Cracker Jack

CRACKER JACK An analysis of potential brand erudition 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 compend: 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 peaked(p) in 1998 to $100M but in brief sank back to $30M per family and has remained at that level since.3 Several factors atomic number 18 attributed to this gross sales slump. FL incorporated CJ into its existing distribution model that utilizes believe Store Delivery and packaged CJ in Mylar bags (as opposed to the holy strokees).They also shelved CJ with former(a) Frito-Lay salty snack products such as Lays spud Chips, despite 98% of consumers rating CJ as a winsome snack and not a salty one. 4 Although priced bring down than the leading caramel corn brands, CJ still appears overprice d when merchandised adjoining to inexpensive potato chips. Consequently CJ has numerous misalignments and a relatively pitiable profit margin (8.2% compared to snack just of 20.5%).5,6 The low price point combined with rising commodity prices has compel FL to substantially cut the quality of the prizes found privileged severally turning point to control costs, angering long time consumers.

7 CJ, having dead(prenominal) sales for the past ten years, has not received the reassert infallible for brand revitalization, instead relying on steady baseball hazard stadium sales to survive.8 Overall CJ has become a escape brand and is ripe for acquisition. MARKETING RECOMMENDATIONS: F irst, DPC will merchandise CJ with former(a)! caramel popcorns, which will provide a price make for 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 stick out a price increase of $0.10 (operating income increase of $0.74M) with no get dressed 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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