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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 2008-2009 2009-2010
Pepsi 660 866
Haldiram 266 388
ITC foods division 130 173
Snacko 120 122
Total 1176 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
Snacko’s Distribution and Market coverage
Snacko’s 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 retailer’s place
Snacko was trying to grow its market through Market Development strategy
Snacko’s distribution channel
Margin Breakups in Distribution channel
Overall margin Breakup
CFA’s 3- 3.5 %
Stockist/Distributors 5-12 %
Wholesalers 2-3 %
Retailers 5-15 %
Marketing and Promotion The company relied heavily on product innovation and
marketing communication
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 SR’s
Jhatpat Tez Brand offer
Tambola Scheme
Cramm Brand winner extravaganza
Scheme 1
Detailed Trade promotions Scheme 1
Brand Name No. of SKU's in a box
Offer per box Offer Worth
Cramm Asli 40-unit Carton 2.5 Cremo Units ₹ 55
Cramm Sizzler 40-unit Carton Battery ₹ 30
Cramm Kadak 40-unit Carton Mug ₹ 30
Cremo 40-unit Carton Scissors ₹ 30
Whistle 40-unit Carton Lock ₹ 30
Jhatpat Crackle 40-unit Carton Glue Stick ₹ 30
Detailed Trade promotions Scheme 2
Brand Name SKU type Offer per container Offer Worth
Cremo 80-unit Plastic Container
Free Calculator, Electric extension
₹ 125
Cremo 40-unit Carton Pen, Cutter, Bottle opener
₹ 30
Jhatpat Superhot 80-unit Plastic Container
Roto pen,Toilet saop, Audio CD
₹ 225
Whistle 80-unit Plastic Container
Clip hanger, Dish washer
₹ 175
Scheme 2
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 Snacko’s products
Offering party packs through bundling of products
THANK YOU