Tyson Marketing Plan

Kishor Bista
Tim Hudson
Matt Kuehnle
Paulie Massey
Annika McAtee
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Executive Summary
Tyson is a multi-billion dollar company that supplies a wide range of products both

globally and within the United States. Tyson holds a massive portion of the meat industry market

share and as long as they continue to meet consumer needs there is little threat of competitors

overtaking their strong share in the market. Despite these strengths, Tyson has areas to improve

upon in order to capitalize on new opportunities. Some of these new opportunities include

increased growth in the food industry and specifically, the frozen food industry. Tyson can use

these opportunities to promote their products more heavily to compensate for the increase in

demand. With these growth opportunities present, Tyson should revise their financial goals to

encourage the expansion in the industry. Like many successful businesses, Tyson should set

goals to increase operating margins and sales, while decreasing their operating costs to become

more efficient and profitable. Sticking to these short term goals and incorporating a few long

term goals will motivate Tyson to improve its business processes, achieving an increase in its

overall market share.

Changing trends in American society indicate that families are becoming less traditional

and more reliant upon convenient, pre-prepared meals. The frozen food industry is expanding

and is expected to continue growth in coming years. Tysons Grilled and Ready line is a

nutritious, pre-prepared, frozen product that meets the needs of modern-day families and

individuals leading busy lives. Tysons focus has been and will continue to be connecting with

families of diverse backgrounds in order to create a strong emotional bond between products and

consumers. The suggested marketing from the heart campaign for Tyson is, Tyson, because

were your family too.

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Another changing trend in American society is an increased awareness for animal rights

and environmentalism. One weakness that Tyson needs to address is past legal procedures and

product recalls due to poor production techniques in regards to environmental sustainability and

animal growth. Tyson is in a great position to continue growth and development of their brand.

With these increasing trends toward environment and health - consciousness, Tyson would

benefit most from increasing positive public relations campaigns promoting environmental and

social activism, along with increasing marketing campaigns for the Grilled and Ready line which

emphasizes a fresh and healthy lifestyle. In order to improve their image as a company Tyson can

continue to host public relations campaigns promoting charitable causes in addition to promoting

their own improvements in sustainability and animal treatment. If Tyson were to sponsor the

Chicken Run 5k race and Be a Hunger Hero campaigns annually as suggested in this plan,

they would improve public relations substantially. Additionally, they should continue to file the

annual sustainability materiality report. Tyson must be sure to utilize new technologies to spread

the word about the great progress they are making to be a truly consumer-oriented brand. Using

Facebook, Instagram, YouTube, and Twitter to promote products and public relations events is

most effective in modern day America, and costs very little to implement.

Although Tyson has a high brand loyalty and market share in the meat industry, the company can

take steps to facilitate greater improvement. Executing on new opportunities, creating financial

goals, and encompassing the new and popular societal trends are just a few of the many

examples of how Tyson can improve its company. Successfully marketing using the Four Ps:

product, price, place, promotion will also create strategies on which Tyson will thrive.

Combining these various business aspects will not only enhance Tyson as a company today, but
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will continue to grow Tyson into a more sustainable, productive, and efficient business in the

future.
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Table of Contents
Executive Summary......................................................................1
Part 1.......................................................................................... 5
Company Strategy...............................................................................5
Scanning the Environment.................................................................10
Consumer Analysis............................................................................21
Segmentation, Targeting, Positioning.................................................25
PART 2.......................................................................................32
Product.............................................................................................32
Price.................................................................................................35
Place................................................................................................37
Promotion.........................................................................................38
Putting It All Together........................................................................43
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Part 1

Company Strategy
Tyson Foods, Inc is a global food company, along with being one of the worlds largest

producers of meat and poultry. In fiscal year of 2015 alone, they made sales of $40.6 billion.

The Tyson Food story began during one of the most difficult periods of American history- The

Great Depression. In 1931, founder John W. Tyson moved to Springdale, Arkansas with his wife

and a small son in search of new opportunities. There he started poultry farming and later

founded Tyson Food, Inc in 1935. Now, they are a diversified, multi-protein business currently

operating in the United States, Brazil. China, India and Mexico. They have around 113,000

employees based in more than 400 facilities and offices in the US and around the world (Tyson

Foods).

Tyson produces products as Anytizers snacks, Better For You Products, Fresh Chicken,

Breaded Chicken, Uncooked Frozen Chicken, Beef, Pork,Canned/Pouch Chicken, Cornish Hens,

Etc. Tyson is a multi-channel business and it supplies its products to retail stores both big and

small, restaurants, catering providers,schools and institutions. Walmart is its biggest buyer

accounting for 14.6% of sales in 2014 (Jones).

John Tyson, the current chairman of the company, described Tyson Food Inc. as a

company of people engaged in the production of food, seeking to pursue truth and integrity, and

committed to creating value for shareholders, customers, employees and communities. Having

the motto of Making Great Food. Making A Difference., the companys focus is more than just

making profits, they have been making differences in communities too. Since 2000, theyve

donated 91 million pounds of food as a part of their hunger and disaster relief program. Since
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2009, $22.5 million in cash has been donated and $78 million in food to community charities.

Over the same time period, they also donated $12.3 million to chapters of United Way (Tyson

Foods).

Growth in economies of countries like China, Brazil, India and Mexico is a great

opportunity for Tyson Foods, as they operate in these countries. Likewise, the United Nations

Food and Agriculture Organization predicted that by 2050 the world will need 70% more food

than produced today. This increase in food necessity will help Tyson Foods to expand their

business and market share. Based on this prediction and their current state, Tyson has established

its company strategy and is ready for what lies ahead. The companys strategy is to accelerate,

innovate and cultivate (Tyson Foods). They want to accelerate growth of domestic value-added

chicken sales, prepared food sales, and international chicken production. At the same time, they

want to lead innovation with products, services and customer and consumer insights, along with

cultivation in the development of employees to support growth in the long-term future.

Tyson is, of course, a member of the meat industry. In 1961, the world's total meat

supply amounted to 71 million tons. By 2007, it was 284 million tons, according to the U.N.

Food and Agriculture Organization (Meat Industry). The increasing demand for meat had the

meat packers concerned on how to meet the growing demand. The solution: consolidation. The

meat industry shifted over the years from many small firms to a few extremely large and

consolidated firms. These firms have mainly consolidated into four big firms. The four largest

meatpacking firms include: JBS, Cargill, Tyson, and National Beef. Tyson bought the worlds

largest supplier of premium beef and pork products, IBP Inc., in 2001. Its the second-largest

pork and chicken packer in the U.S. and sells its products in 90 countries. (The Big Four)
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Tyson Foods was founded in 1935, and 81 years later, the demand for meat products has

continued to increase. Likewise, over the last few years, the sales for Tyson have grown.

According to Tysons financial statements from 2013-2016, profit has shown an upward trend. In

the first quarter of 2013, Tysons net income was $173 million while in the first quarter of 2016,

the net income rose to $461 million. According to Tysons financial statements, the company

shows nothing but growth and this is not expected to change. Although meat substitutes are

available, the market for these substitutes is too niche to cause a decline in demand in the

flourishing meat industry.

