Dhaliwal

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Johns Hopkins University *

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2814F

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Industrial Engineering

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Jan 9, 2024

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docx

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Uploaded by JusticeFogDonkey14

Harvir Dhaliwal, 251162516 MOS 2320 - section 003 1A. Extension Opportunity: The launch of gourmet dips, which build on the popularity of DPC chips, is in line with consumer expectations for quick and tasty snacking. Dips can be made to complement the flavors of the chips or to present completely different flavor profiles influenced by regional Detroit cuisine. Workability - Brand Awareness: By utilizing the success of DPC chips, the launch of gourmet dips builds upon the customer base and brand awareness that the Washington family has built over the years, making it a logical next step for the business. - Harmonization of Flavors: Designed to enhance the flavors of DPC chips, the gourmet dips offer a pleasing and well-balanced mix that elevates the whole snacking experience for customers. - Versatility and Innovation: The strategic expansion into gourmet dips positions DPC as a versatile and innovative brand, adapting to changing consumer trends while maintaining its relevance in the competitive snack industry. Co-branding opportunity: By working together with regional gourmet condiment manufacturers, DPC is able to experiment with new taste combinations. DPC may provide customers with a refined and varied snacking experience by combining their chips with distinctive sauces, taking the brand above and beyond the typical chip options. By working together with regional gourmet condiment manufacturers, DPC is able to experiment with new taste combinations. Workability - Shared distribution channels can help co-branded items reach more consumers by utilizing pre-existing retail networks to promote both brands. - By co-branding with regional condiment manufacturers, DPC is able to strengthen its ties to Detroit's local identity. By using products that are produced locally and working with local craftspeople, the company highlights its dedication to promoting local companies and highlighting the community's unique culinary heritage. - Makes sure DPC stays adaptable and appealing to a wide range of customers. Brand licensing opportunity: A clever strategy that beyond the immediate snack market is brand licensing for Motor City-themed items, which enables DPC to develop into a lifestyle brand deeply rooted in Detroit culture. This expands brand awareness, strengthens ties within the community, and gives customers a concrete opportunity to show their affection for DPC and the Motor City. Workability - The selling of branded goods creates a new revenue source for DPC in addition to snack sales. Wearables, and memorabilia may turn into in-demand commodities for both locals and visitors, boosting the brand's capacity to make money and expand.

Harvir Dhaliwal, 251162516 MOS 2320 - section 003 1B. Product development 1. Idea generation 2. Concept testing - Surveys on their website - Focus groups among foodies 3. Product development: Make prototypes of the different flavors - Testing it on different food items like french fries, popcorn, other potato chips and meats - Alpha testing – testing the flavors by the product development team - Beta testing – testing by other foodies and chefs to assure quality and depth of flavor since it - how they are positioned 4. Market testing - Make promotional material - Posters on store fronts, tv advertisements and pop ups on their online website (not randomly but right when they open their website) - Teaming up with foodies to promote the product on social medias like Tik tok and Instagram to showcase different ways to use the product - Do a 12 week sample to retail partners and grocery retails – making sure to place these products on store end caps to assure visibility from consumers 5. Product launch - After the 12 week period and after we have confirmed if will be a success - Maintain the quality, depth of flavor and authentic experience position - Product – Gourmet potato chips, new sauce extension - Price – $6 per bag - Place – online, retail partners and grocery stores initially in the United States, will expand once there is more brand awareness and demand - Promotion – tv advertisements, posters on store fronts, billboards, partnerships with Tik Tok influencers 6. Evaluation of results - Looking at sales, typical consumers and profits - If things are not performing well, we may need to reassess and understand why 2A. Option 1: Fixed Expenses: - The annual lease cost is $30,000. - Salary for sales and brand management combined: $146,000 USD - total fixed expenses in USD: $176,000. Variable Expenses: - Each case's material and component costs are $12.00 USD. - Each case will cost $10 in labor. - $22.00 USD is the total variable cost per case. - Total Expense for Each Case: - Each case cost $198.00 in total. Cost per Wholesale Case: - $60.00 CAN, to USD conversion: $48.00 in US dollars Breakeven Situations:

Harvir Dhaliwal, 251162516 MOS 2320 - section 003 - Breakeven cases: $176,000 / ($48.00 - $22.00) = $176,000 / $26.00 : 6,769 cases Option 2: Fixed Expenses: Canadian supplier: - CAN$18,325 a month (approximately CAN$219,900 a year). Variable Expenses: - $0.80 USD is the production cost per bag. - $2.40 USD shipping fee per case - $3.20 USD is the total variable cost per case. Total Expense for Each Case: - Each case's total cost: CAN$4000 cases / $219,900 + $3.20 USD = $70.00 USD Cost per Wholesale Case: - $60.00 CAN, to USD conversion: $48.00 in US dollars Breakeven Situations: CAN$219,900 / ($48.00 - $3.20) 5,787 cases 2B. Considering Detroit Potato Chips dedication to excellence, community involvement, and preserving a hands-on brand image, Option 1 growing the current business seems more in line with their goals. By choosing to produce internally, DPC keeps direct control over the manufacturing process, further demonstrating their dedication to creating high-quality snacks with a local flavor. The choice to hire 15 workers supports local employment and is consistent with DPC's community-focused strategy. It's a better fit for DPC's growth strategy and overall brand identity because of the qualitative characteristics that promote brand ownership, image, and community involvement, even though Option 2 offers cost efficiencies through outsourcing. 3A.The best targeting method in this instance for Detroit Potato Chips (DPC) is niche marketing. Serving a specific, well-defined market segment with unique needs or preferences is the aim of niche marketing. In this instance, DPC operates in the small-batch, craft premium potato chip industry and serves consumers that appreciate unique, elevated snack experiences. 3B. Campaigns on Social Media: - : To highlight DPC's premium small-batch potato chips, aesthetically appealing content will be featured on social media sites such as Facebook and Instagram. This includes top-notch pictures and films that showcase the distinctive tastes, packaging, and general brand narrative. - Target Market: Millennials and foodies who use social media to interact with food-related content and look for novel and high-end snack options. - By utilizing social media, DPC may capitalize on the craze for visual culinary experiences, increasing brand recognition and generating excitement in-store samples:

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