Snyder's-Lance Strategic Plan Analysis

Lauren Chunias, Eva Cruz, Allison Givens, Zachary Jones, Rachel Johnson, and Aaron Thompson

p.1
Table of Contents
pg. 3...................................Current Vision and Mission Statement
pg. 3...............................................................Our Company History
pg. 4................................................................................Our Brands
pg. 5.........................................................Organizational Structure
pg. 7...............................................................Internal Factor Matrix
pg. 8.....................................................................Financial Analysis
pg. 9.....................................Industry Changes in Market Demand
pg. 10...............................................................Competitor Analysis
pg. 13.....................................................Competitive Profile Matrix
pg. 14............................................................External Factor Matrix
pg. 15........................................................................SWOT Analysis
pg. 19.............................Proposed Vision and Mission Statement
pg. 19............................................................Changes to Clearview
pg. 21...................................................................Global Expansion
pg. 24..........................................................................Space Matrix
pg. 25...................................Quantitative Strategic Planing Matrix
pg. 28......................................................................Three Year Plan
pg. 30..................................................................................Timeline
pg. 31................................................................Evaluation of Risks
pg. 35............................................................................Works Cited
Part I: Where we are now
Part II: Where we want to go
Part III: How we will get there
Part IV: Implementation
Part I:
Where We Are Now

Current Vision
and Mission Statement
p.3 p.4
Snyder’s-Lance does not have a clearly defined vision and mission statement;
however they do have certain practices to which they are committed. These include
a commitment to associates as well as to sustainability within their production
practices. Their slogan is “Snacking is our passion,” and the brand’s current
strategy includes: to lead with quality, grow the core, reach more consumers, and
fund the future.1
Our Company History
Snyder’s-Lance Inc. has experienced a long history of mergers and
acquisitions to reach their current position. In 1963, Snyder’s Bakery purchased
the company that produced the first hard pretzel, a snack that remains very
popular to this day. The other half of their namesake, Lance, grew throughout the
late 20th century and acquired Cape Cod Potato Chip Company and Tamming
Foods. Snyder’s-Lance was created in 2010 as the culmination of multiple
acquisitions that occurred during the late 20th century, with the merger of Lance,
Inc. and Snyder’s of Hanover. Their four core brands are Snyder’s of Hanover
Pretzels, Lance Sandwich Crackers, Cape Cod Potato Chips, and Pretzel Chips. On
October 28th, 2015, Snyder’s-Lance made a deal to acquire Diamond Foods for
$1.27 billion.
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3
Brands

Our Company History
Current Vision
p. 5 p.6
Organizational Structure
The organizational structure of Snyder’s-Lance has changed within the last few
years; previously David Singer served as the CEO and oversaw all other
executive and vice president positions, including the President and Chief
Operating Officer, Carl Lee. When David Singer retired in 2014, however, Carl
Lee became his replacement, effectively combining the position he previously
held with Singer’s position of CEO. Lee serves as the head of the organization,
and below him are Rick Puckett, the EVP and CFO; Charles Good, the Senior Vice
President; Patrick McInerney, the Senior Vice President, Supply Chain; Daniel
Morgan, the Senior Vice President, Chief Sales Officer; and Margaret Wicklund,
the Vice President, Controller, Principal Accounting Officer and Assistant
Secretary. It is interesting to note that while the Snyder’s Lance website does
not list Rodrigo F. Troni Pena as an executive officer, Reuters lists him
as a Senior Vice President and Chief Marketing Officer.
Previous Structure
Current Structure (as of 2014)
4

Internal Factor Matrix
p.7 p.8
Our Company History
Based on the internal factor matrix, Snyder's-Lance is relatively strong
internally with a total weighted score of 2.53. The most weighted
strength is commitment to sustainability, whereas the most weighted
weakness is the need for both a clear vision and mission statement.
Financial Analysis
One of Snyder’s-Lance’s positive attributes as a company is its strong financial position.
This represents an internal strength and helps to drive their productivity, effectiveness, and
competitiveness in the marketplace. From 2013 to 2014 there was a 7.74% increase in
revenues from operations. Although between the two years there was a noticeable drop in
cash flow from operations (primarily due to taxes paid on the acquisition of Private Brands),
there was a larger net cash increase of $16,489 from fiscal year 2013 to 2014.
Revenue growth from the quarter ended 6/30/13 to the quarter ended 6/30/14 is
7.97%, below the industry average of 11.2%. Snyder’s-Lance segments their total revenue
into three categories: Branded, meaning the brands Snyder’s-Lance owns and controls
production of, Partner brand, “which consist(s) of other third-party branded products that
we sell to our independent business owners ("IBO") through their direct-store-delivery
distribution network ("DSD network"), and Other, which means Snyder’s-Lance
“contract(s) with other branded food manufacturers to produce their products and
periodically sell(s) certain semi-finished goods to other manufacturers.” We see that while
the Branded portion of revenue is the largest, its percentage of total revenue decreased
from prior FY by over 71%, and the Others portion of revenue has increased from 8.3% to
10.1%. While Snyder’s-Lance’s website claims to “have loyal snackers on all six
continents”, Canada makes up the entire other 3.2% of revenue aside from the
U.S. as shown below.
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6
7
8

