'Brand Extension Marketing Plan Essay\r'

'1. Executive Summary\r\nThe pursuit merchandiseing plan forms the basis for the introduction of an advance(a) reinvigorated w be by Snyder’s-Lance Inc. This abridgment anyows me to draw the best st dictategies to heed for the achievement of the club’s strategic goals. â€Å"Pretzel Abobodas” result be grocery livestocked as a unique timbreed pretzel that tar disturbs the Latino consumer, band shape up striving to reward the comp some(prenominal)’s focus on absent to mop up the Latino grocery. The merchandising strategies ordain hopefully enable our alliance to reach a commercialize size of an estimated 2,000,000 Latino Consumers ( addressed) with forecasted gross gross revenue emersion prospects of 5% over the next 3 course of instructions ($450,000 profits), while fulfilling the demand if the unserved grocery store of consumers. Success go forth be reflected by a sizeable drive of mart sh ars within this trade, while st rategically stead the political party as a market drawing card in the salty racinesss ingredients of the industry.\r\n social club Description\r\nSnyder’s-Lance manufactures and markets pungency foods through and throughout the United States and inter across the nation. The come with’s reapings imply pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, bats and early(a) bites. Snyder’s-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario, Canada. Products ar change chthonian the Snyder’s of Hanover, Lance, Krunchers!, Cape Cod, Jays, Grande, Tom’s, EatSmart Naturals, Arch bearing, O-Ke-Doke, Padrinos, and S cleave upa D’oro fall guy names along with a good turn of private label and third party instigants.\r\nProducts be distri plainlyed longly through grocery and mass merchandisers, whatchamacallit storehouses, club stores, food attend outlets and opposite impart. Pretzel Abobodas leave alone bring an entirely unique salty snack experience to its consumers. It pull up stakes present itself as a healthier snacking alternative to consumers while providing the ample insight of authentic Abobodas, which is a top Latino flavor taste perception. The strategic role of Pretzel Abobodas is centered on lead objectives: * To be the market attraction in ripe harvest-home introductions and triumphful crossing launches * To strengthen and satisfy the of necessity of Hispanic consumers and families * To be fix the market leader in the functional salty snacks category with change magnitude market copes\r\nSituational Analysis\r\nThe U.S. Hispanic population is the largest minority segment and is growing at a outstanding rate towards heathenish plurality, which has already occurred in the nigh thickly settled states and is beginning to occur among the U.S. baby population. The rising U.S. economy entrust depend on Hispanics by virtue of demographic change and the social and heathen displacements expected to accompany their poke outd growth. Hispanics exhibit distinguishable produce consumption patterns and are non acquire in ways that are the kindred as the heart and soul market. In forecasts of hereafter consumption growth, the Hispanic share is signifi canistertly prominenter than that of non-Hispanics. The evidence for the rarity and sustainability of Hispanic culture is persuade and implies a future(a) American culture with a strong Hispanic flavor preference. Snyder’s Of Hanover Pretzels provide a firm snacking option for consumers. There are some varieties and flavors of pretzels across the U.S. market but at that place convey been no flavors reveald for the Hispanic mart.\r\n2.1 marketplace Summary\r\nMy marking client group is the Hispanic marketplace. The Snyder’s of Hanover blemish i s a nation dewy-eyed recognized check among American Households. Snyder’s Pretzels dominate market share and the frames continue to grow. While the numbers do continue to grow, the Hispanic Market has whatever great potential because we book non been able to penetrate the market teeming to move the choosele on share. Our snitchs generate exclusively really started to appear in the Houston Hispanic Market in stores such as Fiesta, and Food Town. Although we do keep up a pocketable bit of mien in these markets, there is not a mavin decimal point flavor omniscient that is hindquartersed for this market.\r\n2.1.1 Market demographics\r\ngeographic\r\nThe geographic target area that I am choosing is the Houston Hispanic Market bea, San Antonio Area, Corpus Christi, and a few much mettlesomely populated Hispanic areas.\r\nDemographic\r\nThe demographic profile of my target market is deprivation to be Hispanic Family Households with children 18 years and under\r \nBehavioral Factors\r\n* Hispanics constitute whizz of the fastest-growing racial/ pagan groups in the United States * Family Gathers are traditional for birthday, holidays, weekends, and so on * Hispanics, African Americans and Asians consume more beer than any otherwise endure which is a great tie in with pretzels\r\n2.1.2 Market Needs\r\nThe ingathering give ply to both(prenominal) Physiological needs (nutritional measure out) and Social needs (perception of a social, healthy snack) and strive to provide the adjacent benefits to Hispanic Consumers:\r\n* Healthy Snacking Alternative for Parties and family gatherings.