1. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan 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.”

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

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

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

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

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

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

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

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

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

11. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Inventories –7 Week Inventory Turnover Accounts Receivable –30 Day Terms Accounts Payable –30 Days Cash Conversion Cycle –CCC = 49 + 30 – 30 = 49 days

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

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

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

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

16. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Marketing Plan 4 P’S of Marketing Product Price Place Promotion Segmentation Targeting Positioning

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

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

19. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Market –$60 billion –5% growth –200 000 retail establishments –100 large commercial establishments –500 HBC –100 in Western Canada

20. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Customers –Young families to retired couples –High disposable income –Impulse shoppers –Needs: natural foods novel foods entertainment comfort indulgence premium products value time

21. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Customers –HBC retail stores –Large establishments –Need: Unique products Products that fit trends –Difficult to enter, but: Large market Large orders First mover

22. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Product –Spices –Popcorn seed –Kactus Chips –Oil –Stovetop popper –Gift pack –Competitors Act II, Back To Basics, Orville Redenbacker, Ultimate Popcorn Lovers

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

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

25. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Pricing –Current pricing strategy will be adhered to: Retail less 20% to HBC stores –Premium retail pricing differentiation

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

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

28. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Net Income 200720112016 Unit Sales $96,700$241,750 Revenue $513,816$1,363,164$1,535,144 Direct Costs $212,084$573,916$633,650 Expenses $376,435$551,373$583,532 Net Income - $110,745$204,421$249,621

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

30. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan NPV, IRR, ERR –Net Present Value: $300,300 –Internal Rate of Return: 42% –External Rate of Return: 25%

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

32. Ag Ec 495 College of Agriculture and Bioresources, University Of Saskatchewan Critical Variables –Unit Sales –Selling Price –Direct Costs –Contingency Planning: New locations Marketing Expenses New suppliers

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

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