Company Overview

1. 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

2. 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

3. 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

4. Operations Plan Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

5. Organizational Structure Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

6. Floor Plan Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

7. Flow of Work Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

8. Capital Budget Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

9. Working Capital Cost of Goods Sold Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

10. Administration, Marketing and General Expenses Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

11. 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

12. Human Resources Plan Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

13. Staff • President • Operations Manager • Part time Staff Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

14. Strategy • Training • Manual • On Site • Motivation • Discounts • Staff Parties • Management Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

15. Marketing Plan Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

16. 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

17. SWOT • Internal Strengths • Internal Weaknesses • Opportunities • Threats Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

18. Past Performance • Wholesaler/Retailer • 30 – 50 year old women • High Margins Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

19. 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

20. 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

21. 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

22. 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

23. Objectives • Market Share - 20% • Unit Sales - 193,400 • Revenue - $1,069,148 Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

24. Manufacturers/products Agents/brokers Wholesalers/distributors Retailers Retailers Consumers and organizational end users Distribution Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

25. 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

26. Promotion Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

27. Financial Plan Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

28. Net Income Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

29. Cash Flows Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

30. 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

31. Break Even Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

32. 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

33. Future Considerations Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan

34. Questions Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan