Sales and profit
Promoting Monkey Snacks new crisps is a very important as this can ‘make or break’ the crisps in relation to how well they succeed and how much profit is made by the. Monkey Snacks must be careful when considering in which ways to promote an item, as the many varieties all have advantages and disadvantages. If the crisps were promoted in such a way that did not target the specific audience, through advertising in broadsheet newspapers, which children obviously do not read, would cause the crisps to have low sales that would result in low profits for Monkey Snacks, and wasted company money for the advertising fees.
Promotion methods must therefore be chosen carefully. Magazine Using this method is likely to be very productive, and would advertise Monkey Snacks crisps very well, and to the appropriate market sector, if a magazine such as Cosmo, or Beano was used. This form of advertising is very cost effective as people can view these adverts repeatedly and it isn’t very expensive. Children will also be viewing these advertisements, as they will be placed in magazines that interest them therefore increasing the awareness of Monkey Snacks as a company, and children will remember an eye-catching
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The questionnaire results also showed that 70% of people agree that the best method of advertising would be in a magazine. The questionnaire also asked about favourite magazines, this is helpful as Monkey Snacks now knows, which magazines would be useful to place adverts as to how popular they were. Cosmo and Beano were the two joint favourites for the males and females; therefore placing an advert in these two magazines would be economically sensible for Monkey Snacks. Other magazines can also be considered such as Bliss and Spiderman, which are of the same child/teen genre.
Placing an advert in a magazine such as FHM would be pointless, as children will not read these types of magazines and the people who do are unlikely to buy children’s crisps, therefore resulting in a loss of profit due to low sales and unnecessary costs. Radio This method, although voted to be unsuitable by the questionnaire, radio advertising is cheap and can reach a wide audience. If used would compliment the magazine advertisements as this would increase the awareness of Monkey Snacks and would further increase sales and profit.
A theme tune could be added to grab listeners’ attention and project the message clearer to the audience to improve awareness also. Special Offers Monkey Snacks has a broad choice here, and can include many special offers to increase total sales, however they must be fairly economical so that costs aren’t too high which will hinder the chance of making a large profit. Including a small free gift would increase sales and wouldn’t increase costs very much therefore this would be suitable.
A small free gift that could be included is monkey stickers, which tell different parts of a story, this would encourage children to keep buying the crisps to continue with the story. Various stories can be included to keep sales constant. This will also serve as a primary trademark, which will be remembered by children, and therefore their approval and memory will lead to brand loyalty in the future ending in total sales and profit being increased for Monkey Snacks. This can also be altered slightly, by including a competition that will increase sales and profit further.
A competition such as, gold stickers win mountain bikes or something else like a Discmans. This will attract many customers at a small cost to the company, therefore proving to be very economic for Monkey Snacks. PR To improve public relations Monkey Snacks could do many things, which will lead to increased awareness of the company, and a better brand image all resulting in larger sales and profit. The most sensible PR event, which could be conducted to improve initial publicity for the company, is something involving children to try and target their main audience.
A publicity stunt could be undertaken by the managers and staff of Monkey Snacks to help a children’s hospital such as a sponsored bungee jump, this dramatic type of stunt will be certain to grab attention but will also do a lot of good for a worthy cause therefore both parties benefit. When Monkey Snacks is in a more economically stable situation they can consider sponsoring events such as school fun days, however as the lack of money is an issue for Monkey Snacks this would be unsuitable, as it could hinder their economic status, rather than help at the moment.
Place Deciding where to sell Monkey Snacks crisps must be done carefully in order to reach the target audience and ensure enough sales will be made to make a profit. How to get the product to that location and in which channel of distribution must be carefully considered also as if it isn’t, company costs may increase and profits as a result lowered. Location Monkey Snacks already sells their crisps at the two most obvious locations therefore other alternatives must be considered.
Vending machines and petrol stations are the other immediate candidates with a combined high popularity after supermarkets and corner shops in the questionnaire popularity poles. These locations will improve sales and help attract more custom in general. Other locations such as the Internet were not chosen due to its irregularity nature in selling crisps. Transport Road was an easy and obvious decision as it fulfils all the necessary criteria, and it’s cost effective, and many form of transport can use roads such as van and lorries.
Air was obviously not chosen as the UK is relatively small and this method of transportation is ridiculous for Monkey Snacks to use. Channel of Distribution This method was chosen as it is fairly simple and Monkey Snacks already use it therefore no change must take place to confuse retails. The existing mark up can also remain the same in order for a suitable profit to be made. The 50% mark-up would also have to get smaller if a wholesaler was added to the chain, which would result in smaller profits for Monkey Snacks.
In future with the amount of retailers increasing another channel of distribution could be considered which may include a wholesaler.
In conclusion to this report, I feel that it would be difficult to improve upon it, as it has looked at Monkey Snacks and its situation in grave detail. Many possibilities have been considered and the best alternatives discussed in the final report. If I had more time, the prices for the listed advertising methods could be researched, the questionnaire could have been given to more people to make more the results more accurate.