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Introduction
Snacko India was a local subsidiary of a European food giant It entered into India in 1995 but was unable to succeed as expected The company then adopted aggressive growth strategies aimed to becoming a market leader It based its strategies on innovation, packaging, advertisement and promotion
Continued
The company was an innovator in using trade premium for capturing market share Snacko had set up an innovation center in India to monitor local formats & tastes
The processed snack food market in India was us $3 billion & growing at 15 % per annum
Potato chips itself were contributing about US $1.2 billion close to about 80 % of branded snacks category
The market was dominated by small sized packs & highly innovative 90 % of the products were priced at or below Rs.10 price point Mortality rate of new brands was very high in the market
Snackos products were being sold on impulsive and intensive distribution schemes
Stockist/Distributors Wholesalers
Retailers
5-12 % 2-3 %
5-15 %
on
product
innovation
and
Created buzz by innovative formats and flavours, associating its brands with events
Opportunities for people to experience the products It associated its brands and sub-brands with Indian cricket tournaments Special additional packs
Continued
New add campaigns during league matches Several below the line activities Sponsored events in which print, radio and TV media were extensively employed New product launch by 360-degree media approach
Trade promotion
Build demand at the middleman Trade promotions included Special pricing, sales incentives, discounts,Trade shows and demonstrations Tickets to sporting events Snacko also used trade promotion for launching new flavor in order to increase the chances of trial and adoption by the consumer They pushed slow moving brands through trade promotion activities
Continued
Retailers were offered incentives to provide additional shelf space Company did not pay for this instead provided the equipment for posters and banners The schemes ran for shorter period of time Additional incentive was given to sales team to implement the scheme Schemes were based on trust and relationship
Scheme 1
Detailed Trade promotions Scheme 1
Brand Name Cramm Asli Cramm Sizzler No. of SKU's in a box 40-unit Carton 40-unit Carton Offer per box 2.5 Cremo Units Battery Offer Worth
55 30
Cramm Kadak
Cremo Whistle Jhatpat Crackle
40-unit Carton
40-unit Carton 40-unit Carton 40-unit Carton
Mug
Scissors Lock Glue Stick
30
30 30 30
Scheme 2
Detailed Trade promotions Scheme 2
Brand Name Cremo SKU type 80-unit Plastic Container 40-unit Carton 80-unit Plastic Container 80-unit Plastic Container Offer per container Free Calculator, Electric extension Pen, Cutter, Bottle opener Roto pen,Toilet saop, Audio CD Clip hanger, Dish washer Offer Worth
125
30 225
Whistle
175
Snacko should implement pull strategy along with push strategy so as to build and enhance its consumer base The company should also focus more on enhancing the customer base with increase in distribution It should use various coupons like Bounce back coupons and the concept of cross ruffing Offering In package premiums to the customers
Continued
Introducing diet products for health conscious consumers Organizing contests for customers with the purchase of Snackos products Offering party packs through bundling of products
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