Snacko India Limited

PRESENTED BY PRAVESH MISHRA

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

It intended to grow by increasing the frequency of consumption in the metro markets

The company adopted penetration pricing in rural markets

Snack food industry in india

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

Major Competitiors in the Snacks market

Sales of major players in the Indian Branded Snackmarket (in US$ million)
Company Name Pepsi Haldiram ITC foods division Snacko Total 2008-2009 660 266 130 120 1176 2009-2010 866 388 173 122 1549

Challenges before the Company

Primary concern was of the marginal value growth in the past years

Gradual loss of market share

Possible causes of flat growth in overall Sales Design and effectiveness of the promotional activities and schemes Regular follow up required for the new variants been launched

Snackos Distribution and Market coverage

Snackos products were being sold on impulsive and intensive distribution schemes

Point of sale visibility and promotional activities supplemented the sales

Window and Counter top displays were the main promotional activities done at retailers place Snacko was trying to grow its market through Market Development strategy

Snackos distribution channel

Margin Breakups in Distribution channel

Overall margin Breakup CFAs 3- 3.5 %

Stockist/Distributors Wholesalers
Retailers

5-12 % 2-3 %
5-15 %

Marketing and Promotion

The company relied heavily marketing communication

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

Trade promotion schemes by Snacko for Retailers

On package premium Scheme which included Gifts Rewards for retailers scheme Price Offs for the retailers Extra discounts for SRs Jhatpat Tez Brand offer Tambola Scheme

Cramm Brand winner extravaganza

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

Cremo Jhatpat Superhot

30 225

Whistle

175

Suggestions for Snacko

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

THANK YOU