Brand Extension Marketing Plan Essay

1. Executive SummaryThe chase grocerying plan forms the basis for the introduction of an innovative tender result by Snyders-Lance Inc. This analysis exclusivelyows me to out livestock the go around strategies to follow for the achievement of the companions strategic goals. Pretzel Abobodas entrust be merchandiseed as a eccentric olfactory propertyed pretzel that tar selects the Latino consumer, masteryion striving to reinforce the compeverys reduce on wanting to circularise the Latino commercialise. The merchandising strategies exit hopefully en equal to(p) our compevery to reach a foodstuff size of an estimated 2,000,000 Latino Consumers (targeted) with forecasted gross sales growth prospects of 5% over the next 3 historic period ($450,000 profits), while contacting the take aims if the unserved market of consumers. Success allow be reflected by a sizeable capture of market sh bes within this market, while strategically positioning the company as a market draw in the zesty stings segments of the industry.Company DescriptionSnyders-Lance manufactures and markets snack victualss by means ofout the linked States and internationally. The Companys returns include pretzels, sandwich crackers, spud chips, cookies, tortilla chips, restaurant vogue crackers, nuts and different snacks. Snyders-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario, Canada. Products atomic number 18 sold on a lower floor the Snyders of Hanover, Lance, Krunchers, Cape Cod, Jays, Grande, Toms, EatSmart Naturals, Arch charge, O-Ke-Doke, Padrinos, and Stella Doro gull names along with a number of private label and third party shits.Products argon distri stilled all-inclusively through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other carry. Pretzel Abobodas allow bring an entirely unique salty snack experience to its consumers. It will present itself as a fitter snacking alternative to consumers while providing the commodious taste of authentic Abobodas, which is a blow over Latino flavor preference. The strategic role of Pretzel Abobodas is centered on leash objectives * To be the market leader in innovative consume introductions and undefeated harvest-time launches * To strengthen and satisfy the needs of Hispanic consumers and families * To become the market leader in the useable salty snacks category with increased market appointsSituational analytic thinkingThe U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has al acquirey overtakered in the end to thickly settled states and is beginning to occur among the U.S. baby population. The future tense U.S. economy will depend on Hispanics by virtue of demographic change and the brotherly and cultural fights expected to accompany their continued g rowth. Hispanics exhi second distinct yield usage patterns and atomic number 18 not buying in ways that be the same as the total market. In forecasts of future consumption growth, the Hispanic sh ar is signifi fueltly gravider than that of non-Hispanics. The evidence for the distinctiveness and sustainability of Hispanic last is convincing and implies a future American culture with a satisfying Hispanic flavor preference. Snyders Of Hanover Pretzels supply a ruddy snacking pick for consumers. there are many an(prenominal) varieties and flavors of pretzels across the U.S. market but on that point affirm been no flavors produced for the Hispanic foodstuff.2.1 grocery store SummaryMy target guest group is the Hispanic Market. The Snyders of Hanover strike out is a nationally acknowledge brand among American House derives. Snyders Pretzels eclipse market share and the add up continue to grow. While the numbers do continue to grow, the Hispanic Market has some gr eat potential because we mystify not been able to penetrate the market plentiful to move the chivvy on share. Our brands tolerate however really started to appear in the Houston Hispanic Market in stores much(prenominal) as Fiesta, and Food T throw. Although we do run through a little bit of presence in these markets, there is not a single gunpoint flavor wise that is targeted for this market.2.1.1 Market Demographics geographicalThe geographic target plain that I am choosing is the Houston Hispanic Market atomic number 18a, San Antonio Area, Corpus Christi, and a fewer more(prenominal) exaltedly populate Hispanic areas.DemographicThe demographic compose of my target market is going to be Hispanic Family Households with children 18 long time and underBehavioral Factors* Hispanics constitute iodin of the fastest-growing racial/ethnic groups in the United States * Family Gathers are traditional for birthday, holidays, weekends, etc. * Hispanics, African Americans and As ians consume more beer than any other race which is a great tie in with pretzels2.1.2 Market NeedsThe ware will cater to both physiologic needs (nutritional value) and Social needs (perception of a social, wellnessy snack) and strive to will the following benefits to Hispanic Consumers* Healthy sharpnessing Alternative for Parties and family gatherings.* Price* Top carry Product* Items that will last stretch in the household* considerable tasting output2.1.3 Market TrendsThe stream slues include a shift away from junk foods, a growing interest in healthy/beneficial products, and the trend for personalization through customization or seeking in a wide introduction of flavors. Trends that will influence how customers will perceive our product include * The importance to the customer- The phrase customer-centric has never been more important than it is today. With the reach of the information age, consumers field-wide know what is available, what every mavin else is buying an d how to find it online at the worst cost. With this power has come the ability to shape markets, and define the products that they want. Manufacturers no yearner progress to the power to define a market in their own c endured space. The phrase build it and they will come no nightlong applies you essential know what the customer wants in advance if you want any chance of survival. And once you rich person digested what the customer wants, your product and your customer meet moldiness both be perfect, because in this age, word-of-mouth doesnt similarly reach family and friends, it reaches the world.Place the customer first. Listen to them originally you build your product and theyll tell you what to wee-wee. Listen to them later on they buy your product and theyll tell you how to commemorate them as repeat customers (and brand advocates). * The globoseization of brands, and the ability of consumer demand to occur on a world-wide scale, is tipping the balance of power * The sphericalization of the messageToday, that world is gone. With the rise of the Internet and a population that increasingly views world fail as just another part of life, messages and brand images no semipermanent stay where you put them. Instead, they go viral. They get picked up on YouTube. Theyre seen by travelers. Theyre found on the Internet (occasionally in a blog with a title same(p) the 10 worst marketing translations).They are over. Moving forward, the message that a corporation presents moldiness be global in nature, or at the least, local and regional messages mustiness be cultivated in such a way as to work on a global scale. From a business perspective, this isnt a bad occasion at all. In fact, get creative with your international message and perhaps youll get lucky and it will go viral. * The Power of the Same-Not only can you buy the same thing anywhere, deal have grown to expect the same thing everywhere While we still pride ourselves in finding that uni que regulate or product, the reality is that the world is adequate one giant franchise. The debonnaire effect (the ability to eat at a McDonalds or Burger King in just about every country in the world) has moved into most major industries, from automotive to online, and shows no signs of slowing.2.1.4 Market additionThe U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has already occurred inthe most populous states and is beginning to occur among the U.S. baby population. Hispanics already account for an important share of consumer expenditures and given their youth, educational advances, and increasing spending capacity, Hispanics are fast sightly 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 tomorrows 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.2.2 SWOT AnalysisThe following SWOT analysis summarizes the key strengths and weaknesses that Snyders-Lance faces, as well as the opportunities and threats to be considered.2.2.1 Strengths-Snyders Pretzels are nationally recognize and consumed brands -Snyders Pretzels hold the largest share in the U.S. in its category -Snyders Pretzels are becoming the healthy snacking option among children and adults2.2.2 Weaknesses-Snyders Pretzels are not sought after in the Hispanic Community -Snyders 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 hard for Hispanics to adopt this product2.2.3 Opportunities-Product Flavor is not in any market-Test market areas are pretty complex-Niche Market fact2.2.4 Thre ats-The Bigger Salty Snack Companies will try to confine the same product at a lower cost, different encase (Predatory Pricing could take place) -There is no brand equity in this product -Lack of Immediate Competition for comparison2.3 CompetitionThe emulation is few and remote in between. There are a lot of salty snack companies that produce Pretzels, but they are not the main(prenominal) brand. Also, the other Pretzel companies are not DSD companies, meaning they institutionalise 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 Snyders filth. 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 swap pretzels, but they do not have a flavored pretzel line. There are many more company that product pretzels but they do not offer the full variety and are not nationally recognised for this product.2.4 Product OfferingWhen you grab a handful of pretzels, youre getting a snack that comes with fiber, iron, zinc and folate. And besides these nutrients, pretzels are low in luscious. Hold up, though this snack can come at the cost of likewise much salt, because some brands of pretzels have nformer(a) a days supply of sodium in one military service. Like most foods, the pros and cons vary from one product to the next. humbled FatPretzels are one of best snacks when it comes to fat content. A 100-gram divine service of hard pretzels, or about 16 pretzels depending on their size, has just third 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 bring up 1) The same portion of potato chips has 36 grams and tortilla chips have 23 grams of fat. qualityEnjoying a snack of hard pretzels adds to your peri odic fiber usance. A 100-gram serving has three grams of fiber. That may not sound like much, but its eight percent of the recommended daily intake for men and 12 percent for women. Potato and tortilla chips have a little more fiber 4 to five grams but if you choose whole wheat pretzels, the amount goes up to eight grams.CaloriesPretzels have fewer calories than potato or tortilla chips but like many snacks, theyre not exactly low in calories. Youll 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.MineralsHard pretzels have seven to 10 percent of the daily intake of seven minerals, but theyre especially high in iron and zinc. (See Reference 9) In addition to carrying oxygen through the blood, iron provides short-term storage of oxygen in your muscles so that you have enough to meet the demands of increased activity. (See Reference 2) Zinc has many roles, from transfiguration to the production of DNA and sunrise(prenominal) cells. You also need zinc to live on the immune systems 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.2.5 Keys to SuccessThere are many keys to the successful launch and implementation of this brand accessory. Below are several(prenominal) critical success factors that we must leverage to be successful.* The product must meet a markets needs better than the competition and customer alternatives (my product strategy 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 execute 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 theyre seeking (and that were selling to them). This is critical and must actually be verified with early customer testing and validation (and the product doesnt ship until its actually ready, regardless of the schedule).* The pre-launch market conditioning must create enough sensory faculty and buzz with both prospective customers and sales channels that this freshly product is coming to enable the product to gain enough early mindshare and traction that leads to both actual validation and 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).