...When performing a five forces model for the snack food industry, I first looked at competition from rival sellers as I felt that this was the strongest threat for manufacturers. Rival sellers can easily try to produce a new line of products, mimic a competitor’s product, and it’s difficult to differentiate a snack food from the competition as there is so much competition. The market isn’t quickly growing, so rivals are competing for the same customer base and there is very little if any cost to switch from one snack food to the next. Many snack foods are very similar and there are hundreds if not thousands of competitors all fighting for the consumer’s purchase. A high competitive pressure exists from the sellers of substitute products as manufacturers can easily mimic existing snack foods. On a recent trip to Hyvee there were a number of snack foods on my list to pick up including potato chips, fruit snacks, and pretzels. For each of these items I had a variety of choices including a Hyvee brand for each which was the lowest price competitor, each product had a healthier option, and some even had a substitute product such as the flat pretzel snack rather than traditional. As consumers become more health conscious increased competition from the health foods industry will start to cross-over into the snack food industry. Competition from new entrants is moderate as it would be quite costly for a new start-up firm to purchase necessary equipment, create the distribution...
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...1 Snack-Food Industry – Driving factors The snack food industry benefited from increased demand for several of the industry’s products during the past five years in line with rising household disposable income. In addition the industry has a moderate level of market share concentration. The top four players are accounting 43% of revenue. This revenue depends on numerous reasons and factors. One are the changing eating habits due to less frequent restaurant dining and hurried lifestyles that encourage on-the-go eating and a growing tendency to replace meals with common smaller snacks. Companies and businesses combat the raising obesity by developing healthier snack foods that still taste appealing. The boundaries between meals and snacks are growing ever blurrier, creating consumer consumption habits that will resonate for a long time. The children and kids of today, comfortable with replacing entire meals with snacks, will pass these lifestyle traits on to their children, assuring that eating snacks will remain a big part of life. Nevertheless consumers seek ways to achieve a healthier lifestyle because they become more aware of the negative health effects of eating foods that contain high levels of sodium. Therefore, producers quickly perceived the changing consumer tastes by offering more healthy options. Snack foods that are marked as “it is better for you” or “fatless” will remain popular. After accustomed to a special snack, this becomes a private label snack because...
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...Best Practices First Research is the leading provider of industry intelligence tools that help sales and marketing teams perform faster and smarter, opening doors and closing more deals. Without adding hours to your work-day, you can infuse sales calls, business meetings, presentations, and outreach The number one complaint about sales representatives that we hear from executives is, “they don’t know my business.” efforts with up-to-date industry information that demonstrates a thorough understanding of your prospects’ challenges and opportunities. We do the heavy lifting for you by analyzing hundreds of sources to create insightful and easy-to-digest industry information that can be consumed very quickly. You are better able to understand a potential or existing client’s business issues, without the time-consuming and expensive research process. The following is a sample of a First Research Industry Report with additional notes explaining the report’s contents and how you can use this valuable information. Report size varies by industry. FIRST RESEARCH - HOOVER’S INC., A D&B COMPANY www.firstresearch.com © 2013 Hoover’s, Inc. All Rights Reserved. 1 INDUSTRY PROFILE Snack Foods Manufacturing 12.3.2012 NAICS CODES: 31191 SIC CODES: 2068, 2096 The Industry Overview is an excellent way to ensure you make the right first impression, with minimal time invested. USE IT TO: . Quickly grasp how an industry operates. Adapt your sales process to fit your customer’s...
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...the product itself is considered to be in a growth stage with a market share of 16% in the branded snacks food category, it has been successful to a large extent in creating the required Brand recall for the category INDIAN SNACK INDUSTRY: Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is describes as a small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, namkeen, ready-to-eat mixes, chips and other light processed foods. According to Ministry of food processing, the snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized sector. According to a survey almost 1,000 snacks items and 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products. Though there is no particular time for snacks, normally they are consumed at teatime. There is large no. of varieties with specialities from all regions, which have gained national acceptance. The industry has been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs.6000-Rs.6,500 crore, due to various reasons like Multiplex culture, snacking at home while watching T.V, pubs and bars. In the branded snacks market, Frito Lay commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%. The rest...
