Group Salma Syed

Members:
Chaitanya Subhash. Naidu
Sriman Reddy Rondla
Pravalika Govindu
Ramya sree Tadikonda
Sowjanya Palakurla
Krishnapriya Darla
 TEAM

Salma Syed
CEO

Chaitanya Sriman Pravalika Ramya

Subhash Sowjanya Krishna
CFO Marketing Sree
CIO Manager Head of Manufacturin Priya
Human g and Supply
Resource Chain COO
Introduction
•Established in 1896 in a New York confectionery,
Tootsie Roll Industries has grown to become a
prominent American candy producer with a global
reach.
•He was invented while employed at Stern & Saalberg
to produce a chocolate-flavored candies that would not
melt.
•The chocolate-and-caramel-pulled candy known as
Tootsie Rolls has a distinct texture.
•The business went public as the Sweets Company of
America in 1922.
•Tootsie Rolls launched the "penny candy" craze in
America with their one-cent price tag.
 Revenue Overview
Revenue

◦ In 2022, net product sales were $681,440, $566,043 in 2021, and $467,427 in 2020.
◦ Rental and royalties generated an additional $5,530 in 2022, $4,733 in 2021, and

$3,636 in 2020.

◦ For the mentioned years, the total combined revenue was $686,970 in 2022,
$570,776 in 2021, and $471,063 in 2020.

◦ One source of income is sales to big box stores like Wal-Mart and Dollar Tree.
◦ While no single client contributes more than 10% of net sales, McLane, Walmart,
and Dollar Tree collectively make significant contributions.
◦ Walmart's sales are projected to represent roughly 23.0% of net product sales in 2022.
◦ Tootsie Roll Industries has demonstrated its ability to adapt and persevere in the face
of increased competition in the candy industry.
 Company Objectives:

Talent Acquisition and Retention:

◦ Objective: The company aims to attract and retain high-caliber individuals
for each job role. This objective underscores the significance of having a
talented and skilled workforce to drive the company's success.
Workplace Culture and Cooperation:
◦ Objective: Fostering an open family atmosphere at work, coupled with
professional management, is geared towards creating a positive workplace
culture. The goal is to encourage cooperation among employees, enabling
them to maximize their contributions to the company.
 Long-term Growth:
The company prioritizes long-term growth over short-term gains. This
strategic objective emphasizes the importance of sustainable growth,
focusing on building a strong foundation for the future.
 Financial Prudence:
The objective is to maintain a conservative financial posture in deploying
and managing assets. This approach ensures that the company remains
financially stable and resilient, avoiding unnecessary risks.
 Operational Efficiency:
Running a trim operation, eliminating waste, minimizing costs, and
implementing performance improvements reflect the company's
commitment to operational efficiency. The goal is to continually enhance
processes for better productivity.

 Investment in Technology:
The company is committed to investing in the latest and most productive equipment. This objective underscores the importance of technology in
delivering high-quality products to customers at the lowest possible cost.
 Strategic Outsourcing and Integration:
The objective is to strategically outsource functions where appropriate and vertically integrate operations when financially advantageous. This
approach ensures flexibility and efficiency in the company's overall operations.
 Strategic/Tactical Direction
Three (3) Key strategies for the next year

1. Enhanced Digital Marketing and Strategy: Boost Tootsie Roll's online presence with a robust
digital marketing strategy, involving social media, SEO, and
Online Presence: targeted advertising.
Implementation: Develop platform-specific content, optimize
for search engines, and use targeted ads to reach new audiences.

Strategy: Embrace sustainability through eco-friendly

2. Sustainability and Eco-friendly manufacturing, ingredient sourcing, and packaging.
Implementation: Partner with sustainable suppliers, invest in
Practices: eco-efficient technology, and redesign packaging to be
environmentally friendly.

