Better Health with Snacks Deluxe Chips is one of the leading companies in a me s

Question

Better Health with Snacks Deluxe Chips is one of the leading companies in a me salty-snack industry, with almost one-fourth of the $10 billion market. Its Deluxe tortilla chips are the number-one selling brand in North America, and its Ridgerunner potato chip is also a market share leader. Deluxe Chips wants to stay on top of the market by changing marketing strategies to match changing consumer needs and preferences. Promoting specific brands to market segments with the appropriate price and distribution channel is helping Deluxe Chips succeed. As many middle-aged consumers modify their snacking habits. Deluxe Chips is considering a new product line of light snack foods with less tat and cholesterol and targeted at the 35- to 50-year-old consumer who enjoys snacking but wantsto be more health conscious.Marketing research suggests that the produce will succeed as long as it tastes  good and that con-sumers may be willing to pay more for it. Large expenditures on advertising may be necessary to overcome the    competition   However,it may be possible to analyze customer profiles and retail store characteristics and then match the right product with the right neighborhood. Store-specific micromarketing would Deluxe Chips to spend its promotional dollars more efficiently. Discussion Questions Design a marketing strategy for the new product line. Critique your marketing strategy in terms of its strengths and weaknesses. What are your suggestions for implementation for tin marketing strategy?

Explanation / Answer

1. Define a marketing strategy for the new product line.

Strategy in makering always requires innovative approach. Confidence ir required and a strong marketing plan must be aligned with that. In chips industry there are lot of strong competitiotrs who could able to substitute in market with quality and price. So to beat the market and become leading brand needs atmost focus on customer preference. Tortilla wants deluxe chips at top of the market . As it is mentioned it s less in fat and mostly preferred among middle aged and above due to health consciousness. So segemntation of the product must include those categories as well along with youth. So in deluxe chips itself it is better to make one more product line that is exclusiveley for health conscious custmers ( with less fat or zero cholestrol) product.

Thus within the same prodct one more SKU ( Stock keeping unit) will be added . Normal deluxe supreme can be rebranded as a youth favorite snack and the new one as for health/deit conscious people. The marketing can be in the form of awarenss and realtime customer feed back has to becollected to modify the product recepies. Advertisement must include both at the same time with different promoters and must clearly speify the difference between two. Two color packagings is required to differentiate. Sample distributions in offices, colelges and ther public crowd gathering areas to reisntate the brand to customers strongly.

2.Critique your amrketing strategy interms of stregth and weakness

Strenght of marketing strategy

Brand is already well established and it is easy to move with new product lines. Huge customer base is their across North America so building customer loyalty is much easier than other competitiors.Taste and quality is unique that ensure long run for the product. Distribution staretgy so far is also impressive as sales is happening very successfully.Product has customer base from child to aged people that shows the wide segmentation of class of people.

Weakness of marketing strategy

Plenty of competitors are available in the market that could able to come up with variety in snacks and price war. Trotilla has customer base majorly in North America and other regions are not much tapped with their potential.So if their strategy failed in North America , then that could be a big trouble as their demography is limitised. Not much different product lines are available at present. So customer dont have much options to to change as such. Tthis may affect in long run of the product.

3. What are your suggestions in improving the strategy

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