Kopper Kettle Snacks Case Cracker 09 Class marketing Instructor: Karen O’ Rouke By: Daisy Chan Kopper Kettle Snacks Case Cracker SWOT Analysis: Strengths| Weakness| * Experience in the industry * Has a good local reputation * Has product being sold at some local restaurants, and small food stores. Some local restaurants featured it as a side dish with good feedback from consumers * Healthy and decadent chips * Handmade Kettle chips * Willing to expand on product flavours * Knows that the company can’t cater to the whole country with their snacks ( company knows their boundaries)| * Needs more expansion in product flavours * Low advertising budget * Small plant which means low production * Expansion in the market besides the local consumers * Company has a website but only covers history and a note about the kettle chips.
* Limited production equipment * Looking for Niche Market| Opportunities| Threats| People want to be more healthy and live longer * 48% of people enjoy chips as a snack * People are often very busy days and the age group 35-54 report skipping 74% of meals this can result in them snacking more often.
* Salty snack foods grew 3. 7% while healthy snack foods had a growth of 6. 4 % * People want to have a snack that is quick and indulgent because they are time starved. * Men prefer to have the junk food while women prefer the healthier alternatives such as yogurt, fruit, and vegetables. * 21% of Ontarians snacked a few times a day in between meals. 19% of People ages 18-34 prefer to snack in the morning * 13% of people ages 35-54 prefer snacking in the morning * 55% of people 18-34 snack in the afternoon * 42% of people 35-54 snack in the afternoon * 61% of people 18-34 snack in the evening * 60% of people 35-54 snack in the evening * 34% of people 18-34 snack before bed * 24% of people 35-54 snack before bed. * Consumers are usually of diverse ethnic backgrounds| * Consumer concern about the healthiness of the chips with perceptions towards the amount of sodium in the product, the oils its cooked in, the trans-fats, calories and movement of premiumness. Recession * People are watching their wallets and looking for quality products that are worth the buy. * Frito lay company dominates 80% of the chip market. * Frito- Lay caters to the mass market and has developed baked chips, lightly salted chips and change the oil used in cooking because of health concerns from consumers on chips . * Old Dutch develops kettle cooked chips with a variety of flavours such as Cheddar. * Neal Brothers is focused on organic products for snack market. * Humpty Dumpty * Cape Cod * Miss. Vickie’s| Consumer Behaviour? Segmentation Analysis: Consumer Behaviour regarding the product mix. Market Segment 1Men| Market Segment 2Afternoon Snacker| Market Segment 3Evening Snacker| Product| * Middle-high quality ingredients * Aged cheddar, tangy lime zest, and spicy jalapeno flavoured chips. * Red, purple, and black packaging with a distinct kettle logo that has rose vines wrapped around it. * Will have calorie count, no trans fat, and made with sunflower oil on the packaging. | * Mid-high ingredients * Sandwich flavoured chips that taste like roast beef, pastrami, grilled cheese, BLT and Chicken Club. * Chips would range from lightly salted to baked to original recipe. Packaging will include no trans fat on the label, made with soybean oil on , and low sodium content on health facts. * Packaging will be silver, teal, and handwriting style lettering in gold with the kettle entwined by rose vines logo on it. | * Strawberry, peaches, blueberry, apple, pomegranate, mango flavoured chips covered with white, milk, or dark chocolate with a hint in the middle of the chip. * Packaged in blue with chrome coloured fancy mid 18th century style scripture on it with the company logo. * Low in fat, has no trans fat, sunflower oil, and low sugar content. Higher Quality * Higher priced * Fancier item| Price| $1. 50-$3. 50| $1. 00-$4. 00| $2. 00-$5. 00| Place| * Sports arenas * Pubs and bars * Major supermarkets such as Loblaw’s, Wal-Mart, Price Chopper, Costco, No Frills, and Sobeys. | * Coffee Shops such as Starbucks, Tim Horton’s, and Timothy’s. * Business building cafeterias * Vending machines located in Schools, and office buildings. * Local Supermarket such as No frills. | * Costco * Speciality stores * Marco Angelos * Internet| Promotion| * Message would the snack that tastes as great as it does sounds that is healthy. Television advertisements during sports games and comedy series * Magazines such as Sports Illustrated, Maxim, ESPN magazine, and All About Beer. * Radio- Sports Radio * Promotions would be a free tasting at a sports event. * Promotions would also be buy the chips and enter to win a contest for free tickets to the next football game. | * By-line for company is its convenient and tastes like a sandwich. * Television advertisements during primetime * Internet Advertisement * Promotion is that Fast food restaurants that give the chips as a side dish and if you buy two bags at the supermarket you get a $1. 