Tyson Foods announced,With a P/S ratio of 0.47, TSN investors are paying 47 cents in

stock price for each dollar of revenue generated by the company. Compare this to the industry

average of 0.63, and it is safe to say that TSN is undervalued compared to many of its peers on

this important metric (Tyson Foods). Along with the price/sales ratio, the price/earning-to-

growth (PEG) ratio is also very impressive, at 1.33. Tysons PEG ratio is much lower than the

industry average, suggesting the investors are getting a good buy (Tyson Foods). Investor

analyst information implies that Tyson is best identified as a mature, value-based company rather

than one of high growth, so a mature-company implementation plan would be the best fit.

Tysons mission statement is as follows: We are dedicated to producing and marketing

trusted quality food products that fit todays changing lifestyles and to attracting, rewarding and

retaining the best people in the food industry (Alchin). This statement follows the guidelines for

a marketing-oriented mission as defined in the text. The statement is meaningful and specific, yet

motivating. It is not stated in terms of products or profits, but rather to satisfy customer needs

with trusted quality food products that fit todays changing lifestyles. Additionally, Tyson

chooses to highlight their focus on employee satisfaction in their mission statement.

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Comparatively, Tysons vision statement is as follows: Our vision at Tyson is to be the

worlds first choice for protein while maximizing shareholder value (Alchin). Tysons vision

statement aligns well with their mission. It is more specific, listing their goals to be the worlds

first choice for protein and to maximize shareholder value. These visions are compatible with

marketing quality protein products and treating employees well.

The following are specific financial goals for Tyson to work towards obtaining over the

course of the next few years:

1) Achieve operating margin at or above 8% by fiscal year 2018, building on extremely positive

reports from Q1 of 2016.

2) By fiscal year 2017, boost chicken sales to 35% of the mix for Tyson, so that maximum profits

are achieved in times of relatively cheap chicken and high demand.

3) Reduce chicken operating costs from farm to store by 5% by 2021.

Below is a list of specific non-financial goals for Tyson to achieve over the course of the

next few years:

1) Increase contributions to charitable organizations by 10% to show consumers that Tyson cares

and gives back to communities by 2017.

2) Get ranked in the top 75 of best corporate citizens list in Corporate Responsibility Magazine by

2018.
3) Have five percent of chickens raised be listed as 100 percent antibiotic free by 2021.

The following is a table that indicates the SWOT analysis for the Tyson brand. Strengths

and weaknesses indicate internal favorable and unfavorable components of the company, while

opportunities and threats are external to Tyson.

Favorable Unfavorable

Internal Strengths Weaknesses

Tyson boasts a flexible product line Recent legal proceedings between Tyson
that is adaptive to changing customer and its employees pose pose threats to the

demands. For example, growing
customer desires for healthy and lean
meats has caused Tyson to drastically
alter its products to fulfil these desires
(Tyson Fresh 12).
Tyson serves a wide range of
customers, including restaurants,
retailers, wholesalers, and institutions.
These diversified distribution channels
give Tyson significantly more
bargaining power with its customers
than many of its competitors (Tyson
Fresh 13).
Tysons dominant market position in
so many categories of meat and
prepared foods allows it to reduce
aggregate risk and receive maximum
benefits from economies of scale. The
corporation produces 22% of U.S.
chicken, 24% of beef, and 17% of
pork (Tyson Foods 4).
External Opportunities
The foodservice and restaurant
industries are expected to continue to
grow substantially in the near future.
Growth rates of 4% were predicted for
2015, and this bullish outlook seems to
remain in the majority of opinions. As
Tyson is a huge supplier of meats to
these industries, the growth
expectations present nothing but
opportunities for the company (Tyson
Foods 7).
The frozen food industry is expected
to hit $34.3 billion by 2018. As a
major supplier of frozen foods, Tyson
can leverage this growth by expanding
its frozen food offerings (Tyson
Foods 7).
Between 2013 and 2018, the U.S.
meat, poultry, and fish market as a
whole is expected to grow 7.6%.
Tysons position one of the largest
players in this market will allow it to
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company image and its profits. A 2014
settlement between Tyson and employees
at a plant in Tennessee over failure to pay
some wages resulted in a $7.8 million
settlement, which cut deeply into Tysons
bottom line (Tyson Fresh 13).
Recent product recalls are concerning for
stakeholders, as they represent significant
costs for the company that affect both
their brand and financials. In 2014, the
company recalled 33,840 pounds of
uncooked chicken for containing
Salmonella Heidelberg. This is only one
example of many significant recent
product recalls (Tyson Foods 6).
The inherent size and nearly limitless
scope of Tyson poses the threat of
slowness to adapt to changing customer
expectations or desires. This can also
pose threats of antitrust legal proceedings
or harsher government regulations.
Threats
Food markets across the globe are highly
competitive, and predictions show that
recent industry entrants will only
intensify the competition. If Tyson
proves unable to continue its commitment
to quality and customer satisfaction, it
may not be long before its position as an
industry leader is compromised (Tyson
Foods 8).
Threats of new livestock diseases may
always plague companies like Tyson.
The recent H1N1 influenza of 2009
proved to be immeasurably disastrous on
profits and goodwill of companies across
the meat industry. Future outbreaks are
difficult to predict, but likely imminent
(Tyson Fresh 15).
Governments throughout the world that
Tyson interacts with have always
awarded heavy regulation to the food and
meat industry. Tyson has recently been
held responsible for multiple instances of
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substantially benefit from these excessive polluting of the environment, in

upward trends (Tyson Fresh 13).
addition to a case in 2013 of E.coli
poisoning resulting in one death. These
failures to comply with environmental or
safety regulations could result in many
expensive fines and further laws
inhibiting the companys future
operations (Tyson Fresh 14).

Scanning the Environment

Some highlights of sustainability action taken by Tyson in the fiscal year of 2014 include

reducing CO2 emissions, making cut-backs, increasing audits, and donating to those in need.

Specifically, Tyson has donated almost 100 million pounds of protein to hunger relief agencies

since 2000 and eliminated 60 million miles of truck-transportation during the 2014 fiscal year.

They were given an award for plant operations and one for safety in two different wastewater

treatment plants. Six of their plants contain covered anaerobic lagoons, four of which can return

biogas to plant boilers in order to offset natural gas use. Tyson has dedicated more than 2,400

employees to developing, improving, and monitoring food safety and quality procedures, in

addition to conducting 617 audits at various farms in 2014. They have invested $500,000 in a

pilot process that will help quantify and validate how energy and water resources are managed.

Overall, they have received 22 environmental awards, reduced packaging by 979,702 pounds,

and eliminated 114 of their trucks. Based on these and other measures, Tyson would fall under

the New Clean Technology category of Figure 16.2 from the text. They are focused on

developing new sets of environmental skills and capabilities by training employees and investing

money in programs to promote sustainable practices (Tyson Foods Sustainability).

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However, Tyson has had a poor environmental record in the past. In 2005, the state of

Oklahoma sued Tyson for violating the Comprehensive Environmental Response, Compensation,

and Liability Act (CERCLA). Tyson was using poultry waste as fertilizer, which caused

dangerous runoff to pollute the nearby Illinois River Watershed (IRW). The IRW covers one

million acres and is a source of drinking water for parts of eastern Oklahoma. According to

Oklahomas Office of the Attorney, the IRW contained phosphorous "equivalent to the waste that

would be generated by 10.7 million people, a population greater than the states of Arkansas,

Kansas, and Oklahoma combine" (McBride).

Tyson is working toward developing desirable products by investing in their Grilled &

Ready products, which offer healthy alternatives to otherwise high-sodium protein products.

