A Case Study on Snacks to Go

Topics: Marketing, Product management, Snack food Pages: 6 (1434 words) Published: September 7, 2010
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...
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