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Newman's Own

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Case Study: Newman’s Own

Group 6: Bang Yan, Jun Ma, Son Myung Kim, Tin Cheung, Xiaohang Feng

Business Administration 799
Professor Susan Young
May 21st, 2012

Executive Summary

Paul Newman, a well-known actor, started his own philanthropic food company, Newman’s Own, Inc. Since the beginning, they have come across challenges dealing with competition, advertising, product development, and a philanthropic initiative. The general environmental analysis and five forces look at the opportunities and threats to achieve strategic competitiveness. For VRIO analysis, Newman’s Own, Inc. has five resources and capabilities: Paul Newman, company’s logo, company reputation for high quality products and continuous contributions to charities, huge amounts of product recipes, and the long term relationship with its partners. The financial analysis focuses on the sales trend of the firm overtime, the market share of the salad dressing and sauces, and the problems revealed through financial statements. To address these different issues and challenges, we came up with three recommendations. First, improve marketing strategies and competitiveness by sponsoring sporting events, partner with food networks, and get into universities. Another is to focus on a niche market of all healthy products. Finally, advocate implementing a charity certification to recognize companies that donate a set amount to charities.
Problem Identification
One of the major challenges was going against up against large billion dollar companies such as Kraft, Barilla, Unilever, and Campbell’s. In addition, the supermarket environment requires high slotting costs to stay on shelves. As for advertising and promotion, Newman’s Own had to find balance of tactful exploitation of brand’s philanthropic focus to create more company’s sales. For example, most customers do not know 100 percent of proceeds go

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