term Financial Stability | Overreliance on Retailers | Global Expansion | Livestock Diseases |
| International Joint Ventures |
Relevant Experience from Around the World
Smithfield Foods, Inc.
Rising Net Income
Increasing Profit Margins
Low Stock Price
Financial Analysis
Price
Place
Promotion
Product
Economies of Scale
Low Prices
Competitive Pricing Strategy
Main Customers
International
Achievement
"Good Food. Responsibly."
Social Media
Petty Motors Sponsorship
Television Advertisements
Five Business Segments
Vertical Integration
Innovation
Management
C. Larry Pope
CEO
Expertise in Corporate Strategy, Organizational Leadership, and International Operations
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Largest Pork Company | Past Environmental Issues | Global Expansion | Fluctuation in Industry |
| Vertically Integrated | Product Recalls | Growing Health Consciousness of Consumers | Livestock Diseases |
| Extensive Line of Premium Breeds | Growth in Foodservice | Loose Regulations |
Tyson Foods, Inc.
Rising Revenues
Rising Net Income
Rising Debt Ratios
Financial Analysis
Price
Place
Promotion
Product
Competitive Pricing Strategy
Objective
Threats
Price-Oriented Tactics
Wal-Mart
Main Customers
Convenience Stores Focus
Social Media/Online Advertising
Project A+
Chicken Fries Promotional Campaign
"Everyday Solutions"
Vertical Integration
Five Business Segments
Seasonality
"Free from Antibiotics"
Management
Donnie Smith
CEO
Enthusiasm that Easily Catches on Among Others
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Favorable Market Position | Product Recalls | Global Expansion | Livestock Diseases |
| Diversified Portfolio | Animal Cruelty | Growing Frozen Food Market | Strict Regulations |
| Vertically Integrated |
Financial Analysis
Hormel Foods Corporation v. Relevant Competitors
Financial Analysis
Hormel Foods Corporation v. Relevant Competitors
Financial Analysis
Hormel Foods Corporation v. Relevant Competitors
Geographic Coverage
Number of Brands
Strategic Group Map
50
100
50
100
Strategic Plan
Section 3:
Best-Cost Provider Strategy
Generic Competitive Strategy
Hormel Foods Corporation
Offering Low Prices
Expanding Internationally
Expanding Organic Segment
Product Innovation
Vertical Integration
Offensive Strategies
Hormel Foods Corporation
Offering Economic Price
Defending Future Weakness
Matching Prices and Terms
Defensive Strategies
Hormel Foods Corporation
Policy
Finance
Marketing
Management
- Utilize Discounts
- Issue Coupons
- Open New Plants in Multiple Countries
- Maintain Lower Stock Price
- Adopt Transnational Approach
- Increase Brand Recall
- Promote Organic Products
- Allocate Resources toward Promotion in Asian Countries
- Target New Segments
- Lower Focus on Jennie-O Turkey Store
- Support Divisional Structure
- Extend Supply Chain Management
Hormel Foods Corporation
Thank You!
Paul Chiro: pchiro25
Andrea Nye: anye48
Robert Rizea: rrizea25
Ryan Slaby: rslaby18
