Sample Case Analysis by Karen del Rosario
THE ENVIRONMENT In the late 1980s, snacks consumption in the US was on the rise, during this time
Sathers has a consistent ten straight years of sales growth in the candy and snacks industry, and since Sathers always look for something new he came up with an idea of Snacks to Go product line. During these years also Sathers recognized that consumers are fond of value line products that made him think of the new product line. The idea appeared to be a perfect fit for their existing menu of candy, snack mixes, and cookies.
However, the challenges start when the product sales slowed few months after the introduction of the product to the market. All these happened during the tenure of Jill Harms the Assistant Category Manager of the company in 1995, and the fate of the product line was at Jill’s hands when she was pressured to either improve the line’s performance or to drop the line completely. However,
Sathers’ strategy for the 21st century was to develop a position in nuts, natural snacks and cookies and to be dominant in candy manufacturing.
THE FIVE FORCES ANALYSIS
The case did not mention any substitutes.
Suppliers The Snacks to Go experienced significant changes in its sales few months after it was introduced to the market. The sales slowed to
5 to 6 packages per week, and they discovered that the film packages of the Shelled Roasted Sunflower Nuts had air leaks, which allowed oxygen to mix with the product. The incident caused the product to spoil and deteriorated its shelf life.
Competitive Rivalry Although competition were toughed, but Sathers brand was still strong in the Southeast part of the country and according to the company, since the product was a commodity, if the product is out there, it will be purchased. The more it is available, the more people will buy the product.
The price of the Snack to Go packages remain competitive, however, the company