Snacko_India_Limited.ppt

7/30/2019 Snacko_India_Limited.ppt

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Snacko India Limited- Case Analysis

GROUP 5Alisa Torres, Yizheng Wang, Hisham Shilleh

Jarret Rhoton, Diego Ramirez, YaHui Hu


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AGENDA

SWOT Analysis

1

Problem & Alternatives

2

Recommendation

3

Contingency Plans

5 Action Plans

4

6

Snacko Overview


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Snack food company in India

OVERVIEW

SNACKO

India

Entered India 15

years ago

Has attempted tobecome the market

leader through

acquisitions and

aggressive growth

strategies

Indias snack

consumption wassmall In comparison

to other developed

markets There has been a

decline in market

share and themarginal growth in

sales value


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Pepsi Haldiram

ITC foods division Snacko

MAJOR PLAYERS


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Strengths

Innovator of trade promotions

Instill goodwillamong merchantsInnovation centre established in IndiaWell defined target market

360-degree media programs

SWOT


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Weaknesses

Decline in Market Share

Rely heavily on Trade Promotion

Many levels in the distribution of productsRetail structure is dominated by three

million unorganized stores

Trade schemes vary in length

Many different trade schemes

SWOT


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Opportunities

Working Mothers

Healthy snacks

Acquiring ITC Foods Division

Focusing on a specific type of snack (i.e.

biscuits or potato chips)

Sponsor school events to target younger

peopleProviding snacks to schools

SWOT


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Threats

Increasing awareness of health and

wellness; processed snack foods are

viewed negativelyImpulse purchases

Increased competition

SWOT


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ALTERNATIVE # 1

Continuing with trade schemes

Pros

Saving time

Quick decisionmaking

Cons

High risks

High cost

Unknown acceptance

of consumers Unknown acceptance

of distributors


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ALTERNATIVE # 2

Two schemes only- one in North (4-Jhatpat) and one in South (6- Cramm) andcompare to the controlled group the West.

Pros

More alignment

Dont get confuse with all theschemes

Focusing more on specificregions

Promoting more buying

More control of discounts andproducts from headquarters

Promoting two best products

Cons

Limited to only two

Losing chances to promoteother products

Needing to have enoughinventory and prizes

Two products being promoteddo not have 80 unit boxes


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ALTERNATIVE # 3

Removing all trade schemes and pursue amarketing campaign aimed directly at theconsumers.

Pros

Focusing directly on one specifictype of snack

The brand selling message

Changing the consumers

negative views of processedsnack foods

Taking impulse out of an impulsepurchase

Cons

the truly rural areas would still notbe reached

Ties with distributors may hurt bythe removal of trade schemes

Competitors who use tradeschemes with distributors couldcapitalize on those relationshipsfor better stocking and promotionat the local store level.

Loss of market share due to anunsuccessful campaign


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RECOMMENDATION

Cramm and Jhatpar havethe most variations inflavors of the Snackoproduct line.

Cramm and Jhatpar we willsee a 22.5% increase intotal Snacko sales.

Picking the two top selling Snacko products andconcentrates on their promotions. Cramm & Jhatpar
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ACTION PLAN

Snacko Food will implement Trade PromotionScheme Number 4, The Jhatpat Tez Brand offer, inthe northern region of India for 6 months trial.

Snacko Foods will utilize their most popular brand,Cramm. Snacko Foods will run the Cramm BrandWinner Extravaganza promotion scheme in thesouthern region of India.

If these two promotions prove successful, Snacko

Foods will able to use the data collected and applythese schemes to other areas of India

Jhatpat Tez and the Cramm brand make up fornearly one half of all the products sold by SnackoFoods.

2


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Promoting to customers directly via mail and

internet.

PREPARING CONTINGENCY PLANS

Alternative

# 3

Giving discount program to distributors

Designing specifically AD to show healthy

and nutritious alternatives

Starting testing new schemes for one region

Adjusting the assignment of sales of every

distributor


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GROUP 5


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Snacko_India_Limited.ppt

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