This document outlines a market analysis and business plan for Happy Snacky, a company that produces healthy fruit crisps as an alternative snack for school children. It identifies gaps in the snack market, segments the target market as school kids aged 4-18, and positions the product as a more nutritious snack option. The business plan then covers product development of sun-dried fruit crisps, competitors, stakeholders, sales projections, startup costs, and marketing and promotion strategies.

1. BUS 604 – CRM Assignment 1 (Lecturer Dr. Sumesh Dadwal)
Happy Snacky
S11005922 – Anish Damji Gohil - CEO (Sales and Marketing)
S11005940 – Aziza Yuldasheva - (Market Research Analyst)
S11006954 – Nileshkumar I Christian - (Concept & Product Developer)
S11005902 – Naveed Akhter - (Product Analyst)
S11005932 – Vyacheslav Alexandrov - (Business Analyst)
S11005956 – Umesh Chhetri - (Relationship Manager)

2. Market Analysis & (STP)
Gap
• Lack of healthy snack in the market
• Limitation of customised packages for variety dry- fruits
• Growth in demand of sugar replaced products
Segmentation
• 8.3 million Pupils (headcount) enrolled in school in
England, including state- funded and independent schools
(Department for education, 2014).
• On average 4 to 8 years old kids consume about 21
teaspoons of sugar a day and most consumptions of sugar
34.3 teaspoon a day consume by age of 14-18 school kids
(Family Education, 2014).
Target
• We are targeting school kids (from reception year and
onwards) as our products are unique with full of vitamins
that kids needs

3. Positioning Statement
• To school kids who are habitual
to eat on the go snacks, Happy
Snacky Fruit crisps is a healthy
snack that gives kids more
nutrition then any other snacks
because it made from fresh fruits
which has been sun-dried and
NOT fried.

4. Happy Snacky Concept Development
Need
C C
C
Technology Form
• Need : Kids crave for sweet snack and parents avoid them from consuming
unhealthy sugary snacks
• Form : we should make easier to consume on the go healthy snack which
satisfies their sugar cravings
• Technology: Nutrition of all organic fruits are preserved using sun drying
process and NOT frying
C = Concept
(Kotler and Kotler, 2009)

5. Product Development
• Happy Snacky Fruit Crisps are a unique range of
innovative, healthy snacks that are seriously tasty!
• Free from everything but fruit and great taste!
• Fruit crisps gives healthy snack choice with perfect
balance of taste and texture
• Not to be confused with dried fruit, freeze
dried fruit or chewy baked fruit, Happy Snacky are
a deliciously healthy range of completely natural,
sun-dried fruit crisps.
(Walker and Ruekert, 1995)

6. USP of Happy Snacky
Why Are We Different To Our Competitors?
• We do not have any direct competition as we are
the only fruit crisp manufacturer in EU
• Average cost on dry fruits in retail shops such as
Holland And Barnet, Kiddylicious and Graze is
between £1.50-£6.Where as Happy Snacky from
£1 to £4.50
• Only provider of customised Mix and Match fruit
crisp option as free home-delivery

7. Stakeholders
Suppliers
• To demonstrate commitment to stakeholders,
we will provide them required machineries
• To support fair trade practice we will encourage
our supplier to give workers fair day pay for
fair day work
• To move beyond exchange relationship, we will
sponsor our farmers children's for education
• To make strategic ties structure with farmers,
we will provide them seeds and fertilizers
Buyers
• We will give our buyers 90 days cash credit
limit to build up relationship
• To make build our relationship, we will provide
customize package bag of Crisp

8. Business Analysis
• Hunger affects concentration, and well-nourished
children fare better at school.
• Parents currently spend almost £1 billion a
year on packed lunches
• Only 1% of packed lunches meet the
nutritional standards that currently apply to
school food
• 57% of children are not eating school
lunches at all
Global sales of dried fruits increasing
every year and is forecast to reach 4
million tons by 2020. Grow in sales
linked to increase in consumers’
interest in healthy lifestyle, increase in
income, easy storage and lower cost.
The UK is the second largest EU
importer of dried fruit (38,394 tonnes in
2012) UK imports of dried fruit are
expected to rise further to 43,560
tonnes in 2013.

