Cracker Jack

CRACKER JACK An analysis of potential brand attainment by Diversified Products Corporation John Bry Sonja Gessling Phil Mark    Sara Meinke Jordan Schulz    Som Thamma Cindy Tsai age bracket C  ? aggroup 4 CURRENT SITUATION psychoanalysis: Cracker Jack (CJ) is a unmixed American caramel-coated popcorn and peanut snack that was acquired by Frito-Lay (FL) in 1997.1,2 Sales seedy in 1998 to $100M but in brief sank back to $30M per division and has remained at that level since.3 Several factors atomic number 18 attributed to this sales slump. FL incorporated CJ into its existing distribution model that utilizes consider Store Delivery and packaged CJ in Mylar bags (as opposed to the clear strokees).They also shelved CJ with former(a) Frito-Lay salty snack products such as Lays white potato Chips, despite 98% of consumers rating CJ as a angelical snack and not a salty one. 4 Although priced land than the leading caramel corn brands, CJ still appears ove rpriced when merchandised adjacent to inexpensive potato chips. Consequently CJ has numerous misalignments and a relatively impression profit margin (8.2% compared to snack just of 20.5%).5,6 The low price point combined with rising commodity prices has laboured FL to substantially cut the quality of the prizes found privileged each(prenominal) rap to control costs, angering long time consumers.

7 CJ, having dead(prenominal) sales for the past ten years, has not received the reassert postulate for brand revitalization, instead relying on steady baseball patch stadium sales to survive.8 Overall CJ has become a knock off brand and is ripe for acquisition. MARKETING RECOMMENDAT IONS: First, DPC will merchandise CJ with d! ifferent caramel popcorns, which will provide a price summate of $0.29 (19.5%). This will temporarily decrease sales by 6% but provide an increase in operating income by $3.96M. We will also repackage CJ in the classic cardboard box at a price of 2.3 cents per box. The new boxes will set aside a price increase of $0.10 (operating income increase of $0.74M) with no tidy up impact on sales volume. We will...If you want to get a full essay, order it on our website: OrderEssay.net

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