Snacks To Go Jenny, Paul, & V

Strategy & Target Generic Strategy: Differentiation --by virtue of ziploc packaging --customers view this as useful, but still not differentiated enough to justify price difference for many customers Target Market: snackers, on the go people (snacking is universal) Attracted Market: respondents using projective techniques described potential customers as “non-descript,” “boring,” “frugal,” “downscale,” “unsophisticated” higher price point may be unappealing to this customer

Environment: PEST Political Sourcing/supplies: some nuts from different countries Tariffs, etc Economic During recessions/downturns, value lines more successful than premium/gourmet Social Health trends: anti-salt, however healthier than candy Technological Efficiency gains from technological advances—manufacturing, supply chain advancements Agricultural advancements Environmental Analysis: PEST

Industry Analysis: Porters 5 Threat New Entrants Threat of Substitutes Buyer Power Supplier Power Competitive Rivalry LOW H I G H HIGH HIGH MODERATE

Problem Definition Low Sales price point (others cheaper for same product) brand image (projective techniques revealed unexciting, non-descript, boring)

SWOT Strengths Vertically integrated production operation Attractive packaging and display Ziplock packaging is unique Research conducted Distribution network, including their own fleet of trucks Weaknesses Low level of brand awareness Limited product selection: only 4 types, no seasoning, bland, not responsive to local tastes Price point above one dollar, higher than or on par with competitors Inability to alter size of package Brand image Opportunities Product portfolio expansion Candied nuts Gummy bears Dried Fruit Seasoned Nuts Different Nuts (Pistachio, Almond, etc) Growth of the candy market Economies of scale/scope Expand Distribution Network Threats Competitive market with other highly recognized brands Food borne illness and associated liabilities Low level of brand loyalty throughout the nut snack industry Health Trends Climate/Weather related supply issues (ex: droughts, pestilence, locusts, etc)

Price: Increase price and size of bags Promotion: Increase advertising/promotion Placement: Vertically integrate forward/downstream by opening nut boutique Discontinue brand Possible Courses Of Actions Packaging: discontinue zip-lock feature (to be able to make smaller reach 0.99 price point) Promotion/Placement: strategic partnerships/vending contract with events/service industry

Expand Product Portfolio; diversify: Different Nut Types, Candied Nuts, Seasoned Nuts most inputs already utilized (in trail mix). Only need to find suppliers for a few new inputs, which are plentiful, low cost Minor modification to process Limit to 12 products total to avoid cost of new displays Expand Distribution: supply to nut/snack carts, vending machine, etc. Solicit for distributors. low cost, low risk; vendors pay cash (no credit issuance), easy way to increase sales, brand visibility Chosen Courses Of Actions

Snacks To Go New Variations/Exciting Products Limited Time Product Variations/Seasonal ex: Cajun sunflower seeds, Wasabi Peanuts, Cinnamon Almonds More Interesting Products Pistachios (highly demanded!) Chocolate Covered/Candied Nuts Highly Successful Seasonal Product Variations (which become permanent) Single Plain Nuts (1 type of nut per bag) cashews, almonds, hazelnuts, etc Mixes and Current Products Trail Mixes, Sunflower Seeds

Implementation 12 Total Products in Line (no new displays) Issue stocking diagrams to vendors; attachable signage to ……….. announce new variations and draw customer attention Create exciting new product variations not offered by competitors (wasabi, Cajun, cinnamon, etc) Market Research to Determine Most Demanded Nuts (cashews, almonds, candied nuts, etc?) Create distinctive, eye-catching packaging for the variations Closely monitor and evaluate sales of new products by region if sales of an item are strong in one region and low in another, leave it in strong region and introduce something else to weak one. Issue ordering guidelines (how many of each) to vendors

Expected Outcome Product variations will create a more exciting, trendy brand image Further differentiation, portfolio expansion and expanded distribution will make brand more noticeable. Product variations will shift product from a commodity, in which they are seeking lowest price. (By having variations other brands do not, they wont be able to buy at a lower price point.) Product variations will attract different demographic, psychographic of customer. (younger, trendier, wants to try new things) …….Increased Sales!

Thank you Questions? Comments? Concerns?