Industry Changes in
Market Demand
p.9 p.10
Demand in the market for snack foods is driven by changes in preferences,
demographics, health and nutrition trends, and social media. With growing
urbanization in the United States and around the world, consumers want quick,
portable foods that take little to no time to prepare. This trend can be seen
everywhere, with “snack-sized” versions of food appearing throughout the market.
Even fast food restaurants now have snack menus to appeal to their consumers’
needs. Not only do buyers value on-the-go options, but they are beginning to seek
healthier options, especially the millennial generation.
The previously followed 3-meal structure in the United States is also causing
changes to the snack food market. While movements toward eating breakfast are still
on the rise, many health-conscious individuals will eat 5-6 small meals or snacks each
day, rather than 3 large meals, which only increases the demand for snack-sized
foods. With the rise of the Internet and social media exposing the ingredients found in
and origins of different food products, consumers are becoming much more
health-conscious, and industries are trying to become more transparent. Health trends
that are on the rise include whole grain, low-fat, and organic options, and foods that
are generally heart-healthy. Recently, more vegetable- and fruit-based snacks have
become very popular, a trend that was virtually nonexistent a decade ago. In the
midst of these spikes in health consciousness and changes in preferences, there has
also been a large influx of individuals subscribing to gluten-free diets, who value a
wide array of product selection, even more than low prices and convenience.
There are a variety of threats that exist in the snack food production market. Due
to the nature of food products, strict regulations exist in their production both domestically
and internationally. There are also significant costs associated with compliance and paying
fees or penalties for non-compliance. For companies that operate on a global scale risks
arise from foreign currency translation, posing a challenge to success in the market.
Additionally, consolidation in the snack foods industry is a demand-side factor that requires
special attention. As some of the larger snack companies have begun to merge, we have
seen intense price competition, discounting, and other techniques; in today’s highly
competitive snack food market, it is important to achieve economies of scale to keep prices
above breakeven.
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Competitor Analysis
10
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p.11 p.12
Brands
Although Snyder’s-Lance doesn’t operate on the same scale as their
largest competitors in the food production market, focus was placed on the four
largest because Snyder’s-Lance is capable of competing at the same level. Each of
Snyder’s-Lance’s competitors has a unique set of their own strengths and
weaknesses which will be discussed briefly below in order to better understand
what Snyder’s-Lance is up against in their market.
One of the largest competitors of Snyder’s-Lance is General Mills. The food
production company has seen consistently increasing revenues since 2009, placing
them in a powerful position financially with the ability to carry out growth and
expansion plans. The company also offers an expansive variety of products that are
marketed in over 100 countries, an attribute that has permitted their brand to meet
an increasing amount of consumer needs. This strength has permitted them to
aggressively launch new products in order to attract new customers and increase
revenues. General Mills has collected a variety of awards recognizing aspects of
their corporate culture which has assisted in boosting the company’s brand image.
Strategic initiatives that the company is undertaking in regards to cost
management and innovation both globally and domestically have the potential to
further their success. Although General Mills operates on a wealth of strengths they
still struggle with product recalls and large dependence on American markets.
Snyder’s-Lance products also compete against snack foods produced by
Kellogg. Kellogg, like Snyder’s-Lance’s other largest competitors, operates on a
global scale. This strength is enhanced by Kellogg’s breadth of well-known brands
and their global approach to developing products for different markets. The
company is working to further their success with brand-building initiatives and
programs to increase efficiency, as well as development of strategic processes for
