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An analysis of

Toppits Foods Ltd.



Presented by: Group 8
Anurag D001
Aditee Amitabh D008
Tanvi Gupta D026
Prateek Malhotra D036
Anjali Rawat D047
Abhishek Sikdar E049

How does competition affect
Toppits marketing plan?

Direct competition
Gourmet Garden
McCormick
Derlea Jars
Indirect competition
Backyard herb gardens
Competition



International brand
Australia market knowledge

New company
Tube product
Shelf life is 3 months
Preservatives used
Product contains milk solids
and dairy derivatives
(allergens)


Gourmet Garden





Major multinational
Large product base
Good brand recognition
Large distribution network

Tube product
Shelf life is 3 months
Preservatives used
contains milk solids and dairy
derivatives (allergens)


McCormick




Garlic imported from China so
higher margin
Small business so low overheads

Limited product line
Small distribution network
Raw material dehydrated
Preservatives used
Lost flavor once jar opened


Derlea Jars


Ease of use: pre-proportioned
Long shelf life
All natural, preservative free
Kosher, no diary derivatives
Toppits

Limited awareness due to bad
placement of freezers

Which customer group
should Toppits target?

How does this affect the marketing plan?
Segment Age Group/Sex Factor for selecting
product
Approx number of
prospects
Comments
Student 18-25, Male and Female Convenient and healthy
Limited access to grocery
stores
Easy-to-use
Long shelf life

5.12 Million
(16%)
Limited transportation
Restricted budgets
Condensed in tight
geographical areas
Jewish community Not specified Imported from Israel
Kosher
0.32 million
(1%)
Concentrated in small
metropolitan areas
Trusted Israeli supplier
Prefer kosher designation on
the package

Women (Current) 25-54, Female Limited time to cook
Healthy meals
14.4 million (45%) Fresh & Healthy
Enjoy Cooking
Have limited time
Toppit can make its presence felt in stores close to student dense areas or open stores in those areas.

If a Warehouse store is opened close to University area then the price factor would also be resolved (71% consumers
felt this was important) since students would get a price advantage of $1.46/tray .

Toppit can also make their presence felt online to make its presence felt across students.

Therefore, Toppits must concentrate on the Student Segment and continue to strengthen their position in the current
segment for long term profitability.
Develop a promotional strategy and
budget for Toppits
Change suppliers from Israel to China
Compromise on quality
TV Advertising on day shows like City Line
Spending more on Sampling

Introduce tray in smaller packets (4/6 Cubes each)
Target College students
Focused promotion on selected channels
Begin In store promotions



Focus on smaller packs to increase profitability, sales & penetration
Initiative Actual Suggested
Sampling
(for promotion)
40,000 20,000
Magazines 36,000 36,000
Television advertisements 40,000 30,000
Radio 20,000 25,000
Packaging 20,000 30,000
Food festivals 10,000 10,000
Freezer placement 8,000 15,000
Website Design 15,000 10,000
Newspapers, Fliers NIL 10,000
In store promotion NIL 14,000
Total Budget Allocated

1,89,000 200,000
Advertise on University Radio Stations, Better impact
Accounting for packaging of new packs
38% of the consumers who look for these could be tapped
Retained as they increase awareness
Hardly have an impact on sales, Distribution not set up to leverage
Create recipes using Toppits and publish them in magazines
With bigger see through glass, Freezer with posters
To tackle pressure from retailers, Better visibility
Targeted channels and shows
Promotional Strategy
What are the distribution options
available to Toppits?

Evaluate these distribution options, both
quantitatively and qualitatively
Distribution
Channel
Markup Sales
Growth
Pros

Cons
Grocery Stores

Distributor: 25%
1%
Wide network
Convenience for the
consumers
Single tray are also being sold
Slowest sales growth
Total high mark up is high
Higher cost for the consumers
Lesser trips by customers
Stores: 40%
Total 75%
Warehouse Stores

20% 2%
The markup is low
The frequency of going to
warehouse is increasing for
consumers
Caters to concentrated
consumers
Special packaging required
Low penetration (only 10
warehouse store in Canada)
Walmart
(Mass
Merchandising)
25% 5%
276 stores across Canada
Expansion plan of 15-20 stores
per year
Dominant force in mass
merchandising
High growth volume potential
Additional advertising
expenditure
10% lower per unit sales price

Qualitative Analysis
Quantitative
Grocery Stores
Description Units
Cost Price of Toppits (per case) $ 34.00
Margin earned by Toppits (25%) $ 8.50
Cost Price of Distributor (per case) $ 42.50
Mark up by distributor (25%) $ 10.63
Cost price of Grocery Store (per
case)
$ 53.13
Mark up by Grocery Stores (40%) $ 21.25
Price to the consumer (per case) $ 74.38
Number of trays per case 16
Price to the consumer (per tray) $ 4.65
Warehouse Stores
Description Units
Cost Price of Toppits (per case) $34.00
Margin earned by Toppits (25%) $8.50
Selling Price of Toppits per case $42.50
Selling Price of Toppits per tray $2.66
Cost price to Warehouse Stores (per
pack)
$7.97
Markup by Wholesale Stores (20%) $1.59
Price to the consumer (per pack) $9.56
Number of trays per pack 3
Price to the consumer (per tray) $3.19
Walmart Stores
Description Units
Cost Price of Toppits (per case) $34.00
Margin earned by Toppits (12.5%) $4.25
Selling Price of Toppits (per case) $38.25
Markup by Walmart $ 9.56
Price to the consumer (per case) $ 47.81
Number of trays per case 16
Price to the consumer (per tray) $2.99
Walmart:
Margin reduced to 12.5% - reduction in
profitability
Additional Advertising expenses of
$50000
Cost per tray for consumer reduced to
$2.99
Warehouse:
Additional packaging and Freezer cost
of $28000
Grocery Stores:
Cost per tray to the consumer is
maximum among all the distribution
channels
Quantitative Analysis
What should Gremont do?
Objectives

Maximize line profitability
Promote awareness
Ensure repeat purchase
Distribution Strategy Expand into various
channels
Sourcing Strategy Change to low cost supplier
Promotion Strategy Change focus of current
promotional activities


Concentrate on student segment for
long term profitability
Strengthen warehouse store
distribution channel
Open warehouse stores close to
universities
Stop spending more on sampling;
instead, focus on other means of
promotion

Must not switch to Chinese suppliers
Should not look into Walmart
expansion plan as a long term
measure
Should not focus on Jewish
community - tiny percentage of
population




Thank You