0 coupon for you next purchase on chips. | * Celebrity Endorsement * High Quality * Television advertisements during primetime * Advertise online| Market Segmentation: | Market Segment 1: Men| Market Segment 2: Afternoon Snacker| Market Segment 3: Evening Snacker| Demographics| * Male aged 18-34 years old * Income 25 000-40 000 yearly. * Single * Post secondary graduate| * Male and female ages 34-54 * Income $50,000-$100,000 * Married with children * High school to post secondary graduates| * Male and female ages 34-54 * Occupation: Lawyer, Accountant, and advertising manager. Income-$60 000-90000 a year * Single * University and college graduates| Geographic| * Ontario, Canada * Suburban * City dweller * Lives in an apartment or townhouse| * Ontario, Canada * Urbanized area * House * Condo * Townhouse| * Ontario, Canada * Suburban * City as well as country lovers * Loft * Condo * House| Psychographics| * Active athletic lifestyle * Workaholic * Loves watching sports * Mid social class * Plays sports as well as watch sports| * Family orientated lifestyle * Tries to pursue healthier lifestyle * Time Starved * Hectic work schedule * Mid to upper class| * Elusive * Workaholic * Career orientated * Eats out a lot *
Doesn’t cook * Enjoy quick fixes for meals * High Class| Behavioural| * Expects the product to be nutritious. * The Quality of it is expected to be moderately good to excellent. | * Expects the brand to be healthy and delicious. * This consumer will probably be hoping that the bag of chips is expected to fill them up. | * Expects the best quality from brands * Seeks nutrition and the benefit of a tasty product. | Define the problem: The problem with the company is that it has a low production rate, only advertises itself to some locals, low advertisement budget, has a small plant to produce the product, and the company website does not give enough information to advertise the product.
The company’s niche market needs work on the promotional campaign of the company as well as expanding on the original product. Find an alternative to potatoes to make product stand out . Recommended Strategy Identifying Target market: Target segment number three best suits the company because 60% of people prefer to snack in the evening and this is more of a high end luxury item that targets people who are very successful. This target suits the company because it takes chips to whole a new level and fruit flavoured chips that are a dessert is the best way to implement a market full of competitors with similar products that never seem to create a wow factor. This new product can define and separate the company and take them into a league of their own. 3% of people in this target age group prefer to have chips secondary to fruit for a snack and now the health conscious consumer can have their fruit in chip covered in chocolate with a notable label that it is healthy. I did not choose the Men 18-34 target group because it is broad range group that can differ in taste and the chips for the Men segment would be very similar to our competitor Frito-lay that targets sports events as part of their market they have the resources to do mass marketing we do not. As for the afternoon snacker segment, these are time starved parents with families and a hectic workload it is better to implement this target by creating thirty minute recipes that incorporate the chips in the meal in order to truly be a meal. The reason I didn’t choose this segment is because it is amily oriented, and parents are busy career people that barely have time for the family let alone grocery shop or pay attention to ads it would probably be a waste of company money to invest in an unsure overly career oriented families. Marketing Recommended Strategy: Positioning statement for the product is that it is high quality, tasty, high end and tasty product. The competitive difference is that it is hand made in a kettle with the highest of standards, and it is not made from your typical potatoes but organically grown potatoes infused with a fruit seasonings and a dope of cream. The image that is viewed by the target market is that its a unique never been done dessert chip that is high in quality as well as, flavour. Benefits of the product is that it is more healthier because it is made with sunflower oil, low sodium content and no transfat in the product. Product:
The product is a chips that is each flavoured with strawberry, mango, peaches, blueberry, pomegranates, and apple with a hint of minted cream in the middle covered in either a dark chocolate, light milk chocolate or white chocolate in every fruit flavour with a low sodium content and made with sunflower oil with no trans-fats. The colour of the product bag is in blue and chrome with 18th century handwriting so, it lets people know that this is a fancy product that can appeal to everyone with its colour scheme. Price: The price is $2. 00 for a small pack of chips and a variety pack with 10 packs of small chip is $3. 50 while a large bag of chips is $5. 00. Price restrictions on production quantities Place:
The Consumer can purchase the product at high end speciality food stores, Marco Angelo’s, and Costco or even through the internet where it will be delivered within 7 days. It is direct ordering online that can be picked up at the store or sent to your home. Promotion: The message for the company to consumers is that the product is high quality, unique, tasty and is good for you even though their chips. Promotions endorsed by celebrities, magazines that feature food products, interviews with magazines about this new product free word of mouth promotions by consumers. Online advertising for the website and instant product guarantee for fast service and quality product.
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