Strategy: Form partnerships with other brands for expanded

market reach and product co-creation.
3. Strategic Partnerships and Implementation: Identify aligned brands, create joint products
and marketing campaigns, and leverage mutual distribution
Collaborations: channels.
Tactics for the strategies:
Influencer Marketing: User-Generated Content: Email Marketing: Regular
Strategy 1: Enhanced Digital Partnerships with influencers Encourage customer content newsletters to keep brand top-
Marketing and Online for brand promotion, on social media, boosting of-mind, driving customer
Presence enhancing online visibility. community engagement and engagement and repeat
brand presence. purchases.

Packaging Redesign: Shift to

Sustainable Ingredient Energy-efficient
eco-friendly packaging,
Sourcing: Collaborate with Manufacturing: Invest in green
Strategy 2: Sustainability and addressing consumer
eco-friendly suppliers, technologies, reducing costs
Eco-friendly Practices environmental concerns,
enhancing product and boosting eco-friendly
potentially increasing loyalty
sustainability appeal. brand image.
and sales.

Co-branded Products: Develop Cross-Promotional Marketing: Distribution Network Sharing:

Strategy 3: Strategic
joint products, creating novelty Joint campaigns to increase Utilize partner channels to
Partnerships and
and reaching new audiences. visibility and leverage expand market reach and
Collaborations
combined strengths. accessibility.
 ◦ Tactic 1: Influencer Marketing: Partnerships with influencers for brand promotion, enhancing online visibility.
◦ IT Activities:
◦ Influencer Analytics Platform: To identify and track influencer performance.
◦ CRM Integration: For managing influencer relationships.
◦ Social Media Management Tools: To coordinate and schedule influencer-related content.
◦ ROM Cost: Moderate. Analytics and CRM platforms require investment but offer long-term ROI.
◦ Relation to Strategy: These IT tools streamline influencer collaboration, vital for amplifying online presence.

Strategy 1 IT ◦ Tactic 2 : User-Generated Content: Encourage customer content on social media, boosting community

◦ IT Activities:
engagement and brand presence.

Activities: ◦ Hashtag Monitoring Tools: To track user-generated content.

◦ Content Management System (CMS) Upgrade: For handling increased website traffic and content.
Enhanced Digital Marketing and ◦ Social Media Integration: To display user content on various platforms.

Online Presence ◦ ROM Cost: Moderate to High. CMS upgrades and integration tools can be costly but essential for campaign
success.
◦ Relation to Strategy: These tools facilitate effective user engagement, a core component of the digital marketing
strategy.
◦ Tactic 3 : Email Marketing: Regular newsletters to keep brand top-of-mind, driving customer engagement and
repeat purchases.
◦ IT Activities:
◦ Email Marketing Software: For creating and distributing newsletters.
◦ Data Analysis Tools: For tracking email campaign effectiveness.
◦ Customer Segmentation Software: To tailor content to different audience segments.
◦ ROM Cost: Moderate. Software costs are offset by the potential for high ROI in customer engagement.
◦ Relation to Strategy: These technologies are crucial for maintaining direct, personalized communication with
customers, enhancing the online presence.
 Tactic 1: Sustainable Ingredient Sourcing: Collaborate with eco-friendly suppliers, enhancing product
sustainability appeal.
◦ IT Activities:
◦ Supply Chain Management System: For efficient sourcing and logistics.
◦ Supplier Evaluation Software: To assess and select eco-friendly suppliers.
◦ Data Analytics for Sustainability Reporting: To track and report sustainability metrics.
◦ ROM Cost: High. Advanced systems are needed for effective supply chain management and sustainability tracking.
◦ Relation to Strategy: These IT solutions enable efficient, sustainable sourcing, aligning with eco-friendly practices.

Strategy 2 IT Tactic 2 : Energy-efficient Manufacturing: Invest in green technologies, reducing costs and boosting eco-friendly

◦ IT Activities:
brand image.