acquiring other companies. Weaknesses the company exhibits include a large
dependence on limited customers and declining financial performance in recent
years.
Mondelēz International is the largest snack food production company in
the world. Formerly known as Kraft Foods Inc, the company created its name by
combining the words “world” and “delicious” in various romance languages.
Mondelēz operates in over 165 countries, owning eight brands that all gross over 1
billion dollars. Their most popular and easily recognizable brands include Oreo,
Nabisco, and Cadbury. The company is headed by CEO Irene Rosenfeld, who has
been named by Forbes and Fortune magazines as one of the most powerful women
in business. In addition, Mondelēz was ranked as one of Fortune magazine’s most
admired companies in 2015.
Their future outlook includes five main strategic goals: Unleash the power of our
people, transform snacking, revolutionize selling, drive efficiency to fuel growth, and
protect the wellbeing of our plant. In protecting the wellbeing of our planet, Mondelēz has
been recognized by the Dow Jones World Sustainability Index in 2013 and 2014.
Financially, Mondelēz has experienced small decreases in net revenue, total assets, and
shareholder equity from past years. These decreases have been blamed on weak and
unstable currencies in other countries; mainly Latin and South American countries. These
decreases have not significantly affected the company’s market position.
Our last major competitor is Frito-Lay, a division of PepsiCo that produces corn
chips, potato chips, and other savory snack foods. CEO Tom Greco describes Frito-Lay’s
strategy by emphasizing their past successes. These successes have included mostly the
achievements of several of their billion-dollar brands including Frito-Lay, Fritos, Cheetos,
and Doritos. Their distinct brand packaging is worth highlighting, especially for the
Cheetos brand, which has a highly recognizable mascot in Chester Cheetah. Frito-Lay also
excels with interactive marketing. For example, they have held numerous “Do Us a Flavor”
contests asking customers to come up with new flavor ideas, many of which have
become regular flavors. Their website explains that Frito-Lay embraces adding purpose to
their business, and they achieve this by partnering with non-profits like Feed the Children,
American Heart Association, and United Way. They also take initiatives to increase
sustainability practices by creating solar fields and using electric delivery cars for
distribution. Frito-Lay has seen plenty of success over the past few years with increasing
revenues and operating profits. Having loyal customers on six continents, Frito-Lay is in a
very good position going forward.
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p. 13 p.14
Competitive Profile Matrix
Based upon research on the snack food industry that Snyder’s-Lance operates in, we
were able to discern several key factors both internally and externally that affect the
success of a snack food business. These factors were: breadth of product line, global
expansion, market share (globally), financial position, research & innovation, branding,
recalls, legal & compliance issues, production capacity, price competitiveness, and
product quality. In order to weight the importance of each of these factors we examined
how large of an impact each has on the business's success. To see where
Snyder’s-Lance stands among its competitors, we scored its four closest on the key
success factors and compared them to each other. Snyder’s-Lance scored lower than its
competitors at 1.95, which is slightly lower than the industry average. This finding can
be attributed primarily to the fact that Snyder-Lance’s four largest competitors all
operate globally, giving them significant advantages. Frito-Lay (Pepsico) and General
Mills are definitely the dominant players in the snack food industry with scores of 3.7
and 3.5 respectively. Snyder’s-Lance’s other two competitors, Mondelez and Kellogg,
scored slightly above the industry average.
Based on the external factor matrix Snyder's-Lance has a relatively strong
external position with a total weighted score of 2.87. The most important
weighted opportunity is the increased market for healthy and organic snack
foods due to the high-growth market, which is key to Snyder’s-Lance’s
expansion. In terms of threats, the most important weighted factor is the
saturated and highly competitive snack food market, which forces commod-
itized products such as snack foods to compete on increasingly lower price
margins.
External Factor Matrix

