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Hardbite Chips Langara College or university School of Management DRAW 1115 Introduction to Marketing M. Hill 3 November 2009 Executive Overview This report provides an research of Hardbite Chips plus the Snack Food Industry and offers recommendations for Hardbite Potato chips to develop a highly effective marketing plan. Hardbite Chips is a great environmentally eco friendly business providing you with healthy, good-tasting, and top quality potato chips.
The target market we now have selected intended for Hardbite Potato chips is health-conscious consumers, particularly those with children.
It is each of our belief the fact that consumers will probably be attracted by healthy top features of our item and will be offering slightly more for people benefits. It can be our objective to drastically increase awareness of our merchandise among these consumers. Since our funds for advertising activities are limited and our target audience can be hard to achieve our promoting mix concentrates heavily in sales campaign. Advertising and public relations may help us encourage the features of your product and position it as a good quality brand for consumers. Really is endless to use personal selling to increase the number of merchants that take our merchandise.
We believe Hardbite Chips has the capacity to obtain satisfactory profits and grow the business enterprise. This will allow the business to better compete against the several competitors in the industry and maximize sales. As the business grows, more funds can be spent on promotional actions enabling the organization to grow its target market and charm to more retailers. Table of Items Current Advertising Strategy¦. ¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. 1 Organization Mission Declaration.. ¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. one particular Internal and External Evaluation PEST Analysis¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ 2 SWOT Analysis¦¦¦¦. ¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. 3 Competitive Analysis¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ some Target Market¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. 5 Promoting Objectives and Issues¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. 6th Marketing Research¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. 7 Merchandise Strategy¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. almost 8 Pricing Strategy¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ 9 Circulation Strategy¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ 10 Integrated Advertising Strategy¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. 12 Conclusion¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ doze
Appendix I¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. 13 Endnotes¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. 14 Bibliography¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ 15 Current Marketing Scenario The Canadian snack food market presents a lucrative chance for new and existing businesses in the industry. In 2008, Canadians ate an average of 3. two kg of potato chips. you Food retailers capture virtually all snack food buys in 2001 at approximately 67% and supermarkets accounted for approximately two-thirds of this. Grocery stores took the 3rd largest talk about of the market at about 13%.
Mass merchandisers and wholesale team stores have got increased their particular market share lately, passing convenience stores, as associated with these types of spots have exposed in Canada. Yet , this alter has not yet significantly afflicted food shops. 2 In 2007, Canadian retail grocery stores sold above $1. 8 billion really worth of desserts, with poker chips accounting for about $550 , 000, 000. This proceeds the new trend of 6% expansion in annual retail product sales of potato chips. 3 This growth features encouraged companies to increase into niche markets by providing unique flavours and natural products.
The Canadian snack food industry has seen an increase in fresh entrants recently despite the existence of big businesses. These big corporations have economies of scale which give them a significant competitive benefits in terms of expense. Furthermore, these kinds of corporations benefit from massive advertising and marketing budgets that allow them to hold on to their bulk market share. Frito-Lays, a label of PepsiCo., may be the leader in the Canadian desserts industry with multiple SBUs that offer numerous products, which includes different different types of chips in various flavours. Nevertheless , the opportunity exists for small companies to come in nd target specialized niche markets. Actually “in 2006, 106 Canadian snack food companies shipped $1. 6 billion dollars of product. 4 Yet , big businesses are beginning to find the potential of these markets and they are beginning to increase into these people. A good example of this is Frito-Lays as well as the introduction of their Wasabi flavoured chips5. Company Mission Statement Hardbite Snacks is committed to providing the customers which has a healthy, good-tasting, and quality potato nick. In doing so , we are devoted to be a great environmentally lasting company with strong ties to the community. Internal and External Research PEST Research: Hardbite Chips | |Political Environment |Economical Environment | |Mandatory nourishment labeling |Economic recession | |Provincial Government policy bans junk food product sales in general and |Tough to obtain capital | |high educational institutions |People are less likely to put money into unknown superior brands | |Social Cultural Environment |Technological Environment | |Trend far from unhealthy snacks |Equipment necessary to expand development is expensive | |Potato chips blamed for adding to obesity | | |Recent discovery of acrylamide, a possible carcinogen, seen in | | |carbohydrates cooked at great heat | | |People looking to buy environmentally friendly items | | |Competitive Environment |Demographic Environment | |Heavy competition in industry |Many consumers more interested in environmentally friendly items | |Low brand devotion among consumers in sector |Many people are concerned about wellness | |Large corporations include majority of market share | | SWOT Analysis: Hardbite Snacks | |Strengths |Weaknesses | |Product is hand-cooked |Limited cash-flow helps it be difficult to grow | |Potatoes are expanded locally |Brand is fairly unknown | |Focus on top quality |Small development facility when compared with major rivals | |Unique flavours | | |Growing brand consciousness | | |Sold in numerous health stores and on many campuses in BC.
