Snacko India (Pvt) Ltd

Section B
Group 13
Mrityunjay Panday P39208
Satya Prakash P39221
 Business Over View
Company Sales Market Sales Market YOY Products & Market
08-09 Share 09-10 Share Growth • Chips, Popcorn, Salted Nuts &
Seeds, Cookies & Crackers, meat
snacks etc.
Pepsi 660 56% 866 56% 24%
• Health conscious are avoiding .
Haldiram 266 23% 388 25% 31% • Hence heavy sales promotion.
• US $ 3 Billion market CAGR 15%.
• Currently US $5 Billion CAGR 6%.
ITC Food 130 11% 173 11% 25% • Organized snacks 46%.
• 80% of branded snacks category
Snacko 120 10% 122 8% 2% is potato chips.
• 3-Segment : Western Snacks,
Total 1176 1549 24% Traditional, Finger Snacks.

Characteristics Organized Retailing Unorganized Retail

• Intense competition.
• Regional Players.
• Numerous product
launch each year.
• 70% Mortality Rate.
• Low Priced, Innovation.
• Small Packets
• Local flavor is critical to
success.
License Retailer
CAGR 25-30%
Expected Revenue $15 Bill
Market Share 10-15%
Snacks less than 5% sales
Variety, Ambience
3 Million Unorganized
Small Business, 50 sq feet
2/3 stores in rural area
Corner and location store
Acnt for most sales of Snack
Target of all trade promo of snacks Industry
85% of snacks sales.
 Snacko Overview

Distributor
CFA 5~12% Retailer
Factory Customer
3~3.5% Wholesaler 5~15%
2~3%

Trade Schemes Positive Negative

Gift Attached to packet of
branded snacks
Distributor Flexibility to manage
reward to retailer (Cash)
Extra discount to SR to focus on
high margin product.
Jhatpat Tej
Tambola
Cram Brand Winner
Gift could be seen by retailer &
Incentivize him to sell.
Distributor can push and feels
ownership.
Motivate SR to sell Snacko and
push.
Help Reduce Inventory
Strengthen Brand Image
Flexibility to choose relevant one
Gamify selling with reward, Direct
to retailer , Less chances of
distributor fudging the sale
Strengthen brand Image
Gifts have less functional use or
utility to retailer, Distri apathy
Fake reimbursement ,may be not
passing complete reward,
Less margin, other product
become stuck in market.
Without discount product less
favorable, Distributor may not
pass fair share of promotion
Too complicated and long term
scheme, return in form of
discount on next bill.
Long term engagement required.
Highly costly scheme.
 PTP

Trade Promotion Vs Nature of Product

• Impulse buying product focus on display.
• Extensive use of promotion to increase brand recall and facilitate
purchase.
• Focus on push strategy in low value buying and less engagement Products.

Objective of Trade Promotion

• Increase shelf space or increase inventory.
• Increase excitement and sales of product in mall areas.
• To test sales potential of the area.
• Reduce retailer dependence on wholesaler.
• Additional incentive to SR to push high value product.

Consideration To Be Given Before Launching Trade Promotion

• Structure of Retail Industry promotion should target unorganized retail
here.
• Sales force Understanding and education i.e ability to explain the scheme.
• Seeding New Market Giving high sales margin to gain share in new market.
 PTP

Evaluation Of Trade Promotion Scheme

• Monitoring by the sales officer by regular visit in market and stock check.
• Comparison of different promotion scheme like time and cost involved vs
shelf space gained and sales volume increase.
• Compare effectiveness wrt. competitor promotion scheme.
• Analysis of historical trend and compare with them.
• Return on Investment.
 Designing Of Trade Scheme

Trade Schemes Positive

Gift Attached to packet of branded snacks Give valuable products or same product as sold
in trade scheme as attachment. Smaller SKU.
Distributor Flexibility to manage reward to Must fix minimum amount of reward that
retailer (Cash) should flow from distributor to retailer to
prevent holding of scheme by distributor. It
should also be in Product form.
Retailer should decide on type of gift.
Extra discount to SR to focus on high margin Make KPI to push low moving product too.
product. Must be incentivized for Push.
Jhatpat Tej Minimum level of promotion passing to be
assured to the retailers.
Tambola Focus more on this.
Increase cash transfer flexibility instantly.
Increase gamification and price associated.
Cram Brand Winner Design fro other product too.
Increase scope too.

Focus more on ATL , Awareness and brand building to generate pull is key to success.