p. 15 p.16
SWOT Matrix We found the strengths of Snyder's-Lance to be their strong financial
position, commitment to sustainability practices, and the variety of brands and
product offerings available to consumers. Snyder's-Lance demonstrates the
ability to produce high quality products through dedication to reducing the
amount of energy generated in production, reusing bags in which their
products are delivered in, and recycling various materials including: meal
bags, dry waste, salt, plastic jugs and buckets, shipping cartons, and many
other materials. Furthermore, Snyder's-Lance has a total of twelve brands,
including allied brands from which consumers can choose.
Snyder's-Lance’s weaknesses include no clear vision or mission
statement, lack of global or international presence, an inefficient
organizational structure, and a dependence on a small amount of customers.
In addition to addressing the lack of a vision and mission statement, the
company needs to evaluate their current organizational structure, which is
functional in nature but does not incorporate the needs of the market. Next,
Snyder’s-Lance lacks a global presence. In order to be a strong competitor
within the snack food market, they need to create opportunities to move into
areas that do not already exist for the company. With the need to expand
globally also comes the need to diversify their major customer base. Currently,
Walmart is the company’s biggest customer and all of the others are primarily
located in the United States, causing Snyder’s-Lance to be subject to all of
Walmart’s market risks.
Snyder’s-Lance’s external opportunities include a market with
consumers whose tastes and desires are changing, growing demand for snack
food within the U.S., growing demand for snack food internationally, and a
revitalized economy. In addition to a higher demand for organic/healthier
snacks that generated over $28 million in revenue in 2014, the overall
demand for snacks in the U.S. has increased as well; 90% of U.S. households
purchase some sort of salty snack during the week. With respect to the
international market,in the 12 months ending March 2014, the snack market
increased by another 2%, showing that the international snack market is
equally interested in snack foods as the U.S. market. Finally, the national
economy has almost fully recovered from the economic downturn of 2008,
allowing the general American public more discretionary income for things like
snack foods.
Strengths Weaknesses
OpportunitiesThreats
1. Strong financial
position
2. Commitment to
sustainability practices
3. Variety of brands
1. No clear vision or
mission statement
2. Lack of international
presence
3. Inefficient
organizational structure
4. Dependence on small
amount of customers
1. Market with consumers
whose tastes and desires
are changing
2. Growing demand for
snack food within the U.S.
3. Growing demand for
snack food internationally
4. Revitalized economy
1. Highly saturated and
competitive market
2. Availability of raw
ingredients used in snack
foods
3. Changing/increased
governmental
regulations
Increase production
within the U.S. (S1, O2)
Strengthen ClearView
brand to reach
health-conscious
consumers (S3,O1).
Create vision statement
that applies to changing
consumer market (W1, O1).
Pursue international
expansion to reach
consumers in different
markets who increasingly
demand snack
foods(W2,O1).
Vertical integration with
raw producers to ensure
availability (S1, T2)
Pursue governmentally
regulated certification
(S2, S3)
Create a focused mission
and vision statement in
order to break through the
competitive market
(W1,T1).
Enter into the international
market to avoid U.S.
governmental regulations
(W2, T3).
Adapted from MarketLine Report
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p. 17
Part II:
Where We Want
To Go
Snyder’s-Lance’s threats include a highly saturated and competitive market,
availability of raw ingredients used in snack foods, and changing/increased govern-
mental regulations. In order for Snyder’s-Lance to survive in the intensely competitive
snack market, the company will need to find a way to distinguish and separate itself
from the many snack food offerings available now. With the recent droughts across
the U.S., especially in California, Snyder’s-Lance could be subject to higher/more
volatile prices on goods such as almonds which are highly dependent on weather/cli-
mate conditions. Finally, Snyder’s-Lance faces the threat of ever-changing governmen-
tal regulation surrounding food, Snyder’s-Lance must be in compliance with food
labeling regulations, which change every so often, and they must adhere to organic
standards in order to qualify as USDA organic for their health food products.

