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CREATING MEMORABLEMEALS & MOMENTS
Michelle TothJenny Robertson
Caroline HantmanCaitlin Carrick
Huy TranChris Harcourt
Phu Son Le
December 12th 2011
CREATING MEMORABLEMEALS & MOMENTS
Presentation Overview
âą Company Backgroundâą Enterprise Analysisâą Industry Analysisâą Competitive Analysisâą Customer Analysisâą Enterprise Growth Strategy Options
CREATING MEMORABLEMEALS & MOMENTS
Company Background
âą The J. M. Smucker Company was established in 1897 and was incorporated in Ohio in 1921.
âą The Company has four reportable segments: U.S. Retail Coffee Market, U.S. Retail Consumer Market, U.S. Retail Oils and Baking Market, and Special Markets.â The Company's three U.S. retail market segments in total comprised over
80 percent of the Company's net sales in 2011.â The Special Markets segment represents sales outside of the U.S. retail
market
âą Principal products of the Company are coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, and pickles and condiments.
CREATING MEMORABLEMEALS & MOMENTS
A. Industry Analysis
KEY FACTS:âąSmuckers operates in the Processed and Packaged Food Goods industryâą The Food Processing industry as a whole is currently estimated to be $416 billion and is expected to increase to 435 billion in 2012
INDUSTRY TRENDS:1.The rising cost of inputs2.Trading down to less expensive products (generic brands)3.Healthy Eating & Environmental Concerns 4.Increasing demand for pre-packaged foods
CREATING MEMORABLEMEALS & MOMENTS
Customer Analysis
âą Largest customer is currently Wal-mart and its subsidiaries, â accounted for 27% net sales in 2010
âą Major supermarkets within the U.S. and Canada (representing 22% and 2% respectively)
âą Family oriented/long standing traditionâą End user â families and their childrenâ âPester powerâ of children
CREATING MEMORABLEMEALS & MOMENTS
U.S. Retail Coffee
35% Dollar Market Share
Smucker Internal Share Report 52 Weeks Ended 1/23/11
CREATING MEMORABLEMEALS & MOMENTS
Fruit Spreads
45% Dollar Market Share
Smucker Internal Share Report 52 Weeks Ended 1/23/11
CREATING MEMORABLEMEALS & MOMENTS
Peanut Butter
45% Dollar Market Share
Smucker Internal Share Report 52 Weeks Ended 1/23/11
CREATING MEMORABLEMEALS & MOMENTS
Mascot Advertising Campaign
âą Pilot campaign will target MA, CT, and NY school buses.
âą Advertisement revenue will narrow public school systemâs budget deficits and provide Smuckerâs access to target audience: Children.
Advertisement of Smuckerâs Fun Foody
Mascot here
Advertisement of Smuckerâs Fun Foody
Mascot here
CREATING MEMORABLEMEALS & MOMENTS
Campaign Financial Analysis
Assumption:Year 1 sales revenue is 10% of FY 2011 Net salesSales Revenue growth rate at 5% YOY
CREATING MEMORABLEMEALS & MOMENTS
Leveraging Existing Brands
âą Advertising brands on other brandsâ New labels that offer:âą Coupons for other brands in the Smuckerâs familyâą Recipes for complementary Smuckerâs products
âą Bundle as meal solutions in grocery storesâ Target Stop & Stop, Market Basket, Shawâs for
dedicated space
âą Online order management system: special occasion gift baskets
CREATING MEMORABLEMEALS & MOMENTS
Existing Brands Financial Analysis
Assumption:Year 1 sales revenue is 10% of FY 2011 Net salesSales Revenue growth rate at 5% YOY
CREATING MEMORABLEMEALS & MOMENTS
Packaging Changes
1. Bundling products together to create a solution for the customer
2. Add the âNutrition Keysâ to packaging
CREATING MEMORABLEMEALS & MOMENTS
Increasing Online Presence
âą Revamp Smuckerâs website to make it for fun and interactive for childrenâ Incorporate âfun and foodyâ mascotâ Games containing Smuckerâs products/logo
âą Online consumer panel â Allow both users and nonusers to give feedback and
share ideas âą Recipes/cookbooks â E-cookbooks, e-recipesâ Create âappâ for Smuckerâs for use on iphones and
ipads