Strategic Management Case Study: Snow Monkey Revolution

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Case Study
AI Summary
This case study analyzes Snow Monkey, a US-based vegan ice cream brand, and its strategic approach to revolutionizing the ice cream industry. The study examines Snow Monkey's establishment in the traditional ice cream market, its use of natural plant-based ingredients, and its mission to change consumption habits while maintaining product deliciousness. The analysis covers Snow Monkey's product, pricing, place, and promotion strategies (the 4Ps of the marketing mix). It also highlights the company's competitive advantages, including its focus on health-conscious consumers, unique product offerings, and strong promotional campaigns. The study includes recommendations for future growth, emphasizing understanding market trends, strong promotional strategies, and ensuring product benefits. The case study concludes by emphasizing the company's successful strategies and offering suggestions for other businesses to develop sustainable positions in the market.
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Running head: MANAGEMENT
MANAGEMENT
Name of the student
Name of the University
Author note
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Executive summary
It has been identified that in the traditional ice-cream market, Snow monkey has
established itself as the vegan ice cream brand by using the natural plant based
ingredients. The mission of this organization is to bring changes in the consumption
habits of the people by maintaining the deliciousness of products. The company
aims to bring the healthy food in affordable price for ensuring the sustainable
business environment. By understanding the emerging market demand towards the healthy
products in the market, the company has brought ice-cream in the market by addition nutritional
benefits, which has contributed towards generating higher revenue in the market. In the end, it can be
concluded that the business strategy that has been adopted by Snow Monkey, was quite impressive and
that can contribute in generating future growth in the company. By continuing this, it can also be said
that the business strategies, which have been mentioned in the study can help other companies towards
developing sustainable position in the market.
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Table of contents
Introduction.................................................................................................................................................3
Central section.............................................................................................................................................3
Conclusion...................................................................................................................................................7
Recommendations.......................................................................................................................................7
References and bibliography.....................................................................................................................10
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Introduction
In order to generate high sales in the developing countries as well as
satisfying the changing demand of the customers towards lactose-free ice crème,
Snow monkey has been introduced in the year 2015, which is a US based brand
(Snow-monkey.com, 2019). In the traditional ice-cream market, Snow monkey has
established itself as the vegan ice cream brand by using the natural plant based
ingredients. The mission of this organization is to bring changes in the consumption
habits of the people by maintaining the deliciousness of products. The company
aims to bring the healthy food in affordable price for ensuring the sustainable
business environment. Analyzing the market scenario, described in the case study,
it has been identified that the brand has especially focused on Paleo community
based in US. The company has adopted the unique product selling strategy in the
market, which has contributed in its market expansion. In the year 2019, Snow
monkey has expanded in 1200 locations, which has established its position in the
Forbes 30 μunder 30 list.
The purpose of this study is to analyze the strategies adopted by Snow
Monkey and its impact on its business operations. By continuing this, current
competitive advantage of the company has also been examined in this study.
Analyzing the situation, better solutions have been provided in the end of this study
for ensuring the further growth.
Central section
Current strategy adopted by Snow Monkey
Snow monkey is a popular name in the Paleo and vegan ice cream market
(Snow-monkey.com, 2019). Introducing the first ice cream in vegan category, the
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company has made its strong position in the ice cream industry. On the other hand,
introducing plant based ingredients, it has maintained the purity of its products. In
the emerging food sector, the customers have become highly conscious regarding
their health. In this situation, introducing healthier formulation process ion its
products, Snow Monkey has made its uniqueness in the market (Bevnet.com, 2019).
By positioning itself as the healthier alternative, paleo5 products have been
introduced in the market, which has given tough competition to its competitors.
Introducing this game changing strategy, the company has aimed to bring the
better food for healthy life. Using the 4ps of marketing mix, the existing strategy
adopted by Snow Monkey has been described (Orange-element.com, 2019).
