Cracker Jack

CRACKER JACK An analysis of potential brand science by Diversified Products Corporation John Bry Sonja Gessling Phil Mark    Sara Meinke Jordan Schulz    Som Thamma Cindy Tsai age group C  ? aggroup 4 CURRENT SITUATION epitome: 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 attain in 1998 to $100M but in brief sank back to $30M per grade 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 contribute up Store Delivery and packaged CJ in Mylar bags (as opposed to the definitive strokees).They also shelved CJ with former(a) Frito-Lay salty snack products such as Lays potato Chips, despite 98% of consumers rating CJ as a harming snack and not a salty one. 4 Although priced press down than the leading caramel corn brands, CJ still appears overpric ed when merchandised neighboring to inexpensive potato chips. Consequently CJ has numerous misalignments and a comparatively showtime profit margin (8.2% compared to snack just of 20.5%).5,6 The low price point combined with rising commodity prices has oblige FL to substantially cut the quality of the prizes found privileged distributively corner to control costs, angering long time consumers.

7 CJ, having dead(prenominal) sales for the past ten years, has not received the reassert involve for brand revitalization, instead relying on steady baseball bet on stadium sales to survive.8 Overall CJ has become a shake off brand and is ripe for acquisition. MARKETING RECOMMENDATIONS : First, DPC will merchandise CJ with new(p! renominal) caramel popcorns, which will provide a price add 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 take into account a price increase of $0.10 (operating income increase of $0.74M) with no coach 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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