CREATING MEMORABLE MEALS & MOMENTS Michelle Toth Jenny Robertson Caroline Hantman Caitlin Carrick Huy Tran Chris Harcourt Phu Son Le December 12 th 2011

CREATING MEMORABLEMEALS & MOMENTS

Michelle TothJenny Robertson

Caroline HantmanCaitlin Carrick

Huy TranChris Harcourt

Phu Son Le

December 12th 2011


Presentation Overview

• Company Background• Enterprise Analysis• Industry Analysis• Competitive Analysis• Customer Analysis• Enterprise Growth Strategy Options


Company Background

• The J. M. Smucker Company was established in 1897 and was incorporated in Ohio in 1921.

• The Company has four reportable segments: U.S. Retail Coffee Market, U.S. Retail Consumer Market, U.S. Retail Oils and Baking Market, and Special Markets.– The Company's three U.S. retail market segments in total comprised over

80 percent of the Company's net sales in 2011.– The Special Markets segment represents sales outside of the U.S. retail

market

• Principal products of the Company are coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, and pickles and condiments.


A. Industry Analysis

KEY FACTS:•Smuckers operates in the Processed and Packaged Food Goods industry• The Food Processing industry as a whole is currently estimated to be $416 billion and is expected to increase to 435 billion in 2012

INDUSTRY TRENDS:1.The rising cost of inputs2.Trading down to less expensive products (generic brands)3.Healthy Eating & Environmental Concerns 4.Increasing demand for pre-packaged foods


Customer Analysis

• Largest customer is currently Wal-mart and its subsidiaries, – accounted for 27% net sales in 2010

• Major supermarkets within the U.S. and Canada (representing 22% and 2% respectively)

• Family oriented/long standing tradition• End user – families and their children– “Pester power” of children


5-Year Financial Performance

Met or Exceeded Target


Business Segments

Segment Brands


U.S. Retail Coffee

35% Dollar Market Share

Smucker Internal Share Report 52 Weeks Ended 1/23/11


Fruit Spreads




Peanut Butter




Segment Performance

TTM Ended January 31, 2011


Mascot Advertising Campaign

• Pilot campaign will target MA, CT, and NY school buses.

• Advertisement revenue will narrow public school system’s budget deficits and provide Smucker’s access to target audience: Children.

Advertisement of Smucker’s Fun Foody

Mascot here

Advertisement of Smucker’s Fun Foody

Mascot here


Campaign Cost Summary


Campaign Financial Analysis

Assumption:Year 1 sales revenue is 10% of FY 2011 Net salesSales Revenue growth rate at 5% YOY


Leveraging Existing Brands

• Advertising brands on other brands– New labels that offer:• Coupons for other brands in the Smucker’s family• Recipes for complementary Smucker’s products

• Bundle as meal solutions in grocery stores– Target Stop & Stop, Market Basket, Shaw’s for

dedicated space

• Online order management system: special occasion gift baskets


Leveraging Existing Brands: Cost


Existing Brands Financial Analysis

Assumption:Year 1 sales revenue is 10% of FY 2011 Net salesSales Revenue growth rate at 5% YOY


Packaging Changes

1. Bundling products together to create a solution for the customer

2. Add the “Nutrition Keys” to packaging


Increasing Online Presence

• Revamp Smucker’s website to make it for fun and interactive for children– Incorporate “fun and foody” mascot– Games containing Smucker’s products/logo

• Online consumer panel – Allow both users and nonusers to give feedback and

share ideas • Recipes/cookbooks – E-cookbooks, e-recipes– Create “app” for Smucker’s for use on iphones and

ipads











Documents

CREATING MEMORABLE MEALS & MOMENTS Michelle Toth Jenny Robertson Caroline Hantman Caitlin Carrick Huy Tran Chris Harcourt Phu Son Le December 12 th 2011