A Case n Snacks to Go
I. Statement of the Problem Jill Harms is in a dilemma whether to improve the product line (Snacks to go – nuts category) or to drop the line completely. II. Objectives of the Study This study seeks the following objectives: – to be able to understand the marketing strategy of Sathers Inc. towards its operations – to determine the root cause of the declining sales – to know whether the decision of Larry to become a distributor of Coors Inc.
is right – To understand the product strategy of Snacks to Go. on a Category Manager’s point of view III.
Scopes and Limitations of the Study The study includes the current situation of Jill Harms, the nature of the company Sathers Inc. , the organizational background of the company and the different strategies that the company has already done to the specific product line of nuts and snacks. The study however, is limited with only secondary data being analyzed according to focus groups through surveys and questionnaires.
This study has recommendations and points of view that are based from my own perspectives and thinking as a marketing student. IV. Nature of The Research
A. Jill Harms Jill Harms is the Assistant Category Manager for the Nuts, Natural Snacks and Cookies Category at Sathers Inc. Her variety of tasks in this category is challenging because there is a target by the company that the category of Nuts will grow.
Another reason for her being challenges are that because she had been given full responsibility for the category. The problem now facing Jill Harms is the recommendation she would make to the Director of Marketing concerning Snacks to Go, the snack nuts product line that was introduced earlier in the year.
The pressure is now on Jill Harms as to improve the line’s performance soon or, drop the line completely. B. Sathers Inc. Sathers Inc.
started as distributing cookies in bulk to area grocers through selling these packages as 4 to $1. 00, to grocers in five counties. Consequently Sathers became an early entrant also in the field of telephone marketing. Sathers has always been emphasizing repackaging. Sathers became very successful with their original “Two for One” concept.
Sathers later on manufactured and distributed candies, nuts, snacks, cookies, chocolates and etc. It is the Candy Market that made the company very popular.
The company has made quite a name for its products, specifically its candy bags. Some of the strategies of the company to pursue success are the following: strengthening the distribution of the products AND looking for new and innovative products. C.
Snacks to Go Line It is an idea for a snack nuts product in a ziplock package for “on the go” consumers. The aim in developing the line was to become on of the first in the industry to introduce a ziplock package filled with nuts and natural snacks, while achieving Sathers’ company objective of developing the nuts and natural snacks category. V.
Areas of Consideration The areas to be considered upon pursuing this case study are the following: • the product strategies of marketing the product • the importance of sales and pricing • the distribution process • the target market or the percentage of consumers that are loyal • the effect on the growth or decline on the Product Life Cycle • there is a high competition on existing product brands • options to think about Product strategy is a critical element of marketing and business strategy, since it is through the sale of products and services that companies survive and grow.
The importance of pricing and sales is another aspect to give consideration in making a decision on this case study. It is unquestionable that in every business, sales is significant because it informs entrepreneurs whether the business is still good or already in turmoil.
The pricing of products is another element since demographics are different in every area of the county the products are being distributed. Brand loyalty is very relevant since it will be part of the decision making whether to continue the product line or to drop it.
It is because if there is a massive amount of loyal consumers that Snacks to Go or Sathers have, then dropping the line would not be an option. The company’s product strategy must take into account the fact that products have a life cycle. at some point, sales decline and the seller must decide whether to drop the product, alter the product, seek new uses for the product, seek new markets or continue with more of the same. The usefulness of the product-life cycle concept is primarily that it forces management to take a long range-view of marketing planning.
hifts or changes in the life cycle of a product is due to the changes in the market situation, competition and demand of the product. The competition of Snacks to Go is very high and this is one area which Jill Harns must consider. Is the competition too hard to deal that is why the sales decline? Does Sathers feel defeated by the other companies that have been established earlier with nuts and snack categories? VI. Alternative Courses of Action Upon examining and clearly understanding the situation of the case, I have 3 choices for Ms. Jill Harns.
First would be to drop the product line as soon as possible and innovate another market for Sathers. It is because the declining sales have been immediate since the first months of the product distribution. The second option would be to alter the product where the consumers feel at ease with. Since the survey shows that consumers are most probably interested in candies more than nuts. This option would suggest that nuts in ziplocks should be mixed with candies, gummies and etc.
This is another marketing strategy that the company can use for its products.