\r\n* Price\r\n* come close to Brand Product\r\n* Items that pull up stakes polish blossom forth in the household\r\n* Great tasting product\r\n2.1.3 Market Trends\r\nThe current trends include a shift away from junk foods, a growing engage in healthier/beneficial products, and the trend for personalization through customization or seeking in a wide i ntroduction of flavors. Trends that provide influence how clients leave compass our product include: * The importance to the guest- The phrase â€Å"client-centric” has neer been more important than it is today. With the arrival of the â€Å"information age”, consumers gentleman-wide know what is available, what e trulyone else is buying and how to find it on get out at the utmost cost. With this power has come the ability to shape markets, and pay off back the products that they demand. Manufacturers no longer have the power to throttle a market in their own unlikeable space. The phrase â€Å"build it and they will come” no longer applies †you essential know what the customer deprivations in advance if you want any chance of survival. And one time you have consumeed what the customer wants, your product and your customer body forth essential both be perfect, because in this age, grapevine doesn’t serious reach family and friends , it reaches the world.\r\nPlace the customer first. Listen to them before you build your product and they’ll recount you what to make. Listen to them after they buy your product and they’ll tell you how to keep them as repeat customers (and discoloration advocates). * The internationalisation of stigmatises, and the ability of consumer demand to occur on a world-wide scale, is tipping the balance of power * The worldwideization of the message…Today, that world is gone. With the rise of the Internet and a population that progressively views world travel as just another(prenominal) part of flavor, messages and brand images no longer stop where you put them. Instead, they go viral. They get picked up on YouTube. They’re seen by travelers. They’re found on the Internet (occasionally in a blog with a title like â€Å"the 10 worst marketing translations”).\r\nThey are everywhere. Moving forward, the â€Å"message” that a club pres ents essential be global in nature, or at the least, topical anaesthetic and regional messages must(prenominal) be cultivated in such a way as to lam on a global scale. From a business perspective, this isn’t a vainglorious affair at all. In fact, get imaginative with your international message and perhaps you’ll get thriving and it will go viral. * The Power of the â€Å"Same”-Not merely can you buy the same thing anywhere, battalion have grown to expect the same thing everywhere! While we still pride ourselves in finding that unique place or product, the naive realism is that the world is turn one giant franchise. The â€Å" monotonic effect” (the ability to eat at a McDonald’s or Burger King in just just about every country in the world) has travel into most major industries, from automotive to online, and shows no signs of slowing.\r\n2.1.4 Market Growth\r\nThe U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has already occurred in\r\nthe most populous states and is beginning to occur among the U.S. baby population. Hispanics already flyer for an important share of consumer expenditures and given their youth, educational advances, and increase spending capacity, Hispanics are fast becoming preeminent drivers of growth and likely trend setters in the marketplace. Marketers will need to understand the what, where, how and why of their role in tomorrow’s consumption space. In forecasts of future consumption growth, the Hispanic share is significantly greater than that of non-Hispanics. The evidence for the distinctiveness and sustainability of Hispanic culture is convincing and implies a future American culture with a strong Hispanic flavor.\r\n2.2 SWOT Analysis\r\nThe undermentioned SWOT analysis summarizes the key strengths and weaknesses that Snyder’s-Lance faces, as swell as the opportunities and threats to be conside red.\r\n2.2.1 Strengths\r\n-Snyder’s Pretzels are across the nation recognized and consumed brands -Snyder’s Pretzels hold the largest share in the U.S. in its category -Snyder’s Pretzels are becoming the healthy snacking option among children and adults\r\n2.2.2 Weaknesses\r\n-Snyder’s Pretzels are not sought after in the Hispanic association -Snyder’s Pretzels have not produced any Hispanic or Regional Flavors -The Flavor Preference that I will be producing is not a global product so it will be toilsome for Hispanics to adopt this product\r\n2.2.3 Opportunities\r\n-Product Flavor is not in any market\r\n-Test market areas are slightly complex\r\n-Niche Market item\r\n2.2.4 Threats\r\n-The Bigger savory Snack Companies will try to kick off the same product at a lower cost, antithetical packaging (Predatory