Quoted – Smucker to cut 40 percent of Orrville production workers as new plant comes online

The J.M. Smucker Co.
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Smucker to cut 40 percent of Orrville production workers as new plant comes online

The J.M. Smucker Co., which makes the nation’s best-selling brands of jams, jellies and coffee, is investing $220 million over the next three years to consolidate its fruit spreads and coffee production from seven plants to three.

The 113-year-old company’s largest-ever capital investment includes a sizeable expansion of its Orrville headquarters on Strawberry Lane, where a new jam-and-jelly manufacturing facility will eventually replace the current 60-plus-year-old plant.

The downside is that larger, more efficient and technologically advanced food processing plants don’t require as many workers, so Smucker will end up letting go about 700 people, or 15 percent of its 5,300-person workforce, by the end of 2013.

Smucker, like all food manufacturers, was “under constant pressure to be as efficient as possible” in order to stay competitive, said Scott Testa, a food industry consultant and professor of business administration at Cabrini College in Philadelphia.

“No one wants to see people laid off, especially in this economy, but at the end of the day, as food manufacturers become more efficient, quite frankly you need less and less people.”


http://www.cleveland.com/business/index.ssf/2010/03/smucker_to_cut_40_percent_of_o.html

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McDonalds and its Healthy Menu

Ronald McDonald
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McDonalds and other fast food restaurants are starting to and have been marketing a “Healthy Menu”. But, is their new health oriented menu going to change the dynamic of the eatery. We saw McDonalds and others advertising a tasty and quick and affordable product. Now they started working the coffee scene and health scene. I think that they will soon begin to target health food as their main advertising campaigns.
After so many years of marketing fast food—The Big Mac—people already know what McDonalds has to offer in that sense. But, it is a harder sell to convince people who are health conscious to go to these places to eat. It is also very hard to convince a Starbucks customer to go to McDonalds to get a Cappuccino.
Although it is not impossible for these things to happen it will take time and money. Money is not a problem for McDonalds, the health-craze isn’t going anywhere and Coffee drinkers are definitely not changing habits. Plus, people who regularly eat at McDonalds are going to continue to eat there, they are basically loyal customers. I think McDonalds will start to target Health Conscious people, continue to target young kids and also coffee drinkers.

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Starbucks Launches New Marketing Campaign

Starbucks logo
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Higher-end coffee shops like Starbucks are getting severally effected in our recession now, as more and more consumers flock to places like Dunkin Donuts and McDonald’s for a cheaper cup of coffee.  Its second quarter profits fell by 77%!  Their new marketing strategy is to focus on the quality and value of the whole Starbucks experience, because this and its servicescape really differentiate it from the competition.  Some of their new advertising is warning consumers to watch out for the “cheap coffee”, implying coffee from places like McDonald’s is not up to par.  Even so, Starbucks will cut costs slightly for their more popular products like the iced coffee and tall lattes.  Will these plans counteract the effects of the recession?  Only time will tell.

http://seattletimes.nwsource.com/html/businesstechnology/2009147908_starbucks30.html

http://www.msnbc.msn.com/id/30507501/

http://www.mediabistro.com/agencyspy/news/starbucks_cmo_answers_our_questions_about_advertising_in_a_recession_with_steep_competition_115444.asp

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Tiny Rival Tweaks Starbucks Over Decaf Edict

Starbucks logo
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Starbucks customers steamed at the chain’s decaf cutbacks are the target in a marketing stunt by Caribou Coffee Co.

via Tiny Rival Tweaks Starbucks Over Decaf Edict – WSJ.com.

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