Happy SnackyS11005922 – Anish Damji Gohil - CEO (Sales and Marketing)

S11005940 – Aziza Yuldasheva - (Market Research Analyst)

S11006954 – Nileshkumar I Christian - (Concept & Product Developer)

S11005902 – Naveed Akhter - (Product Analyst)

S11005932 – Vyacheslav Alexandrov - (Business Analyst)

S11005956 – Umesh Chhetri - (Relationship Manager)

BUS 604 – CRM Assignment 1 (Lecturer Dr. Sumesh Dadwal)

Market Analysis & (STP)Gap• Lack of healthy snack in the market• Limitation of customised packages for variety dry- fruits • Growth in demand of sugar replaced products

Segmentation  • 8.3 million Pupils (headcount) enrolled in school in

England, including state- funded and independent schools

(Department for education, 2014). • On average 4 to 8 years old kids consume about 21

teaspoons of sugar a day and most consumptions of sugar 34.3 teaspoon a day consume by age of 14-18 school kids

(Family Education, 2014).

Target• We are targeting school kids (from reception year and

onwards) as our products are unique with full of vitamins that kids needs

Positioning Statement

• To school kids who are habitual to eat on the go snacks, Happy Snacky Fruit crisps is a healthy snack that gives kids more nutrition then any other snacks because it made from fresh fruits which has been sun-dried and NOT fried.

Happy Snacky Concept Development

Need

FormTechnology

New Product DevelopmentC C

C

• Need : Kids crave for sweet snack and parents avoid them from consuming unhealthy sugary snacks

• Form : we should make easier to consume on the go healthy snack which satisfies their sugar cravings

• Technology: Nutrition of all organic fruits are preserved using sun drying process and NOT frying

C = Concept

(Kotler and Kotler, 2009)

Product Development

• Happy Snacky Fruit Crisps are a unique range of

innovative, healthy snacks that are seriously tasty!

• Free from everything but fruit and great taste!

• Fruit crisps gives healthy snack choice with perfect

balance of taste and texture

• Not to be confused with dried fruit, freeze

dried fruit or chewy baked fruit, Happy Snacky are

a deliciously healthy range of completely natural,

sun-dried fruit crisps.

(Walker and Ruekert, 1995)

USP of Happy SnackyWhy Are We Different To Our Competitors?

• We do not have any direct competition as we are the only fruit crisp manufacturer in EU

• Average cost on dry fruits in retail shops such as Holland And Barnet, Kiddylicious and Graze is between £1.50-£6.Where as Happy Snacky from £1 to £4.50

• Only provider of customised Mix and Match fruit crisp option as free home-delivery

Stakeholders

Suppliers• To demonstrate commitment to stakeholders, we will

provide them required machineries• To support fair trade practice we will encourage our

supplier to give workers fair day pay for fair day work• To move beyond exchange relationship, we will

sponsor our farmers children's for education• To make strategic ties structure with farmers, we will

provide them seeds and fertilizers

Buyers• We will give our buyers 90 days cash credit limit to

build up relationship• To make build our relationship, we will provide

customize package bag of Crisp

Business Analysis

• Hunger affects concentration, and well-nourished children fare better at school.

• Parents currently spend almost £1 billion a year on packed lunches

• Only 1% of packed lunches meet the nutritional standards that currently apply to school food

• 57% of children are not eating school lunches at all

Global sales of dried fruits increasing every year and is forecast to reach 4 million tons by 2020. Grow in sales linked to increase in consumers’ interest in healthy lifestyle, increase in income, easy storage and lower cost. The UK is the second largest EU importer of dried fruit (38,394 tonnes in 2012) UK imports of dried fruit are expected to rise further to 43,560 tonnes in 2013.

Start up cost and Cash FlowEstimate Product Price • Our price of home delivery box is

£4.5 for mix and match of 4 fruits. In comparison to competitors we still yield a healthy profit.

Item Cost per unit Units Total costRaw Fruits 26568 1 26568Packaging and labeling 5000 2 10000DriTech sundrying machine 10000 6 60000Labour 6642 1 6642Packing materials 0.1 22140 2214Monthly rent 3000 1 3000Promotions 3321 1 3321Training and development 20000 1 20000

131745

Start up cost

Year 1 2 3 4 5Cash In-Flows

Sales 1926291 2215234 2547520 2929647 3369095Gross profit 1926291 2215234 2547520 2929647 3369095Operating expenses

Average cost of fruits 770516.3 886093.7 1019008 1171859 1347638Cost of labour 192629.1 221523.4 254752 292964.7 336909.5Cost of packing 64209.69 66457.03 76425.59 87889.42 101072.8Cost of promotions 96314.54 110761.7 127376 146482.4 168454.7Rent 36000 39600 43560 47916 52707.6

Total operating expenses 1159670 1324436 1521121 1747112 2006782Net profit before tax 766621.1 890798.4 1026398 1182536 1362312

CASH FLOW PROJECTION

Dritech - Sun Drier

Sales & Promotion• We will give our buyers 90 days cash credit limit

encouraging them to stack our product in their shelves

• Participate in trade fair, exhibition's and setting

up taste stalls to attract kids in Supermarket and

schools to highlight advantage of Happy Snacky

to kids and parents.

• Promotion in comparisons to competitors free delivery of 1st box

• Eco-friendly promotions encouraging ethical recycle where free 250gms of Happy Snacky is given to customer in return of 5 empty bag

(Michman and Mazze, 1998) , (Kurtz and Boone, 2013)

Sales & Promotion

• Social media channels promoting various campaigns where customer can write review, click like, share, tweet, g+ or instagram pic for free Happy Snacky bag as rewarded.

• Branding product via walking mum London project.

• #kidoftheweek (Hash Tag Kid Of The Week)

• Sponsoring school football team uniform.

• Engaging kids with design the package contest

• Encouraging kids to come up with new recipes with Happy Snacky

• Branding in local council parks and kids

theme park e.g. LEGO Land

References • Department for Education (2014) “Statistical First Release: Schools, pupils and their characteristics”, available

at http://dera.ioe.ac.uk/20268/1/SFR15_2014_main_text_v2.pdf [accessed 18th of November]

• Family Education (2014) “Are We Too Sweet? Our Kids’ Addiction to Sugar” available at http://life.familyeducation.com/nutritional-information/obesity/64270.html?page=1 [accessed 18th of November]

• Peelen, P.,Ed. (2005) Customer Relationship Management, Harlow, England: Pearson Education Limited

• Jha, L. (2008) Customer Relationship Management, Darya Ganj, New Delhi: Global India Publications Pvt Ltd.

• Schoolfoodplan.com, (2014). The Plan - School Food Plan. [Online] Available at: http://www.schoolfoodplan.com/plan/ [Accessed 6 Dec. 2014].

• Olson, E., Walker, O. and Ruekert, R. (1995). Organizing for Effective New Product Development: The Moderating Role of Product Innovativeness. Journal of Marketing, 59(1), pp.48-62.

• Michman, R. and Mazze, E. (1998). The food industry wars. Westport, Conn.: Quorum.

• Kurtz, D. and Boone, L. (2013). Boone & Kurtz contemporary marketing. 16th ed. USA: South-Western Cengage Learning.

• Kotler, P. and Kotler, P. (2009). Marketing management. Harlow, England: Pearson/Prentice Hall.