The Grilled & Ready line is both immediately attractive and healthy in the long run. Many of

Tysons products, however, could be more accurately qualified under the pleasing products

category due to their immediate taste satisfaction but lacking long-term health benefits.

The food processing industry, more specifically focused on the meat industry, is generally

seen as an unsustainable market. Issues such as deforestation, waste disposal, global warming,

genetic modification, and loss of biodiversity are common criticisms of the meat production

industry. Companies have increased sustainability reporting in recent years, but the food

processing industry continues to be considered behind in sustainability measures (Is Meat

Sustainable?).

Environmental Trend Identified by Environmental Scan

Force

Demographic 1) China, with a population approaching 1.4 Billion people, is the biggest
Forces
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market in the world by definition. As China developed and grew, so did its

cohabitants income and tastes. Growing from a diet of 3.4% meat in 1960 to

the 2000s at 12% and still growing (Ortega). this market is becoming a

massive opportunity for Tyson to grow their brand overseas.

2) Although Asia is the most populous continent with taste moving towards

meat consumption as of late, they also have a strong vegetarian Buddhist

population that is one of the fastest growing religions in the world at a

194% increase from 1990 to 2008 (Census.gov). This threatens Tyson as a

meat producer as they target meat consumers.

3) As we are targeting the markets of college age and working young adults

the potential is massive in this segment, with almost 8% of the US

population falling between the ages of 20-30 (Census.gov). This is more

than any other 10 year age spread in the US and a perfect market for

Tysons grilled and ready line.

Social/Cultural1) With the price of beef and other proteins increasing, along with consumers

trending towards being health conscious, chicken demand is rising in the

US per capita (USDA ERS).

2) Vegetarianism is the US was thought of by some as a fad that would go

away on its own or as something that most would relapse from shortly.

However, those identifying as vegetarian has stayed relatively stable at

around 5% from 1999-2011 (Newport).

3) Tyson is known for selling frozen chicken in all types and cuts; this chicken

must be then prepared by the consumer to be eaten. With traditional

families where one parent stays at home to cook/clean sharply declining in

the US, consumers are favoring fast preparation meals for on-the-go eating.
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Since married households peaked at 80% in the late 40s, this number is now

down to less than 50% (Economic Research). This is a threat to Tyson

because a married household is more likely to have a sit down, prepared

meal.

Economic 1) Although chicken remains cheaper than a lot of other meat options, the

price has still been going up steadily since 2011. In January 2011 the

average price was $.85/lb of chicken, it peaked at $1.16lb in June 2015 and

as of Jan 2016 was $1.13/lb. This price increase will make Tyson either

have to obtain a smaller margin of return on their chicken segment, or pass

the cost down to the consumer (Poultry Daily Price).

2) Unemployment levels are the lowest they have been since pre-recession

(2008-09) times at 4.9% in 2016 so this equals to more disposable income

and people generally consuming more in stabler times (Economic

Research).
3) Fuel prices are the lowest they have been in a long time with oil

plummeting; this is an opportunity for Tyson to sell more at the stores it

stocks. Donnie Smith, CEO and President of Tyson, claimed, lower fuel

prices appear to have benefited food purchases, both at grocery and

foodservice, mainly at Q.S.R. (quick-service restaurants) and casual dining,

which saw traffic growth in our Q1 for the first time since the recession.

(Food Business News).

Technological 1) The use of antibiotics can be an opportunity, but can also be a threat. Some

antibiotics are given in low doses to animals while they are fed. According

to EDIS, In this application, antibiotics are utilized to increase growth rate

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and improve feed efficiency (The Impact Of). This results in healthier

livestock by preventing illnesses and thus, mortality. However, antibiotics

can also be a threat because of the new generations preference of antibiotic

free products. With this preference, consumers are more likely to move

away from these treated products in the long run.

2) The use of vacuum packing and refrigerated transportation trucks is an

opportunity that has allowed for more efficient products. As stated by

Rosemary Mucklow and H. Russell Cross, contributors to Food Safety

Magazine, Vacuum packaging technology and improved refrigeration

made boxed beef possible; in fact, 90% of all beef produced and sold in the

U.S. is now sold as boxed beef (Mucklow). The boxed beef has allowed

for more beef to be transported that is not only fresher, but fresh longer.
3) Steam pasteurization is an opportunistic technology that removes

contaminants by steam cleaning carcassas with a steam vacuum. Mucklow

and Cross also expressed that, This pathogen intervention technology has

enjoyed increased use in the meat industry because it offers a very high

percentage kill rate (up to 99% reduction of bacteria on unchilled beef

carcasses) (Mucklow). This strategy uses very high temperatures to steam

clean the carcassas followed by rapid cooling, rather than using chemicals

to treat the carcassas.

Natural Forces 1) According to the Intergovernmental Panel on Climate Change, the three

main causes of the increase in greenhouse gases observed over the past 250

years have been fossil fuels, land use, and agriculture

(AGRICULTURE). This is a threat to the meat industry, with agriculture

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being a culprit for the increasing of greenhouse gases. Without reducing

emissions of greenhouse gases, people may lower their meat consumption,

and meat producers will take a financial hit.

2) Another threat the meat industry faces is the mass amounts of freshwater

being used and forests being destroyed for meat production. According to

Stanford Woods Institute, LEAD researchers also found that the global

livestock industry uses dwindling supplies of freshwater, destroys forests

and grasslands, and causes soil erosion (Stanford Woods). The

dwindling resources are attributed to the new trend of few, but large meat

producers. Instead of many smaller farms throughout the country using less

resources, the few, but large packagers are using much of the natural

resources (like freshwater), creating this lack of resources.

3) Depletion of fossil fuels is another threat associated with the meat industry.

This industry uses extensive amounts of energy to fuel production.

Worldwatch Institute stated, It takes the equivalent of a gallon of gasoline

to produce a pound of grain-fed beef in the United States (Is Meat

Sustainable?). This energy is used through the entirety of the process of

meat packaging. From running the feedlot or using refrigerated trucks to

haul the meat throughout the country, energy is consumed at a rapid pace.

Worldwatch Institute also said, To provide the yearly average beef

consumption of an American family of four requires over 260 gallons of

fossil fuel (Is Meat Sustainable?).

Competitive 1) Competition is increasing within the meat industry, which is a threat that

would cause firms such as Tyson to have to reduce their prices to try to
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compete with the other firms. However, Tyson is trying to find alternative

options to avoid this competition. Specifically, the economic conditions of

the poultry market are low, Tyson has decided to continue not only

producing chicken, but increase the amount of chicken they produce. This

strategy may sound odd, but according to Tom Philpott, Tyson is trying to

drive its largest poultry competitor, number-one chicken producer Pilgrims

Pride, out of business (Philpott). To do this, Tyson plans to carry more

chicken than other producers (like Pilgrims Pride) are able to due to the

economic downturn, thus flocking more consumers to Tyson.

2) According to Tyson Foods, The company competes with Hormel Foods,

Smithfield Foods, Perdue Farms, Foster Farms and ConAgra Foods

(Tyson Foods, Inc.). Some of these competitors have more financial

resources as well as successful marketing strategies or particular consumer

markets that Tyson does not have. These competitors are a threat because if

Tyson is not able to keep their customers and attain new ones, the demand

for Tyson products will go down, thus decreasing market share.

