Case Study dissussion question

Artisanal Ketchup

Kris Jones had a 30-year successful career in sales. 15 years ago, as a hobby, he got into BBQ judging and became "master certified." He quickly rose in ranks, judging the most important BBQ events across the country. On his way to becoming a BBQ master chef himself, Kris saw an opportunity in gourmet ketchup. From his sales days, he knew grocers were unsatisfied with Heinz, a power brand with big sales, lots of shelf space, but no margin. Kris knew grocers would jump at the chance to remodel the ketchup aisle to look more like the mustard section, a variety of competitors with greater inventory velocity and better margins.

Kris has developed a range of artisanal flavors including lime, coffee, sriracha, truffle, and habanero that are 100% organic and free of high-fructose corn syrup (main ingredient of Heinz). Kris's research indicates that 93% of people who order hamburgers at restaurants use ketchup. Kris also mentioned that almost 100% of ketchup is limited to hot dogs, burgers, and fries. Kris's big vision is for ketchup (his artisanal ketchup) to be used a cooking ingredient, dipping sauce, or grilling glaze vs. (just) a condiment.

When you visit the mustard aisle, or salsa aisle, you discover many options, price points, flavors, and competitors. Malcolm Gladwell says it's because you grew up with the taste of Heinz, and your brain won't accept any other "taste" for ketchup.

See Ketchup Conundrum article:https://www.newyorker.com/magazine/2004/09/06/the-ketchup-conundrum

Kris's reaction to Malcolm Gladwell's article is: "Burt's Bees, Sam Adams, Cape Cod Potato Chips, Tom's Toothpaste: all small batch regional artisanal brands that made it big"

After graduation from UMKC, you've opened up your own marketing strategy firm, Blue Ocean Consulting, founded to help companies get to a better place through more strategic, purposeful, and effective strategy. Kris has the recipes, sales chops, production facilities, co-packers, and investors. He doesn't have a strategic plan. Your strategic consulting firm has just been hired to help design a strategic path to success for his new company.

Questions:

1. Malcolm Gladwell provides many examples and principles in his book David and Goliath, Underdogs, Misfits, and the Art of Battling Giants of the small beating the big through strategy. Identify (and explain) 5 principles from his book that you will use to develop a strategy to successfully take on Heinz and explain how specifically you will apply the principle to Kris's company. Your written response should be written as a formal memo to Kris and written as if you are outlining how you plan to address his strategic issues/opportunities.

2. Blue Ocean Strategy provides many examples and principles to help companies develop strategies that use uncontested space as a competitive advantage. Identify (and explain) 5 principles from this book that you will use to develop a strategy to successfully take Kris's vision to success. Identify (and explain) 5 principles from this book that you will use to develop a strategy to successfully take on Heinz and explain how specifically you will apply each principle to Kris's company. Your written response should be written as a formal memo to Kris and written as if you are outlining how you plan to address his strategic issues/opportunities. How and Why are more important than What, depth of thought is prized, editing is your friend.