Activities: ◦ IoT for Energy Management: Implementing IoT sensors for energy usage monitoring.
◦ Predictive Maintenance Software: To optimize machinery efficiency.
Sustainability and Eco-friendly ◦ Data Analytics for Energy Optimization: Analyzing energy consumption patterns.
Practices ◦ ROM Cost: High. IoT and advanced software require significant investment but offer long-term savings.
◦ Relation to Strategy: These technologies are key to reducing energy consumption, a pillar of sustainability.
Tactic 3 : Packaging Redesign: Shift to eco-friendly packaging, addressing consumer environmental concerns,
potentially increasing loyalty and sales.
◦ IT Activities:
◦ Design Software: For creating new packaging designs.
◦ 3D Printing for Prototyping: Rapid prototyping of new packaging.
◦ Lifecycle Analysis Software: To assess environmental impact of new packaging.
◦ ROM Cost: Moderate. Design and prototyping tools are essential but not excessively expensive.
◦ Relation to Strategy: These IT tools are crucial for developing and implementing eco-friendly packaging.
 Tactic 1: Sustainable Ingredient Sourcing: Collaborate with eco-friendly suppliers, enhancing product
sustainability appeal.
◦ IT Activities:
◦ Collaborative Design Tools: For joint product development.
◦ Integrated Marketing Platforms: To coordinate cross-brand campaigns.
◦ Partnership Management Software: For managing collaboration logistics.
◦ ROM Cost: Moderate. Collaboration tools are necessary for effective partnership management.
◦ Relation to Strategy: These IT solutions facilitate smooth co-creation processes, enhancing partnership
effectiveness.

Strategy 3 IT Tactic 2 : Energy-efficient Manufacturing: Invest in green technologies, reducing costs and boosting eco-
friendly brand image.

Activities:
◦ IT Activities:
◦ Cross-Platform Analytics: To track campaign performance across brands.
◦ Shared Content Management Systems: For managing joint marketing materials.
Strategic Partnerships and ◦ Co-marketing CRM Integration: To align customer relationship strategies.
Collaborations ◦ ROM Cost: Moderate. Analytics and shared systems are vital for cross-promotional success.
◦ Relation to Strategy: These technologies are essential for effective and measurable cross-promotional campaigns.
◦ Tactic 3 : Packaging Redesign: Shift to eco-friendly packaging, addressing consumer environmental
concerns, potentially increasing loyalty and sales.
◦ IT Activities:
◦ Integrated Distribution Software: To manage shared logistics.
◦ Real-Time Inventory Tracking: For synchronized inventory management.
◦ Collaborative Forecasting Tools: To predict demand across shared networks.
◦ ROM Cost: High. Advanced distribution and tracking systems are a significant investment.
◦ Relation to Strategy: These IT tools are crucial for efficient shared distribution, expanding market reach
effectively.
Selection Criteria and Weighting Factors

◦ Alignment with Strategy (Weight: 30%): How well does the project align with the company's strategic goals?

◦ ROI and Cost Efficiency (Weight: 25%): Potential return on investment and cost-effectiveness.

◦ Feasibility and Technical Complexity (Weight: 20%): The ease of implementation and technical requirements.

◦ Impact on Customer Experience (Weight: 15%): The potential to enhance customer engagement and satisfaction.

◦ Sustainability and Long-term Value (Weight: 10%): Contribution to long-term sustainability and ongoing value.
Portfolio Management
•Tootsie Candy company was established
in 1896 with a portfolio of 1 Hand rolled
candy at a selling price of 1 penny
 Matrix Of Projects
Combined
IT-Related Project ROI Time Quality Etc. Weight Priority ROM Risk Trigger Mitigation Run/Grow/Transform

Email Marketing Marketing strategy

High Short High - 30% High Moderate Low Low subscription rates Grow
Software overhaul

Supply Chain Supply chain

Medium Long High - 30% High High Medium Alternative sourcing Transform
Management System disruption

Influencer Analytics Changes in market Diversify influencer

Medium Medium High - 25% Medium Moderate Medium Grow
Platform trends pool

Social media algorithm Adjust marketing

Hashtag Monitoring Tools High Short High - 25% Medium Moderate Low Run
changes tactics
 ◦ Decision Process for Prioritization
◦ Scoring: Assign scores to each project based on the criteria and their weightings.
◦ Total Weighted Score: Calculate the total weighted score for each project.
◦ Ranking: Rank the projects based on their total weighted scores.