3) Tyson is faced with the competition resulting from substitutes. Although

Tyson has a strong consumer loyalty, consumers are easily able to substitute

Tysons products if they are unsatisfied with any component of the product

because their is fairly low costs associated with switching to a similar

product. However, according to Daniel Rick and Sharon Yang, Tysons

prepared/packaged food segment has less of a threat because they have

unique products that are specific to the Tyson Foods Inc. brand (Rick,

Daniel).
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Legal/Political 1) The government regulates the food products that companies sell,

including the quality of these products. Under law in the United States,

meat producers may not sell any meat products that are adulterated.

According to North Dakota State University, this is food that contains any

substance, food additive, or pesticide chemical residue which may render it

injurious to health or unsafe (North Dakota). This could be a threat to

Tyson if they do not follow this regulation, as unfit food could lose the

strong consumer loyalty Tyson holds.

2) Another government regulation within the meat industry includes

restricting sale of misbranded food. This includes copies of other

manufacturers foods, false advertising, and using improper names to sell

the food. According to North Dakota State University, food is considered

misbranded if its label does not provide i) the name and place of the

manufacturer, and ii) an accurate statement of the quantity of the contents

in terms of weight, measure, or numerical count (North Dakota). This

could be a substantial threat to Tyson if they do not follow ethical

advertising and labeling, as consumers will be left with unfulfilled

promises.

3) The USDA requires that all meat processing plants and the products

themselves must be inspected. North Dakota State University stated All

animals are inspected before slaughter and all carcasses are inspected after

slaughter. Consequently, animals cannot be slaughtered and meat cannot be

processed if an inspector is not present (North Dakota). This can pose

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a threat if Tyson does not continually make sure inspections are up to date

and inspectors are present when needed.

We make great food, and we make a difference (Tyson). This is the passion and the

purpose of Tyson. As a company that began with a humble beginning and evolved into a

worldwide leader in the food industry, Tyson has taken into account the importance of

sustainability and has continued to work for it. Tyson management strives to do what is right for

the company and its stakeholders. Some of the potential stakeholders for Tyson is its customers,

employees, stockholders, publics, suppliers, government agencies, marketing intermediaries, etc.

The corporate social responsibility of the company towards its stakeholders, ethical and social

responsibility issue against them that may arise, and potential remedies are as follows:

1) Customer

Tyson Foods is committed to providing healthy and nutritious food to its customers, labelled

with detailed information and the products, customers dont have to compromise their health for

food. However, in the future, the company may compromise with its production ethics for short

term profit. The company can solve this issue by constantly engaging with customer groups and

addressing their issues. Recently, Tyson Foods published its report saying that they will eliminate

the use of antibiotics in broiler chicken by 2017 and they are progressing towards it

(Sustainability at Tyson Foods 2).

2) Employees
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The CSR of Tyson Foods towards its employees is to treat all the employees with same amount

of respect and dignity, pay them with fair wages, and address their issues. It is also an important

responsibility of Tyson to provide a safe and healthy working environment to their employees.

Tyson has reduced its OSHA related incidents by 10% since 2103 (Sustainability at Tyson

Foods 4).

3) Stockholders

Tyson has a responsibility of providing fair and accurate financial information to its shareholders

on a timely basis. Misrepresentation of financial statements and mishandling of information may

hurt the relationship with shareholders, so Tyson should conduct timely external audit of its

financial statements.

4) Public (communities, environmental agencies, etc.)

Tyson operates within a community, so it has responsibility towards the communities where it

operates and the environment in which it operates. Tyson has a social responsibility to empower

communities and address the social and environmental issues around its operating areas, whether

it is cause by them or others. They need to work in coordination with communities and

environmental agencies to address the issues that may arise and come up with community

programs. For instance, Tyson has reduced the emission of CO2 by 250,000 pounds by

modifying its production process and so far has received 22 environmental awards

(Sustainability at Tyson Foods 5) .

5) Suppliers

Tyson Foods is a huge company with around 11,000 farmers that act as its suppliers

(Sustainability at Tyson Foods 4). Many suppliers depend on Tyson to sell their animals, so it

is easier for Tyson to exercise power and manipulate price, quantity, and other conditions.
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However, being an ethical and socially responsible company, Tyson should treat its suppliers

with respect and not exercise exorbitant power over them. Tyson should provide them with some

rights while forming any contracts.

6) Marketing intermediaries

Tyson Foods should act responsibly towards its marketing intermediaries. They should supply

finished products on time, treat their intermediaries with respect, listen to their proposals and

work along with them. Tyson can only thrive if it can maintain healthy relationships with its

marketing intermediaries, and it can achieve this by fulfilling its CSR duties towards them.

Consumer Analysis
According to the Bureau of Labor Statistics, less than thirty percent of the meat

consumed in the U.S. is consumed by the individuals earning the lowest forty percent of income

each year. Conversely, the top forty percent of earners purchase more than fifty percent of the

meat in the U.S. Age also seems to be strongly correlated to meat expenditures, as individuals 34

and under purchase only about twenty percent of the meat in the nation (Consumer

Expenditure). Based on our teams analysis, we believe that our primary market can primarily

be described as domestic individuals aged 35-60, with stable incomes and families. Generally,

the market is also made up of females. Many of Tysons products appeal to busy families who

still appreciate and value the traditions of home-cooked meals, often individuals identifying as

Christian or other similar religions. More and more of Tysons products are beginning to appeal

to a younger generation that is less traditional, more ethnically and religiously diverse, and less

family-focused. This is exhibited by the new AnyTizer snacks and its targeted appeal towards

younger generations looking for an on-the-go food option. This transition in targeting will likely
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become more and more necessary for the company as social values and attitudes shift away from

those of the traditional family. As technology changes and it becomes easier to order certain

types of food online--both prepared fast foods and snacks--Tyson will have to find ways to adapt

and make its products just as easy to obtain. Meals both on TV and in the movies are more often

becoming a portrayal of eating out or eating on the go, and less preparing a meal for yourself or

your family. Since Tysons products are mostly used for this type of meal preparation, the

company will have to work hard to combat this changing social norm or continue to adjust its

product line to adapt to these changes. Most of Tysons current customers seem to fall within the

category of late mainstream adopters, mostly because its primary customer base is so traditional.

The first stage of the buyer decision process is need recognition. Tyson doesnt need to

worry about getting consumers to realize that there is a need for their products, because the need

for products in the food industry, unlike many others, is unavoidable and obvious. They must

differentiate their product enough for consumers to realize their specific need for Tyson food

products over those of competitors. Tyson differentiates their products by their relatively low

price and quality, and high ease of preparation. Non-traditional families in particular have a need

for convenient food preparation, which Tyson caters to.

Key Influences affecting Consumer Behavior

Cultural Influence - Culture

Culture is an important factor that influences consumer behavior because some

nationalities eat more chicken product than other types. If everyone else sharing the same values

and perceptions is buying chicken/Tyson products, chances are that you will as well.

Social Influence - Groups and social networks

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Groups and social networks affect how consumers behave because with all the social

networks out there paired with modern technology, you are always connected. Tyson can put out

promotional ads throughout social medias showing the customers what that want. Sites like

pinterest also have recipes on them that can call for Tyson brand chicken, prompting the

customer to buy that item in order to fulfil the recipe.

