Although Quaker Oats Company is performing well financially, its current production, distribution and marketing efforts are inefficient. ... To correct these inefficiencies, the channel organization should be changed to a vertical marketing system, which will allow the three smaller parts of the company (Quaker, Gatorade, and Snapple) to gain efficiency by sharing production, distribution, and marketing resources and costs.
Company/Product Audit:
In 1994, Quaker Oats Company was rated as the 12th largest food and beverage company in the United States. By November 1994, Quaker Oats Co. consisted of three merged companies: Quaker Oats Company, Gatorade, and Snapple Beverages and sold food and beverage products in many international markets.
Quaker Oats Company (QOC) was incorporated in 1901 by several oat-milling pioneers. Before merging with other companies, QOC’s product line consisted of Quaker Oats, Cap’n Crunch, Rice-A-Rony, Aunt Jemina, Ken-L Ration pet foods, and Van Camp’s bean products. ... By 1993, Snapple’s marketing research indicated that half of U. ...
After the November 1994 merger, Quaker Oats Company became a conglomerate within the food and beverage industry. ... After the completion of the merger, Quaker Oats Co. ... As consumer trends change, QOC must adjust its product line and marketing strategy accordingly. ... Competition is a significant threat for QOC as many of the large competitors have well worked out and established vertical distribution and marketing strategies, something QOC is lacking. ...
Problem Statement and Underlying Symptoms:
The underlying fundamental problem facing Quaker Oats Company is uncoordinated channel organization between the three major company segments. ...
Alternative Solutions:
In order to gain efficiency in QOC’s channel organization, the company must chose a marketing system to implement across all its segments.
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