It's usually easy to get good results from .308W and all of the load suggestions provided should work well.
A few suggestions.
One, try a different bullet. Barrels have like and dislikes. Although the 168gn SMK is usually a work-in-everything model, your barrel may not like it for whatever reason.
Secondly, you don't say how many rounds have gone down the barrel. Savage factory barrels usually come pretty rough and take 200 plus rounds to run-in. Owners often see a significant tightening in groups at around the 250 round mark.
Third, action screw torque settings have a big effect on these actions, especially if it's a three-screw model. There is a post somewhere on the forum about a recommended 'tuning' method that sees the main front pair torqued up very tight first, followed by the rear screw which is initially only just done up before gradually tightening it in small increments of 5 inch-lbs and watching group size all the while, which should reduce as you reach an optimal point and then increase again past that.
Naturally, I can't find this post, but there are several on the forum giving similar advice on Savages (one listed below), and it may be worth visiting the Savage Shooters Forum if stuck.
http://www.accurateshooter.com/forum/index.php/topic,2595422.msg24943135.html#msg24943135
Finally, you're not that far off really good groups. It is a mass produced factory rifle after all. Because some examples consistently group within 0.25-0.5" doesn't mean every one will. A three-quarters MOA factory rifle is still within specification and would have been regarded as unbelievably good not too many years ago. I have both 'types' of Savage, and know that it's easy to have inflated expectations from them in out of the box form.
I reckon with some running in, optimal bullet selection, and maybe a play with the action screw settings, you'll get a half-MOA ('average') rifle and that's very reasonable for an off the shelf product.
Laurie,
York, England