9. Start up cost and Cash Flow
Estimate Product Price
• Our price of home delivery box is
£4.5 for mix and match of 4 fruits.
In comparison to competitors we
still yield a healthy profit.
Item Cost per unit Units Total cost
Raw Fruits 26568 1 26568
Packaging and labeling 5000 2 10000
DriTech sundrying machine 10000 6 60000
Labour 6642 1 6642
Packing materials 0.1 22140 2214
Monthly rent 3000 1 3000
Promotions 3321 1 3321
Training and development 20000 1 20000
131745
Start up cost
Year 1 2 3 4 5
CASH FLOW PROJECTION
Cash In-Flows
Sales 1926291 2215234 2547520 2929647 3369095
Gross profit 1926291 2215234 2547520 2929647 3369095
Operating expenses
Average cost of fruits 770516.3 886093.7 1019008 1171859 1347638
Cost of labour 192629.1 221523.4 254752 292964.7 336909.5
Cost of packing 64209.69 66457.03 76425.59 87889.42 101072.8
Cost of promotions 96314.54 110761.7 127376 146482.4 168454.7
Rent 36000 39600 43560 47916 52707.6
Total operating expenses 1159670 1324436 1521121 1747112 2006782
Net profit before tax 766621.1 890798.4 1026398 1182536 1362312
Dritech - Sun Drier

10. Sales & Promotion
• We will give our buyers 90 days cash credit limit
encouraging them to stack our product in their shelves
• Participate in trade fair, exhibition's and setting
up taste stalls to attract kids in Supermarket and
schools to highlight advantage of Happy Snacky
to kids and parents.
• Promotion in comparisons to competitors free delivery
of 1st box
• Eco-friendly promotions encouraging ethical recycle
where free 250gms of Happy Snacky is given to
customer in return of 5 empty bag
(Michman and Mazze, 1998) , (Kurtz and Boone, 2013)

11. Sales & Promotion
• Social media channels promoting various campaigns where
customer can write review, click like, share, tweet, g+ or
instagram pic for free Happy Snacky bag as rewarded.
• Branding product via walking mum London project.
• #kidoftheweek (Hash Tag Kid Of TheWeek)
• Sponsoring school football team uniform.
• Engaging kids with design the package contest
• Encouraging kids to come up with new recipes with Happy
Snacky
• Branding in local council parks and kids
theme park e.g. LEGO Land

12. References
• Department for Education (2014) “Statistical First Release: Schools, pupils and their characteristics”, available at
http://dera.ioe.ac.uk/20268/1/SFR15_2014_main_text_v2.pdf [accessed 18th of November]
• Family Education (2014) “Are We Too Sweet? Our Kids’ Addiction to Sugar” available at
http://life.familyeducation.com/nutritional-information/obesity/64270.html?page=1 [accessed 18th of November]
• Peelen, P.,Ed. (2005) Customer Relationship Management, Harlow, England: Pearson Education Limited
• Jha, L. (2008) Customer Relationship Management, Darya Ganj, New Delhi: Global India Publications Pvt Ltd.
• Schoolfoodplan.com, (2014). The Plan - School Food Plan. [Online] Available at:
http://www.schoolfoodplan.com/plan/ [Accessed 6 Dec. 2014].
• Olson, E., Walker, O. and Ruekert, R. (1995). Organizing for Effective New Product Development: The Moderating
Role of Product Innovativeness. Journal of Marketing, 59(1), pp.48-62.
• Michman, R. and Mazze, E. (1998). The food industry wars. Westport, Conn.: Quorum.
• Kurtz, D. and Boone, L. (2013). Boone & Kurtz contemporary marketing. 16th ed. USA: South-Western Cengage
Learning.
• Kotler, P. and Kotler, P. (2009). Marketing management. Harlow, England: Pearson/Prentice Hall.