Stg Case Essay

1506 Words7 Pages
I. Strategic Issues Central Issue The central issue to this case is what Jill Harm needs to decide the product line snacks to go fate. She is faced with generating possible alternatives to the problems the company faces or terminating the product. Problems There are three main problems in this case: 1. Lagging sales: the snacks to go product sales took off initially but have slowed down. They are selling roughly five to six bags a week at each store. In comparison, in the candy market products are sold at 25 items per week. 2. Packaging: The film package had air leaks, which allowed oxygen to mix with the product, causing the product to spoil and the shelf life to deteriorate. New resilient film was distributed with new product but over 2,000 cases of the old product had already been sold. 3. Packaging: Another issue with the packaging is its appeal to children and not the target market they are trying to reach. II. Analysis Competition and Industry Analysis: Business/Industry The company Sather’s has six areas of competition: general candy, seasonal candy, nuts and natural snacks, cookies, international and private label candy. The main focus segment for Sather’s is candy, which is a mature industry. The main focus for the product is Nuts and Natural Snacks, which is a growing industry and product. Competition As stated above the main areas of competition are general candy, seasonal candy, nuts and natural snacks, cookies, international and private label candy. The companies mentioned in the case as competition are: Brock candy company, Shair candies inc for Sather’s. In terms of the product, Snacks to go, the competition was stiff with Planters having 35.2% of the market share, followed by Fisher with 3.8%, Eagle with 2.6% and the Private Labels at 19.2%. Suppliers

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