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A.1 Steak Sauce
Positioning
A.1. Steak Sauce is the premier selection for consumers' steak grilling needs. With its rich, intense flavor, no other sauce can compare to the superior quality that A.1. has provided for decades.
Find below a perception map. The brands are categorized based upon price and quality. A.1. is of the highest quality and also priced as the most expensive steak sauce. Lawry is new in the market and customers have not had a chance to fully explore its goodness - Lawry is still perceived as been of lower quality than A.1.
Instructions
Lawry steak sauce recently announced it is going to run an Independence Day promotion where a bottle of Lawry steak sauce will be 2.99. A.1. sells for $4.99 per 10 ounce bottle. Should A1 go neck to neck with Lawry's steak sauce? Use financial information from the case to build your argument. I will not accept a point unless it is backed up with financial data (either from the case or external research). To get full credit your submission should have an introduction, 3 arguments for or against and a conclusion. One of your arguments should include the effect of a change in price on A1's gross margin.
Attachment:- Assignment.rar
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