Personal Influence - Lifestyle

Lifestyle is just that, how you choose to live your life. If the customer is a fit, person with

a fast paced lifestyle, they will choose food to match that, healthy but quick and easy to make.

Tyson will be able to fit these customers well with their grilled and ready line.

Psychological Influences - Attitudes

Any attitude associated with a product will dictate the future consumption of that

particular product. This is why it is important to make sure every item is up to code because with

many other competitors in the chicken market, customers could easily switch brands if a negative

attitude is formed with the Tyson brand.

Marketing Mix Factors - Place + Price

Place will influence behavior because Tyson has distribution to most grocery stores/food

markets throughout the U.S. this allows the maximum amount of customers to purchase the

product because of the convenience factor. Price is important in any industry to get the best

volume/profit mix. It is even more important to Tysons market because with competitors close

to Tyson in terms of price and quality, Tyson has to choose their pricing wisely so consumers

won't change brands.

Consumers find not only quality, but low-priced healthy choices when shopping for

Tyson products. Tyson offers the great taste of the higher-end meat products while still keeping
 23

prices affordable for their consumers. As well as keeping consumers with busy lives and tight

schedules in mind, Tyson offers a variety of quick-to-prepare items that are still tasty, but give

consumers the opportunity to prepare a meal with less hassle.

The buyer decision process has five steps. These steps include: need recognition,

information search, evaluation of alternatives, purchase decision, and postpurchase behavior.

Tyson consumers recognize the need for protein that balances somewhere on the scale of

convenient and healthful. To search for information, our consumers are most likely to ask friends

or family members what quick meat products they prepare and will possibly look at packaging

on Tysons products to identify the quick and easy concept many families are looking for.

When evaluating alternatives, consumers are most likely going to select which attributes are

most important (cost, taste, convenience, nutrition) and from those attributes search for the right

product. Often, our consumers are going to be somewhat concerned about convenience, while

still keeping nutritional value in mind. The fourth step of purchase decision is influenced by two

factors. First, the attitudes of others, can influence whether or not the consumer buys the product.

If friends say the product is great, the consumer is more likely to purchase the product (and vice

versa). Secondly, unexpected situational factors may too influence the purchase. If for some

reason an unexpected event arises such as a house fire or a wreck, the consumer may be less

likely to purchase the product based on cheaper alternatives due to the new costs he/she is facing.

The final step of the buyer decision process is post purchase behavior. All consumers face some

cognitive dissonance for every purchase, no matter the product. However, this feeling will be

short lived because Tyson strives to not only satisfy, but delight consumers with their products

that are healthy and quality made to gain consumer loyalty for a lifetime.
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Tyson does have an international global reach. They sell chicken, beef pork and prepared

food products in more than 130 countries around the world. (Tyson Foods). They have poultry

production operations in China and India. Along with that, they have international sales office in

China, European Union, Japan, India, Mexico, Middle East, Russia, South Korea and Taiwan.

This plan will not include marketing products in the international market, since the U.S. market

is the largest market for Tyson, we want to focus our energies as we plan our marketing

strategies.

Segmentation, Targeting, Positioning

Our segments are divided into families and individuals. Families are loosely defined by

domestic individuals with a spouse and kid(s), of varying ages, and moderate levels of income.

Individuals are loosely defined by domestic, single consumers whose age ranges from 18-28,

with no children, low to moderate levels of income. These segments are further divided into

traditional families, non-traditional families, college students, and working young adults.

Traditional families generally possess more orthodox values, seek a distraction-free and

family-focused lifestyle, and adhere to strict family roles. They tend to be late-adopters or

laggards, and seek products with maximum utility and minimum frills. In these types of

families, the father works and the mother generally stays at home and cooks meals every day.

Tysons prepared frozen products, such as Grilled & Ready and Anytizers, are less enticing to

this segment, because they value home-cooked meals. Uncooked frozen chicken, however, has

been saturated by this market.

Non-traditional families possess many of the same demographic characteristics of the

traditional families, but they dont necessarily adhere as strictly to traditional family structures.
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Both parents generally work, or the family consists of a single parent. Children tend to be more

independent in activities, causing them to have to fend for themselves for certain meals. These

families tend to value convenience in their food products and preparation, so they are more likely

to be early mainstream adopters. Since home-cooked meals are not as frequently prepared in

these types of families, products such as Grilled & Ready and Anytizers appeal very strongly to

this segment due to their ease-of-preparation. Strong growth for both of those products among

this segment seems very likely, due the products apparent lack of saturation and the rise in more

non-traditional family households. We also believe that non-traditional families are likely to

cook fewer from-scratch meals in lieu of increasing competition in the prepared or partially

prepared-foods industry, so negative growth for Tysons uncooked frozen chicken in this segment

is anticipated.

College students are easy to define. They have little to no income, are generally not as

health conscious, favor affordability over nearly any other metric, and dont necessarily cling to

traditions or unified values. Grilled & Ready is more expensive and still less convenient than

other prepared frozen foods on the market, which is why the current market share is so low.

There seems to be room for growth as this subsegment trends towards a higher level of nutrition

awareness. Anytizers fit very well into the college lifestyle and diet, and growth is anticipated.

Since this subsegment does not prepare many from-scratch meals, uncooked frozen chicken is

not a product that will ever likely appeal much to college students.

Working young adults may be college graduates or otherwise, they may not have

moderate levels of income, but they generally have some disposable income. They have some

level of health consciousness, time is less of a scarce resource, and they dont adhere to strict sets

of values. Despite their disposable time and desire for healthy foods, their generation still values
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convenience and does not necessarily cook meals every night. Having more disposable income

than college students, this subsegment has significant growth potential in the Grilled & Ready

and Anytizers product lines, due to their convenience. While uncooked frozen chicken does

appeal to the working young adults, it is unlikely that there will be a trend towards more home-

cooked meals in this segment, so growth potential is small to none.

Segments
Grilled & Ready Anytizers Uncooked Frozen
Chicken

Market Share Current Growth Current Growth Current Growth

Families

Traditional 1 1 1 1 3 3

Non-traditional 2 3 2 3 2 1

Individuals

College 1 2 2 3 1 1

Working Young 2 3 1 2 2 2
Adults

Scale: 1=low market share 2=moderate market 3=high market share

share

The U.S. Census Bureau reports a near doubling of non-spousal households in the last

fifty years, which can be represented by both the non-traditional family and working young adult

subsegments (Census.gov). This recent expansion of these subsegments, in addition to product

potential in the marketplace, cause us to believe that targeting these two groups for the Grilled &

Ready product line will allow for maximum growth of Tysons product portfolio success. The

Grilled & Ready products are geared toward health-conscious consumers who desire a level of

convenience in food preparation. The products are differentiable from other Tyson products due
 27

to their immediate taste appeal and long term health benefits. Unlike college students, working

young adults are likely to be health-conscious and have enough disposable income and time to

devote to preparing healthier, slightly more expensive, slightly less convenient meals. Non-

traditional families eat less sit-down, family meals and are likely to purchase more convenient

meals that children can even prepare for themselves. They also have enough disposable income

to spend a higher price in order to incorporate a level of nutrition in their meals, making Grilled

& Ready the perfect products for their families.

Our value proposition is as follows: For individuals or families who want quality, great

tasting meat products, but are dissatisfied with the high prices of meat companies such as

Pilgrim's Pride or Perdue, Tyson frozen chicken products are a tasty and low cost alternative to

the high priced products. Unlike competitors products, Tyson provides the same (if not better)

taste as other quality meat products while not costing much more than even low quality store

brands.

