LiteHouse foods : Glass Dilemma

Sujay Rawat
Richa Nayak
Sathish Babu
Raviteja
Ruta Parasnis

Agenda
Case of LiteHouse Foods : Glass
Dilemma
Information Acquisition &
Processing

Beginnings
Ed Hawkins
Sr.

Recipe
Prayer
Hard Work

In 1963, it
started
with a
restaurant

By 1970,
they
acquired a
plant at
Sandpoint

From 1980,
they started
adding
flavours and
packaging
Merge with
Chadalee
Farms in 1997
In 2001, it
started its
own blue
cheese
production
2010 became
the year of
bigger action

2010 : Year of changes

2010 : year
of bigger
action

Target

Product
line
expansion

Increase sales by 78% in 5 years

and be one of the to 10 food
producers in the country

Market
Expansio
n

In 2010, purchased
Green Garden Food
to take advantage
of its manufacturing
capacity

Increase
Marketin
g

NEW
CEO

New
Sales
territorie
s

Market & Competition Facts

Market
Retail salad dressing market - $3bn in 2011
Penetration of 95% and growth 3%
Two segments
Shelf Stable -85%
Refrigerated salad -15%

LiteHouse
21% market share in US, #3
#2 in Canada, trailing by Renne
Company positioned itself as premium
brand
Healthy, Quality & Flavour pref.(blind
tests)
Uses no preservatives

Present Issues
Shortage of cash
Competitors have created a price gap by switching (0.6)
Dilemma in Transition
Operations
Inbound and Outbound logistics
Retail outlets

External Data sources of consumer perception about plastic

and glass
Environmental impact Plastic vs. glass bottle
Transportation
Weight reduction
Recyclability

Glass Usage
Operational Impact
Very brisk, to be handled with care
Stacking was stronger of 5-6 layers
Tamper resistant safety seal

Environmental Impact
OI study says it Produces 0.171 kg CO2/ 355 ml which is
33% more than plastic

Retail
No promotions required as product already exists
Chances of breaking are high

The Change Plastics

Operational Impact
Descrambler speeds up the process
Warehouse stocking was difficult and short 2-3 layers
Foil seal

Environmental Impact
OI study says it Produces 25% more carbon emission at 0.214 kg
CO2/ 355 ml

Retail
Retailers demand fee for promotion
Chances of breaking are high
Savings of

Net Gain/ Loss by investment

$ 15,00,000

Plastic Usage..
Consumer Perception
Different perception amongst different age groups

Quality
Oxidation occurs readily
Plastic wont break

Logistics
Better utilization of truck at 22 pallets per truck
Local supplier
Helps in cost reduction at great levels

Recommendations
Shift to plastic bottles will give a room for price gap
covering- promote plastic bottles on this fact
LiteHouse brand is popular which is indicated by Blind testthis can be leveraged to promote plastic bottles too
Spreading awareness through posters and campaigns;
Highlight on Same taste new packaging

Information Processing

Information processing focuses on the mechanisms of cognition:

attention, perception, and memory

Information Acquisition

Consumer processes incoming information in 4 stages: exposure to

information, information reception, cognitive analysis, and attitude
formation.

THANK YOU