◦ Top 4 IT-Related Projects

◦ Based on the weighted scores, the top 4 projects are prioritized as follows:
◦ Email Marketing Software
◦ Hashtag Monitoring Tools
◦ Supply Chain Management System
◦ Influencer Analytics Platform
 Risks, triggers, and risk mitigation strategies for top 4
IT-related projects:
1. Email Marketing Software
◦ Risks:
◦ Data privacy breaches.
◦ Non-compliance with email regulations (e.g., GDPR, CAN-SPAM Act).
◦ Low user engagement leading to poor ROI.
◦ Triggers:
◦ Increased email bounce rates.
◦ Low open and click-through rates.
◦ Customer complaints or high unsubscribe rates.
◦ Risk Mitigation:
◦ Implement robust cybersecurity measures and regular compliance audits.
◦ Use opt-in strategies and maintain up-to-date permission lists.
◦ A/B testing of email content to optimize engagement and regular training for the marketing team on best practices.
 Risks, triggers, and risk mitigation strategies for top 4
IT-related projects:
2. Supply Chain Management System
◦ Risks:
◦ Integration complexity with existing systems.
◦ Supplier onboarding challenges.
◦ Potential disruption in supply chain operations during transition.
◦ Triggers:
◦ Delays in project milestones.
◦ Resistance from suppliers or internal stakeholders.
◦ Reports of inefficiencies or errors in the supply chain.
◦ Risk Mitigation:
◦ Phased implementation with thorough testing at each stage.
◦ Supplier engagement programs and effective communication channels.
◦ Training for employees and having a contingency plan in place for supply chain operations during system upgrades.
 Risks, triggers, and risk mitigation strategies for top 4
IT-related projects:
3. Influencer Analytics Platform
Risks:
Reliance on external influencers may affect brand control.
Inaccurate analytics leading to misinformed marketing strategies.
Changes in social media algorithms affecting influencer reach.
Triggers:
Sudden changes in influencer performance metrics.
Variations in audience sentiment or engagement patterns.
Updates to social media platforms that limit analytics capabilities.
Risk Mitigation:
Diversifying the influencer pool to minimize dependence on any single influencer.
Regularly updating and calibrating analytics tools to ensure accuracy.
Staying informed on social media trends and platform changes to adapt strategies accordingly.
 Risks, triggers, and risk mitigation strategies for top 4
IT-related projects:
4. Hashtag Monitoring Tools
Risks:
Misinterpretation of social media trends and sentiment.
Over-reliance on automated tools for social media strategy.
The rapid evolution of social media trends can render monitoring tools less effective.
Triggers:
Declining engagement or reach with key hashtags.
Feedback from social media users indicating a mismatch between content and audience expectations.
Shifts in the social media landscape or the emergence of new platforms.
Risk Mitigation:
Complementing tools with human analysis for nuanced understanding.
Regularly reviewing social media strategy and adjusting tools as needed.
Keeping the marketing team agile to adapt to new social media platforms and trends.
 Key Products
◦ Tootsie Roll: The company's signature product for many
years, this chocolate-flavored candy resembles taffy.
◦ Tootsie Pops: Lollipops with a Tootsie Roll center,
popularized by the slogan "How many licks does it take
to get to the Tootsie Roll center of a Tootsie Pop?"
◦ A lollypop with a bubblegum core is called a Charms
Blow Pop.
◦ Dots: A chewy candies that resemble gumdrops.
◦ Junior Mints are coated in chocolate and are mint
candies.
◦ Chocolate-flavored thin mints from Andes.
◦ Sugar Daddies and Sugar Babies: caramel candies
with chewiness.
◦ Popsicles coated in caramel that are called Caramel
Apple Pops.