Product
Product is an important element in marketing mix, which significantly drives
the marketing strategy of an organization (Fan, Lau & Zhao, 2015). The company
Snow money has aimed to bring the uniqueness in the market by providing
standard quality of products to the customers. Understanding the emerging market
demand, it has been identified that people have become health conscious and it has
increased the demand for lactose free products in the market. Analyzing the current
strategy adopted by Snow Monkey, it has been identified that the company has
aimed to introduce premium quality of product in the market by targeting the niche
target segment. Including the certificates as well as labelling in its products the
company has adopted the unique product selling strategy for dragging the attention
of the consumers. The company has also focused on product diversification strategy
and it has brought new flavors such as passion fruit, Cinnamon and Matcha Green
tea (Snow-monkey.com, 2019). It has significantly contributed in terms of ensuring
the positive expansion of the products. In order to bring innovation in its products,
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the game changing recipe has been launched with the seven plant-based
ingredients for making the products as the healthy as well as delicious dessert. In
terms of introducing the accessibility of comfort food, adding protein, plant based
ingredients, super foods and fiber, Snow monkey has brought nutritional benefits in
the market through its products.
Price
Price has made significant impact on the strategic direction of the company
(Datta, Ailawadi & Van Heerde, 2017). Depending on the pricing strategy adopted
by Snow monkey, it can be said that cost effective strategy has been adopted by
Snow monkey in case of introducing its competitive position in the market. Adopting
this strategy the company has aimed to expand its operational market with
premium quality of products in reasonable price.
Place
In the year2017, the market disruption strategy has been adopted by Snow
monkey, and it has made its distribution in Nugget market, Wegmans and Central
market. Both the online and offline distribution strategies are being followed by the
company. It has been identified that through retail stores, products of Snow monkey
have got distributed in the market. The company has developed 130 stores in US
market. In the year 2018, Snow Monkey has taken the initiative towards entering in
the Kroger Grocery stores in LA. In the USA market, Snow Monkey has aimed to
enter almost 1000 stores for enhancing its market accessibilities (Snow-
monkey.com, 2019). In order to expand business operation, online orders have also
been taken by the company in terms of enhancing its large supply chain. Adopting
the aggressive distribution strategy, the company has expanded its sales.
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Promotion
Promotion is an important element in the marketing mix. In order to generate
higher revenue as well as maintaining the strong position in the market,
promotional strategies adopted by the organizations, significantly impact on the
business operations. Snow Monkey has also made significant investments in terms
of promoting its products in the market. In the year 2016, kickstarter campaign 13
has been launched by Rachel and Mariana after joining BU’s entrepreneurial center
(Snow-monkey.com, 2019). Adopting the strong promotional strategy, during the
summer it has celebrated national ice cream month, which has significantly
contributed in dragging the customer attention toward the company.
Current competitive advantage
Stable growth has been shown in the Ice cream industry from last few years
(Soukoulis, Gaiani & Hoffmann, 2018). It has been identified that demand of people
has got shifted towards the healthy food. It is true that increasing concern among
the customers towards dieting, the consumption trend has got shifted towards the
GM021-free, hormone-free, preservative-free, and low calorie products. It has
significantly pushed the manufacturers towards it introducing the ice creams of
smaller portion sizes with low levels of fat. In order to satisfy the well ness product
priorities, the company has focused on repositioning the ice-cream from desert to
breakfast by adding nutrition as well as proteins in it. In order to introduce comfort
food, environmentally sustainable food products have been introduced by Snow
Monkey that have brought the nutrition benefits for the people (Soukoulis & Fisk,
2016).
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Natural ingredients are the important USP of Snow monkey’s products. In
the emerging ice cream industry, other companies have introduced the ice creams
by adding the artificial sweet using chemicals, in terms of satisfying the fatless as
well as sugar free products in the market. However, comparing the product strategy
of Snow Monkey, it has been identified that it has focused on adding the plant
based ingredients, super foods, fiber and protein in the ice cream without
compromising with its deliciousness. This strategy is quite unique compared to the
existing manufacturers in the market, which has helped the company to maintain its
unique ness with high competitive advantage in the market (Orange-element.com,
2019).
The texture and flavor of the product have helped Snow monkey for
developing its unique value in the market. The company has introduced its products
in the market by adding the five flavors, which is quite rate in the fatless ice cream
category. Every pint of the ice cream carries almost 21 grams of protein and has
very less calorie (Bevnet.com, 2019). The syrup, which is being used in the ice
cream is not added with sugar and texture of the ice cream is quite unique, which
has made the product competitive in the market. The product formula is also
unique that helps the product not to get solid in the very low temperature, while the
traditional ice creams become solid in the low temperature.
