Snack Factory Snack Factory is the maker of Pretzel Crisps, and their effective use of product testing has gained a good recognition. This unique marketing strategy has led Snack Factory to marriage the two products - pretzel and chip, so customers are likely to buy one of the two products. But the typical American customer has tried a pretzel or a chip, and so the marketing strategy is not yielding many sales. However, statistics shows customers may be likely to try a product that they have tested before, but by focusing only on the existing markets, Snack Factory is unable to increase sales of chips and for pretzels. So, the company is looking to devise a strategy to reach wider targets, offering samples of snack foods, to new and existing customers. The Business Situation: The challenge is applying the best strategies and deployment of right resources; at the moment the small business owner has 25 sales representative, 2 HR personnel's, and would need to consult the services of strategist marketers which comes at an additional cost. Data reveals that the company can generate 25% return on investment in the first 3 months of re-strategising. This will lead to a increase in the number of individuals who sampled the Pretzel Chips during this promotion and ended up purchasing the product. Conduct research and clearly explain key business concepts present in your case study. Identify the business problems and clearly define the solutions supported by literature.
Snack Factory
Snack Factory is the maker of Pretzel Crisps, and their effective use of product testing has gained a good recognition. This unique marketing strategy has led Snack Factory to marriage the two products - pretzel and chip, so customers are likely to buy one of the two products. But the typical American customer has tried a pretzel or a chip, and so the marketing strategy is not yielding many sales. However, statistics shows customers may be likely to try a product that they have tested before, but by focusing only on the existing markets, Snack Factory is unable to increase sales of chips and for pretzels. So, the company is looking to devise a strategy to reach wider targets, offering samples of snack foods, to new and existing customers.
The Business Situation:
The challenge is applying the best strategies and deployment of right resources; at the moment the small business owner has 25 sales representative, 2 HR personnel's, and would need to consult the services of strategist marketers which comes at an additional cost. Data reveals that the company can generate 25% return on investment in the first 3 months of re-strategising. This will lead to a increase in the number of individuals who sampled the Pretzel Chips during this promotion and ended up purchasing the product.
Conduct research and clearly explain key business concepts present in your case study.
Identify the business problems and clearly define the solutions supported by literature.
Address the implementation process and how the organisation can overcome the business problem(s).
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