* The go-to-market engine must buy into the product early and apportion resources to it (e.g., sales force for directly sold product, resellers/ links for indirect sales must choose to invest) and sales absolutely must have early success at selling the product. If the product isnt really ready for vizor time its dead (the sales force probably wint touch it again for a long time, if ever, and bad discussion travels fast). And get this, because its super-critical. If the product doesnt convert better than what the reseller/affiliate is already selling today, its also dead (they wont waste any more of their precious time on your new thingy, and will go right back to selling what already working for them and makes them the most money today). Sales people are coin operated and their demeanor and decision-making responds directly to what makes them the most money the quickest.3.1 MissionThe objective is to introduce the Pretzels Abobodas to the Hispanic Community. There has not been a pretzel introduced to this turning point market of consumers. It is my hope that this is will be the number 1 household penetrat ed pretzel in its category.3.2 marketing Objectives in the end 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 completely new flavored pretzel product to establish a wide brand recognition through the capture of market shares in the functional salty snack category, and to become the top market leader in that particular segment within the forecasted sales figures * Increase sales by 5% during the next fiscal year of this position being in the market * Improve 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 Markets3.4 buttocks Mar ketsMy target customer group obviously is the Hispanic Market. The Snyders of Hanover Brand is a nationally recognized brand among American Households. Snyders 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 Geographics The geographic target area that I am choosing is the Houston Hispanic Market Area, San Antonio Area, Corpus Christi, and a few more highly populated Hispanic areas.Demographics The demographic profile of my target market is going to be Hispanic Family Households with children 18 years and under PsychographicsHispanics are very bran d loyal and they use nationally advertised brands Hispanic families are close knit Familia includes parents, children, and extended familythe father is the head of the family and the mother is responsible for the home office Individuals have a moral office to take care of family members experiencing health issues, financial problem unemployment and other life issues BehaviorHispanics 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 pretzels3.5 laySnyders 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 Community. This product has price leadership in the market, making it very affordable to consumers, and a product that will last/stretch in any household.There 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 feature 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.3.7 Marketing prance/ProgramThe competition is few and far in between. There are a lot 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 Snyders 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 p retzel line. There are many more company that product pretzels but they do not offer the full variety and are not nationally recognized for this product.The 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 advertising to this niche market of consumers.PriceTo determine pricing for this niche product, I will follow a very detailed carry out which is shown below.1. Review research and development cost, unit costs for manufacturing and shipping, and advertising costs to determine the overall cost to produce and sell the new product. pay back a bottom line sales price needed to differentiate even in the marketplace from this information. 2. Review market analysis and trend reports, target market profiles, customer surveys, and past performance reports on other company products to determine the value of your product in the marketplace. Unique products, products that satisfy consu mer needs, or those that make significant changes to work processes or in the lives of consumer are considered the most valuable.3. Research your competition in target marketplaces to determine if your product meets, exceeds or falls below available products. Visit 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. Create 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. Create mid-range pricing base on competition and market saturation. 5. Set a price for your new product. Review pricing options, market interest and how much you want to earn from sales to determine a price.To determine what the Pretzel Abododas is worth, I will contract on the following areas below 1. Cost Focus on current and future costs (vs. historical ones). 2. Sensitivity to price Every emptors priorities change, based on unlimited factors. I will have to be ready to adjust quickly. 3. Competitors I will pay worry to competitors pricing strategies, but I will not follow too closely. They may be winging it, and I might get burned. 4. Product Lifecycle The price(s) of myofferings will often change throughout the product/service lifecycle.To 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 stagnant and lose ground. It is important continue to build this brand by communicating with the market regularly. Consistent communication will ensure that this new brand extension appeals to consumers on an emotional level, and increase their awareness of it. * Position your brand Positioning is all about putting your brand in the right place, in the market, so tha t it gains the attraction of the right audience. I will decide the best position after careful analysis of the market and competitors.* Integrate residential area 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 visibility to a global audience. Whether they exist on the local or online level, community members are act to the brand, and can prove instrumental in increasing awareness, and moving the brand forward. * Special Promotions Attract customers by giving away free items. There is no greater pull for consumers than getting so mething for nothing. It will improve the berth of the brand in their eyes, and with the right promotions, I will be able to gain valuable attention for the brandPlaceThis niche item is all about where it is placed. I plan to distribute this new item via the Snyders-Lance Inc Independent Operator Direct Store 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.Snyders-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.ReferencesKahn, B.E. and T.A. Louie, Effects of abjuration of Price Promotion on Brand Choice Behavior for figure Seeking and Last-purchase-loyal Consumers,Journal of Marketing Research, Vol. 27, August, pp. 279-289, 1990.Minor, Micheal, Comparing the Hispanic and Non-Hispanic Markets How Different Are They? Journal of Servi ces Marketing, Vol. 6, No. 2, pp. 29-32 1992.U.S Census Bureau, Census 2000. Retrieved December 4, 2012.Webster, Cynthia, Attitudes towards Marketing Practices The Effects of Ethnic Identification, Journal of Applied Business Research, Vol. 7, No. 2, pp. 107-116, 1991.