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Snacko India Limited

- Case Analysis

GROUP 5
Alisa Torres, Yizheng Wang, Hisham Shilleh Jarret Rhoton, Diego Ramirez, YaHui Hu

AGENDA
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Snacko Overview
SWOT Analysis Problem & Alternatives Recommendation Action Plans Contingency Plans

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OVERVIEW
Snack food company in India

Indias snack consumption was SNACKO small In comparison India to other developed markets Has attempted to become the market leader through acquisitions and aggressive growth strategies

Entered India 15 years ago

There has been a decline in market share and the marginal growth in sales value

MAJOR PLAYERS
Pepsi Haldiram

ITC foods division

Snacko

SWOT

Strengths

Innovator of trade promotions Instill goodwill among merchants Innovation centre established in India Well defined target market 360-degree media programs

SWOT

Weaknesses

Decline in Market Share Rely heavily on Trade Promotion Many levels in the distribution of products Retail structure is dominated by three million unorganized stores Trade schemes vary in length Many different trade schemes

SWOT

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 people Providing snacks to schools

SWOT

Threats

Increasing awareness of health and wellness; processed snack foods are viewed negatively Impulse purchases Increased competition

ALTERNATIVE # 1
Continuing with trade schemes

Pros Saving time Quick decision making

Cons High risks High cost Unknown acceptance of consumers Unknown acceptance of distributors

ALTERNATIVE # 2
Two schemes only- one in North (4Jhatpat) and one in South (6- Cramm) and compare to the controlled group the West.

Pros More alignment Dont get confuse with all the schemes Focusing more on specific regions Promoting more buying More control of discounts and products from headquarters Promoting two best products

Cons Limited to only two Losing chances to promote other products Needing to have enough inventory and prizes Two products being promoted do not have 80 unit boxes

ALTERNATIVE # 3
Removing all trade schemes and pursue a marketing campaign aimed directly at the consumers.

Pros Focusing directly on one specific type of snack The brand selling message Changing the consumers negative views of processed snack foods Taking impulse out of an impulse purchase

Cons the truly rural areas would still not be reached Ties with distributors may hurt by the removal of trade schemes Competitors who use trade schemes with distributors could capitalize on those relationships for better stocking and promotion at the local store level. Loss of market share due to an unsuccessful campaign

RECOMMENDATION
Picking the two top selling Snacko products and concentrates on their promotions. Cramm & Jhatpar

Cramm and Jhatpar have the most variations in flavors of the Snacko product line.
Cramm and Jhatpar we will see a 22.5% increase in total Snacko sales.

ACTION PLAN
Snacko Food will implement Trade Promotion Scheme Number 4, The Jhatpat Tez Brand offer, in the northern region of India for 6 months trial.
Snacko Foods will utilize their most popular brand, Cramm. Snacko Foods will run the Cramm Brand Winner Extravaganza promotion scheme in the southern region of India. If these two promotions prove successful, Snacko Foods will able to use the data collected and apply these schemes to other areas of India

Jhatpat Tez and the Cramm brand make up for nearly one half of all the products sold by Snacko Foods.

PREPARING CONTINGENCY PLANS

Promoting to customers directly via mail and internet. Giving discount program to distributors

Alternative #3

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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