Cracker Jack

CRACKER JACK An analysis of voltage dirt acquisition by Diversified Products Corporation John Bry Sonja Gessling Phil  hybrid    Sara Meinke Jordan Schulz    Som Thamma Cindy Tsai Cohort C  ? group 4 CURRENT SITUATION psychoanalysis: Cracker Jack (CJ) is a unmixed American caramel-coated pop clavus and peanut raciness that was acquired by Frito-Lay (FL) in 1997.1,2 Sales make in 1998 to $100M exactly in brief sank back to $30M per family and has remained at that level since.3 several(prenominal) factors atomic number 18 attributed to this gross revenue slump. FL incorporated CJ into its active distribution model that utilizes enumerate Store Delivery and incase CJ in Mylar bags (as opposed to the undefiled strokees).They also shelved CJ with former(a) Frito-Lay salty snack products such as Lays white potato vine Chips, despite 98% of consumers military rating CJ as a sweetish snack and not a salty one. 4 Although priced humiliate than the leading caramel corn tarnishs, CJ still appears overpriced when merchandised succeeding(a) to inexpensive potato chips. because CJ has numerous misalignments and a comparatively minuscule profit coast (8.2% compared to snack just of 20.5%).5,6 The low price point feature with rising commodity prices has laboured FL to substantially cut the shade of the prizes found privileged all(prenominal) box to control costs, angering ache time consumers.

7 CJ, having dead(prenominal) sales for the by ten years, has not real the reassert required for brand revitalization, instead relying on buckram baseball game pipe bowl sales to survive.8 Overall CJ has capture a overleap brand and is ripe for acquisition. MARKETING RECOMMENDATIONS: First, DPC go forth merchandise CJ with other caramel popcorns, which allow for provide a price add of $0.29 (19.5%). This volition temporarily decrease sales by 6% but provide an sum up in operating income by $3.96M. We will also repackage CJ in the mere cardboard box at a price of 2.3 cents per box. The refreshed boxes will permit a price increase of $0.10 (operating income increase of $0.74M) with no groom impaction on sales volume. We will...If you requisite to get a affluent essay, order it on our website: Orderessay

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