ag ec 495 college of agriculture and bioresources, university of saskatchewan company overview...
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Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Company Overview•Business overview
•Small Saskatoon Based Business
•Snacks and Snack Making Products
•Mission Statement•“Schneider’s Gourmet World is committed to providing unique, high quality, premium snack food and popcorn products that round out the at home entertainment experience for the end consumer, available through intermediaries on a wholesale basis.”
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Objectives and Goals•Evaluate the wholesale market and possibilities for expansion
•Increase retail wholesale product line
•Evaluate the snack food market and potential business to business customers that would be interested in providing products to end consumers
•Expand into new avenues to provide bulk supplies to for direct-to-consumer snack food companies.
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Industry Overview
• Falls within 3 industries
•Wholesale trade
•The snack food industry
•Seasoning and dressing industry.
•Important Industry Trends
•Large Growth
•Important Consumer Trends
•Convenience
•Health
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Operations Plan
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Organizational Structure
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Floor Plan
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Flow of Work
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Capital Budget
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Working Capital Cost of Goods Sold
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Administration, Marketing and General Expenses
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
• Inventories– 7 Week Inventory Turnover
• Accounts Receivable– 30 Day Terms
• Accounts Payable– 30 Days
• Cash Conversion Cycle– CCC = 49 + 30 – 30 = 49 days
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Human
Resources Plan
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Staff• President
• Operations Manager
• Part time Staff
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Strategy• Training
– Manual– On Site
• Motivation– Discounts– Staff Parties– Management
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Marketing Plan
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Marketing Plan•4 P’S of Marketing
•Product•Price•Place•Promotion
• Segmentation• Targeting• Positioning
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
SWOT• Internal Strengths
• Internal Weaknesses
• Opportunities
• Threats
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Past Performance
• Wholesaler/Retailer
• 30 – 50 year old women
• High Margins
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Market– $60 billion– 5% growth
– 200 000 retail establishments– 100 large commercial
establishments
– 500 HBC– 100 in Western Canada
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Customers– Young families to retired
couples– High disposable income– Impulse shoppers– Needs:
• natural foods• novel foods• entertainment• comfort• indulgence• premium products• value time
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Customers– HBC retail stores– Large establishments– Need:
• Unique products• Products that fit trends
– Difficult to enter, but:• Large market• Large orders• First mover
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Product
– Spices– Popcorn seed– Kactus Chips– Oil – Stovetop popper– Gift pack– Competitors
• Act II, Back To Basics, Orville Redenbacker, Ultimate Popcorn Lovers
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Objectives
– Market Share - 20%
– Unit Sales - 193,400
– Revenue - $1,069,148
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Pricing
– Current pricing strategy will be adhered to:
• Retail less 20% to HBC stores
– Premium retail pricing• differentiation
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Promotion
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Financial Plan
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Net Income
2007 2011 2016
Unit Sales $96,700 $241,750 $241,750
Revenue $513,816 $1,363,164 $1,535,144
Direct Costs
$212,084 $573,916 $633,650
Expenses $376,435 $551,373 $583,532
Net Income
- $110,745 $204,421 $249,621
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Cash Flows
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
NPV, IRR, ERR
– Net Present Value:• $300,300
– Internal Rate of Return:• 42%
– External Rate of Return:• 25%
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Break Even
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Critical Variables
– Unit Sales– Selling Price– Direct Costs
– Contingency Planning:• New locations• Marketing Expenses• New suppliers
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Future Considerations
Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan
Questions