Also marketed | | |across BC in recognized stores including London Drugs, Shoppers Drug | | |Mart, Overwaitea, and IGA Marketplace spots | | |Opportunities |Threats | |Expanding market |Provincial Government coverage bans unhealthy food sales in elementary and | |Many consumers are progressively more interested in environmentally |high schools |friendly goods |Larger competition may enter into market | |Many people are concerned about overall health |Economic downturn | |Opportunity to target niche ethnic market segments |Tough to get capital | | |People are less likely to spend money on unknown premium brands | | |Low brand devotion among customers in sector | Competitive Analysis We wish to placement Hardbite Chips as a the best quality potato processor chip brand for consumers. It can be our desire to utilize the regular consumer assumption that quality and price are related. [pic] We feel Hardbite Potato chips has the potential to develop a niche competitive benefit. Our principal focus can be on offering health conscious consumers.
Thus, our most important exclusive selling idea is to focus on the healthy and balanced qualities of our product. By producing a natural potato processor chip that is free of trans-fats, we believe we will certainly appeal to health conscious buyers. Also, Hardbite Chips was an early entrant into the increasing healthy potato chip marketplace and the organization has broadened its division points from originally providing in health food stores.
You examine ‘Marketing of Hardbite Chips’ in category ‘Essay examples’ It is our belief that has created brand recognition among the early adopters of healthful snacks. While the number of customers purchasing healthful snacks raises, we think these early adopters will advise the product to consumers helping the brand develop.
Furthermore, while using discovery of acrylamide, a possible carcinogen, in baked and fried carbs cooked at high temperatures, which include many of the existing potato chips on the market, we have an edge over many of our competitors as our system is not prepared at high enough temperatures to generate acrylamide. Hardbite Chips likewise uses exclusive ingredients including Himalayan sodium which provides more nutrients when keeping sodium levels low. This can be especially appealing to health conscious consumers, specifically to those with high blood pressure. Another unique advertising proposition Hardbite Chips can use is to charm to environment friendly consumers. We are committed to be an green company.
Each of our potatoes and spices are supplied by community growers and our product packaging is supplied by a local company. By showcasing these details we believe we are able to convince environment friendly consumers that our company operates with similar values. As the “green movements grows larger, we think we are situated for capturing a large percentage of this developing market. One more advertising appeal that we could use as a exclusive selling task is each of our unique flavors which may charm to particular ethnic organizations. While we attempt to help to make flavours that we think can appeal to everyone, we all realize that specific ethnic groups may find a number of our flavors appealing because they are familiar with these people.
For instance, each of our creamy coconut and curry flavoured poker chips may have got a special appeal to Thailänder people as coconut dairy is often included in curry in several Thai tested recipes. Although we currently give only a few exclusive flavours, it really is our desire to develop even more. By looking intended for inspiration in traditional cultural foods we expect we can discover flavours that appeal to Canada’s diverse ethnic residential areas as well as more traditional consumers of potato chips. Target Market In examining the spud chip industry, we have decided to segment the market based on a psychographic segmentation. Our crucial considerations are the consumers’ reasons, personality, way of living, and geodemographics.
Since, there is normally just one person who will the grocery shopping intended for an entire relatives, most likely a parent or guardian, it is our desire to target this person. Specifically, we are considering targeting operating parents who also are elevating children in an urban environment. In terms of character and way of life we would section these people searching at the type and amount of actions they do. We could looking to target people who have complete, active agendas and are trying to find healthy food alternatives but do not have time to review products automatically. For purposes, we are looking for parents that are concerned about providing healthy snacks their children really eat.
