Product Analysis

Category

Competitor

Customer

Demand

1.
2.

Aggregate Category Factors

Category Factors

3.

Environmental Factors

a)
b) c)

d)
e) f)

Category Size Category Growth Stage in the PLC Sales Cyclicity Seasonality Profits

Sales

Stage of product life cycle Category size Category growth

Introduction Small

Growth Moderate High High

Maturity Large

Decline Moderate Negative Low

Time

Low

Low
Low/high

Low Category attractiveness

Attractiveness

Market Factors

High
Large Size Growth Stage in life cycle Cyclicity High Early Low

Low
Small Slow Late High

Seasonality
Marketing spending Profits

Low
Low High

High
High Low

Threat of New Entrants Bargaining Power of Buyers Bargaining Power of Suppliers Amount of Intra-category Rivalry Threat of Substitute Products or Services Category Capacity

Bargaining power of suppliers

Threat of new entrants barriers to entry

Amount of Intra Category Rivalry

Threat of substitute product / services

Bargaining power of buyers

Attractiveness

Competitive Factors

High
Power of buyers Power of suppliers Rivalry Pressure from substitutes Capacity utilization Threat of entry Low Low Low Low High Low

Low
High High High High Low High

Technological Political Economic Regulatory Social

Category Size

More than US $ 1.4 bn snack food market.

Frito Lays ITC (Bingo) Haldiram Parle (Hippo) SM Foods Garden Hygienic Fun Flips Regional Players like Balaji, Bikano..

Major Players

Category Growth

The industry has been growing10% for the last 3 years. Branded segment is growing around 25% per annum. Due to Multiplex culture, changing food habits, snacking at home while watching TV, pubs and bars (where they are served free). Market Attractiveness: (+) Prices are such that they do not get impacted directly with the variations in income. No direct affect due to changes in income so it has more attractiveness.
Year round Sales. Sales increase in the Holy festival seasons specially near Diwali, as people tend to purchase snacks as gifts. Market Attractiveness: (+) Less production cost. High advertisement cost and packaging cost. Market Attractiveness: (-)

Sales Cyclicity

Seasonality

Profits

Threats of New Entrants

High Capital required. - Strong distribution network. - Large number of intermediaries. - Low availability of adequate infrastructural facilities. - High inventory carrying cost, High packaging cost. - High competition. - Huge Market & Lack of Differentiation, differentiation is largely through the brand, flavour, style, shape. Market Attractiveness: [-]
-

Supplier Power
Large number of suppliers but supply is limited. - High demand. - High competition. Market Attractiveness: [-]
-

Threat of Substitutes
Close substitutes from big players. - Same products from same sector. - Also other substitutes like biscuits, toffees etc. Market Attractiveness: [ - ]
-

Buying Power
No bulk purchase. Buyers are fragmented. Liking for special flavour. Prices are fixed. Market Attractiveness: [+]
-

Degree of Rivalry
large no. of firms. low switching cost. High storage cost and highly perishable product. Low level of product differentiation. Personal rivalries. Market Attractiveness: [-]
-

Economical
All income groups are favorable for the Industry. Market Attractiveness: [+]
-

Political Factors / Regulatory

The Ministry acts for bringing in greater investment into this sector, guiding and helping the industry in a proper direction and creating a conducive environment for the healthy growth of the food processing industry. Market Attractiveness: [+]
-

Technological factors
Need of modern technology to enhance the production and the quality. - So many quality restrictions. Market Attractiveness: [-]
-

Social/ cultural factors

Change in lifestyle. - Change in eating habits. Market Attractiveness: [+]
-

To analyze competitors, a commitment to developing a competitive strategy that includes a willingness to expend resources on collecting data is necessary

COMPETITORS

Direct
Close Substitute Indirect

SECONDARY DATA

PRIMARY DATA

Who are they? What are the competing product features? What do they want? What is their current strategy?

Differential Competitor advantage analysis

What are they going to do

Customer Communications

Internal Sources

Local News Papers

Annual reports
Patent Filings

Consultants

Internet

SECONDARY DATA

Business Press

Promotional Literature Trade Associations News Release

Government

Customer Communications

Investment Bankers Sales Force

PRIMARY DATA
Employees
Suppliers Customers

Monitoring tests Markets

Help wanted ads Trade Shows

Other Sources
Hiring Key Employees Poaching Reverse engineering Plant tours

 Marketing strategy

Comparing value chains

Marketing mix Pricing Promotion Distribution Product/Service capabilities