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...Problem Solution for Best Snacks MMPBL 550 Best Snacks Problem Solution Stephanie Vickers MMPBL/550 March 23, 2012 Best Snacks Problem Solution For the past 100 years, Best Snacks, Inc. has been in the top two leading positions in the snack industry, making them an ideal investment for stockholders. Recently, in the last couple of years Best Snacks sales have declined, resulting in decreased stock prices, market share, and in second place in the industry. Contributing to these issues in the company is the lack of strong leadership, capable managers, and innovative work environment. Employee morale has suffered because staff does not feel encouraged to be creative or that their opinions are valued. By benchmarking other companies, Best Snacks can determine which strategies they can implement to continue their previous successful history. Best Snacks has the opportunity to reorganize their structure to promote innovative ideas, improve management skills, and realign the vision with a new organizational culture. There have been no product or service innovations in the past 5 years; instead, previously successful marketing methods have been improved or extended. For example, the most recent product information had new package sizes. Best snacks needs to remain competitive and an industry leader by researching, analyzing, and surveying today’s consumers in order to develop new...
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...Best Snacks Inc. Problem Solution Lori Mann Creativity, Innovation, and Organizational Design -MMPBL/550 September 19, 2011 Facilitator: Ken Pinaire Best Snacks Inc. Problem Solution In today’s global economy, the pace of competition and change has accelerated. Organizations of all types need employees that can think in new ways so the organization can sustain its performance and continue to grow. Thinking in new ways is also known as creativity and innovation. Creativity is taking ideas beyond the normal boundaries and innovation is using the available skills and resources to create new product and service offerings, process technologies, and enabling technologies (Davila, 2006, p. 35). The process of managing creativity and innovation can improve the organizational effectiveness because “all innovation begins with creative ideas” (Jones, 2004, p 409). Best Snacks Inc. must implement organizational strategies that support innovation and the development of new products and services as well as implement a program designed to increase its employees’ creative thinking skills. Additionally, Best Snacks Inc. should also make changes to its management systems. In this paper, I will describe the issues Best Snacks, Inc. is facing as well as its opportunities to implement a creative and innovative environment that will enable the company to regain its industry leader status, increase sales, and to reverse its downward trending stock price. It will then discuss the stakeholders...
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...Snack Food Industry Analysis Discussion Meng-Kai (Leo) Chiu Texas A&M University – Central Texas GB 588 – Seminar in Business Strategy Snack Food Industry Analysis Discussion Porters Five Force Model for the Snack Food Industry Nature and Strength of the Snack Food Industry Supplier Bargaining Power: Strong factors: • Cost of switching is low. • There are large numbers of suppliers. • Supplier is not dependent on industry. Supplier power is weak. Buyer Bargaining Power Strong factors: • Cost of switching is low. • Buyers have more knowledge about healthier alternatives. • Buyers are price sensitive. Overall bargaining power of buyers is high. Substitutes Strong factors: • Quality substitutes are readily available. • Cost of switching is low. • Substitutes have comparable or better features. Substitutes are easily attainable and switchable so substitutes are a strong factor. Rival Firms Competition Strong factors: • Cost of switching is low. • A lot of competitors. • Buyer demand is weak. Fierce competition between existing competitors. Threat of New Entrant Weak factors: • High capital requirements. • Experienced based cost advantages. • Strong product differentiation and brand loyalty. Threat of new entrant is which due to the factors mentioned above. Factors Driving Industry Change • Healthier food choices and more knowledgeable customers: this changes the growth rate of the company. • Increasing globalization: this may lift trade...
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...MODULE 4, ASSIGNMENT 3 August 2014 ALL STAR Foods Canada Ltd. Overview ALL STAR Foods International (ALL STAR) is a large international manufacturer of snack foods, including potato chips, nacho chips, and pretzels, that are sold under the Tasty Crunch brand name. ALL STAR has operations throughout North America and Europe, and its international head office is located in Chicago. Consolidated net sales are in excess of US$1 billion, and ALL STAR’s shares are traded publicly on the New York Stock Exchange. In Canada, ALL STAR operates through its wholly owned subsidiary, ALL STAR Foods Canada Ltd. (ASFC or the Company). ASFC has facilities located across Canada and sales in excess of CDN$150 million. Its head office is located in Toronto, Ontario. Over the past several years, ASFC’s sales have grown slowly and its financial results have been relatively weak. Consequently, ALL STAR initiated a major restructuring of ASFC at the beginning of 2010. This resulted in the replacement of almost all the senior management staff. Bruce Tate, a senior manager in ALL STAR’s operations in the United States, was appointed President of ASFC. His mandate was to double the size of the Canadian operations and to generate a pre-tax profit margin in excess of 10% within a period of five years. Management Team and Responsibilities By December 2010, Bruce and all six vice-presidents of ASFC were relatively new to the Company. An organizational chart for ASFC is presented as Appendix A. Background...
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...CHAPTER I. INTRODUCTION A snack bar usually refers to an inexpensive food counter that is part of a permanent structure where snack foods and light meals are sold. A beach snack bar is often a small building situated high on the sand. Besides soft drinks, candies and chewing gum, some snack bars sell hot dogs, hamburgers, french fries, potato chips, corn chips and other foods. While this is usually the case, sometimes "snack bar" refers to a small café or cafeteria. Various small, casual dining establishments might be referred to as a "snack bar," including a beverage and snack counter at a movie theater and/or a small deli. Many places that have snack bars have a "No Outside Food or Drink" policy, to encourage sales. The first known use of the word "snack bar" was in 1930. A snack food or commonly called snack is seen in Western Culture as a type of food not meant to be eaten as a main meal of the day, unlike breakfast, lunch or dinner but rather a assuage/moderate a person’s hunger between these meals, providing brief supply of energy for the body. The term way also refers to a food item consumed between meals purely for the enjoyment of its taste. Snacks are terrific way to satisfy hunger and get all the vitamins and nutrients your body needs. For people who has hectic schedule on school, work, travelling and other activities, it may feel like there’s no time for healthy eating. When trying to stop eating, it’s probably tempting to go the quick...
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...Best Snacks Problem Solution Stephanie Curry MMPBL 550-Creativity, Innovation, and Organizational Design May 28, 2012 Sara Garski Best Snacks Problem Solution The snack food industry has become increasingly commodity-based over the past ten years, and while the competition has increased, differentiation among the competitors has decreased. This gradual change in the industry has caused sales to slip, market share to decrease, and stock prices to fall. The unwillingness of the company to change to the needs of the market has put the company in a position to lose its long-held premier standing in the industry. In addition to the financial and economic problems facing the company, the employees are distressed about the upcoming changes that the president of the company has implied will soon occur. Also, the employees believe that the company has done a poor job of promoting innovation in the industry which is why the organization if declining in many areas of the industry. For Best Snack’s to succeed, they must confront the problems they are faced with, and change the corporate culture from top to bottom. Describe the Situation Issue and Opportunity Identification Several issues face Best Snack’s in the increasingly commodity-based snack food industry. In a depressed economy, consumers are more likely to buy snacks based on price rather than brand loyalty (University of Phoenix, 2012). This turn in the economy has presented several problems to the...
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...ENVIRONMENT ANALYSIS Define the Type of Organisation and the Industry it operates in? ABL Limited is a beverage and snack company operating in the Australian Non-Alcoholic beverage market. ABL has a decentralized organizational structure and is listed on the ASX. ABL is looking at expanding into the Australian bottled water manufacturing industry. The major segments of the Austalian bottled water manufacturing industry are still water 74% and sparkling water 24% value 963m litres in 2011 Value Chain Analysis Water Treatment Bottling & Packaging Distribution Retailer Supply Labeling 55% 26.8% Wages 12.1% Depreciation 4.1% Utilities and Rent 1.8% Segments Analysis: The Life cycle Stage of the Industry The Australian bottled water industry is in a growth phase. The industry has evolved since 1990 out of the soft drink manufacturing industry and is achieving a high rate of growth as seen in table 4 where Bottled water is expected to grow from 13.3% of Non-Alcoholic beverages to 17.4%. Consumption per capita of water is also expected to grow in the future as well as revenue from sales of still and sparkling water. A recent report by the Global Earth Policy Institute concluded that global consumption of bottled water rose by 56.8% to 164 billion litres from 2007 to 2011. Growth phase is further evident by a net profit rate of 16.3% which is high. . Industries Future Growth Remote Analysis (Growth) |Factor ...
