Marketing Case - Bill's - a Traditional Potato Chips Company

NTRODUCTION

Bill's is a traditional potato chips company which has been in potato chips business for 7 years. Our chips are enjoyable due to its healthier style of cooking and a range of good flavors. With the increasing trend of obesity across the whole Australian population (measured by the 2007-08 National Health Survey), we believe that our healthier type of potato chips will become more and more popular.

This report including three parts：

1) The environmental scan , SWOT analysis and possible opportunities;

2) The segmentation analysis and target markets;

3) The promotion campaign and the marketing mix.

Environmental scanning

 Demographic, cultural and economic forces

The population and the economic level in Australia have increased rapidly over the recent years. According to the 2007-2008 National Health Survey, the percentage of obese adult man and obese woman had increased about 4 percent and 6 percent respectively from 1995. This increase indicated an increase in market demand for foods. At the same time, the fast pace of modern life has resulted people to rely much more on fast foods and snacks. The food market is experiencing a rapid development, while the competitors for our potato chips company are growing as well. There are direct competitors who also produce potato chips and indirect competitors, such as the manufacturers of other snacks and foods, farmers of vegetables and fruits, as well as owners of restaurants.

Potato chips serve as an appetizer, side dish, or snack. Chips are a major part of the snack food market in English-speaking countries and many other Western nations. The global potato chips market generated total revenues of 16.4 billion dollars in 2005. This accounted for 35.5% of the total savory snacks market in that year (46.1 billion dollars). Furthermore, people's standard of living is generally improved both in Australia. They are able to afford premium snacks. However, there are many potato chip companies in Australia; the biggest one is the Smith's Snack food Company, which is one of the dominators of snack food industry.

SWOT analysis

Strengths

1. Brand image

Our company has run the business for 7 years. We have created a brand image in the market and we have a certain number of returned customers.

2. High production level and potatoes with good quality

Our farm is located in Tasmania, where is far from big cities and with lower pollutions. This ensures our potatoes contain fewer chemicals which are harmful to people's health. The stable