Pricing could take place) -There is no brand equity in this product -Lack of Immediate emulation for comparison\r\n2.3 Competition\r\nT he competition is few and faraway in between. There are a drove of salty snack companies that produce Pretzels, but they are not the chief(prenominal) brand. Also, the other Pretzel companies are not DSD companies, meaning they send product straight to store ware houses. Frito Lay is the largest Salty Snack Company in the World. Rold Gold is their pretzel brand, but not their main(prenominal) brand. They do not hold the add up of market share that Snyder’s Brand. Their main brands are Lays, Doritos and Tostitos. The other company is UTZ. UTZ is a pretzel company that distributes products via warehouses. They make and give pretzels, but they do not have a flavored pretzel line. There are many more company that product pretzels but they do not go game the full variety and are not nationally recognized for this product.\r\n2.4 Product Offering\r\nWhen you grab a handful of pretzels, you’re getting a snack that comes with quality, crusade, zinc and folate. And bes ides these nutrients, pretzels are low in change. Hold up, though; this snack can come at the charge of too much salt, because some brands of pretzels have nearly a day’s supply of sodium in one constituent. wish most foods, the pros and cons vary from one product to the next.\r\n low-spirited Fat\r\nPretzels are one of best snacks when it comes to fat content. A 100-gram serving of hard pretzels, or about 16 pretzels depending on their size, has just three grams of total fat and no cholesterol. A significant amount of the fat †88 share †consists of healthy unsaturated fats that help lower cholesterol. (See Reference 1) The same division of potato chips has 36 grams and tortilla chips have 23 grams of fat.\r\n fibre\r\nEnjoying a snack of hard pretzels adds to your daily fiber inspiration. A 100-gram serving has three grams of fiber. That may not sound like much, but it’s eightsome part of the recommended daily intake for men and 12 percent for women . Potato and tortilla chips have a piffling more fiber †four to five grams †but if you choose whole wheat pretzels, the amount goes up to eight grams.\r\nCalories\r\nPretzels have fewer calories than potato or tortilla chips; but like many snacks, they’re not exactly low in calories. You’ll get 380 calories from a 100-gram serving of hard pretzels. (See Reference 4) The same serving of potato chips has 542 calories. Tortilla chips range from 489 to 514, depending on flavorings.\r\nMinerals\r\nHard pretzels have seven to 10 percent of the daily intake of seven minerals, but they’re especially high in iron and zinc. (See Reference 9) In appurtenance to carrying oxygen through the blood, iron provides short-term retentiveness of oxygen in your muscles so that you have profuse to meet the demands of increased activity. (See Reference 2) Zinc has many roles, from metabolism to the production of DNA and smartfangled cells. You alike need zinc to suppo rt the immune formation’s ability to fight bacteria. (See Reference 3) A 100-gram serving of hard pretzels gives men 62 percent of their daily intake of iron and 13 percent of zinc. Women get 28 percent of their daily iron and 18 percent of zinc.\r\n2.5 Keys to Success\r\nThere are many keys to the boffo launch and implementation of this brand elongation. Below are several critical success factors that we must leverage to be successful.\r\n* The product must meet a market’s needs amend than the competition and customer alternatives (my product schema has to be right) * The product must be taken to market through high-volume, competitive routes to market (I need a viable, volume go-to-market strategy and ability to scat in a way that drives sales growth fast) * The product must be rock-solid, high-quality and actually deliver the value promised so customers actually get the benefits they’re seeking (and that we’re change to them). This is critical and must actually be verified with early customer testing and validation (and the product doesn’t enchant until it’s actually ready, regardless of the â€Å"schedule”).\r\n* The pre-launch market conditioning must give enough sense and â€Å"buzz” with both prospective customers and sales channels that this new product is coming to enable the product to gain enough early mindshare and traction that leads to both actual â€Å"proof” and â€Å"social proof” that the product is ready for the market. To grow beyond the initial launch, the product must be proven to meet mainstream customer needs (mainstream customers are notoriously risk-averse, so they want to see other companies like them have already taken the risk and proven the product in their environment before using it).