Monkey Snacks final report Essay Example

an advantage over competitors, leading to higher profits and an improved brand image.

To make Monkey Snacks crisps stand out and increase sales without significantly raising costs, a cost-effective option is to change their shape into an outline of a monkey. This fun and playful image will add something unique to the product, meeting the requirement for differentiation. If the weight of the crisps remains unchanged, the cost should remain relatively stable while successfully boosting sales and profit.

The selection of which flavor to enhance is a crucial decision for Monkey Snacks, as picking the wrong one could worsen their financial decline. Out of all the flavors available, Salt and Vinegar was determined to be the most appropriate choice to improve for various reasons. This flavor stood out as the top preference in both taste tests and questionnaires administered. Consequently, it is anticipated that this particular flavor will be highly popular among Monkey Snacks' target market, leading to increased sales. A significant 45% of those surveyed favored salt and vinegar over other options, demonstrating its appeal and potential success upon re-launching. Moreover, sales of this flavor have been consistently low over five years with only 5000 units sold in 2001, making it an ideal candidate for improvement.

The improvement of a given product's flavour can significantly impact sales, resulting in higher profits and an increased overall awareness and brand image. That is why the decision was made to enhance the flavour of a specific Monkey Snacks type. Despite being top sellers over the past year, flavours like prawn cocktail were not chosen due to low popularity among consumers, with only 10% preferring them. On the other hand,

ready salted was preferred by 25% of those surveyed and had lower sales figures, making it an ideal candidate for enhancement. Many factors come into play when designing packaging for crisps.

Research has shown that the appearance and contents of packaging are crucial to the success of Monkey Snacks' new line of crisps. The packaging serves as an initial draw for potential customers, especially children who are known to be highly stimulated by visually appealing designs. Thus, it is important that the packaging is eye-catching and colorful - in fact, 70% of survey respondents preferred this type of packaging. By following the trend of other successful crisp manufacturers who also use brightly colored packages, Monkey Snacks hopes to attract more customers and increase both sales and profit.

The utilization of plain packaging should be avoided as it may not appeal to children, leading to reduced sales and profit. For Monkey Snacks salt and vinegar flavour, it is recommended to use the color blue for its packaging as it is the commonly used color for this flavor which makes it easier to recognize. Changing the color to orange or other colors may confuse customers, resulting in a decrease in profit. To make Monkey Snacks more engaging and fun for their target audience, a simple joke could be placed at the back of the packaging. This will increase brand loyalty as children will remember the distinct packaging and want to purchase Monkey Snacks crisps again. As a result, this will bring in more sales and profit for the company.

To ensure children remember and repurchase Monkey Snacks crisps, it is important to have distinctive and fun packaging. Adding a vibrant

'Monkey Snacks' logo to the packet will help attract attention from children and young teenagers. This will help create a memorable brand image and increase the chances of these individuals becoming loyal customers. Conversely, a boring or small logo can give the wrong impression and reduce sales and profit. Therefore, it is crucial to use colorful and eye-catching branding to maximize sales and profit potential.

To promote a fun image and eco-friendliness, Monkey Snacks should include a recycling symbol on their packaging to encourage younger generations to recycle. While it may not provide immediate financial gain for the company, it can help save the environment from further human destruction for future generations. Additionally, Monkey Snacks can promote their other flavors through their packaging by using a catchy slogan such as "Munch on other Monkey Snacks flavor crisps" and listing the flavors. Including their website address on the packets can also increase publicity for other Monkey Snacks products, ultimately leading to greater profits.

Criteria that packaging must meet to prevent customer dissatisfaction includes being easy to open, transport, and maintain the freshness of crisps. It is also crucial for packaging to provide a contact number for dissatisfied customers.

Pricing Monkey Snacks crisps requires careful consideration to ensure that they are affordable for the target audience. If priced too high, children may not be able to purchase them; if priced too low, it may convey low quality and result in reduced profits.

It is essential to establish a price that satisfies customers' expectations while also generating sufficient profits. The total cost of producing a single bag of chips, which includes fixed and variable expenses, is 17p. To earn profits,

an appropriate markup must be added to this amount. To appeal to more potential buyers in the target market, Monkey Snacks will apply a 50% smaller mark-up resulting in the final price being lower than competitors who charge 26p per packet. While earning less profit per item sold, the company anticipates selling more packets due to an enhanced brand image and competitive pricing, ultimately leading to adequate profitability.

According to the conducted research, only 15% of people pay prices lower than competitors', making Monkey Snacks' crisps an attractive option for cost-conscious consumers. This low markup also allows for penetration pricing, which is beneficial for smaller companies looking to enter market segments and raise brand awareness. Initially, the focus must be on attracting and retaining customers to generate consistent profits. Once customers establish brand loyalty, prices can be adjusted to increase profits further.

Monkey Snacks considered a 75% mark-up to match competitors' selling price of 30p. However, this strategy was rejected due to the lack of brand reputation, which would affect sales and result in lower profits. An alternate pricing strategy such as loss leading was not feasible since Monkey Snacks does not have its own store and would not benefit from the sale of other products, leading to a decline in profits.