Snacko India Limited

Group No. 1 Vaibhav Bothra 110 Nitin Dhawal 117 Akshant Gupta 120 Jay Joshi 126 Anuroop Krishna 132 Kuleen Patwari Shaili Merchant

Q1 - What is the nature of consumer and retailer behaviour in relation to snack products and what is the relevance of trade promotions?
Consumer: ` Impulse buy ` Local taste preferred ` No nutrition value Not preferred ` Brands are trusted ` Brand switching ` Visibility Retailer: ` High margins ` Trade promotion is required because of intense competition ` Low loyalty towards brands ` High bargaining power Trade promotion required to create push based demand

Q2 - How does one promote the sales of snack products and what are the objectives of trade promotions?
Objective Cost effective increase in sales volume by creating push through incentivizing channel partners & improving relations with them
`

Trade Promotion ` Higher Margins ` Quantity/Cash Discounts ` Rewards (Trips/Electronics) ` Market Exclusivity Consumer Promotion: ` Contests, Sweepstakes etc ` Quantity Discount, bundling etc ` Sampling & Trials in sponsored events ` Gifts, rebates etc

Scheme No. 1
`

Gifts:
` ` ` `

Transparent Packaging No Need for extra training for SR Daily use products Price $0.6-$1.1/box Extra incentive to buy the snack No intention to induce trials of other product (except Cramm Asli brand)

Objective:
` `

Scheme No. 2
`

Cash schemes for distributors:

` ` `

Cash discounts for distributors Distributors to procure gifts from local markets Discount to be reimbursed on presentation of bills Incentive for distributors Distributors to pass on the discount to consumers Possibility of misredemption by distributors

Objective:
` `

Warning:
`

Scheme No. 3
`

Discounts to SRs:
` `

Discounts offered to SRs on specific brands Discount/80 units $0.35 - $1.00 Focus on high margin brands and products Push sales

Objective:
` `

Scheme No. 4
`

Jhatpat Tez Brand:

` ` ` `

Trade discount of $3.50 per box (40 units) SOs and distributors authorized to creatively alter the cash scheme Product bundling and free gifts Merchandising equipment to retailers Contain the damage caused by success of competitor To reduce inventory levels of existing boxes in the market

Objectives:
` `

Scheme No. 5
`

Tambola scheme (3 X 3 matrix):

` ` ` `

$3.50 prize for retailers on completion of each row Additional prize of $3.50 on full-house Only 1 card allowed per retailer Scheme not extended to wholesalers in the network Improve availability of the companys multiple brands at retail counters Improve stock keeping level of retailers

Objectives:
` `

Scheme No. 6
`

Cramm brand Winner Extravaganza:

` ` ` `

Promotional scheme for best selling Cramm brand Slogan completion competition for consumers 2 months to submit entries Campaign promotion through TVs Push sales of the most popular brands

Objective:
`

Scheme No. 1
`

Gifts:
` ` ` `

Transparent Packaging No Need for extra training for SR Daily use products Price $0.6-$1.1/box Extra incentive to buy the snack No intention to induce trials of other product (except Cramm Asli brand)

Objective:
` `

Scheme No. 3
`

Discounts to SRs:
` `

Discounts offered to SRs on specific brands Discount/80 units $0.35 - $1.00 Focus on high margin brands and products Push sales

Objective:
` `

Scheme No. 4
`

Jhatpat Tez Brand:

` ` ` `

Trade discount of $3.50 per box (40 units) SOs and distributors authorized to creatively alter the cash scheme Product bundling and free gifts Merchandising equipment to retailers Contain the damage caused by success of competitor To reduce inventory levels of existing boxes in the market

Objectives:
` `

Scheme No. 5
`

Tambola scheme (3 X 3 matrix):

` ` ` `

$3.50 prize for retailers on completion of each row Additional prize of $3.50 on full-house Only 1 card allowed per retailer Scheme not extended to wholesalers in the network Improve availability of the companys multiple brands at retail counters Improve stock keeping level of retailers

Objectives:
` `

Scheme No. 6
`

Cramm brand Winner Extravaganza:

` ` ` `

Promotional scheme for best selling Cramm brand Slogan completion competition for consumers 2 months to submit entries Campaign promotion through TVs Push sales of the most popular brands

Objective:
`

Scheme No. 1
`

Gifts:
` ` ` `

Transparent Packaging No Need for extra training for SR Daily use products Price $0.6-$1.1/box Extra incentive to buy the snack No intention to induce trials of other product (except Cramm Asli brand)

Objective:
` `

Scheme No. 2
`

Cash schemes for distributors:

` ` `

Cash discounts for distributors Distributors to procure gifts from local markets Discount to be reimbursed on presentation of bills Incentive for distributors Distributors to pass on the discount to consumers Possibility of misredemption by distributors

Objective:
` `

Warning:
`

Scheme No. 3
`

Discounts to SRs:
` `

Discounts offered to SRs on specific brands Discount/80 units $0.35 - $1.00 Focus on high margin brands and products Push sales

Objective:
` `

Scheme No. 4
`

Jhatpat Tez Brand:

` ` ` `

Trade discount of $3.50 per box (40 units) SOs and distributors authorized to creatively alter the cash scheme Product bundling and free gifts Merchandising equipment to retailers Contain the damage caused by success of competitor To reduce inventory levels of existing boxes in the market

Objectives:
` `

Scheme No. 5
`

Tambola scheme (3 X 3 matrix):

` ` ` `

$3.50 prize for retailers on completion of each row Additional prize of $3.50 on full-house Only 1 card allowed per retailer Scheme not extended to wholesalers in the network Improve availability of the companys multiple brands at retail counters Improve stock keeping level of retailers

Objectives:
` `

Scheme No. 6
`

Cramm brand Winner Extravaganza:

` ` ` `

Promotional scheme for best selling Cramm brand Slogan completion competition for consumers 2 months to submit entries Campaign promotion through TVs Push sales of the most popular brands

Objective:
`

Evaluation of Trade Promotions Parameters

` ` ` ` ` ` ` ` `

Increase in sales Simplicity Flexibility to the retailers Costs involved (for the manufacturer) Effort required by the retailers Relationship with retailers Market share gained Ease of execution Alignment (consumer promotions with trade promotions)