Snacko India Limited: Leveraging Trade Promotions for Competitive Advantage Harvard Case Solution & Analysis

Problem Statement

SNACKO India Limited is facing challenges of the appraising, scheming and application for their consumer products in an extremely competitive environment of India. In the previously mentioned case study, the marketing manager was working on the development of marketing strategies regarding Asian consumers. The streamline of this case is to deliver a fruitful thought which defines the complications and the vigorous framework which shaped Asian consumer’s needs and demands.

It also emphasis on the marketing scheme followed by the marketing manager which aligned customer’s demand with company needs. This case study also reveals the various marketing decisions and their execution in the Indian market for snack foods. A market where factors such as products at low price, consistent quality, brand innovation and effective trademark; supports the product promotional and retailing schemes that are critical in attaining and retaining market share.

Trade Promotion

It is a method through which a company intends to promote its products through retail stores where customers could buy the product by looking at it. In India consumers are more likely to stick with traditional patterns of consumption that allows them to avoid corn flacks and other lunch food items.

Nature of consumer and retailer behavior in relation to snack products

The customer will always prefer a product that is packaged in traditional ways or give them the comfort that will make them connected with their rituals. Local Retailer would be a highly positive source to promote Snacko’s product in Indian market.

Promote the sales of snack products

Snack uses below the line activities for the promotion of its product, through this method the company opts to avoid predictable methods of advertising. These include tricks such as direct interaction, public relations and sales developments for which a fee structure has established upon which they charge an upfront amount for service. Below the line advertising activities typically concentrates on immediate means of conversation and often use stores where they possess great chances to meet a large number of snack buyers. However, in this way it becomes highly relevant for snack products because the company wants to promote its snacks by immediate customer interaction.

Objectives of trade promotion

The main objective of the trade promotion scheme is to fasten the sale of slow moving consumer items. Companies do this with the help of retailers, who sells their product either at discounts or with some incentive offered on bulk buying. However, the retailers are also being offered some incentive to provide additional space in their front shelves.

Promotion Schemes

 There are various promotional schemes adopted by the consumer good companies which includes:

The gifts offered on the package products, wrapped in a visible plastic sheet attached to the merchandise item. In this promotional method, sales staff plays a very important role to make a customer realized that they could have the benefit of both the product and a gift.

Another promotional scheme provided by the company is from the perspective of retailers and distributors. The company offers, sales target for a certain category of products for which they reward both the distributor and retailer.

Snacko can also put forward Tambola promotional strategy. This scheme consists of a matrix and retailers’ reward is dependent on the sales completion of each row. If the retailer sells all the products present in the matrix, then the company reward them especially up to U.S $3.60.

Scheme Analysis for trade promotion by Snacko.

Alternative # 1

Pros

It will grab customers' attention towards snacko’s their consumer goods rapidly. At the same instant, it will also provide a base for building and developing customer taste and capturing a large market share.

Cons

However, by offering gift hampers to the customer the company promotion is at uncertainty, risk that if the customer refuses to buy products without out the gift. It can also be considered in a way that if the buying pattern of the consumer changes due to the stagnation of gifts with products....................

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The case illustrates the challenges facing the marketing manager for the development, implementation and evaluation of the development of trade in the highly competitive, fast-moving, consumer goods multinational companies in the emerging Asian market of India. The purpose of the event is to provide exposure to the complexity and dynamic context of Asian marketing of consumer products and learn how to develop, implement and evaluate the development of trading schemes that are aligned with branding, marketing communications and marketing strategy for the product / brand. The case illustrates the marketing decisions and their implementation in the Indian market for a starter, where factors such as the foods in small price points, continuous product and brand innovation, design and effective trade promotion and merchandising schemes are crucial in obtaining and retaining market share. "Hide
by Sajjan Raj Singhvi, Rajat Gera Source: Richard Ivey School of Business Foundation 18 pages. Publication Date: December 10, 2010. Prod. # 910A24-PDF-ENG

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