Smithfield Snacking
Presented By Colin Byxbee, Ryan Gunn, and Amber Templeton
Smithfield Snacking
• Introduction
• Product Strategy
• Snacking Trends
• Market Research
• Recommendations
• New Products
• Packaging
• Marketing Strategy
• Taste Testing
Product Strategy
• Introduce two new product lines
• Leverage Smithfield brand reputation and create co-branding partnerships
• Use strategy to expand westward and increase sales overall
• Use the co-branding partnerships to increase brand awareness and value
• Target two additional consumer segments
Benefits of Co-Branding
Brand Value
• Increase in sales
• Increase in market share
• Increases the premium
• Increases perceived value
• Bonus value with co-brand
• Extend reach
• Increases marketing budget
• Increases credibility
Brand Awareness
• Enhances current line
• Reaches new segments
• Increases brand loyalty
• Enhances product appeal
Source: primepay.com/branding
Snacking Trends
&
Market Research
The Snacking Industry
• Snack sales were $374 billion last year
• Snacks as meal replacements are a growing opportunity
• Women consume more snacks than men
• Consumers want snacks to ‘stick with the basics’
• Less is more!
What was the reason for snacking in the last 30 days?
Snacking Meal Replacement
77%
73%
68%74%
ALL NATURAL
NO ARTIFICIAL COLORS
GMO FREE
NO ARTIFICIAL FLAVORS
NATURAL FLAVORS
GLUTEN FREE
LOW SALT/SODIUM
LOW SUGAR/SUGAR FREE
LOW FAT
LOW CALORIES
PORTION CONTROL
NO HIGH FRUCTOSE CORN SYRUP
LOW/NO CARB
WHOLE GRAIN
HIGH IN PROTEIN
HIGH IN FIBER
SUSTAINABLY SOURCED/FAIR TRADE
ORGANIC
LOCAL HERBS/INGREDIENTS
% THAT RATE HEALTH ATTRIBUTES MODERATELY TO VERY IMPORTANT (2014)
Where Snacks Are Purchased
Snacking Survey
• Conducted snacking survey to canvass potential customers
• Focused on snacking characteristics
• Collected data and analyzed results
• Want to understand consumers’ snacking needs
0
2
4
6
8
10
12
14
16
Convenience Salty Sweet Natural Protein Crunchy Textures Price Brand Name
Not Important
Important
Very Important
A Must
Our Snacking Survey Results
Key Takeaways
Crunch Factor
Salty Craving
Convenience
On-the-go
Taste
All Natural
Not Sweet
Protein
Recommendations
ADVENTURE STYX ADVENTURE STYX WILD
ProductMeat and cheese wrapped around
a SNYDER’S pretzel stickDry cured version
Target- Young professionals (18-30)
- Skew female
- Young professionals (18-30)
- Skew male
Positioning
A portable, protein based snack
for consumption between meals
as an energy boost
A portable, protein based snack
for consumption on the go
Differentiation Pretzel stick Non-refrigerated
Positioning
Leading Vendors of Pretzels in the United States in 2013, Based on Sales
(in Million U.S. Dollars)
388.1
184.6
141.1
72.6
49.9
25.3
17.5
16.7
16.6
7.9
0 50 100 150 200 250 300 350 400 450
Snyders-Lance
Frito Lay
Private Label
Utz Quality Foods
Mars
Herr Foods
National Pretzel Co.
Glutino Importations Deroma
Bachman Co.
Old Dutch Foods
Sales in million U.S. dollars
Source: IRI; Grocery Headquarters; Statista
Source of Protein
Popular colors
stand out in
crowded shelves
Takes advantage
of Smithfield
brand quality
reputation
Captures
adventurous spirit
of Patagonia and
North Face
“All Natural” and
“GMO Free” rank
highly on customer
importance
(Nielsen, 2014)
Packaging
Packaging
Non-refrigerated for
increased convenience
Quality dried ingredients
last longer
“WILD” tag to appeal
to outdoorsy individuals
ADVENTURE STYX ADVENTURE STYX WILD
Grocery / SupermarketWith lunch meats / competitor
productsN/A
Mass MerchandiserWith lunch meats / competitor
productsOn end-cap near outdoor gear
Outdoor Specialty N/A At checkout
Strategic PartnershipsSnyder’s (pretzel)
Boar’s Head (cheese)
Snyder’s (pretzel)
Boar’s Head (cheese)
Retail
PITA SLYDERS
Product Pita bread stuffed with meat, cheese, and Sabra hummus
Target- 30-50 year olds
- Health conscious
PositioningA healthy, portable meal-replacement snack in portion controlled
packaging
Differentiation- Portion size
- Sabra hummus
Positioning
Hummus Dollar Market Share in the United States from 2006 to 2013,
by Brand
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2006 2007 2008 2009 2010 2011 2012 2013
Do
lla
r s
ale
s s
ha
re
Sabra Athenos (Kraft) Tribe (Osem Nestlé) Cedars Josephs PL Others Eat Well
.
Packaging
Prominent Smithfield
branding and “Good food.