Through the use of geodemographics, we will be able to somewhat modify each of our advertisements for many ethnic neighbourhoods. We have decided to target this segment mainly because our system is capable of meeting their demands and should very easily appeal to them. Also, as this segment purchases most of the food for their relatives, our product will be exposed to their children as well. This will help grow manufacturer recognition and will help increase the sales of our product between other sections. The primary obstacle we foresee in targeting this segment of the market is our capacity to find an ideal and powerful media to communicate to them. These people balance work and family members obligations that may take up a substantial amount of all their time.
For a convenience item such as desserts, these people may well not pay attention to advertisements for different brands. Also, they often have other activities on their head so they might be distracted when presented with the ads. Marketing Objectives and Issues Each of our objective is to increase buyer awareness of our product simply by 30% over the following year. Seeing that our method still pretty unknown and the company have been focussed upon expanding creation facilities, we believe now is fun to increase advertising expenditures and raise awareness of our product. We are most concerned with raising the understanding of our product benefits and decreasing customer resistance to ordering our merchandise.
To gauge the success of your objective, we all will use monthly surveys to look for the approximate range of consumers aware of our merchandise. When increasing awareness of our product, we all wish to concentrate on the benefits which our product presents to customers. These benefits would include the healthy aspects and quality of our motherboards. We believe buyers will see our all natural, hand-cooked goods as very compatible with their particular lifestyles. Hence, as buyers become aware of the product, revenue should maximize. Also, by simply increasing understanding of our product we hope to diminish consumer resistance from buying the product. Recently, potato chips attended under harm for adding to obesity and related medical problems.
Additionally , sugars cooked for high temperatures have already been found to contain acrylamide, a possible carcinogen. Our merchandise addresses these types of concerns through informing consumers of this, we feel they will decide to choose our item over the competitors leading to an increase in our sales. In order to measure the success of our strategy, it is important to receive continuous reviews from consumers. Therefore we all will review consumers all year round to measure changes in awareness of our item and the enhancements made on the number of people buying each of our product. We all will also question consumers the way they view the product in comparison to those provided by other snack food manufacturers and how they perceive our merchandise in terms of well being.
Challenges in meeting each of our marketing objectives will include selecting an effective funnel through which to educate consumers regarding our item. Also, as more companies are entering into the industry we will be competing with them to make buyers aware of our products. An additional challenge which may present by itself is the huge companies in the marketplace may also become aware of our merchandise and choose to emulate some characteristics of our product lowering our competitive advantage and making it harder to influence consumers are goods are differentiated enough to get material. To overcome these types of challenges all of us will attempt to communicate with consumers as close as possible towards the point of purchase.
Each of our integrated advertising communication technique will be the step to providing us the opportunity to satisfy our promoting objectives. Marketing Research The research thus far has just included secondary sources of details. However , these details has presented us a understanding of the marketplace, changes taking place in the market, and our competition in the industry. Statistics Canada features provided us with detailed information on the total sales of snack food canada as well as how big a portion motherboards make up of these sales. Farming and Agri-Food Canada as well as the USDA’s Foreign Agriculture Providers have helped us to determine where the most snack foods are ordered by buyers in Canada.
Industry Canada and Agriculture and Agri-Food Canada have also provided us with detailed information about the size of the industry as well as general efficiency information pertaining to the market. Despite the very high cost primary info, it is the belief that it would profit the company to conduct such research. This will allow us to better determine the exact size and syndication of our target audience, the growth of this segment, plus the rate at which this segment’s beliefs and attitudes are changing. Primary data will also allow all of us to develop fresh flavours which have been customers might enjoy. To assemble this information we might recommend the business use internet surveys with screened net samples also to design the questionnaire to supply data upon all of these areas so as to continue to keep costs since minimal as it can be.
We have picked screened internet samples since they can offer real-time studies and can be customized for individual participants. Also, because the segment we have chosen to goal is quite effective and active, internet sampling will allow all of us to reach these consumers and hopefully get a high level of responses. Additionally , primary data is required to assess the provider’s ability to satisfy the marketing aims. For this we would recommend the corporation conduct net surveys with recruited net samples every month. This will allow us to determine the success of our marketing promotions. We have included a sample review that the organization may use for this specific purpose (see Appendix I). We have chosen the web sample method because of its fairly low cost.
