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5 Iconic Snack Brands: A Recipe for Entrepreneurial Success

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Snack Brands

Have you ever wondered what makes your favorite snacks so irresistible? We’ll peel back the wrapper and explore the world of snack brands, those delectable titans of the American snack business, a market valued at an astonishing $110.3 billion. In this flavorful journey, we’ll uncover their intriguing market strategies, noteworthy products, and net sales figures. From crispy chips to sweet confections, snack brands have an enticing story to tell, and we’re about to savor every last bite of it.

1. Hershey’s

  • Founder: Milton S. Hershey
  • Foundation Year: 1894
  • Net Sales: $10.858 Billion

Hershey’s is a leading snack brands in the USA, with a global presence in over 70 countries and a product lineup that includes more than 800 items, including chocolates, non-chocolates, and beverages, available in various sizes and shapes. They are known for their continuous innovation, catering to both children and fans and even transforming their flagship Hershey’s milk bar into enticing chocolate syrup.

During holidays, Hershey’s offers special items, including favorites like Hershey’s Kisses, Reese’s Peanut Butter Cups, and Kit Kat bars among their chocolates, Ice Breakers gum and breath fresheners in the non-chocolate category, and delectable beverages such as Hershey’s Chocolate Milk and Hershey’s Cookies ’n’ Creme Milk.

Hershey’s positions itself as a premium brand that appeals to the upper-middle class and tourists. They implement value-based pricing strategies and use promotions, including discounts and coupons, to stimulate sales. Their dynamic pricing adapts to market demand, with iconic products commanding premium prices while allowing for occasional price reductions tailored to specific items or markets. Prices typically range from $0.75 to $2.25.

Diverse Distribution and Promotional Strategies

  • Retailers: Hershey’s products are readily available in supermarkets, grocery stores, and convenience stores, prominently featured in the confectionery aisle.
  • Online Sales: Hershey’s maintains an online store and partners with numerous e-commerce platforms for easy access.
  • Specialty Stores: In select locations like Hershey, Pennsylvania, Hershey’s operates branded stores and visitor centers.
  • Advertising: Hershey’s leverages TV, radio, print, and digital media to craft nostalgic, heartwarming commercials, fostering brand identity.
  • Sponsorships: The company lends support to various events, sports teams, and entertainment properties, effectively bolstering brand recognition.
  • Social Media: Hershey’s maintains an active social media presence, connecting with customers, sharing product updates, and hosting contests and giveaways.
  • Collaborations: Partnerships with other brands and businesses, including baking enterprises and ice cream brands, broaden Hershey’s product reach and appeal, ensuring a sweet spot in the market.

2. PepsiCo.

Snack Brands
  • Founder: Caleb Bradham
  • Foundation Year: 1898
  • Net Sales: $22.32 Billion

PepsiCo, headquartered in Harrison, New York, stands as a prominent American multinational corporation within the food, snack, and beverage industry. It has earned recognition as America’s preferred beverage brand and extends its product distribution to over 200 countries. With a reputation built on beverages and snacks, PepsiCo products enjoy broad appeal among both adults and children.

The company’s product strategy, a vital element within its marketing mix, encompasses a diverse array of distinct brands that distinguish it from competitors. Some of its well-known brands include Pepsi Cola, Lay’s, Mountain Dew, Gatorade, Diet Pepsi, 7UP, Quaker Oats, and Cheetos, totaling 23 brands in all.

Pepsi employs a competitive pricing strategy, strategically adjusting prices to remain slightly above or below those of rivals in order to preserve its market share. When venturing into new markets, it initially offers lower prices to entice customers, gradually raising them as its presence solidifies. To drive sales, Pepsi employs various promotional tactics, including discounts and special offers. The company also practices price discrimination based on factors such as location and package size. Additionally, they utilize psychological pricing, setting prices just below whole numbers, such as $1.99 for a beverage.

Global Distribution and Marketing Strategies of PepsiCo Snack Brands

  • Retailers: The company sells its products in supermarkets, vending machines, restaurants, hotels, and more.
  • Direct Delivery: PepsiCo delivers its products directly, ensuring fresh and timely deliveries, without relying on third-party companies.
  • E-commerce: Recognizing the growing significance of online retail, PepsiCo has expanded its presence in the e-commerce sector.
  • Advertising: The brand heavily invests in advertising through television, print, and digital media.
  • Sponsorships: Pepsi sponsors high-profile organizations, particularly in the sports and entertainment industries, as part of its marketing strategy.
  • Sales Promotions: The company frequently runs sales incentives like discounts, rebates, and bundled deals to encourage consumer purchases.
  • Attractive Product Displays: Eye-catching retail displays capture consumer attention and stimulate impulse purchases.
  • Public Relations: Pepsi engages in public relations activities to maintain a positive brand image and generate excitement around the brand.

3. Kellogg’s

  • Founder: Will Keith Kellog
  • Foundation Year: 1930
  • Net Sales: $15.873 Billion

Kellogg’s, headquartered in Battle Creek, Michigan, is a prominent American international food manufacturing corporation and a leading American snack brands for cereal enthusiasts. It holds the distinction of being the world’s largest cereal manufacturer, boasting a diverse portfolio that encompasses breakfast options, snacks, and convenience foods.