Current Vision
p. 19 p.20
Proposed Vision and Mission
A new vision and mission statement is one of the biggest and most necessary
changes when considering how the company can continue to successfully grow. The
vision statement would help to give a focused idea of what Snyder’s-Lance would like
to accomplish, while the mission statement provides a clear definition of the
company’s specialization and core competency. Therefore, our new proposed vision
statement is “To be the global snack food leader through our focus on healthy foods
and sustainable products”. Our newly proposed mission statement is “We make, sell,
and deliver superior snacks that make you feel good”.
Changes to Clearview
Snyder's-Lance recently introduced a new division called “ClearView.” The purpose of
this division is to focus on the development of snack foods that are truly better for
you (annual report). In order for this division to really be successful there are a few
strategic decisions that need to be made: a focused definition of ClearView, a
“stamp” of approval representing the ClearView Promise and brand recognition, an
established online presence, and the addition of a recent acquisition of Diamond
foods. In order for this new division to be successful, it is necessary that
Snyder's-Lance spend time on developing and creating a foundation which can be
competitive in the health-conscious segment of the market.
First and foremost, the brands that are included under the ClearView
umbrella as opposed to the Snyder's-Lance brands need to be clearly defined. Right
now, the brands that are being focused on with the introduction of the division are:
Snack Factory, Eat Smart, and Late July Organic Snack. Each of these brands are
already a part of the Snyder's-Lance family, so in order to differentiate them as a truly
“better-for-you” food there needs to be something definitive that separates these
snacks from the others in the company. Therefore, we propose the implementation of
a stamp that would be displayed on the package of each brand that falls under the
ClearView division. This stamp would include the ClearView name, a slogan for the
division, and an illustration that defines ClearView as a part of the Snyder’s-Lance
family. The new slogan will be derived from Snyder’s-Lance’s mission statement, and
will label the products as “Snacks that make you feel good.” This alludes to the
health benefits of their products, the sustainability practices of their company, and
their ethical responsibility to their employees and the world. It is vital for consumers
to know how Snyder’s-Lance’s snacks are truly better for them compared to their
competitor’s, and our hope is that this ClearView Promise to consumers will become
an identification of the brand and what we stand for.
We also propose to improve upon ClearView’s online presence. Currently, the ClearView
website is aesthetically pleasing but lacks in functionality. Being user-friendly online is
very important for the fifth “P” of the Marketing Mix, participation, which highlights the
usefulness of social media sites as a marketing strategy. An established online
presence will allow retailers to order online, and gain more information about the
products and how they are produced. Currently, ClearView’s website lacks any sort of
information about ClearView itself, with the exception of the smaller brands that are
beneath it, such as Snack Factory. Snyder’s-Lance could, through using a skilled web
designer, have sections aimed at providing information for producers (promotions for
Clearview products and relevant sales figures) and consumers (the organic production
process and coupons). Clearview products should be included in any sort of online
grocery delivery program as well, potentially through Amazon or Relay Foods, an organic
food pickup service.
On October 28th, 2015, Snyder’s-Lance made an acquisition deal with
Diamond Foods for $1.27 billion. This acquisition aligns perfectly with our proposed
strategy, as it allows Snyder’s-Lance to expand their product offering under ClearView.
Diamond Foods sells variations of snacks and nuts, so we would propose for
Snyder’s-Lance to include some of their healthy nut offerings in their ClearView division.
Some of the products included would be from Diamond’s subsidiaries, Emerald and Pop
Secret. Emerald offers 100-calorie packs of almonds, cashews, and pecans, and Pop
Secret has a whole line of “better for you” selections.26
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Current Vision
p. 21 p.22
Global Expansion
It is clear that global expansion will provide Snyder’s-Lance with opportunities
for higher revenues, higher profit margins, economies of scale, and widespread brand
equity. Global expansion will also mitigate the risk incurred by focusing on only one
geographic market in regards to the economy and geopolitical issues. Increases in
global food consumption, specifically per capita consumption in developing countries
along with changes in spending of discretionary income pose significant opportunities
for expansion into new geographic locations. There are several geographic markets
which pose possible opportunities, each with their unique benefits and issues. In our
current market in the United States, consumers have a preference for chips, nuts, and
other salty snacks -- these products comprise nearly 23% of annual snack sales,
totaling $28 billion.
Shift over to Europe and the demand drastically changes -- while the
salty snack sales are about $24 billion, which does not seem to be a significant
discrepancy, that only comprises about 14% of total snack sales in Europe. In
terms of sales, Europeans seem to prefer confections and refrigerated snacks
over salty snacks.
Latin America is an entirely different story; their snack market is only a
fraction of the size of Europe’s, at only $30 billion in combined annual sales.
Salty snacks also place third in consumer preferences there, with a total of $7
billion sales annually, preceded by cookies/cakes and confections, respectively.
However, Latin America’s snack market as a whole is growing quickly -- between
2013 and 2014, sales grew by 9%, which is significantly higher growth than any
other geographic region. According to Nielsen “sales of savory snacks, which
include crackers, rice cakes and pita chips, increased 21% in the last year in
Latin America.” Latin America poses some additional advantages due to its
geographic proximity to the United States markets such as decreased transpor-
tation costs and operating in the close time zones.
Finally, the Africa/Middle East region has a relatively market -- total
annual sales for all snack foods total only $7 billion -- and consumers split their
preferences between salty snacks and confections, each of which total $2
billion in sales.
Based on the results of our multi-faceted analysis, we believe that the
best opportunity lies in penetrating the Latin American market with salty snack
foods. We feel confident that the high growth in the snack market and the
consumer preferences in the region give us the best chance for strategic
success. Additionally, as a stretch goal we plan to assess possible future
expansion into other markets.
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28

