Marketing Plan for nettle Foods Marketing Essay
Potato chips as a product has been a major snack being consumed around the world but most predominantly in is consumed English speaking countries and some West African countries as well. Potato crisps were first developed in New York, Saratoga Springs in the year 1853 to be precise. It gradually became popular as time went on. The industry has faced several challenges over the years especially in the UK due to the economic difficulties (recession) faced by the country and consumers are also now aware of the health issues that arise due to excess consumption of such snacks which decreased the level sales level of such products. However, the industry still stands and is still leading among snack industries. There are various reasons and factors in industry still remained important and one of such is the health aspect. Many manufacturers and companies over the years have been trying to come up with a solution to the response of consumers to potato crisps as a snack product that contains a high level of fat and sodium which can lead to a high blood pressure or blood sugar and tooth erosion if consumed excessively.
Kettle was originally founded in 1978 in Salem by Cameron Healy. In 1987 accompanied by his son, Cameron went on a 6 week motorcycle adventure which led them to discover how many the British really liked chips. A branch was later established in the UK, Norwich (1988). Kettle foods today are one of the biggest potato chips manufacturers and have maintained their originality in taste and natural ingredients till date. The Kettle Brand potato chips was perfected in 1982 and have been improving and even expanded their line of production to include Baked Potato Chips, Kettle Brand, Tortilla Chips and Kettle Brand in order to meet varying tastes of their costumers (Kettle Foods Inc., 2009).
2.0 UK MARKET DATA
British Population is the biggest snack eaters in Europe amid growing health concerns about savory treats. As a country it consumes an estimated 6 billion packets per year, that equivalent of almost 100 packets of crisps per person. It’s a national obsession with crisps and nuts, which means that they spent £55 per person on them last year, more than double the £22.50 of nearest rival, Germany. This is projected to climb to more than £80 in 2014.
Overall, they munched through 300 tons of the snacks in 2010, worth £2.47billion and a quarter of all sales in Europe. Report author James Manley, of leading market analyst Mintel, said: ‘The UK is king in the European crisps and salty snacks market. Eating occasions are unlimited and snacking is rife throughout the day.’
Though the health credentials of crisps are questioned, it still holds 48 per cent of sales in UK. Other snacks, including tortilla chips, popcorn and pork scratching make up the remaining 52 per cent. UK Potato Crisps & Snacks Market to hit £2.61bn by 2014 Says New Report.
Fig 1.1 Sources: Mintel (2012)
As per past records and analysis, in 2006 the UK market value of crisps, salty snacks and nuts was around 2500 million pounds. It has been noticed that the consumption of the chips is continuously increasing that too at a constant pace. As per current data i.e. 2011, the market value is 3176 million pounds. In Fig1.1 diagram, there is a forecast given for four years that is from 2012 to 2016. As per Mintel forecast it is estimated that UK market share for 2012 will be around 3300 million pounds and further increasing to 3500 million pounds in 2013 and so on. The end of 2016 estimates the total UK market value for this to be 4183 million pounds. By taking all the provisions it can be concluded that in the best case scenario maximum UK market value can go up to 4627 and in the worst case scenario it can go down to 3853 in 2016, keeping in mind all the different confidence level.
Thus, analyzing all the past data and future forecast of UK retail sale of crisps, salty snacks and nuts it can be concluded that UK market has got huge potential for the consumption of the crisps and all and this can be taken as an opportunity for the existing market players of crisps and they can all increase their own market share by adopting several strategies. Most of the market share is captured by walkers so this can be an opportunity for kettle chips to snatch walkers customers by putting all the marketing efforts or kettle can put such strategy to attract new different groups of customers.
3.0 INTERNAL ANALYSIS – THE MARKETING MIX
Marketing can quickly and simply be defined as the process of making a product or service available to the consumer at the right place, price, and time (James and Carlson, 1996-2012). This usually involves the careful analysis of the product or service in four different aspects known as the 4Ps (McCarthy, 1960) before proceeding. You as a marketer has to consider what the consumer wants or what their needs are, the environment or location of your business, if the price of the product or service you’ll be offering will be too high or too low and finally but not the least, how to promote the product or service.
Now we will be taking a look at Kettle Chips and how they market their products putting the 4Ps, which are Product (Service), Place, Price and Promotion into consideration. Before we go into the full analysis, it is good to have in mind the aim and objective of the company’s (Kettle Chips) product which is to provide for the consumer the best healthy, nutritious and tasty potato chips for them to enjoy and now we will see how they have managed to achieve this so far.
An effective marketing mix has to match consumer need, corporate resources and to create a competitive advantage. A market-oriented firm always keeps an eye on its environment. T