According to Daniel Rick and Sharon Yang, Leeds School of Business professors of

finance, The key competitive elements are price, product safety and quality, brand recognition,

breadth and depth of products, availability of products, customer service, and credit terms

(Rick, Daniel). Tyson believes that some of the most important competitive forces are price,

quality, and brand recognition. Tyson purchases from thousands of suppliers rather than just one

which lowers production costs. Theyre also integrated in the retail market by ensuring that not

one buyer has too much power. Concerning quality, Tyson has spent over $500 million in

advertising showing their quality and superior taste to consumers worldwide. As well as their

advertising dollars, Tyson relies on word of mouth from satisfied consumers to produce one of

the most well recognized meat packaging brands worldwide. Of these competitive advantages,
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Tyson will compete on two points of difference: price and quality. The price difference is

meaningful and worthwhile because it is both communicable and affordable. The quality is

meaningful and worthwhile because it is superior to other competitors. The distinctive and

preemptive qualities of both price and quality also help to set Tysons products apart from the

competitors. Tysons brand differences mirrors the Marketing from the Heart statement on both

points. Not only does Tyson Market from the Heart based on quality taste but also on

affordability. Tyson strives to be an industry leader that provides consumers with products of the

highest quality and taste but uses processes that ensure a low price point to make their products

more lucrative and desirable.

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Perceptual Map
 30

For the perceptual map, we choose price of the product as Y-axis and quality of the

product as our X-axis. Our targeted segments are non-traditional family and young working

adults. Both of these segments live on a modest-moderate budgets and look for value and quality

in the products they buy. Likewise, quality of product is another dimension based on which we

can position our product in the mind of consumers. When it comes to food people want to buy

quality food, which is tasty and also provides sufficient nutritional-value.

Looking at the perceptual map, we can see that Tyson has an advantage over Great Value

in terms of quality but is a bit pricey compared to Great Value. Great Value being a Walmart

brand makes it cheaper. However, the quality of the chicken products they provide is not to par

with Tysons. Consumers may be attracted by their bargain price and even start using their

chicken product but will eventually turn back to Tysons. Tyson provides quality products at a

reasonable price to our targeted segments.

In the mind of our targeted consumers, Tyson has an advantage over Pilgrims Pride and

Smithfield. In terms of quality, our targeted consumers have placed Tyson on same level with

Pilgrims Pride and Smithfield. However, Tyson is cheaper compared to other two. The reason

Tyson is able to produce same quality of product at a cheaper price, is their size and the

production efficiency. Since our targeted segment is getting similar quality products for a lower

price, they are likely to buy Tysons product.

From the map, we can see that customers have placed Perdue high above all others in

terms of the quality but all considered it to be expensive. Perdue produces organic chicken

products which are a much higher quality than others. The cost of producing organic products

increases the price of the products. As result of which, Perdue chicken products are priced higher

than others. Individuals who are extremely health-conscious and have higher disposable income
 31

might get attracted to Perdue, but this is a niche market. Most non-traditional families and young

adults of our targeted segments will still prefer Tyson over Perdue because Tyson provides high-

quality products at an unbeatable price.

PART 2

Refer to the previous section for a detailed analysis of the segmentation, targeting, and

positioning for Tysons product lines. The targeted markets selected are non-traditional families

and working young adults for Grilled & Ready products. Data cited in the previous section

seems to indicate that these specific segments show the greatest potential for growth with Grilled

& Ready chicken.

Product
Tyson Grilled & Ready is in the poultry processing sector, and thus the NAICS code,

according to the United States Census Bureau, is 311615. (Industry Statistics) Based on

educational research, Tysons primary competitors in this sector seem to include Hormel,
 32

Smithfield, and Perdue. The secondary competitors include Great Value and other store made

brands, potentially such as ALDIs Fit and Active. Outside of this category, there could be

substitutes such as other meat products (beef or pork) or meat substitutes. Within this category,

there are substitutes for Tyson products because of the competitors similar products and price

differences.

Segment Differentiation Features

Working Young Adults Convenience

Relative Affordability
Health Benefits

Traditional Families Sit-down meals

Health Benefits

Non-traditional Families Convenience

Health Benefits

College Students Convenience

Affordability

The above table shows the four market segments defined in Part One, along with the

desired features that each segment seeks out in a product. Grilled & Ready provides the features

of Convenience, relative affordability, and health benefits. Therefore, the product is most

differentiable for the working young adult and non-traditional family segments.

Based on its relative new presence in the market, yet with significant sales and market

position, Tysons Grilled & Ready product line is in the early growth stage of its product life

cycle. The market for healthy and convenient frozen proteins is slightly further along in the

growth stage, potentially in the late growth stage, since many competing products have been in

the market longer than Grilled & Ready. With that in mind, Tyson needs to focus on

differentiated branding to set itself apart as far as possible from competitors. Its current
 33

packaging seems to be appropriate, as the green colors with pleasant photographs stand out on

the shelf from other similar products. The companys secondary goal should be to expand its

market through educating consumers about the value of healthy convenient proteins, but its

primary goal should be to piggy-back off of the education that its competitors have already

spread and simply adopt strategies that differentiate itself from those competitors. Relying

heavily on Tysons brand goodwill could be beneficial as they adopt an aggressive strategy to

outsell competitors.

Contact Points:

1. Customer looks for product/contacts store - The product is listed online in easy to find locations

on Tysons website, and when searching for prepared frozen chicken products, information about

the product brand is generally available.

2. Customer arrives at the store (Wal-Mart) - The product was readily available but was with

processed food instead of other chicken. There were no noticeable competitors very close by. The

product was on the shelf in good condition, and packaging was consistent with expectations
3. Provide customer information - No Tyson sales representatives were available for consultation or

samples of the product. The price matched the expected price.

4. Provide customer with product - The product included instructions for preparation and a number

to call if the user was not satisfied with the product..

5. Customer at home using the product - The customer may have regretted spending so much

money, but the product met or exceeded expectations for taste and quality.

Tyson has a moderate level of brand equity. Customers recognize Tyson as a market

leading brand in the meat industry, but they dont consider Tyson a supreme brand. Its perceived

lack of social and environmental responsibility seem to cut into its brand equity. Tysons brand is

stronger than Walmarts Great Value, but it falls below Pilgrims Pride, Perdue and others.
 34

Tyson has a large market share in the meat industry all around the country. It is available

in all Walmart stores, local grocery stores, and other food chain retailers and it also offers a wide

variety of products. Thus, most people are aware of Tysons brand in general. Therefore, it can be

said that Tyson has strong brand awareness among customers.

Tyson doesnt have any unique brand association among customers. However, when

people hear about Tyson, they associate it as an affordable meat producer. The image of foods

made with Tysons meat product comes in their mind. Tyson and chicken could be a brand

association that customers have with Tyson.

Tyson represents itself as a cost-efficient, market leading, customer-driven, profitable,

cultured and influential company.

Tysons products provide core family values and meet the need of families and

individuals looking for healthy meat products at an affordable price. On this ground, it has

established itself among its customers, and these customers have paid back with their loyalty

toward the brand.

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Price
Tysons main pricing goal is to keep price constant in order to stay competitive in the

specific target market segments and against other companies, regardless of expense fluctuation.

