McCormick Spices Dr. Andrew Bergstein Marketing 303

McCormick:Have they lost touch Like many corporations McCormick has a website that they hope will inspire people to use their products –unfortunately the web site is not up on the times –it offers recipes that just are not made anymore Cherry Cobbler In the past their motto has been “Make the best and Someone will buy it” Unfortunately they don’t know who someone is

McCormick Spices The company still has 40% market share Burns Philp and Company decided to challenge McCormick for market share, this has become know as “The WAR” McCormicks top priority was winning the War McCormick was able to win due to financial problems that plagued Burns Philp

McCormick’s new Philosophy Have addressed the face that more women are working and people are not spending as much time cooking Home chefs no longer prefer traditional spices like nutmeg, turmeric, they now look for spicier spices People are cooking less and less from scratch

McCormick’s new Philosophy Trying to promote seasoning mixes for roasts and other cuts of meat Advertising has grown from 3 million five years ago to 25 million this year Gotten more focused and sold some of their assets that are under performing such as their Garlic Company in CA

McCormick’s new Philosophy Repurchased 7.5 million shares over the past year and are expecting to acquire and additional 2.5 million by year end 1998 New focus is to make sue net operating profit is well above cost of capital Net income last year 98.4 million The competitions Burns Philps lost million

McCormick’s new Philosophy McCormick is betting on the growth of industrial sales Hoping about 40% of business will come from this type of sale With the trouble facing Burns and Philps, McCormick has been able to reduce feed paid to grocery stores for shelf space from 200 million to 120 million

Growth Opportunities Looking for growth outside the United States Possibly China?