Internal Dimensions
Financial Position
Competitive Position
Stability Position
Industry Position
External Dimensions
5.0
-3.5
-2.0
2.5
When determining Snyder’s Lance
competitive strategy, we found the
two most influential factors to be
our high financial strength and our
low competitive advantage.
Financially, Snyder’s Lance is
experiencing a period of growth.
Revenues increased by 7.8% due to
acquisitions and strong
performance in partner brand
6
Space Matrix
1 2 3 4 5 6-1-2-3-4-5-6
-1
-2
-3
-4
-5
-6
1
2
3
4
5
Conservative Aggresive
Defensive Competitive
product categories. Additionally, net profit and operating profit increased
substantially between FY2013-2014. In terms of our competitive advantage score,
Snyder’s Lance doesn’t have a strong showing. This is mainly due to low market
share compared to Lay’s, Kellogg’s, and Mondelēz International. Relatively medium
stability and industry position scores led us to the conclusion that a mild
conservative strategy would be our best option.
p.24
Part III:
How We Are Going
To Get There
29

p. 25 p.26
Quantitative Strategic Planning Matrix External Factor Matrix

p.28
Three Year & Beyond Plan
Part IV:
Implementation
Based on our choice of strategy, our plan for Snyder’s-Lance for the next three
years includes expansion into Latin America, the aforementioned changes to the
ClearView division, and a modification of the company’s organizational structure. Our
first goal for Snyder’s-Lance is the generation of $10 million in top line revenue in
Latin America in the first year of operations. We expect that their expansion into this
area will be successful because of their careful strategy around the penetration of the
market. Our recommendation for an expansion plan into Latin American markets on
the basis of promotion, product, place, and price is as follows:
Promotion: We would recommend that Snyder's-Lance needs to first develop
aggressive brand awareness initiatives for Latin American markets because they do
not have a historical presence like their competitors. In order to do so a team of brand
ambassadors will be selected who will complete research on the appropriate cultural
means of promoting products in Latin American markets. This team will then conduct
research in the Latin American markets to ascertain which of the Snyder's-Lance
brands that exist currently best meet consumers needs and in what geographic areas.
An additional goal of this field work would be to begin developing relationships with
local retailers.
Product: From the research completed by the team of brand ambassadors the
Snyder's-Lance brands that are most likely to sell will be selected for production in
Latin America.
Place: Another important decision to make based upon research in the Latin
American market is the location in which Snyder's-Lance will operate. Upon first
entering the market we recommend that the company choose one location to start.
Ideally the location will be a more urban area with manufacturing facilities in close
proximity that Snyder's-Lance could contract out for a preliminary time period. This
would provide the opportunity to target a greater number of consumers and cost
control in regards to distribution.
Price: The pricing model of Snyder's-Lance products will also have be exam-
ined based upon a number of variables that change in the Latin American market.
Projected labor costs will likely be lower, but the price sensitivity of consumers is also
higher than in the markets that Snyder's-Lance currently operates in. Ideally the
company will be able to efficiently manage costs through careful selection of starting
geographic location and thus offer the best prices.

p. 29 p.30
Timeline
2015
2016
2017
2025
2027
ClearView
Global
Expansion Organization
$20 million
investment in
Clearview team,
R&D into new
products
Aggressive brand
awareness
initiatives; begin
test-contract
manufacturing
$5 million in
training; formulate
plan for bubbles
$20 million
investment in
Clearview team,
R&D into new
products
Evaluation of
brands in Latin
America;
Continued
expansion within
the market &
changes as needed
$5 million for
training; implement
bubbles
Market research
into effectiveness
of Clearview
promise
Continued
monitoring and
expansion
Analyze
effectiveness of
bubbles
ClearView reaches
$1 billion in
revenue. USDA
products achieve
53% of product
offerings.
Formally evaluate
and analyze
current strategy.
Formally
reevaluate
effectiveness of
current
organizational
strategy
Latin American
sales equal
American sales
Continual evaluation of the success of Snyder's-Lance brands in Latin
American markets will be essential to their success. Of course sales revenue will
be the most prominent metric for Snyder's-Lance to measure the success of their
products in the selected location, in addition to Return on Investment and
operating margin. Other qualitative means of measurement to be carried out by
our team of brand ambassadors would be customer research about new
products that could be developed to better meet consumer needs, as well as
favorability ratings of Snyder's-Lance brands. This information will allow the
company to gauge the possibility of introducing brands not yet brought to the
Latin American market especially in regards to the growth of Clearview brands
into the global market. As relevant information is collected it is important that
Snyder's-Lance adjust the strategy as needed.
The second part of our strategy is to implement the aforementioned
changes to ClearView: a more focused definition of the division and stronger
brand recognition, our stamp for the ClearView Promise, a better online
presence, and an incorporation of Diamond Foods.
In order to succeed in our goals for global expansion and the change of
ClearView, Snyder’s-Lance needs to change the company’s organizational
structure. We recommend implementing a bubble structure that identifies two
main bubbles that will work as separate bodies underneath the President and
CEO. These two bubbles can be identified as Clearview and non-Clearview,
representing two very different consumer markets, one in which health is the
ultimate priority and one in which taste and price is the main priority. Each
bubble will have its own respective corporate head (marketing, accounting,
supply chain, etc.), allowing the bubble to focus primarily on its own respective
market. Once expansion into global markets occurs, we recommend market
analysis to determine how if that particular international market falls under the
Clearview or non-Clearview bubble and incorporating that international market
into the bubble.