Another pricing objective is to increase or maintain the share of the grilled chicken market

sector. Pricing constraints for Tyson encapsulate the reasoning for aiming to keep prices constant.

If prices decrease, Tyson runs the risk not only of decreased profit but of damaged brand

reputation since the Grilled and Ready line is a specialty product. Increased prices would cause

Tyson to be less competitive and lose market share to similar products from other brands.

Chicken production can be a very costly endeavor, with high fixed costs and extreme

volatility in variable costs. Factors affecting price elasticity of Tysons Grilled & Ready line

include: substitutes and substitute awareness, ease of product and price comparison, perishability

of the product allowing for more frequent purchases of smaller quantities, and total expenditure

is low compared to most incomes. The demand for Tysons Grilled and Ready products is elastic

because there are many substitutes readily available. The value, though more unique than other

Tyson products, is still replaceable by these substitutes. Since similar products are generally

placed together at grocery stores or supermarkets, where many of Tyson products are sold, price

and product comparison is accomplished with great ease. The inherent perishability and cost

associated with storing large quantities of these products forces consumers to purchase more

frequently and makes them more sensitive to continual price changes. Grilled and Ready

products would not take a significant portion of buyers income to purchase, so slight

fluctuations in price would not necessarily impact the demand for the products. This would

indicate that the demand for Grilled and Ready products is inelastic, but other factors cited

overwhelm this point. If competing brands were to lower their prices, Tyson would need to lower
 36

theirs in order to remain competitive. It is likely that with increased government regulation in

this sector, pricing of substitutes to Tysons product line will increase over time. Tyson should

keep prices constant if competitors increase theirs in order to take over more of the market share.

Tyson Grilled and Ready, according to the product analysis, is in the Growth Phase of the

Product Life Cycle. Frozen, pre-prepared chicken is not yet a commodity and has not quite

become a mainstream good. Sales are still increasing as the trend toward healthier eating and

convenience in food preparation increases. Therefore, pricing should remain constant for now.

However, as the market maturity stage approaches for these products, pricing may become more

competitive, in which case Tyson must match prices to remain competitive. This drop in prices

due to market saturation will be combated by increased regulation for these companies, and

Tyson will be able to hold their prices relatively constant while remaining competitive.

Product, price, place, and promotion strategies do not take aggressive or costly

approaches. This will allow Tyson to maintain constant, simple, and non-segmented pricing

without severely cutting into the margins.

Place
Tyson owns and operates nearly every channel and intermediary from design to

production to delivery to the final retailer. This offers numerous advantages for the company,

allowing it to take advantage of its economies of scale and react more quickly to the changing

needs of its customers. Tysons inventory, as frozen goods, must be stored and transported at a

massive expense to the company and a significant environmental impact. These high expenses

should motivate Tyson to eliminate as much time as possible between final production and
 37

delivery to retailers. Tysons current integrated channels already provide it with substantial

advantages in reducing this time and cost, but the company should continue to invest in R&D to

find new and better technologies that better solve this problem. The four customer service factors

can easily be ranked in the following order: time, communication, convenience, and

dependability. Bettering communication will in many ways help eliminate inefficiencies in

movement through various channels. It is essential that Tyson products reach customers with

maximum convenience because the market is so competitive, and switching costs to a more

convenient product are essentially zero. Dependability to retailers is important as well, but

Tysons impressive bargaining power will allow it to sacrifice some dependability in extreme

circumstances.

Based on the product life cycle assessment placing Tysons Grilled & Ready brand in the

growth stage, its primary placement objective should be pervasiveness. In order to gain an edge

over its growing number of competitors, it needs to be aggressive to obtain the maximum shelf

space and in the most retail outlets that align with targeted segments. In order to accomplish this

goal, Tyson should continue to develop Grilled & Ready and introduce new varieties of this line

to dominate retail spaces. Grilled & Ready is already fairly ubiquitous, but they should continue

to expand into more niche stores that target the young and affluent markets. Tyson should begin

spreading the line into some larger convenience stores to attract impulse buyers with money to

spend. Specific retail partnerships will be discussed in a later section.

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Promotion
Tyson has 20 nationally aired television campaigns, with Powered by Tyson being the

largest advertising campaign in Tyson history (Encylopedia). Powered by Tysons campaign

stressed the importance of protein in the diet and showed individuals performing tasks they

otherwise would be unable to do without Tyson, such as bikers doing extravagant bike tricks in

the Grand Canyon or a boy climbing to the ceiling to hide from his father in a game of hide-and-

seek. Tyson uses a push strategy, which means taking the product directly to the consumer.

For Grilled & Ready, the current advertising objective is to promote the great nutritional

value and convenience of the product. This strategy allows Tyson to relate to consumers with

busy lives who still want a healthy meal. Currently, Tyson uses television ads, prints, and mobile

ads to advertise their products.

Tyson has engaged in multiple public relations campaigns in the past. Along with the

Powered by Tyson marketing campaign which emphasizes the importance of protein in users

diets, Tyson has worked to fight hunger through a few different public relations efforts. In 2006,

Tyson donated 7.5 million pounds of protein and staged 68 food donations nationwide as part of

their Powering the Fight Against Hunger campaign (Hendrix and Hayes). Their Be a Hunger

Hero campaign in 2013 was another successful public relations effort to help raise awareness

and aide for American families in need of food. They donated one meal for every bag of Tyson

chicken nuggets sold at Sams Clubs during the month of August, in addition to educating kids

about childhood hunger by offering coloring books and secret identity cards at six in-store

demonstrations nationwide throughout the month (Tyson Foods to Donate).

In order to maintain a positive brand image, Tyson should continue to focus on public

relations campaigns. Consumers care now more than ever that they are buying from producers
 39

who add, rather than take away from, value to society. Quality alone does not prove to

consumers that the product is worth a higher price, they must also view the brand in a positive

light. Therefore, Tyson should put on annual Be a Hunger Hero campaign events and food

drives nationwide like they did in August of 2013. Getting consumers families and children

directly involved in their efforts to fight hunger across America is the best way to prove Tysons

were family too strategy. Additionally, Tyson should expand their Powered by Tyson

marketing campaign to include an annual 5k race, the proceeds of which would also be used to

provide protein to food drives nationwide. The runs slogan would be Powered by Tyson:

Providing quality food to the people of America, and would have a Chicken Run theme.

Then, participants could compete for the best chicken costume along with the fastest time in

order to garner excitement for the event. Pictures and videos of the many participants running

around in chicken costumes would be perfect to share on social media platforms and YouTube

advertisements, all which should highlight the importance of what Tyson is doing to raise money

and awareness for American families in need.

Besides donating money to good causes, Tyson also needs to emphasize their efforts to

improve the quality of their products. This does not just include the taste of their chicken, but

rather in the broader sense of how the chicken is raised and what methods are used to produce

their final products. In 2015, Tyson published their first sustainability materiality assessment to

their website (Tyson Foods: Transparency). The assessment highlights new technologies and

strategies used by the company to reduce environmental impact, and touts the many awards in

sustainability they won in the previous year. These assessments should continue to be completed,

but they should be at the forefront of Tysons public relations campaigns. Everyone should know

about the great strides that Tyson is making to have environment and animal - friendly practices.
 40

Therefore Tyson should share the highlights of this assessment on social media platforms like

Facebook, Instagram, and Twitter. They should publish these facts and figures periodically in

order to maintain the publics interest in the great steps they are taking to catch up with industry

expectations.

