Potato Snax Case: Context
Our client is Potato Snax, a company that manufactures and sells snack foods such as crisps (or ‘potato chips’). Potato Snax has been in this market for many years and sells its products mainly through supermarkets and grocery stores in Western Europe and the USA.
Over the last three years, Potato Snax has faced declining sales of its crisps as more customers turn to healthier snacks. Examples of healthier snacks include prepackaged vegetables and ready-to-eat fruit.
To compensate, Potato Snax launched a range of healthy snack foods one year ago under the brand ‘HealthyLife’. To build market share quickly, it has run a series of promotions, for example 'buy one get one free' offers. Unfortunately, sales and profits from the HealthyLife range have so far failed to meet expectations.
The CEO has hired us to analyze why HealthyLife has not performed as well as anticipated.
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