p. 31 p.32
Evaluation of Risks
The most essential risks that need to be considered are a failure to successfully
penetrate the healthy food market, continued brand confusion amongst consumers about the
differences of ClearView versus Snyder’s-Lance products, and the potential to spend large
amounts of money on an endeavor that may not produce a large amount of revenue right away.
With ClearView being a new entrant into the already established healthy snacking
market, the biggest risk is failure to successfully break into this market. With competitors such
as Kellogg and their well-known, established Special-K products, ClearView needs to be
differentiated in a way that makes it competitive. The way to do this is to ensure that there
really is a noticeable health benefit to consumers. Next, because ClearView is simply a division
of Snyder’s-Lance, another risk is continued brand confusion. ClearView must be easily
recognizable as a separate part of Snyder’s-Lance in terms of packaging and products.
In addition to these short-term goals, we propose certain stretch goals for the future.
First, that market share in Latin America will be equal to their market share in North America by
2027. The trend towards salty snacks is growing faster in Latin America than anywhere else in
the world, so we expect that this goal should be achievable. Second, Snyder’s-Lance’s global
expansion division will research and explore the idea of expansion into either Europe or Africa.
Lastly, they should acquire USDA certified organic products to increase their “products that are
truly better for you” from the current 27% of their product offering to 53% by 2025. We would
also use one of the company’s strengths in Research and Development to create new
health-food products of their own. This will only add to tClearView health promise, and will help
increase their market share, especially in the health foods market. With this greater product
offering, we have set the goal for the ClearView line to expand to $1 billion in revenue by 2025
as well.
As Snyder’s-Lance implements these changes, they must also be cognizant of their
current consumers in the United States and continue to implement ‘hold and maintain’
strategies there, namely market penetration and product development. We must be dynamic
and constantly analyze consumer preferences to make sure that we are getting these products
to the right people, at the right time, and at the right price. There will be a renewed emphasis
on this as they expand globally, as their customer mix just got much more complicated. It is
especially important to monitor these consumer preference metrics in the United States, as the
snacking preferences there tend to inform the trends eventually seen in other countries.
With the risk of considerable investment into a new opportunity comes
the risk of lack of return on investment. In order for Snyder’s-Lance to
successfully implement Clearview, a 40 million dollar investment over the first two
years in hiring a marketing team focused exclusively on Clearview, creating the
stamp to be displayed on the packaging of Clearview products, the
machinery/costs associated with the stamp itself, and increased R&D into
products that consumers would purchase as a part of the Clearview line. If the
Clearview brand were to only generate revenue that the brands would generate
themselves without the association of Clearview, we risk losing the 40 million
dollar investment in developing and improving the Clearview brand. However, the
R&D dollars spent could potentially minimize this risk if the brands acquired under
Clearview if they prove to be profitable.

p. 33 p.34
One of the potential risks for expanding into global markets is related to
their competitors. The majority of Snyder’s-Lance’s competitors have a historical
presence in Latin American markets. Few of the products offered by competitors
are in direct competition with Snyder’s-Lance’s, which requires smart
differentiation from Latin American competitors. Snyder’s-Lance is very financially
strong in the United States, so it can be beneficial to take some of their strategies
for success in the U.S. and tailor them to foreign markets. Operating in foreign
markets also entails risks of new government regulations and compliance with
their bureaucratic processes. There are foreign exchange risks that come with
dealing in different currencies as well, and some of Snyder’s-Lance’s competitors
have faced large losses. The positive aspect to this risk is that all of their
competitors face this foreign currency challenge, so we can to learn from failures
in the past. Another major risk of global expansion is the failure to penetrate a
foreign market. Different countries have different preferences and cultures, so it
is important to keep these all in mind when tailoring our strategy. This is why we
chose Latin America for Snyder’s-Lance expansion, since they have the fastest
growing demand for salty snacks, their main product offering.
A final important note: due to the recent acquisition of Diamond Foods we
would delay our plan slightly of pursuing global expansion in order to permit a period
of integration of the Diamond brands with the Snyder's-Lance brands. The acquisition
was a serious financial undertaking for Snyder's-Lance but the company has a very
strong financial position, they excel at acquiring new brands, and this is exactly the
reason that they divested their private label brands. In that vein we do suggest that
they continue to pursue global expansion; in fact the acquisition of Diamond Foods
already gives Snyder's-Lance a foothold in the global market because of the opera-
tions of Kettle Chips brand, owned by Diamond, in the UK and Western Europe.
However, we would still recommend that Snyder's-Lance move into Latin American
markets next because of the previous arguments stated, but also because the
Diamond acquisition provides additional brands that could meet the needs of Latin
American consumers. In particular, Diamond Foods includes the Pop-Secret popcorn
brand. Popcorn is actually ranked as the most popular savory snack food within the
Latin American market posing a great opportunity for the newly acquired brands.
The 3-year plan involves an investment of $40 million over the first two
years ($20 million per year) in order to revamp the Clearview brand followed by
an assessment of its success and determination of further investment. The
international portion of the three year plan means an acquisition of Latin
American manufacturing facilities in the first year for around $100 million which
should generate at least $10 million in revenue in its first year, followed by
reorganization and development of the Latin American brand in its second year
and potential acquisition of a second brand in its third year. Finally, a
reorganization of the organizational structure would be relatively minimal in cost
with only $10 million spent on improved training for top level executives who are
the main individuals affected by the change.