Tyson engages in personal selling to other businesses, which should continue to be done

in the future under this marketing plan. Tyson does not provide sales promotions directly, but

retailers who supply their products often offer promotions through coupons and store discounts.

This marketing plan suggests continued support of retailer sales promotions but no new direct

Tyson discounts. Tyson uses television, mobile, and print advertisements for direct customer

marketing. Additionally, Tyson has a strong Web presence through their website which is both

Business-to-Customer and Business-to-Business. Tyson also sponsors many events and even has

their own events center.

As far as new technologies go, Tyson uses mobile marketing currently to target the

modern, connected, generation. Tyson could always improve advertising with more creative

campaigns but they are doing a good job utilizing the modern technology instead of only using

older medias such as print or TV for promotion. An analysis of their website is given here:

Context- The layout is decent, however there may be too much white space and too much

centered context, rather than using left and right margins. Visuals are appropriate and helpful.
Content- Text, pictures, and video are all informative, clear, and relevant.
Community- There really is no user-to-user communication as far as chatting forums, but users

are able to ask a question to a Tyson expert regarding recipes and nutritional information.
Customization- Tysons website does not allow users to change the look of the site, but the site is

tailored to meet the needs of many different types of consumers and individuals points of

interest. Some of the topics available on the site include sustainability, recipes, products, or
 41

general knowledge about Tyson. The site also has specifications for students, government

officials, and investors.

Communication- Tyson gives consumers opportunities to contact them for any questions as well

a search option to find more specific information. There are no options for messaging between

consumers, most likely due to the nature of the product.

Connection- Tyson allows sharing options on social media sites such as Twitter, Facebook, etc.

They also provide a link to their other Tyson sites on more specific topics such as consumers,

hunger relief, or products.

Commerce- Due to the nature of the product, there is no e-commerce, but the sites gives very

helpful information on where to buy any of their products at local grocery stores.

For advertising, Tyson should not change their push strategy or the current objectives of

promoting nutritional value and convenience of their Grilled and Ready line. They should also

continue their strategy to relate to consumers with busy lives. Strategies like these help the

consumer relate to the ads, and thus be willing to buy the products. However, Tyson should

increase their mobile ads for popular or new products and incorporate more internet based

advertising such as on YouTube and Hulu (both areas they currently dont have much of a

presence in). Lastly, Tyson should continue their television ads and keep them humorous and

relatable.

Tyson should increase mobile and online marketing campaigns in order to reach their

desired base of consumers. Internet traffic is projected to increase by 158% by 2019 in North

America alone (Cisco Systems). this represents the future of advertising as consumers become

more connected. With the consumer tracking used online it would be easier to implant ads in

Youtube videos of internet users that have viewed Grilled and Ready or similar pre prepared

frozen items in the past.

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These changes to marketing will help reach sales goals as well as the increased chicken

sales because creative campaigns will make consumers more aware of the Tyson products as well

as entice them to purchase.

Putting It All Together

Tyson does not need to make alliances with competitors because of the overwhelming

market share that they already control. However, it could be beneficial to Tyson to enter more

niche markets by partnering with reputable, selective suppliers such as Whole Foods. Whole

Foods stores do not currently supply Tyson products, but because of their promise to provide

quality chicken, it would be beneficial for Tyson to get their brand on shelves at Whole Foods

stores. Whole Foods promises to provide chicken that does not contain any antibiotics, has not

been physically altered or supplied with supplemental growth hormones, has been provided with

appropriate litter provided for comfort and encouraging natural foraging instincts, and has been

fed no animal byproducts (Chicken). If Tyson is able to prove that they meet these standards

on some of their products, it would reflect positively on their brand as a whole. The Grilled and

Ready line would be a perfect focus for Tyson to utilize proper feeding and care of chicken

raised to be made into Grilled and Ready products, due to its already healthy and fresh brand

appearance.

As far as international outreach, Tyson will not change their position. As previously

stated, Tyson does sell internationally, but the main focus for the company is on the domestic

market. The substantial brand recognition allows Tyson to compete successfully and solely in the

U.S. market. Rather than global expansion, Tyson should focus on current social issues such as
 43

hunger relief and improving sustainability efforts. This focus will allow Tyson to increase its

attractiveness in the market and most likely increase sales along with the consumer base.

Tyson Foods reported 996 million in advertising and promotional expense in fiscal 2015

( Tyson Foods Annual Report). With the proposed changes including increased mobile

marketing to target an ever increasing population of internet users. Tysons budget will increase

but will not increase drastically, with a 8 to 12 week advertising campaign nationwide with

projected expenses of $8 to $10 million dollars. Pushing Tyson Foods expected expenditure over

$1 billion dollars. Given Tysons size and cash flows, a change of this magnitude is immaterial

and will not be hindered by cash constraints.

Critical factors in the control phase of strategic marketing process to ensure that the

strategy execution was successful or not are as follows:

1) Percentage increase in sales

One of the factors that can be used to measure the effectiveness of a marketing plan would be the

percentage increase in sales. If sales are going up, then it can be assumed that the marketing plan

is working well and can be continued. However, if its not, then the marketing plan should be
 44

modified or dropped. This factor should be monitored monthly, as the time period is enough to

notice a difference in sales and act accordingly.

2) Increase/decrease in the number of retail buyer

If the number of retail buyer of Tysons product increases, then the number of consumers it can

reach out increases. This increases the sales and the market awareness of the products among the

consumers. As the market expands, the markets share of Tysons product also increases. The

count of new retail buyers can be done monthly or quarterly.

3) Inventory Turnover

Inventory turnover helps to determine how well Tyson is managing its inventory levels. If

inventory level is low, it can be assumed that Tyson has been overstocking products, or Tyson

has a problem pushing sales to its customers. Hence, the higher the inventory turnover, the better

the sales of Tysons product. Since chicken products are quick moving inventory, they should

conduct it weekly or bi-monthly.

4) Operating expense ratio

Operating expense ratio measures the cost of operating or producing a product and the income it

brings. If a product has a high operating expense ratio, then the product is costing a lot to be

produced and is not really profitable. So, it is better to find ways to reduce cost of producing the

product and keep the operating expense low. Tyson can use this ratio to check the operating

expense of producing their Grilled & Ready chicken. They should produce this ratio quarterly.

Post-SWOT analysis:

Favorable Unfavorable

Internal Strengths Weaknesses

Tyson now has an established This planned positive PR push may not
emotional connection with its be able to eliminate threats of future legal

customers. Not only does it dominate
the market in sales and bargaining
power, but it is actually a well liked
brand by the average consumer.
External Opportunities
An increase in online advertising of
various forms of multimedia is
expected to create new potential life-
long customers with our targeted
markets of non-traditional families and
the young single working class. This,
combined with increased PR, will
create new sustainable customer
relationships that last far beyond our
individual ad campaigns.
45
battles, but it will both proactively and
retroactively mitigate the negative
outcomes of these incidents.
Threats
The threat of increased competition in the
market will be far less concerning after
these plans are implemented. They will
give Tysons brand the edge it needs to
differentiate itself from its competitors.
New disease outbreaks and threats of
recalls will likely always plague the
company, but its new focus on positive
PR will go a long way towards preventing
these incidents from permanently
harming Tysons brand.
 46

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