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Kookie Kutter Bakery
Crunch Time For a Small Bakery Seeking Growth In a Competitive Landscape
Executive Summary
Kevin Ceretti owns Kookie Kutter bakery in New Brunswick, Canada. He’s facing the challenge of maintaining long-term business viability because of rising labor, marketing, equipment, and distribution costs. He’s wondering if he needs to invest in product sampling, flavor innovation, and new products in order to attract more customers and grow his sales.
Current Situation & Trends
- Sales: Annual sales: $800,000 from $150,000 +433% increase
- Product Line: Gingersnaps, Vanilla Flax, Honey Cinnamon, and chocolate chip. Currently developed 3 new flavors with 2 new line extensions in the pipeline.
- Shelf Placement: Products have been moved up and back down store shelves. Unfavorable positioning for capturing split second purchasing decisions.
- Packaging: Clear plastic containers with sticker label on the side there is no “billboard effect” with the current packaging form.
- Distribution: Currently sold at some Costco (ginergsnaps) and Sobeyes stores (has agreed to carry full line). Farm Boy Inc. has expressed interest in carrying the brand. Has entered six states via Your Independent Grocer (stocking gingersnap only).
- Marketing: Retailer restrictions on the amount of in-store marketing that can be done. Not allowed POS displays on the sales floor so he’s relying on his packaging to sell the product. Positioning the product as a “healthier” and vegan alternative was a potential way to leverage a nutritional advantage.
- Competition: High competition with national brands and store private label brands. Additional competition from smaller brands like Mrs. Dunster’s who sells a ginger snap and chocolate chip cookie.
Performance Review
The company seems to have a solid product but there are some foundational issues that are barriers to success in the marketplace. The packaging form really creates a barrier to properly communicating with the consumer. Their number one seller seems to be the only the product that most stores carry which is part of the problem. If you don’t have your full line in the stores, you don’t have an accurate view of how these products are performing. In order to get the other flavors onto shelves he will need the right sales team working to close the gaps. There doesn’t seem to be enough manpower necessary to drive sales at the store level. The current setup of the production facility should also be evaluated to ensure that the operation is maximizing throughput during production in order to drive down per unit costs.
Key Issues
- Shelf placement: Eye to thigh is the “strike zone” of shelf placement. The Sales and Marketing manager must work closer with distributor reps and store managers or provide incentives to move the product into a more favorable position.
- Product Packaging: The current packaging does a terrible job at selling the product. If favorable shelf space is not available to merchandise your product, the packaging must be utilized to capture the consumer’s attention and deliver key product messages.
- Distribution: His current mix of retailers should be enough to drive strong sales but it will require some selling. He should try and get his entire line of products into the grocery store and focus on a Costco Specific package that offers a family-sized option or a combo pack. This could help expose consumers to new flavors they might like.
- Marketing/Merchandising: Product displays must be figured out in conjunction with a packaging redesign that addresses the lack of real estate available to sufficiently capture the consumer’s attention. Cardboard cut out displays are expensive and not durable. Product demos are effective but expensive @ $3500 per demo.
Consumer Analysis
Shelf placement: Eye to thigh is the “strike zone” of shelf placement. The Sales and Marketing manager must work closer with distributor reps and store managers or provide incentives to move the product into a more favorable position.
Product Packaging: The current packaging does a terrible job at selling the product. If favorable shelf space is not available to merchandise your product, the packaging must be utilized to capture the consumer’s attention and deliver key product messages.
Distribution: His current mix of retailers should be enough to drive strong sales but it will require some selling. He should try and get his entire line of products into the grocery store and focus on a Costco Specific package that offers a family-sized option or a combo pack. This could help expose consumers to new flavors they might like.
Marketing/Merchandising: Product displays must be figured out in conjunction with a packaging redesign that addresses the lack of real estate available to sufficiently capture the consumer’s attention. Cardboard cut out displays are expensive and not durable. Product demos are effective but expensive @ $3500 per demo.
Trend Analysis
Shelf placement: Eye to thigh is the “strike zone” of shelf placement. The Sales and Marketing manager must work closer with distributor reps and store managers or provide incentives to move the product into a more favorable position.
Product Packaging: The current packaging does a terrible job at selling the product. If favorable shelf space is not available to merchandise your product, the packaging must be utilized to capture the consumer’s attention and deliver key product messages.
Distribution: His current mix of retailers should be enough to drive strong sales but it will require some selling. He should try and get his entire line of products into the grocery store and focus on a Costco Specific package that offers a family-sized option or a combo pack. This could help expose consumers to new flavors they might like.
Marketing/Merchandising: Product displays must be figured out in conjunction with a packaging redesign that addresses the lack of real estate available to sufficiently capture the consumer’s attention. Cardboard cut out displays are expensive and not durable. Product demos are effective but expensive @ $3500 per demo.
Influencer Analysis
Shelf placement: Eye to thigh is the “strike zone” of shelf placement. The Sales and Marketing manager must work closer with distributor reps and store managers or provide incentives to move the product into a more favorable position.
Product Packaging: The current packaging does a terrible job at selling the product. If favorable shelf space is not available to merchandise your product, the packaging must be utilized to capture the consumer’s attention and deliver key product messages.
Distribution: His current mix of retailers should be enough to drive strong sales but it will require some selling. He should try and get his entire line of products into the grocery store and focus on a Costco Specific package that offers a family-sized option or a combo pack. This could help expose consumers to new flavors they might like.
Marketing/Merchandising: Product displays must be figured out in conjunction with a packaging redesign that addresses the lack of real estate available to sufficiently capture the consumer’s attention. Cardboard cut out displays are expensive and not durable. Product demos are effective but expensive @ $3500 per demo.
Brand Analysis
Shelf placement: Eye to thigh is the “strike zone” of shelf placement. The Sales and Marketing manager must work closer with distributor reps and store managers or provide incentives to move the product into a more favorable position.
Product Packaging: The current packaging does a terrible job at selling the product. If favorable shelf space is not available to merchandise your product, the packaging must be utilized to capture the consumer’s attention and deliver key product messages.
Distribution: His current mix of retailers should be enough to drive strong sales but it will require some selling. He should try and get his entire line of products into the grocery store and focus on a Costco Specific package that offers a family-sized option or a combo pack. This could help expose consumers to new flavors they might like.
Marketing/Merchandising: Product displays must be figured out in conjunction with a packaging redesign that addresses the lack of real estate available to sufficiently capture the consumer’s attention. Cardboard cut out displays are expensive and not durable. Product demos are effective but expensive @ $3500 per demo.
Strategic Options
Shelf placement: Eye to thigh is the “strike zone” of shelf placement. The Sales and Marketing manager must work closer with distributor reps and store managers or provide incentives to move the product into a more favorable position.
Product Packaging: The current packaging does a terrible job at selling the product. If favorable shelf space is not available to merchandise your product, the packaging must be utilized to capture the consumer’s attention and deliver key product messages.
Distribution: His current mix of retailers should be enough to drive strong sales but it will require some selling. He should try and get his entire line of products into the grocery store and focus on a Costco Specific package that offers a family-sized option or a combo pack. This could help expose consumers to new flavors they might like.
Marketing/Merchandising: Product displays must be figured out in conjunction with a packaging redesign that addresses the lack of real estate available to sufficiently capture the consumer’s attention. Cardboard cut out displays are expensive and not durable. Product demos are effective but expensive @ $3500 per demo.