Monkey Snacks final report
This final report compiles every aspect of the report to give Monkey Snacks an overview of the different chapters and segments and come to a final decision. This is vital as Monkey Snacks has many decisions whish must be made and therefore all the information in this report allows them to do so. This final report should help to end the company’s economic decline and begin to increase brand image, sales and most important of all profit. Without a final report this entire report would be a waste and would not benefit Monkey Snacks at all.
Where the product is concerned, there are many factors that influence the final appearance, design and contents of the new crisps. This report has been very thorough when researching and looking at how an ideal product can be formed to give Monkey Snacks the best possible chance in having a new improved product, which will hopefully meet their target audiences’ requirements and end the slump in sales and profits. Quality Deciding the quality can be very difficult as high and low quality products both have a variety of advantages and disadvantages.
At present Monkey Snacks crisps are of a fairly low standard, which may deter customers and give the impression that Monkey Snacks crisps aren’t very good, which would decrease profits remarkably. Although if Monkey Snacks were to increase the quality of their product too much, this will alienate their existing target audience and therefore lower sales and profit, which is obviously not a suitable thing to do. In this case Monkey Snacks must find a suitable level in-between high and low quality, which is a medium quality product.
This should solve most problems as people will not be deterred by the low quality status, and the crisps will still be of a reasonable price, as costs will only be slightly increased. Demand of the product should also be in the middle of low and high, therefore allowing sales and profit to be made easily, by easily breaking even. Including an assured quality stamp will reinforce the present quality therefore no doubt will be present in the minds of the consumers, which could affect if they buy Monkey Snacks or not.
Something Different Including something different in a product will give it a distinct advantage over competitors, resulting in an improved brand image and increased profit. Something a little different however must be cost effective, and must attract more attention without increasing costs dramatically. Therefore to add something different to Monkey Snacks crisps, the shape could be changed into an outline of a monkey, to give the crisps a playful, fun image adding something different to the product.
This also shouldn’t be too expensive, if the same weight of crisps were used, costs should be roughly the same. This will successfully fulfil the criteria of adding something different and improve Monkey Snacks sales and profit. Flavour This is obviously a crucial part of the report, as deciding which flavour to improve is dire to Monkey Snacks and must be considered carefully. If the wrong flavour was chosen, Monkey Snacks could further their financial decline.
Salt and Vinegar has been chosen as the most suitable flavour to improve for many reasons. Salt and vinegar proved to be the most liked flavour in both the taste test and questionnaire conducted, meaning popularity is high and Monkey Snacks target audience in theory should prefer this flavour above others and therefore buy it. A very large percentage of 45% of overall people asked preferred salt and vinegar to any other flavour, therefore sales should be very high when this product is re-launched.
This flavour was also chosen, because current sales of this flavour are very low at a mere 5000 sales in 2001, and over a period of 5 years has the lowest total sales. Therefore improving this flavour would increase sales dramatically, and hopefully boost total sales for the next year. Both these reasons support the decision and will therefore result in higher sales, which will raise profits for this flavour and others by increasing Monkey Snacks general awareness and improving brand image.
Other flavours were not chosen as they may have had conflicting result such as prawn cocktail which has the highest sales in the past year, yet was the least liked by the public with only 10% of people asked having it as their preferred flavour. Flavours such as ready salted would also be worth considering for improvement, as 25% of overall people asked preferred them to the other flavours and they had the next lowest total sales figures with an even smaller figure then salt and vinegar of 4,500 sales last year. Packaging There are several factors to consider when designing the packaging for crisps.
There has been much research into how the packaging should look and what should be included. Packaging is vital to Monkey Snacks launch of crisps, as this is what initially attracts a potential customer to the crisps; in this case children are very visually stimulated therefore packaging is made even more important. The packaging must be colourful as result show that this is the most popular form of packaging, gaining 70% of overall votes. Colourful packaging is also more eye-catching; therefore potential customers will be attracted to it, and want to buy it.