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..."Most people see the snack market as dynamic and inno- vative, but actually it is surprisingly conservative. Most of what passes for innovation is in fact tinkering with our marketing approach, things like special offers, promotion tie-ins and so on. We occasionally put new packs round our existing products and even more occasionally we introduce new flavours in existing ranges. Rarely though does anyone in this industry introduce something radically different. That is why ‘Project Orlando’ is both exciting and scary.’ Monica Allen, the technical vice-president of PJT’s snack division, was commenting on a new product to be mar- keted under PJT’s best-known brand ‘Dreddo Dan’s Surfer Snacks’. The Dreddo Dan’s brand made use of surfing and outdoor ‘action-oriented youth’ imagery, but in fact was aimed at a slightly older generation who, although aspiring to such a life style, had more discretionary spend for the premium snacks in which the brand specialised. Current products marketed under the brand included both fried and baked snacks in a range of exotic flavours. The pro- ject, internally known as Project Orlando, was a baked product that had been ‘in development’ for almost three years but had hitherto been seen very much as a long- term development, with no guarantee of it ever making it through to market launch. PJT had several of these long- term projects running at any time. They were allocated a development budget, but usually no dedicated resources were associated with...
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...product, 50-50 Snackuits keeping in line with its Taste Bhi, Health Bhi formula, this product aims at making snacking enjoyable experience and at the same time getting rid of any guilt that comes with it. Snackuits was launched in January and is already available in North, West and East. Now Britannia is gearing to launch the product in South. Talking about Snackuits, Shalini Degan, Category Director, Delight and Lifestyle, Britannia Industries said: “The truth is that people want to snack and then they feel guilty which leads them to snack some more, making them unhappy. We want our consumers to feel ‘Snack Happy’. The idea being that we know that people want to snack and we don’t want them to feel guilty about eating in between meals. We decided to make a product that satisfies some need of the consumers but fundamentally it removes guilt. So we have been telling people, please have this whenever you feel like and be snack happy.” The highlight of the product is that it is baked and there is no ostensible calorie intake. In fact, healthy snacks have become a fad of sorts with many players joining the bandwagon and talking about health and nutrition such as Lays Baked, Aliva and even Nestle’s Maggi. Not deterred by many players jumping into the health platform, Ms Degan said: “People like to follow Britannia. We took to this platform much before the rest. It’s nice to know that others are following us. For us it is simple, we are here to make sure that our consumers are...
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...Problem Solution: Best Snacks Inc. PercyD University of Phoenix Problem Solution: Best Snacks Inc. Best Snacks has become a company that is reluctant to change and their issues with familiarity issues are becoming costly to business. The ability to innovate and remain creative in all aspects of the company is an integral part of success. “In the long run, the only reliable security for any company is the ability to innovate better and longer than competitors” (Davila, Epstein, & Shelton, 2006, p. 3). Best Snacks 100 plus years of operations is proof that an innovative culture is necessary to remain a business leader in its market. Change is usually met with resistance, but it is the responsibility of the management team to foster an accepting culture of employees. Best Snacks will develop ways to involve employees and management in the creative and innovative method of business by inspiring a culture to increase creative thinking and progress, to regain industry leadership. Describe the Situation Issue and Opportunity Identification Best Snacks have been an industry leader for numerous years but recently management has not created an environment conducive to innovation and strategic organizational change. When employees and the research and development team increases their skills through experimentation with products and service offerings, the culture is more creative and performs at a higher level. Best Snacks management drive to innovate was not strong...
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...nes Student’s name College Nestle is one of the world’s largest food and beverage corporation in the food industry. It commands wide brand name recognitionand significant influence with customers, businesses, and also governments. Its products range from ice cream, water, coffee, and baby food to performance and also healthcare nutrition, pet care,confectionery, pharmaceuticals and others. Nestlé’s major brand names comprise of Toll House, Nestea, Lean cuisine, Perrier, Nescafe, and Perrier. Nestle’s share price has experienced an eighteen-fold increase over the last 20 years. From 1970 to 2000, Nestle shares outperformed the Morgan Stanley Capital Index of Swiss blue chip stock companies by over 250% and the Morgan Stanley World Blue Chip Stock Index in USD terms by 25%. For decades, Nestle has had consistent, stable and accelerated growth in overall turnover. In terms of current performance, the year 2001 was once again a record year for sales, net profits and dividends to shareholders, with CHF 84.7 billion in sales, CHF 6,681 million in net profit and 4.4% real internal growth. According to Stern Stewart’s Wealth Added Index (WAI), Nestle is among the top 15 companies worldwide in creating shareholder wealth in a ranking of the 5069 largest quoted companies. Stern Stewart calculates that between June 1996 and June 2001 Nestlé’s wealth added to shareholders amounted to USD 43.8 billion. The WAI rankings emphasize the notion that companies increase the money’s worth...
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