In order to make the premium products, adding the certificates as well as
labels, the company has given the product an authentic image, which has increased
its brand value in the competitive market. Setting the competitive pricing strategy,
the company has enhanced its accessibility in the market, which contributed its
revolutionary approach towards the ice cream industry. Involving itself in different
experimental activities, the company has continued its repeated innovation in this
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particular sector, which has made it popular in the competitive market (Orange-
element.com, 2019).
Conclusion
In this study, it can be concluded that Snow Monkey is a popular name in the Ice Cream
industry, which has developed its competitive position in the market by providing unique benefits to its
products. By understanding the emerging market demand towards the healthy products in the market,
the company has brought ice-cream in the market by addition nutritional benefits, which has
contributed towards generating higher revenue in the market. In the end, it can be concluded that the
business strategy that has been adopted by Snow Monkey, was quite impressive and that can contribute
in generating future growth in the company. By continuing this, it can also be said that the business
strategies, which have been mentioned in the study can help other companies towards developing
sustainable position in the market.
Recommendations
Analyzing the future direction of Ice cream industry, it has been identified
that due to rapid growth in this sector, large numbers of investors are showing their
interest towards investing in this particular sector, which has made the industry
more competitive for the manufacturers (Sylvetsky & Rother, 2016). The market
size is increasing day by day which has increased the financial opportunities in this
industry. In the increased market size, demand of the customers is also changing,
which is creating pressure on the companies in terms of introducing innovative
products in the market. In this situation introducing the sustainable strategies have
become necessary for the companies in terms of gaining the competitive
advantage.
Understanding product benefits is important
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In order to ensure sustainable position in the market, it is very important for
the companies to understand own strength as well as weaknesses, in terms of
bringing any kind of improvement. Researching on the market, understanding the
changing demands of the customers has become necessary for the companies
(Ranadheera, Naumovski & Ajlouni, 2018). In terms of promoting new solution for
the consumers, it is important for knowing the benefits of the proposed solutions
and maintaining its transparency with the consumers, can enhance the brand value.
Strong promotional strategy
In terms of ensuring the sustainable position in the market, public awareness
has become an important contributor in the market. In that case, using different
media platforms for launching new products in the market can ensure the company
popularity in the market (Palka et al., 2016). In that case, it can be recommended
that ensuring strong existence in the media platform, the brand image can get
improved that can indirectly impact on the revenue generating process.
Improving product packaging
It is true that the product packaging is being done for protecting the product
from damage. However, it is also true that packaging of the product makes
significant impact on customers mind for creating the first impression, which
contributes in driving their purchasing behavior (Mandal & Kant, 2017). Analyzing
the product packaging strategy of Snow Monkey, it has been identified that
providing the unique look to its products, it has added certificates as well as
labelling in its packets, which has helped in maintaining transparency as well as
authenticity in the market. Therefore, it can be recommended that introducing the
unique product packaging strategy, ice cream selling companies can be able to gain
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the competitive advantage from the market. On the other hand, it can also be
suggested that introducing the sustainability in business operations, recyclable
materials can be used in the product packaging for making it unique in the market.
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References and bibliography
Bevnet.com (2019). retrieved from: https://www.bevnet.com/jobs/30887-Sales-
Director-Snow-Monkey [Accessed on 17th dec, 2019]
Datta, H., Ailawadi, K. L., & Van Heerde, H. J. (2017). How well does consumer-based
brand equity align with sales-based brand equity and marketing-mix
response?. Journal of Marketing, 81(3), 1-20.
Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-
32.
Mandal, R., & Kant, R. (2017). High-Pressure Processing and Its Applications in the
Dairy Industry. Food Science and Technology: An International Journal
(FSTJ), 1(1), 33-45.
Orange-element.com (2019). retrieved from:
https://www.orange-element.com/thinking/snow-monkey-brand-of-the-week/
[Accessed on 17th dec, 2019]
Palka, A., Newerli-Guz, J., Wilczynska, A., & Rybowska, A. (2016, September).
Innovations in Ice Cream Production in Baltic Sea Region. In European
Conference on Innovation and Entrepreneurship (p. 543). Academic
Conferences International Limited.
Ranadheera, C. S., Naumovski, N., & Ajlouni, S. (2018). Non-bovine milk products as
emerging probiotic carriers: Recent developments and innovations. Current
Opinion in Food Science, 22, 109-114.
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