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Sujay RawatRicha NayakSathish BabuRaviteja Ruta Parasnis

LiteHouse foods : Glass Dilemma

Case of LiteHouse Foods : Glass DilemmaInformation Acquisition & ProcessingAgenda Beginnings Ed Hawkins Sr.RecipePrayerHard WorkIn 1963, it started with a restaurantBy 1970, they acquired a plant at SandpointFrom 1980, they started adding flavours and packagingMerge with Chadalee Farms in 1997In 2001, it started its own blue cheese production2010 became the year of bigger action

2010 : Year of changes2010 : year of bigger actionTargetIncrease sales by 78% in 5 years and be one of the to 10 food producers in the countryProduct line expansionMarket ExpansionIncrease MarketingNew Sales territoriesIn 2010, purchased Green Garden Food to take advantage of its manufacturing capacity

NEW CEOMarketRetail salad dressing market - $3bn in 2011Penetration of 95% and growth 3%Two segments Shelf Stable -85%Refrigerated salad -15%

Market & Competition Facts LiteHouse 21% market share in US, #3 #2 in Canada, trailing by Renne Company positioned itself as premium brand Healthy, Quality & Flavour pref.(blind tests) Uses no preservatives

Shortage of cash Competitors have created a price gap by switching (0.6) Dilemma in Transition Operations Inbound and Outbound logisticsRetail outletsExternal Data sources of consumer perception about plastic and glassEnvironmental impact Plastic vs. glass bottleTransportationWeight reductionRecyclability Present IssuesOperational ImpactVery brisk, to be handled with careStacking was stronger of 5-6 layersTamper resistant safety seal

Environmental ImpactOI study says it Produces 0.171 kg CO2/ 355 ml which is 33% more than plastic

Retail No promotions required as product already existsChances of breaking are high Glass Usage Operational ImpactDescrambler speeds up the process Warehouse stocking was difficult and short 2-3 layersFoil seal

Environmental ImpactOI study says it Produces 25% more carbon emission at 0.214 kg CO2/ 355 ml

Retail Retailers demand fee for promotionChances of breaking are high

Net Gain/ Loss by investment

The Change PlasticsSavings of $ 15,00,000Consumer PerceptionDifferent perception amongst different age groups

Quality Oxidation occurs readily Plastic wont break

Logistics Better utilization of truck at 22 pallets per truckLocal supplier Helps in cost reduction at great levels

Plastic Usage..RecommendationsShift to plastic bottles will give a room for price gap covering- promote plastic bottles on this fact

LiteHouse brand is popular which is indicated by Blind test- this can be leveraged to promote plastic bottles too

Spreading awareness through posters and campaigns; Highlight on Same taste new packaging

Information Processing

Information processing focuses on the mechanisms of cognition: attention, perception, and memoryInformation AcquisitionConsumer processes incoming information in 4 stages: exposure to information, information reception, cognitive analysis, and attitude formation.

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