Responsibly” tag
Shared branding
with Sabra will bring
visibility and quality
reputation
High ranking
customer
importance claims (Nielsen, 2014)
Parthenon image to
give impression of
authenticity for
Greek inspired snack
PITA SLYDERS
Grocery / Supermarket With hummus / ethnic foods
Mass Merchandiser With hummus / ethnic foods
Strategic PartnershipsSabra (hummus)
Boar’s Head (cheese)
Retail
Targeted States
The West:
• Washington
• Oregon
• California
• Idaho
• Utah
• Colorado
The East:
• New York
• New Jersey
• Pennsylvania
• Delaware
• Maryland
• West Virginia
• Virginia
• Kentucky
• Tennessee
• North Carolina
• South Carolina
Incentives for Retailers
• Multiple products in single package, saves on space
• Multiple choices for product location in store gives retailers freedom (both
refrigerated and non-refrigerated)
• Smithfield brand reputation
• High marketability
• Consumable goods sell faster
Flavor Portfolio
Adventure Styx
• Ham and Swiss
• Ham and Cheddar
• Ham and Gouda
• Turkey and Swiss
• Turkey and Cheddar
• Turkey and Gouda
• Pepperoni and Swiss
• Pepperoni and Mozzarella
Adventure Styx WILD
• Ham and Gouda
• Pepperoni and Mozzarella
Pita Slyders
• Ham and Swiss
• Ham and Cheddar
• Turkey and Swiss
• Turkey and Cheddar
Key Takeaways
Crunch Factor
Salty Craving
Convenience
On-the-go
Taste
All Natural
Not Sweet
Protein
Enjoy!
GYA
MEAT SNACKS MUST ACKNOWLEDGE PARENTAL HEALTH CONCERNS
Kids’ and teens’ snacking has increased in the past 30 years, with 75% of teens now snacking between meals.
Households with kids under 18, as well as younger adults, are more likely to eat savory snacks of all types, and much more likely to eat meat snacks.
US meat and snack food companies must remain
cognizant of parental concerns, especially childhood
obesity.
78% of parents of kids ages 6-17 think processed
snack foods contain too much sugar or too much
sodium and the same percentage feels that there
should be more healthy snacks available.
Source: Mintel Food and Drink – Hormel launches test of REV Meat Snack Mixes – June 2014
The analyst’s view
• Protein is in
• Snacks often
combine
elements
• Parents matter
Consumers have proven receptive to meat-inclusive snacks,
offering opportunities for meat manufacturers to innovate and develop products that
leverage high consumer awareness and demand for protein-rich snack foods as an
alternative to carbohydrate-only options.
The meat snack segment has experienced growth in refrigerated
as well as shelf stable segments, with innovation now moving into meat snack
product concepts with multiple ingredients, flavours
and textures. There is ample room to grow healthy positioned products that leverage
protein content for its satiety benefits, along with other ingredients.
The key teen snack-eating segment still faces parental scrutiny and control of snack
choices, which means that snack innovators and marketers need to remain cognizant
of parental obesity concerns, as well as concerns over sodium and ‘junk’ food intake
when developing new products, even if they are high in protein.
Source: Patty Johnson, Global Food Analyst, Mintel Food and Drink
Value-based pricing Pretzel Styx
Price Ceiling
(1.99)
Price Floor
($.35)
Final = -18$1.17
Positive Factors
• Indulgent = 8
• Frequency = 11
• IRI Sentiment = 10
• Evolutionary = 10
• Transportability = 10
Negative Factors
• Selective = -6
• Sale Items = -16
• Serving price = -10
• Fewer purchases = -13
• Spending less = -16
• Stocking up = -6
Suggested Retail price$.99
282% Product markup
Value-based pricing Pita-Slyders
Price Ceiling
(2.49)
Price Floor
($.45)
Final = -03$1.47
Positive Factors
• Indulgent = 8
• Frequency = 11
• IRI Sentiment = 10
• Evolutionary = 10
• Transportability = 10
• Partnership = 15
Negative Factors
• Selective = -6
• Sale Items = -16
• Serving price = -10
• Fewer purchases = -13
• Spending less = -16
• Stocking up = -6
Suggested Retail price$1.44
320% Product markup
Snacking Characteristics
Oscar Mayer – P3
“Before there were powders, bars, and goos, there was meat,
cheese, and nuts.” “It’s the Original Protein.”
Price: $1.79
10-13 grams of protein
Target: Active males in their teens / early twenties
Differentiator: Seasoned and prepared meats such as “Hickory
Seasoned Chicken Breast”
Hormel – REV Wraps"Real Meat, Real Cheese, Real Energy“
“For Those Who Are Hungry”
Price: $1.79
13 - 16 grams of protein
Target: Moms with teenage athletic children
Differentiator: Tortilla-style wrap
Jack Link’s – JackPack“Three great tastes in one”
“Meat the snacking trifecta that defined multi-snacking”
Price: $1.99
16 grams of fat
230 Calories
Target: On-the-go snackers
Differentiator: Offers a crunch texture