Yet , as the organization grows, we might recommend the use of focus groupings to help develop and evaluation new flavors of potato chips and to help determine the simplest way of endorsing the product to our target market. Even though are more expensive, concentrate groups let us to get more detailed info from consumers which we can then value to better provide our clients. Product Approach Potato chips are at the maturity stage in the product life pattern. Many of our competitors have been in the organization longer than us and possess established a hold more than some talk about of the marketplace. Many new entrants to the sector, including Hardbite Chips, target niche markets that have been underserved by greater, more established corporations. Our product is aimed at fulfilling the requires of health conscious consumers.
To fulfill these requirements, our item provides customers with many healthier features not included with other poker chips. By making the potato chips trans-fat and hypercholesteria free you can expect a product that buyers can munch on without having to worry about high cholesterol and its harmful effects on health. We also use Himalayan salt instead of table sodium on each of our potato chips. Himalayan salt delivers “84 minerals in the same ratio because healthy blood plasma and it is a lower salt alternative to stand salt. six We believe this will likely be especially appealing to health conscious consumers, especially those with hypertension. Another overall health benefit our potato chips have got over those of most other folks potato chips, can be our unique cooking method.
During this method, temperatures having high enough to develop acrylamide in our potato chips. Seeing that acrylamide is has been identified to be a conceivable carcinogen, we believe customers sees this as a significant advantage. Our product is augmented by offering our poker chips in different and unique flavors. Also, advice about the healthy qualities of our merchandise can be found within the packaging. You want to further increase the product simply by increasing the number of flavours offered and providing a guarantee of consumer satisfaction with our merchandise. Our long-term goal is always to position the Hardbite Poker chips as a high quality brand for consumers. Charges Strategy
Our pricing aim is adequate profits. This will enable all of us to take on our competition and carry on and grow each of our production levels. Our competition in the industry happen to be numerous and several have developed economies of size giving them the main advantage of lower costs. Consequently , to achieve our objective we want to position the product at a slightly larger price than our competitors. We want to make use of the assumption of uncertain individuals who price and quality will be related. However , we must do not price our product to high as the market to get potato chips is usually elastic. It is vital that the company has enough product sales to cover our fixed costs and provide satisfactory profits.
As we our selling a product inside the maturity stage of the merchandise lifestyle, the distribution stations we 2 important to the corporation. Thus, it is important that we cost our merchandise at a good that interests wholesalers and retailers. The pricing strategy is to give attention to the market to get healthy and high quality potato chips. We believe this will allow us to price each of our product for a price somewhat above the competitors. In order to encourage clients to make an effort our merchandise we will offer coupons. This allows us activate demand by providing a lower price temporarily. We are able to then cease the refund once people are aware of our product. Distribution Technique
Hardbite Potato chips currently distributes the motherboards it generates through several distributors. This tactic has helped the brand increase from being sold in largely in health food stores to offered on many campuses across BC furthermore to well known stores just like London Prescription drugs, Shoppers Medicine Mart, Overwaitea, and IGA Marketplace places. This has allowed the company to improve demand for usana products without having its sales force. Offered the percentage of snack food sales in retail supermarkets, we believe it is vital that we speak directly to these retailers to encourage them to carry our brand. We also believe selling the product in convenience tores will help enhance brand consciousness. Retailers that individuals feel would immensely aid in increasing our revenue include Safeway, The Real Canadian Superstore, and 7-11. Getting our item sold in vending machines might also help increase brand consciousness. Despite a provincial bar on the product sales of unhealthy food in primary and substantial schools, vending machines are simply in many excessive traffic areas. As our packaging offers information on the benefits of the product, health conscious consumers might be more likely to buy our product offered the alternatives. IMC Strategy Our principal communication target is to encourage consumers the product is a healthy choice for his or her snacking demands.
We would love to connect our commitment to the environment and our community. We think that these messages can match each other and work to put the company because caring and responsible in the minds of consumers. Presented the size of the company and the limited amount of funds we have for campaign, we cannot afford to spend the amount we would like to on advertising. Thus, to reach our target market, we think we ought to advertise in gossip columns devoted to healthy and balanced lifestyles. The reason why we have selected magazines is definitely they are a relativity low cost advertising choice, they have a extended advertising existence and they possess a high pass-along rate.