p. 35 p.36
Works Cited
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2. David, Fred R. Strategic Management: Concepts and Cases: A Competitive Advantage Approach. Pearson, 2015. Print.
3. "Snyder's-Lance (LNCE) to Acquire Diamond Foods (DMND) in ~$1.9B Deal." Street Insider. N.p., 28 Oct. 2015. Web. 1 Nov. 2015.
4.OneSource. “Snyder’s-Lance Inc.” Avention, Inc. Web. 1 Nov. 2015.
8. "Snyder's-Lance." Snyder's-Lance. N.p., n.d. Web. 01 Oct. 2015.
9. Joshi, Vishal. "Changing Consumer Preference Driving Growth of Ready-to-eat Snack Food Products." CARE Ratings Professional Risk
Opinion(n.d.): n. pag. 20 Aug. 2015. Web. 1 Nov. 2015.
10. "The Snack Attack." Erica. N.p., Mar. 2013. Web. 01 Nov. 2015.
11. Chiarello-Ebner, Kaylynn. "Who Are America's Biggest Snackers? | WholeFoods Magazine." Whole Foods Magazine. WFC, Inc., Apr. 2011. Web.
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12. Civille, Gail Vance. Sensory Spectrum, Inc.Outline (n.d.): 2-16. Sensory Spectrum. Sensory Spectrum, Inc. Web. 1 Oct. 2015.
13. Gillespie, Rory. "Consumer Attitudes Show Positive Change About Healthy Snacking." Food Processing. 4 June 2013. Web. 1 October 2015
14. "Gluten-Free Market Trends" The Gluten-Free Agency. 2012. Web. 1 October 2015
15. OneSource. “General Mills, Inc. Strengths/Weaknesses” Avention, Inc. Web. 1 Nov. 2015.
16. OneSource. “Kellogg Company Strengths/Weaknesses” Avention, Inc. Web. 1 Nov. 2015.
17. "Results Announced for 2013 Dow Jones Sustainability Indices Review."S&P Dow Jones Indeces (n.d.): n. pag. S&P Dow Jones Indeces. McGraw
Hill Financial, 12 Sept. 2013. Web. 1 Nov. 2015.
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19. United States Department of Agriculture. “Organic Market Overview.” 2 Nov. 2015
20. Ferdman, Roberto A. "The Definitive Guide to How People around the World Snack." Washington Post. The Washington Post, 30 Sept. 2014.
Web. 01 Nov. 2015.
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22. Nasr, Reem. “The U.S. economy is improving: Analyst.” 25 Feb. 2015. 02 Nov. 2015.
23. "Snyder's-Lance (LNCE) to Acquire Diamond Foods (DMND) in ~$1.9B Deal." Street Insider. N.p., 28 Oct. 2015. Web. 1 Nov. 2015.
24. "Diamond Foods, Inc. -- Annual Report." Sec.gov. United States Securities and Exchange Commission, 1 Oct. 2015. Web. 01 Nov. 2015.
25. "Emerald Nuts." Emerald Nuts. N.p., 2015. Web. 01 Oct. 2015.;
26. "Pop Secret." Pop Secret. Diamond Foods, Inc., 2015. Web. 01 Nov. 2015.
27. “Global Snack Foods Reach $374 Billion Annually” Nielsen. 30 Sept. 2014 Web. 4 Nov. 2015
Web. 01 Nov. 2015.
30. Key, Diana. “Can the Diamond Foods Acquisition Expand Snyder’s-Lance's Reach?” Market Realist. 30 Oct. 2015. Web. 5 Nov. 2015
All pictures are from www.snyderslance.com, www.royalbuying.com, hinerfeldcommercial.com, and huffingtonpost.com

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