Marketing of Hardbite Chips

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Hardbite Chips

Langara College

School of Management

MARK 1115

Introduction to Marketing

D. Hill

23 November 2009

Executive Summary

This report provides an analysis of Hardbite Chips and the Snack Food Industry and offers recommendations for Hardbite Chips to develop an effective marketing plan.

Hardbite Chips is an environmentally sustainable business that provides healthy, good-tasting, and quality potato chips.

The target market we have selected for Hardbite Chips is health conscious consumers, particularly those with children. It is our belief that the consumers will be attracted by the healthy features of our product and will be willing to pay slightly more for these benefits. It is our objective to significantly increase awareness of our product among these consumers.

As our funds for promotional activities are limited and our target market can be hard to reach our marketing mix focuses heavily on sales promotion. Advertising and public relations will help us promote the features of our product and position it as a high quality brand in the minds of consumers. We hope to use personal selling to increase the number of retailers that carry our product.

We believe Hardbite Chips has the ability to obtain satisfactory profits and grow the business. This will allow the company to better compete against the numerous competitors in the industry and increase sales. As the business grows, more funds can be spent on promotional activities enabling the company to expand its target market and appeal to more retailers.

Table of Contents

Current Marketing Strategy….……………………………………………………………………………….. 1

Company Mission Statement..……………………………………………………………………………….. 1

Internal and External Analysis

PEST Analysis……………………………………………………………………………………………… 2

SWOT Analysis………….……………………………………………………………………………….. 3

Competitive Analysis……………………………………………………………………………………………… 4

Target Market……………………………………………………………………………………………………….. 5

Marketing Objectives and Issues……………………………………………………………………………. 6

Marketing Research………………………………………………………………………………………………. 7

Product Strategy……………………………………………………………………………………………………. 8

Pricing Strategy……………………………………………………………………………………………………… 9

Distribution Strategy……………………………………………………………………………………………… 10

Integrated Marketing Strategy………………………………………………………………………………. 10

Conclusion……………………………………………………………………………………………………………… 12

Appendix I………………………………………………………………………………………………………………. 13

Endnotes…………………………………………………………………………………………………………………. 14

Bibliography…………………………………………………………………………………………………………… 15

Current Marketing Situation

The Canadian snack food market presents a lucrative opportunity for new and existing companies in the industry. In 2008, Canadians ate an average of 3.2 kg of potato chips.1 Food stores capture the majority of snack food purchases in 2001 at approximately 67% and supermarkets accounted for approximately two-thirds of this. Convenience stores took the third largest share of the market at around 13%. Mass merchandisers and wholesale club stores have increased their market share in recent years, passing convenience stores, as more of these types of locations have opened in Canada. However, this change has not yet significantly affected food stores.2 In 2007, Canadian retail grocery stores sold over $1.8 billion worth of snack food, with potato chips accounting for approximately $550 million. This continues the recent trend of 6% growth in annual retail sales of potato chips.3 This growth has encouraged companies to expand into niche markets by offering unique flavours and organic products.

The Canadian snack food industry has seen an increase in new...
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