We believe public relations could be the most economical way to increase customer knowing of our item. Sponsoring community activities, just like a community yard, and co-sponsoring events just like eco-challenge, which receives countrywide television insurance, will help create us like a health conscious and environmentally friendly firm. Sponsoring activities like this will likewise likely bring about positive media coverage to get the company. This media protection will inform consumers of your product we were unable to reach through the advertising. Product sales promotion provides many appealing options while offering the easiest way to reach our marketplace. For these purpose it will be the biggest portion of our target part.
Since potato chips are a ease product, buyers spend some time deciding which will product to get and they are not very likely to remember marketing for a particular spud chip manufacturer. Therefore , a place of obtain display may well significantly support sway a consumer in favour of our product. This permits us to be the last advertising item that they see before they make their very own purchase. Featuring samples is yet another sale promotion technique we think works well to get our product. By being capable to sample each of our product just before purchasing that, consumers will be less put off by our slightly larger price. As you can see in our pricing strategy, we would also like to work with coupons to entice clients to buy each of our product. Simply by temporarily lowering our value we believe much more consumers will be willing to try our product.
As we discussed within our distribution technique, we would like to work with personal supplying encourage even more retailers to transport our item. By doing this combined with our additional promotional elements we hope to create an effective mixture of push and pull strategies that will influence more suppliers to carry our product. Since the company develops and more funds can be spent on promotional actions we would like to improve the amount of marketing done. We wish to use diverse forms of mass media to reach each of our target market. Likewise, as consumer awareness of the brand grows and we increase our merchandise offerings, we would like to expand our marketplace and create slightly different marketing strategies to target particular ethnic organizations. Conclusion
Irrespective of heavy competition in the snack food industry we believe Hardbite Snacks can produce acceptable profits and continue to develop. Given that french fries are in the maturity stage of the product life cycle, raising the number of stores that offer our system is an important part of our approach. By raising the number of suppliers who promote our merchandise, we can make it much easier for each of our target market to get our merchandise. We believe by increasing awareness of our product we can catch a large portion of health conscious customers. By using the promotion blend to inform consumers of the rewards and features of our item, we can convince members of the target market portion that our company is of high quality.
Although the price is a bit higher than most of our competitors, we believe consumers will understand our item as really worth the extra price. Appendix I actually Sample Study |1. List all brands of potato chips that you are aware of. | |______________________________________________________________________________ | |______________________________________________________________________________ | |______________________________________________________________________________ | |2.
Have you considered the brand Hardbite Chips? (if your solution is no, skip to issue 4) | |Yes ___ No___ | |3. What product features of Hardbite Snacks are you aware of? | |______________________________________________________________________________ | |______________________________________________________________________________ | |4. Normally, how often will you buy motherboards? |More than once a week ___ | |Once a week___ | |Once a month___ | |Once every 2-3 months___ | Endnotes 1 . Statistics Canada, Canada Meals Stats: Analysis, http://www. statcan. gc. ca/ads-annonces/23f0001x/hl-fs-eng. htm installment payments on your L. N. C. Consulting, Canada: Industry Development Information: Snack Food Industry in Canada, Global Agriculture Info Network Statement, United States Division of Culture (Ottawa, Canada: Foreign Agriculture Services, 2003), 6. http://www. fas. united states department of agriculture. gov/gainfiles/200301/145785163. pdf 3. Agriculture and Agri-Food Canada, Price tag Sales in Canadian Supermarkets, 2007, http://www. ats-sea. agr. gc. ca/can/4714-eng. htm
Culture and Agri-Food Canada, Retail Sales in Canadian Supermarkets, 2006, http://www. ats-sea. agr. gc. ca/can/4715-eng. htm some. Agriculture and Agri-Food Canada, Canada’s Desserts Industry, http://ats-sea. agr. gc. ca/supply/3320_e. htm 5. The Province, “From pasta to potato chips, May twenty-one, 2006, Canadian Newstand, ProQuest 6. Debbie Merson, “SALT , THE GOOD QUALITIES AND THE CONS, Foods Matter (UK), March 2009, 9, EBSCOhost Bibliography Farming and Agri-Food Canada. Canada’s Snack Food Market. http://ats-sea. agr. gc. ca/supply/3320_e. htm. Cultivation and Agri-Food Canada. Retail Sales in Canadian Grocery Stores, 2006. http://www. ats-sea. agr. gc. ca/can/4715-eng. htm.
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