\r\n* The go-to-market engine must buy into the product early and allocate resources to it (e.g., sales pass for forthwith sold product, re sellers/affiliates for in direct sales must choose to invest) … and sales absolutely must have early success at exchange the product. If the product isn’t really ready for blush time †it’s dead (the sales force probably won’t touch it again for a long time, if ever, and bad news travels fast). And get this, because it’s super-critical. If the product doesn’t convert better than what the reseller/affiliate is already selling today, it’s likewise dead (they won’t waste any more of their precious time on your new thingy, and will go right back to selling what already works for them and makes them the most money today). gross revenue slew are â€Å"coin operated” and their behavior and decision-making responds directly to what makes them the most money the quickest.\r\n3.1 Mission\r\nThe objective is to introduce the Pretzels Abobodas to the Hispanic Community. There has not been a pretzel introduced to this box market of consumers. It is m y hope that this is will be the number #1 household penetrated pretzel in its category.\r\n3.2 merchandise Objectives\r\n in conclusion the marketing objective for this initiative is to penetrate Hispanic consumers with a healthy snacking alternative with their flavor of preference in which they can serve during their family gatherings and make it a part of their daily consumption. The objectives of the marketing plan are strategically centered around 3 criteria: to create a strong consumer awareness towards a alone new flavored pretzel product to crap a wide brand recognition through the capture of market shares in the functional salty snack category, and to get down the top market leader in that position segment within the forecasted sales figures * Increase sales by 5% during the next fiscal year of this item being in the market * advance product awareness for both the core and line extension brands * Brand Management: This new item should be recognized nationally after its successful launch in the Texas Hispanic Markets\r\n3.4 Target Markets\r\nMy target customer group obviously is the Hispanic Market. The Snyder’s of Hanover Brand is a nationally recognized brand among American Households. Snyder’s Pretzels dominate market share and the numbers continue to grow. While the numbers do continue to grow, the Hispanic Market has some great potential because we have not been able to penetrate the market enough to move the needle on share. Our brands have just really started to appear in the Houston Hispanic Market in stores such as Fiesta, and Food Town. Although we do have a little bit of presence in these markets, there is not a single item flavor wise that is targeted for this market Geographic’s: The geographic target area that I am choosing is the Houston Hispanic Market Area, San Antonio Area, Corpus Christi, and a few more passing populated Hispanic areas.\r\nDemographics: The demographic profile of my target market is going t o be Hispanic Family Households with children 18 years and under Psychographics:\r\nHispanics are very brand loyal and they use nationally advertised brands Hispanic families are close knit Familia includes parents, children, and extended family…the amaze is the head of the family and the mother is responsible for the home Individuals have a moral responsibility to take make do of family members experiencing health issues, financial problem unemployment and other life issues Behavior:\r\nHispanics constitute one of the fastest-growing racial/ethnic groups in the United States Family Gathers are traditional for birthday, holidays, weekends, etc Hispanics, African Americans and Asians consume more beer than any other race with is a great tie in with pretzels\r\n3.5 billet\r\nSnyders of Hanover Pretzels is the #1 Pretzel in the category. This new flavor extension, the Pretzel Abobodas, provides a Healthy Snacking Alternative for Parties and family gatherings in the Hispanic Co mmunity. This product has price leadership in the market, making it very affordable to consumers, and a product that will last/stretch in any household.\r\nThere are many varieties and flavors of pretzels across the U.S. market but there have been no flavors produced for the Hispanic Market. The most distinguishing have got for this new product is that it will provide Hispanics with one of their #1 flavor preferences on a pretzel which is the Abobodas seasoning.\r\n3.7 Marketing Mix/Program\r\nThe competition is few and far in between. There are a mass of salty snack companies that produce Pretzels, but they are not the main brand. Also, the other Pretzel companies are not DSD companies, meaning they send product straight to store ware houses. Frito Lay is the largest Salty Snack Company in the World. Rold Gold is their pretzel brand, but not their main brand. They do not hold the amount of market share that Snyder’s Brand. Their main brands are Lays, Doritos and Tostitos. The other company is UTZ. UTZ is a pretzel company that distributes products via warehouses. They make and sell pretzels, but they do not have a flavored pretzel line. There are many more company that product pretzels but they do not affirm the full variety and are not nationally recognized for this product.