5) SNACKO India Limited: Leveraging Trade Promotions for Competitive Advantage
a) What is the nature of consumer and retailer behavior in relation to snack products and what is the relevance of trade promotion? Consumers in India are deeply rooted in traditions and rituals. For example, Kelloggs had to invest in a marketing/product education program as Indian consumers were initially eating cereals with hot milk, ruining consistency. In a population with over 1 Billion hardworking, industrious people, life moves at a fast pace. Therefore, snack products which cater to local/regional tastes cater to a people on the move that believe in purchasing good value for their rupees. b) How does one promote the sales of snack products and what are the objectives of trade promotion? Trade promotion is designed to increase inventory turnover in retail shops, as sometimes products can sit on valuable shelf space for some time. Promotional pricing, public events such as fun runs and tastings, Internet Pop-ups, Mobile ads, TV, radio, etc would help increase sales on stagnant brands. Bonus Packs, Promotional pricing also helps as well. c) Analyze the various promotion schemes, the possible considerations that have been taken into account while implementing them and what has been left out. When a firm is promoting relatively inexpensive consumer products in a highly competitive market, such as snack foods, sales of the product(s) inventory are the critical goal and key concerns due to the perishable nature of those products. The six types of Trade promotions indicated in the case were geared either to the vast network of retailers in india or directly toward the end user/consumer. The first type of scheme targets the younger customer, in which gifts are included in the snack packages. This is similar to what breakfast cereal producers did for any years in the U.S, include toys/special prizes in the boxes. The second type of scheme was geared to the...
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