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

p.1

Table of Contents

pg. 3...................................Current Vision and Mission Statementpg. 3...............................................................Our Company Historypg. 4................................................................................Our Brandspg. 5.........................................................Organizational Structurepg. 7...............................................................Internal Factor Matrixpg. 8.....................................................................Financial Analysispg. 9.....................................Industry Changes in Market Demandpg. 10...............................................................Competitor Analysispg. 13.....................................................Competitive Profile Matrixpg. 14............................................................External Factor Matrixpg. 15........................................................................SWOT Analysis

pg. 19.............................Proposed Vision and Mission Statementpg. 19............................................................Changes to Clearviewpg. 21...................................................................Global Expansion

pg. 24..........................................................................Space Matrixpg. 25...................................Quantitative Strategic Planing Matrix

pg. 28......................................................................Three Year Planpg. 30..................................................................................Timelinepg. 31................................................................Evaluation of Riskspg. 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 Visionand 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.

2

3

Brands

Our Company History

Current Visionand Mission Statement

p. 5 p.6

Organizational StructureThe 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.

5

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.

9

11

1213

Competitor Analysis

10

14

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.

17

16

15

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

Oppo

rtun

ities

Thre

ats

1. Strong financial position2. Commitment to sustainability practices3. Variety of brands

1. No clear vision or mission statement2. Lack of international presence3. Inefficient organizational structure4. Dependence on small amount of customers

1. Market with consumers whose tastes and desires are changing2. Growing demand for snack food within the U.S.3. Growing demand for snack food internationally4. Revitalized economy

1. Highly saturated and competitive market2. Availability of raw ingredients used in snack foods3. 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

18

19

20

21

22

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 Visionand Mission Statement

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

25

24

23

Current Visionand Mission Statement

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.

27

28

Internal Dimensions

Financial Position

Competitive Position

Stability Position

Industry Position

External Dimensions

5.0-3.5

-2.02.5

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

5Conservative 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

ClearViewGlobal

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

1. "Snyder's-Lance, Inc. - Annual Report." Snyder's-Lance, Inc. - Annual Report. N.p., 25 Feb. 2014. Web. 01 Nov. 2015.2. 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. 2015.5. "Snyder's-Lance, Inc. - Annual Report." Snyder's-Lance, Inc. - Annual Report. N.p., 25 Feb. 2014. Web. 01 Nov. 2015.6. "Snyder's-Lance, Inc. - Annual Report." Snyder's-Lance, Inc. - Annual Report. N.p., 25 Feb. 2014. Web. 01 Nov. 2015.7. "Snyder's-Lance, Inc. - Annual Report." Snyder's-Lance, Inc. - Annual Report. N.p., 25 Feb. 2014. Web. 01 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. 01 Oct. 2015.12. 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 201514. "Gluten-Free Market Trends" The Gluten-Free Agency. 2012. Web. 1 October 201515. 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. 2015.18. David, Fred R. Strategic Management: Concepts and Cases: A Competitive Advantage Approach. Pearson, 2015. Print.19. United States Department of Agriculture. “Organic Market Overview.” 2 Nov. 201520. Ferdman, Roberto A. "The Definitive Guide to How People around the World Snack." Washington Post. The Washington Post, 30 Sept. 2014. Web. 01 Nov. 2015.21. Ferdman, Roberto A. "The Definitive Guide to How People around the World Snack." Washington Post. The Washington Post, 30 Sept. 2014. Web. 01 Nov. 2015.22. 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. 201528. Ferdman, Roberto A. "The Definitive Guide to How People around the World Snack." Washington Post. The Washington Post, 30 Sept. 2014. Web. 01 Nov. 2015.29. "Snyder's-Lance, Inc. - Annual Report." Snyder's-Lance, Inc. - Annual Report. N.p., 25 Feb. 2014. 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