Part A – Essay
Product: Sam’s smith decided to launch this product as Australians had become more health conscious and were moving from traditional chips which contained fats. Iso snack was going to contain half of the fat that traditional chips contained. It is true that there were ‘healthy products like Arnott’s cracker chips but Iso snacks were going to come in several varieties unlike the competitors. They were going to introduce Sea, Salt, Sour cream, Roast Chicken and Thyme varieties. The wide range of the products was going to ensure that they offered more than their competitors in terms of taste and therefore they would be able to accommodate various types of consumers.
Promotion: Sams Smith has several promotional strategies at their disposal. One of these strategies includes advertising. This would require them to advertise on the print and electronic media. The company would need to focus on social media advertising since that is where many young Australians have pitched camp and they happen to be the main consumers of chips. They can also promote the product through sales promotions. This would ideally be done at supermarkets where every shopper is given an Iso snack for free with the hope that they will come next time and shop for it or spread the word about it.
Place: Distribution is always key to a product’s placement. The company will need to pick a channel of distribution that is cost effective and meets the mark up needs. Apart from selling through Coles and Woolworths, they could look at main supermarkets and leisure spots where people always take the traditional chips.
Price: Price of the Iso snack affects how it will sell in the market. The company should look at the perceived value of the snack when setting the price or what is known as value based pricing. It will also look at the price of other healthy conscious snacks like Arnotts cracker chips and offer a slightly lower price to attract in droves new customers a process known as penetration pricing. The price will need to take into account chain costs, distribution plans and markups. After evaluating all these pricing strategies, it will be easier to come up with one price that resonates well with the intended clients
Such a cheap price for your free time and healthy sleep
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