Page 3: The snacks environment
Thirty years ago the snack and crisp market in the UK had a very simple structure. Initially there were crisps with the famous small blue packet of salt so that they could be salted 'to taste'. Then there were ready salted crisps. Soon there were new flavours such as 'salt and vinegar' and 'cheese and onion'. The early manufacturers were able to spot a gap in the market and take advantage of the limited nature of competition.
The illustration below shows the segments of this market including such areas as Fun Snacks, Crisps, Nuts and Time Out snacks.
As food technology became more sophisticated, businesses such as KP and Walkers were able to produce a broad array of products appealing to a diversity of consumer choices.
In many ways the market has become saturated because there are so many products from which to choose. Individual brands therefore needed to consolidate and improve their existing positions in order to be long-term 'winners.' In a changing business environment with increasing competition from other brands, it is important for an organisation to continually revise its brand strategies.
For KP this has meant moving: