Luis Arroyo was about to begin the most exciting job assignment of his life. He had been named the brand manager for the Dinty Moore Beef Stew line of products, which is sold by Hormel Foods. His first assignment was to develop an advertisement campaign for the entire line, which would be produced in the summer. The ads were scheduled to run on a pulsating schedule, with the first burst commencing in October.

The Dinty Moore brand has been in existence since 1935. Canned products in the line include Beef Stew, Chicken & Dumplings, Chicken Noodle, Chicken Stew, Meatball Stew, and Turkey Stew. A second, current set of products are microwaveable, featuring Beef Stew (7.5 ounce cup), Beef Stew (10 ounce tray), Chicken Dumplings (7.5 ounce cup),Noodles & Chicken (7.5 ounce cup), Rice with Chicken (7.5 ounce cup), and Scalloped Potatoes & Ham (7.5 ounce cup).

The Dinty Moore page of Hormel's Web site states that its name is, "Synonymous not only with beef stew, but with a convenient and satisfying meal. Through innovations in packaging, we've made it even easier for you to enjoy by offering cups and trays for microwave cooking. And while convenience is definitely the order of the day, Dinty Moore stew meets the standards of contemporary shoppers because it has no preservatives and only 240 calories per eight-ounce serving."

Health consciousness is a major trend in the food market. Consumers are concerned about the fat, sodium, and calorie content of the foods they purchase. The Dinty Moore line clearly meets standards set by the Food and Drug Administration; however, it is possible that food producers will be required to provide more information about products in the future.

The primary competitors in the canned beef stew marketplace can be placed into four major categories:

1. Direct competitors
2. Substitute products
3. Other foods made at home
4. Restaurants

Direct competitors include Castleberry's and Armor. Both companies offer directly competing cans of stew as well as others that might compete with the Dinty Moore Line. For example, Armor offers a line of chili and chili beans. Castleberry sells barbeque pork and canned tamales through its American Originals line.

Substitute products are sold by Campbell's and other soup manufacturers. Soup can easily be substituted for stew. Also, a series of private label stews are available.

Home cooking presents an additional source of competition. Many health food trends include cooking at home with natural ingredients. Many consumers now enjoy creating meals at home as a form of social activity and relaxation.

Many restaurants vend products that compete with both homemade and canned stew. The most threatening competition are restaurants featuring home-style, hearty foods.

Luis decided that he needed more information before moving forward with the advertising campaign. He wanted to know more about the role price plays and purchasing decisions as well as consumers' perceptions of the quality of the Dinty Moore line as compared to Armor and Castleberry's. He also sought information about consumer promotions, especially coupons and price-off programs. He also wanted to investigate possibilities for cooperative advertising with grocery stores as well as tie-ins with other food products. He wanted to begin a new era in his company, where Dinty Moore moved to the strongest position in the marketplace as the top of the mind and top choice brand.

Q1.(a)Luis Arroyo is contemplating performing most of the advertising tasks in-house. Identify and discuss THREE (3) advantages of using in-house agency to support his decision. (12 marks)

(b)Discuss the unique features which could be used by Luis Arroyo to promote Dinty Moore's brands. (16 marks)

(c)Although Luis Arroyo is contemplating performing most of the advertising tasks in-house but he still wants to keep his options open. He wants to examine the benefits of using an external advertising agency before he makes his final decision. Discuss FOUR (4) ways that an advertising agency can use to gain and attract clients like Dinty Moore. (12 marks)