Hardbite Chips
Langara College
School of Management
MARK 1115
Introduction to Marketing
D. Hill
23 November 2009
Executive Summary
This report provides an analysis of Hardbite Chips and the Snack Food Industry and offers recommendations for Hardbite Chips to develop an effective marketing plan.
Hardbite Chips is an environmentally sustainable business that provides healthy, good-tasting, and quality potato chips.
The target market we have selected for Hardbite Chips is health conscious consumers, particularly those with children. It is our belief that the consumers will be attracted by the healthy features of our product and will be willing to pay slightly more for
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Furthermore, these corporations benefit from massive advertising budgets that allow them to hold on to their majority market share. Frito-Lays, a division of PepsiCo., is the leader in the Canadian snack food industry with multiple SBUs that offer many different products, including different varieties of chips in various flavours. However, the opportunity exists for smaller companies to come in and target niche markets. In fact, “in 2006, 106 Canadian snack food manufactures shipped $1.6 billion of product”.4 However, big corporations are beginning to see the potential of these markets and are beginning to expand into them. A good example of this is Frito-Lays and the introduction of their Wasabi flavoured chips5.
Company Mission Statement
Hardbite Chips is dedicated to providing our customers with a healthy, good-tasting, and quality potato chip. In doing so, we are committed to be an environmentally sustainable company with strong ties to the community.
Internal and External Analysis
|PEST Analysis: Hardbite Chips |
|Political Environment |Economical Environment |
|Mandatory nutrition labeling |Economic
Proctor and Gamble, the developers of Olestra, performed a test and found that people eating typical amounts of Olestra-based chips don’t have significantly more gastrointestinal problems than people eating normal chips. The FDA is now reviewing this finding. Gladwell used this to point out that it’s entirely possible, right now, to make a French fry without many dangerous health concerns.
Tootsie Roll’s simple strategy is to be (and remain) a top-quality producer and distributor of Tootsie Rolls and other candy products, in an industry where it currently has 2 to 3 percent of market share. Specifically, the company has determined to specialize, almost entirely, in hard candies (such as Tootsie Pops and Blow Pops) and chewy candies (such as Tootsie Roll, Frooties and Flavor Roll), and it currently maintains a 50 percent market share in this unique segment. The success of Tootsie Roll in the U.S. for the past 19 years is attributable to the strong consumer awareness of the company’s brand name and brand loyalty. Over time, Tootsie Roll has neither diluted the quality of its products nor failed to
The cereal industry is very adamant on using a differentiation strategy to make one’s brand stand out in the minds of certain people. The companies break down the public into different target markets; and then make products that will be attractive to their target markets. Companies make different brands for young kids, teenagers, adults, and people who are health conscience. Currently, there are 387 different brands of cereal sold in the United States and each family is estimated to purchase 17 different brands per year. (O’Connor, Amy) Companies continue to brainstorm for new product ideas to attract the various market segmentations.
Popchips is a chip brand who claim their chip is a healthy snack. Popchips claimed that they do not use any flavor enhancer, no added preservatives, no fake flavors, and no synthetic colors. Their product use all-natural ingredients from non-GMO sources (Faq). This particular ad created by Popchips used a bright red color that brings the audience’s eyes to attention. The ad is divided into three sections. The top section writes “less guilty, more pleasure.” Three stacks of potato chips at different height are in the middle of the page. An enormous “100 calories” laid behind the three potato chip stacks. Below each stack is the names of chip types including: fried chips, kettle style chips, and Popchips. Underneath the names are short nutrition facts of the chips. The bottom section depicts a short description of Popchips.
Government campaigns to inform people of the dangers of a high-fat diet have caused the public to recognise that they need to watch what they eat, since unhealthy foods can lead to heart disease and obesity, as well as a myriad of other health problems. This has lead to an increase in the sales of healthy substitutes for fatty foods. Muckle chips are high in fat, and although
Frito Lay, a division of PepsiCo Inc, has just purchased the Cracker Jack brand from Borden Inc. The company is a worldwide leader in the manufacturing and marketing of snacks, with products such as Ruffles Potato Chips, Fritos Corn Chips and Doritos found among its product mix. These well known company brands have seen it capture over 50 percent of the retail sales, and company officials envisage Cracker Jack can only but add to the richness of its product line and profits. Borden, because of its strategic decision to concentrate resources elsewhere, discontinued aggressive
With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be described as a saturated industry. The case insinuates that there may be opportunities in the industry in regards to special markets and perhaps Oils and Baking with sugar free products, but otherwise the recession, although it drove families to buy store bought as opposed to eating out, has had its effects on the food service industry as well.
The primary reason for the Borden Foods to divert itself from snacks is to emphasis its efforts and resources in the growth of their whole-wheat meal segments. Because of this valuation they had and a growth plan they had they decided to announce sale of Cracker Jack in 1997. The management team of Broaden also recognized that with the increase in competition they have not been able to successfully grow the sales figure in past five years. Also because the Cracker Jack brand has various packaging options and has been maintaining a huge product line of 32 Stock-Keeping Units (SKUs). However, currently Broaden production facility had only 32 percent of space allocated to Cracker Jack Products and has been operating at 32% of its
The snack chip category is growing, mainly because of the increased per capita consumption, which rose from about 12 pounds in 1986 to nearly 14 pounds in 1990. The snack chip category consists of three types of competitors: national, regional and private brand firms. The market is very competitive and difficult; as many as 650 new products are introduced every year, but less than 1% of them generate more than $25 million in first-year sales.
The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.
My favorite restaurant is robison fries. It is located to Shimokitazawa in Tokyo. That restaurant is based on Canada traditional hot chips. First, Robison fries has many kinds of hot chips with gravy sauce and awesome tastes. My favorite one is hot chips and sausage with gravy sauce. Gravy sauce and sausage contrast is beautiful.Second, Even though hot chips is bad for health, Robison fries appeals good for health their fries, uses rise oil. We usually take vegetable and animal oil. They are not easy to disassembly in our body,so rise oil is easy to disassembly inside our body. Finally, I take care of Instagram account for robison fries because it showed a lot of yummy food. Sometimes I want to skip your class and eating that. Even though I
Brand building, consumer health and wellness, and advertising and promotions were all critical to success in the industry. Kraft’s ability to compete with lower priced snacks showed its ability to differentiate itself from other lower priced competitors.
Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.
Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.
Potato Corner would want to make sure that their flavored fries product can easily be found in busy and accessible channels so they can be present anytime and anywhere.