◦ Razzles: Candies that change while being consumed

from hard candies to chewing gum.
This Photo by Unknown Author is licensed under CC BY-NC-ND
 EARNINGS

Financial Metrics 2024 (Projected) 2023 (Estimated) 2022 (Actual)

Net product sales $800,000 $690,000 $580,000

Rental and royalty revenue $7,000 $5,600 $4,500

Total revenue $807,000 $695,600 $584,500

Total gross margin $290,000 $240,000 $200,000

Selling, marketing and administrative expenses $150,000 $125,000 $105,000

Earnings from operations $140,000 $115,000 $95,000

Other income (expense), net $12,000 $10,000 $8,000

Earnings before income taxes $152,000 $125,000 $103,000

Provision for income taxes $30,500 $25,000 $20,600

Net earnings $121,500 $100,000 $82,400

Net earnings attributable to Tootsie Roll Industries, Inc. $120,000 $99,000 $81,000
 Strategic/ Tactical Direction
◦ Tootsie Roll is a well-established candy company with a strong brand
and a loyal customer base. The company is focused on expanding into
new markets, developing innovative products, and strengthening
brand awareness
Strategic Priorities:
◦ Expand into new markets and distribution channels.
◦ Develop new and innovative products.
◦ Strengthen brand awareness and loyalty.
Tactical Initiatives:
◦ Launched new product line: Tootsie Roll Minis.
◦ Expanded distribution into convenience stores and drugstores.
◦ Increased marketing spends between $1,873 and $2,513 per month
on digital and social media.
◦ This is a relatively small amount compared to the company's overall
marketing budget, but digital and social media is an increasingly
important part of the company's marketing mix.
Total IT Budget: Assume 5% of total revenue.
Breakdown:
◦ Email Marketing Software: 15% of IT budget.
◦ Development, integration, training, maintenance.
◦ Supply Chain Management System: 30% of IT budget.
◦ Higher due to complexity, integration, and training needs.
◦ Influencer Analytics Platform: 10% of IT budget.
◦ For platform licensing, integration, and analytics capabilities.
◦ Hashtag Monitoring Tools: 8% of IT budget.
◦ For tool subscriptions and social media integration.
Remaining Allocation:
◦ Core IT Infrastructure: 20% of IT budget.
◦ Security and Compliance: 10% of IT budget.
◦ Contingency and Innovation: 7% of IT budget.
Key Considerations:
◦ Budget aligns with strategic goals for customer engagement and operational efficiency.
◦ Includes contingency for risk management and funds for exploring innovative technologies.
◦ Prioritizes scalability and agility to adapt to market changes.
 Summary
• Tootsie Roll Industries aims to grow strategically by focusing on enhancing
customer engagement through personalized IT solutions, improving operational
efficiency with sustainable IT systems, and expanding into new markets by
leveraging advanced analytics for adaptability.
• A thorough portfolio matrix analysis was a key component of our evaluation
process, showcasing initiatives that were strategically in line with Tootsie Roll
Industries' objectives, such as enhancing digital engagement, optimizing supply
chain efficiency, and promoting sustainability in operations.
• Each initiative was supported by IT-driven solutions, including the deployment
of Email Marketing Software for personalized customer interactions, the
implementation of a robust Supply Chain Management System to streamline
logistics and support eco-friendly practices, and the utilization of Influencer
Analytics Platforms and Hashtag Monitoring Tools to expand market reach and
adapt to consumer trends.
• These endeavors reflect a focused approach to achieving growth, customer
loyalty, and market adaptability, while also strengthening the company's
commitment to environmental responsibility.
ANY QUESTIONS ?