\r\nThe #1 thing that gives the Pretzel Abobodas more value than the competition is the fact that there are no other companies offering or producing this product or announce to this niche market of consumers.\r\nPrice\r\nTo throttle pricing for this niche product, I will follow a very detailed process which is shown below.\r\n1. redirect examination research and development costs, unit costs for manufacturing and shipping, and advertising costs to qualify the overall cost to produce and sell the new product. Determine a bathroom line sales price needed to break even in the marketplace from this information. 2. survey market analysis and trend reports, target market profile s, customer surveys, and past performance reports on other company products to determine the value of your product in the marketplace. unequalled products, products that satisfy consumer needs, or those that make significant changes to work processes or in the lives of consumer are considered the most valuable.\r\n3. enquiry your competition in target marketplaces to determine if your product meets, exceeds or falls below available products. ensure competitor websites and stores, and read reviews of competitor products to determine how your product measures up and how it may be received by consumers. 4. induce a price range using all the manufacturing, marketing, consumer and competition information available. Include a bottom line sales price and a ceiling price, which is the most you can sell the new product for and realistically generate consistent profits. do mid-range pricing based on competition and market saturation. 5. Set a price for your new product. Review pricing opt ions, market interest and how much you want to earn from sales to determine a price.\r\nTo determine what the Pretzel Abododas is worth, I will focus on the followers areas below: 1. Cost: Focus on current and future costs (vs. historical ones). 2. Sensitivity to price: Every buyer’s priorities change, based on unlimited factors. I will have to be ready to adjust quickly. 3. Competitors: I will pay maintenance to competitors’ pricing strategies, but I will not follow too closely. They may be â€Å"winging it,” and I might get burned. 4. Product Lifecycle: The price(s) of myofferings will often change throughout the product/service lifecycle.\r\nTo set the product apart from the competition, I will do the following: * Reinforce your brand. If the Pretzel Abododas is on the market and there is no reinforcement, it will become dead(prenominal) and lose ground. It is important continue to build this brand by communicating with the market regularly. Consistent d iscourse will ensure that this new brand extension appeals to consumers on an emotional level, and increase their awareness of it. * bit your brand: Positioning is all about lay your brand in the right place, in the market, so that it gains the attraction of the right audience. I will solve the best position after careful analysis of the market and competitors.\r\n* Integrate community interest in your brand: This can be a great tool to help spread word about the brand. On one level, the brand must establish a link with the local community. By including their interests, they will be attracted to the brand, and help to tell others about it. * Create an online Brand Community. Social media sites such as Facebook and Twitter, will move the brand into the global sphere. The creation of an online brand community, will raise brand awareness, as people tell the story of the brand and propel profile to a global audience. Whether they exist on the local or online level, community members are committed to the brand, and can prove instrumental in increasing awareness, and wretched the brand forward. * Special Promotions †Attract customers by great(p) away free items. There is no greater pull for consumers than getting something for nothing. It will improve the office of the brand in their eyes, and with the right promotions, I will be able to gain valuable attention for the brand\r\nPlace\r\nThis niche item is all about where it is placed. I plan to distribute this new item via the Snyder’s-Lance Inc Independent Operator Direct stash away Delivery System. Since this product is a brand extension, a new line for this item will be carried in all warehouses in this specific market.\r\nSnyder’s-Lance will take responsibility for distribution in the areas where we have Independent Operators, such as Houston, San Antonio, and Corpus. In the more rural areas, we will outsource to an outside distributor.\r\nReferences\r\nKahn, B.E. and T.A. Louie, †Å" effectuate of Retraction of Price Promotion on Brand Choice Behavior for Variety Seeking and Last-purchase-loyal Consumers,” daybook of Marketing Research, Vol. 27, August, pp. 279-289, 1990.\r\nMinor, Micheal, â€Å"Comparing the Hispanic and Non-Hispanic Markets: How Different Are They?” daybook of Services Marketing, Vol. 6, No. 2, pp. 29-32 1992.\r\nU.S enumerate Bureau, Census 2000. Retrieved December 4, 2012.\r\nWebster, Cynthia, â€Å"Attitudes towards Marketing Practices: The Effects of Ethnic Identification,” Journal of Applied Business Research, Vol. 7, No. 2, pp. 107-116, 1991.\r\n'