Reference no: EM132208657

MANAGEMENT DECISION CASE: Gaining a Foothold among Giants While Being KIND Think of the snack foods you eat most often. What type of snacks does that include? For many of us, those we frequently eat are salty snacks, which include chips of various ingredients and flavors, pretzels, cheese curls, crackers, and nuts (hint: nuts are the most healthy of this bunch). Another option might be sweet snacks such as cookies, candy bars, other chocolate-based snacks, and cereal bars. Behind these various snack options are some of the largest companies in the food industry including behemoths such as Frito Lay, Kellogg, Hershey, Mars, General Mills, and Nabisco among others. All of these companies utilize immense resources to implement their marketing strategies in an effort to not only gain market share from competitors but also prevent others from entering the market. So, if the competitive environment for the market is as described above, what in the world would make a firm think it could start a totally new snack food company and be successful? Apparently Daniel Lubetzky, founder of KIND Healthy Snacks, had a different idea of what it took to be competitive in the snack food market when he decided to enter it way back in 2003. Lubetzky looked at the playing field and decided that the competition was, in fact, not impenetrable. He found an opportunity to develop a product with all natural, healthy ingredients. In fact, a mantra of his organization is to put “nothing in the product that the typical consumer cannot pronounce.” As a result, the ingredient list is an exercise in simplicity with easy-to-understand components that promote healthfulness in everyone who eats them. Lubetzky also found opportunity in the packaging of his products. Instead of the typical opaque packaging for snack or candy bars that prevents one from viewing the actual physical product, KIND Healthy Snacks uses proprietary technology to produce clear wrappers for its snack items. Using this type of package distinguishes KIND from its competitors because it allows consumers to see what they will eat and not just assume the bar inside will look like the picture on the wrapper. Another opportunity area for Lubetzky was the trend toward consumers supporting products that have the betterment of society as part of their mission. Visit the KIND website and you will find a quote by Henry James that reads, “Three things in human life are important: the first is to be kind; the second is to be kind; and the third is to be kind.” Lubetzky’s company operationalizes this quote by allowing users to post on their website their individual acts of kindness and the number of people impacted by those acts. In addition to giving exposure to individual acts of kindness (get it—KIND-ness), KIND itself supports one project each month with $10,000. Whether it’s rebuilding a New Jersey firefighter’s house after Hurricane Sandy, supporting Big Brothers and Big Sisters, or working with a nonprofit agency to fly soldiers home from overseas for the holidays, KIND is working to have a social impact on the communities it serves. Clearly, KIND has embraced the concept of “Marketing” with all of its activities, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Evidence of this buy-in is the result the company has achieved. From the end of 2008 to the end of 2012, KIND’s sales went from $15 million to $120 million, an 800 percent increase in just four years. This growth occurred despite losing Starbucks as a distributor of its snack items in all of its U.S.-based cafes. By continuing to connect with its customers through its high-quality, all-natural-ingredient products; its innovative packaging; and its commitment to the betterment of society, KIND hopes to continue to dynamically grow its business well into the future. Questions for Consideration

1. Do you think consumers supporting brands and companies that strive to benefit society are a trend that will continue? Why or why not?

2. What other industries might be especially prone to entry by a smaller, more nimble, and more socially conscious competition? What are the prospects for a competitor being successful in those industries.