Marketing Strategy key for emerging Packaged Snack Manufacturers

The snack market has recently seen a boom in the number of snack and namkeen manufacturers who produce packaged products. These new players in the packaged snack industry are well aware of the fact that to establish themselves in the market and sustain a profitable business, it is very essential to develop a sound strategy and have an in-depth knowledge of their target consumers. Thorough market research and a marketing campaign or strategy based on that research is vital for any new business or brand to create a niche for themselves in this sector which has rampant competition. In India, a giant share of the packaged namkeens/snacks market is enjoyed by Haldirams, which caters to all the states of the country. To compete with big established players like these, emerging packaged snack businesses must ensure to develop a strong plan based on their resources and strengths and work on effectively implementing it.

Reduce Input Costs; Improve Market Share

Snack manufacturers should develop unique strategies for their businesses, which are significantly different from others in the market, focusing solely on their own products and their reach potential. For an emerging packaged snack manufacturer, who possesses a limited range of products, a good strategy would be to launch the products at different locations to increase its visibility and get people to know and talk about the brand. A new snack manufacturer with a wide range of packaged products, should create a strategy that focuses on smaller locations and allows three brand to grow gradually. In both these instances, the snack producers need to possess in-depth knowledge of the eating habits of their target customers, which can be gained by doing a thorough research of the market and the way it functions.

Controlling the input costs in the snack business is another big obstacle for new players who are just starting out. The staple crops required by any snack manufacturing company in India are potato, wheat and corn. Sometimes due to the sporadic nature of the Indian monsoons, these crops are adversely affected, which decreases their availability and increases input costs. Moreover, the rupee fluctuates regularly and this directly impacts the cost of ingredients that are imported.

Clear-cut Strategy Key to Success

To decrease input costs, emerging packaged snack manufacturers should first develop a proper transparent pricing strategy that would be commercially effective and could counter rising/fluctuating costs. They should also try to create alternatives that cost less or some new innovations. A clear-cut and solid marketing campaign is essential for the sustained growth of the products and higher revenue. The implementation of such campaigns depends on the region as well as the target consumers. The packaged snack manufacturers should also consider the lifestyles and income levels of potential customers while forming the market plan. People are now very conscious of their health and the snack companies should aim to create snack products that are made from healthy and low-fat ingredients. This not only builds the reputation of the brand but also increases its customer base.