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LOGO
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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LOGO
GROUP 5
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LOGO