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ROYAL SNACKS COMPANY 6

Royal Snacks Company

Veronique Duperval

Andrea Banto

BUS 599: Strategic Management

7th July 2020

Description

A snack is a portion of food eaten generally between meals designed to be quick, portable, and satisfying. The snack food company processes packages and sells snacks (Chris, 2016). Over the years, there has been an increasing demand for the foodservice, and shortly, there is an expected increase in operators, which will increase profit margins. Royal Snack Company is located along with one of the busiest roads in Alabama. The company is involved in the processing of snacks like hot dogs, coffees, soft drinks, popcorns, corn chips, and nuts. The name of the company is an overview of the services and products offered. This name royal means an excellent, great state which reflects on the snacks produced by the company. Royal Snacks Company is prepared to provide the best services and maximize profitability to achieve business goals.

Mission statement

"To establish a wide variety snacks company with providing products and services at affordable prices to the residents of Alabama."

Trends

In the snack industries, dynamic trends have been observed over the years. The patterns are driven by young consumer lifestyles, focused on a combination of snacks and ingredients. One of the trends is a single-serve, which involves offering meals with fewer calories. Retailers are also demanding for smaller packages for easy stacking on the shelves. A remedy to this is the usage of faster primary packaging machines. Another trend is the resealability, which advocates for the detainment of food freshness. This trend has encouraged the use of zippered stand-up pouches. Most of the snack consumers are millennials who are excited by a variety of flavors. This trend is driving the growth of the global savory snacks market, which produced many types.

Due to growing health concerns in human beings, there has been a need for healthy snacking. Improved consumer lifestyles and rapid urbanization have fostered this. Snacks with functional ingredients that are essential to the body are therefore produced abundantly. In the United States, the average growth rate of the snack industry is 2.1% (William, 2014). The snack company has benefited from increased demand. Due to favorable economic conditions and the increasing variety of flavors, the snack company is expected to experience more growth. Discretionary is likely to rise as the economy strengthens more, which translates to frequent purchases of snacks. Royal Snack Company is likely to move with the pace of other industries. The company has invested more in personnel expertise and infrastructure, which will help maximize outputs.

Strategic positioning

In the Snack production industries, the nature of the marketing environment is likely to be a formidable challenge. Rapid technological change, globalization, and government policies are yet to increase uncertainty in the snack business environments (Gill, 2015). Another feature is the rising standards of the consumers, which will demand better service, high quality, low prices, quicker response, and great flexibility in fulfilling the demand. This future scope and complexity demonstrate that the snack production industries need alterative strategic orientation.

Regarding the future, there are combined principles that should be enacted to mitigate the risks. Innovative firms provide a steady stream of quality products and services than their competitors. The snack industries should, therefore, have strong developmental and research capabilities in the industry to deal with the risks and competitors. Cost minimization is another principle that should be adopted by firm industries. This principle offers standard products and services to vast markets at low prices. The cost minimization supports aggressive pricing policies and reduced the investment per unit. The snack companies should adopt this feature to emulate the successful offerings of the innovator firm. Coordination is an essential factor in strategic positioning. Coordination with the suppliers and customers helps can in the development of unique marketing channels, which is a competitive advantage. Coordination also stems from unique relationships that develop close communication links.

Distribution channels

The distribution channel of Royal Snack Company ranges from processing, retailing, and consumption. Royal Snack Company will have wholesalers and retailers as the intermediaries in the distribution channel. The company will have a whole sales which will sell the snacks in large quantities. The firm will also have retailers who will distribute meals directly to the public. These retailers are small independent stores, hypermarkets, and supermarkets, which will be used as distribution channels. The snacks will be sold in social places like movie halls, restaurants, grocery stores, and sports avenues. Due to the advancement of technology, online marketing has been on the rise. Royal Snack Company will also effectively use the online platform by creating websites and advertisements. This will enables access to information about the company across the country, which will create more customers.

SWOT Analysis

The plan of starting a Royal Snacks Company is to run the business for at least three years to know whether more money will be invested in the business. Therefore the SWOT analysis will help leverage the opportunities, maximize strengths, mitigate risks, and be equipped to confront the threats (Peter, 2015).

Strength

Royal Snack Company will be located in the city, and so more customers will visit. Excellent customer service and a variety of snacks will also count as strengths. The management is also skilled and proficient, which will enable the company to grow within a record of time.

Weakness

A major challenge is that Royal Snack Company is still new, and therefore it will be difficult to compete with multi-billion companies that started earlier,

Opportunities

Royal Snack Company will operate in one of the busiest streets in Alabama. This will provide a fair advantage of unlimited opportunities because of a large population. The company is also well-positioned to take on the opportunities which will unfold.

Threat

It is a fact that the company might face an economic downturn that affects consumers' purchasing power. As the days go by, it is unarguable that another snack company will be started at the same location, which will bring competitiveness and reduce profitability.

Sources

1. John Chris, 2016, Market research reports, https://www.5wpr.com/new/snack/

2. Matt Gill, 2015, Strategies for success, https://www.bakeryandsnacks.com/article

3. Mill Peter, 2015, Business directory, https://www.dnb.com/business-directory/industryanalysis.snack-foods-manufacturing.html

4. Roy William, 2014, Selling snacking, http://marketresearch.com/food/