Operating in 180 countries and territories, Kellogg’s offers an extensive range of over 1600 products, including well-known brands such as Kellogg’s Cornflakes, Special-K, and Froot Loops. In addition to cereals, their product lineup includes snacks like Pringles, crackers, cookies, and granola. Kellogg’s is committed to promoting health and nutrition.

In setting product prices, Kellogg’s relies on comprehensive market research and employs competitive pricing strategies to maintain market share and boost sales. To further drive sales, the company offers discounts and promotions, adjusting pricing in response to market conditions while also addressing social responsibility, particularly in the global fight against hunger.

Global distribution and promotional planning of Kellogg’s

  • Retailers: Utilizing convenience stores, vending machines, mini-supermarkets, and high-frequency retailers.
  • Direct Delivery: Employing brokers and distribution systems for select products.
  • E-commerce Platforms: Leveraging various online platforms for sales.
  • Event Sponsorships: The company promotes its products by sponsoring various events and drama series.
  • Gifts: It offers prizes in its cereal boxes to attract young children.
  • Social Media: The company has launched several campaigns on digital platforms to promote its products.
  • Advertisement: The brand advertises its products widely through television and print media.

4. Mondelez International

Mondelez International
  • Founder: Thomas H. McInnerney and Edward E. Rieck.
  • Foundation Year: 1923
  • Net Sales: $34.131 Billion

Kellogg’s Mondelez International is well-known for its high-quality and flavorful products. The company invests heavily in research to create innovative products that satisfy customer demands.

Operating in more than 160 countries, Mondelez International boasts a portfolio of 200  snack brands and 70,000 products. These include beloved favorites such as Oreo, Chips Ahoy!, Toblerone, Sour Patch Kids, Tang, and Ritz Crackers. To cater to health-conscious consumers, the company also offers a range of wholesome snacks, including fruit snacks, almonds, and veggie chips.

Mondelez International maintains competitive pricing, making it an appealing choice for American consumers. To cater to a diverse customer base, the company offers products at various price points. It employs dynamic pricing strategies based on real-time factors like supply and demand. Additionally, Mondelez International utilizes promotional pricing, such as discounts and special offers, to stimulate sales and reward its customers.

Multiple distribution and  promotional channels of Mondelez International

  • Retailers: Mondelez International’s products are available in retail stores, supermarkets, convenience stores, and online platforms. Collaboration with distributors and wholesalers further enhances accessibility.
  • Technology: The company leverages technology to optimize its supply chain, enhancing inventory management and distribution efficiency.
  • Advertising: It invests in print and television advertising campaigns that highlight product features and benefits.
  • Digital Media: Utilizing various digital platforms for advertising campaigns.
  • Sales Promotions: The company employs promotions and loyalty programs to incentivize customers and boost sales.

In sum, Mondelez International offers a wide range of quality snacks, accessible to a broad audience through various channels and supported by effective pricing and marketing strategies.

5. General Mills

General Mills
  • Founder: Cadwallader Washburn
  • Foundation Year: 1866
  • Net Sales: $20.1 Billion

If frozen desserts and frozen foods are among your favorites, then General Mills should be your preferred one compared to other snack brands. General Mills offers an extensive range of over 10,000 products available in more than 100 countries. Notable cereals within their product lineup include Cheerios, Lucky Charms, Cinnamon Toast Crunch, Trix, Wheaties, and Reese’s Puffs.

Within the snacks category, they provide a selection that includes Chex, Pop-Tarts, Nature Valley, Yoplait, and Old El Paso. Furthermore, their frozen food offerings encompass Häagen-Dazs, Green Giant, and Pillsbury. General Mills takes meticulous care in packaging and labeling their products to appeal to customers, and they consistently introduce innovative new items to the market.

In terms of pricing strategies, General Mills employs a variety of approaches, which are contingent upon factors such as production costs, prevailing market conditions, and competition dynamics. These strategies encompass discounts, seasonal sales, and loyalty programs, all aimed at maintaining competitiveness and drawing in more customers. The company regularly evaluates both the affordability of its products and consumer price sensitivity, making adjustments as needed.

Product distribution and marketing tunnels for snack brands like General Mills

  • Retailers: They have a vast network of retail partners and distributors, selling products in stores, supermarkets, and convenience stores.
  • Advertising: General Mills advertises through television, radio, and print media.
  • Digital Media: The company runs ad campaigns on various digital platforms.
  • Coupons: General Mills regularly offers coupons for popular items to promote their brand.
  • Sponsorship of TV and Radio Shows: They sponsor various TV and radio shows to expand their audience.
  • Collaboration with Influencers and Bloggers: General Mills partners with influencers and bloggers for product promotion and sponsors events and sales deals to increase visibility.

In conclusion, Mondelez International’s marketing strategy excels when your business places a strong emphasis on sales. However, if you’re also considering other aspects of marketing to attract customers, you may want to explore the strategies employed by other companies. Therefore, if you’re planning to establish a new business, you can refer to the marketing strategies of these companies to ensure the growth of your venture. Additionally, the next time you’re in search of a quick snack, keep this list of snack brands in mind and explore the delicious options they have to offer. Enjoy your snacking!

Sushmita Nibandhe

Also Read: Top 10 Soft Drink Brands in 2023