Other leading crisp manufacturers also use brightly coloured packaging; therefore to follow the successful trend Monkey Snacks should also. This should all lead to an increase in customer attention being gained, leading to an increase in sales and profit. Plain packaging shouldn’t be used as children will be disinterested by it, and will therefore not want to buy it leading to decreased sales and profit. The colour for Monkey Snacks salt and vinegar flavour should be blue as this is the most common colour of packaging for this flavour and therefore will be recognised easily.
If Monkey Snacks were to completely change the colour of salt and vinegar to orange for example this would confuse customers and could result in lower profits. To add something distinct to Monkey Snacks crisps that will make them more fun and interesting for their target audience, a joke could be added onto the reverse of the packaging, a simple one that will amuse children. This will increase the chance of that customer-becoming brand loyal, as they will remember the packaging and want to purchase Monkey Snacks crisps in future.
This will again increase sales and profit. Indistinctive packaging is unlikely to be remembered by children and therefore they are unlikely to specifically buy Monkey Snacks crisps again. Promoting a fun brand image for Monkey Snacks can be done easily through packaging. Simply adding a fun-looking ‘Monkey Snacks’ logo on the packet will do this and attract further attention from children and young teens. Their distinctive name will also help their image stay in the minds of their target audience in hope for them to become brand loyal.
A small, dull logo on the packet will promote an undesired brand image for Monkey Snacks that will decrease profit and sales, this is why a colourful, bright one should be used to increase sales and profit rather than the opposite. Other things which should be included on the packaging to promote a fun image as well as an environment friendly is a recycling symbol to encourage the younger generation to do this. There isn’t a direct momentary gain for Monkey Snacks by doing this, however it helps to save the environment from further human destruction for future generations, therefore is a good idea.
To promote other Monkey Snacks flavours can be easily done through packaging, by simply stating they exist in a fun way. Using a slogan such as ‘Munch on other Monkey Snacks flavour crisps’, then listing the flavours will advertise Monkey Snacks other crisps and therefore increase their sales also. The Monkey Snacks website address can also be included on packets to further advertise other Monkey Snacks products. This will increase general publicity for Monkey Snacks eventually leading to larger profits.
Packaging should also obviously be easy to open, easily transported and keep the crisps fresh, all for obvious reasons, which will prevent customer dissatisfaction. However f a customer is dissatisfy a contact number should be included on packaging. * Price When pricing Monkey Snacks crisps great care must be taken to ensure that they’re priced so that the target audience will purchase them. If priced too high children will not be able to afford them, and priced too low not enough profit will be made and it will give a low quality impression, both leading to a decrease in profit.
Therefore a price that makes a suitable profit which customers are willing to pay must be found. The total cost of making one packet of crisps is 17p, which includes both fixed, and variable costs; therefore a suitable mark up must be made on this amount in order to make a profit. A smaller mark-up of 50% should be added which allows the final price of the crisps to be lower than competitors, which would be 26p, as this will attract more customers, and the target audience better as they have less money to spend on crisps.
This smaller mark-up does mean less money will be made on each item sold, however Monkey Snacks will have sell more packets due to the improved brand image and the lower price therefore an adequate profit will still be made. The research conducted also shows that people don’t often pay less than the competitors’ (15% do) prices and therefore would most likely wish to buy Monkey Snacks crisps in order to make a saving.
This small mark-up also results in another pricing method called penetration pricing, Monkey Snacks is very well suited to using this method as it helps smaller companies to break into the specific market segments, and increase general awareness of their company. Monkey Snacks must do this in order to primarily attract customers then gain brand loyalty, which will result in higher and constant profits. After Monkey Snacks customers have established a brand loyalty the mark-up can be increased to then make more profit.
Making a larger mark-up of 75% which would make Monkey Snacks crisps at the same selling price as competitors (30p) was not chosen, as Monkey Snacks hasn’t a well built up reputation like competitors and therefore would be less likely to sell as well, therefore a smaller total profit would be made. Using another pricing strategy such as loss leading wouldn’t have been suitable, as Monkey Snacks doesn’t own a store and the money that would hopefully be made through the sale of other products will not be passed onto them and therefore this method wouldn’t work, and result in a decrease of profits.