Eco Book Review

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Submitted by:
Akansha Agarwal19005
Aparna Giri19012
Megha Rajeev19034
Nirav Lalan19040
Priyadarshini GP19046
Rajan Luthra19049
Rushabh Lalan19055
Samir Prakash19058
Submitted by:
Akansha Agarwal19005
Aparna Giri19012
Megha Rajeev19034
Nirav Lalan19040
Priyadarshini GP19046
Rajan Luthra19049
Rushabh Lalan19055
Samir Prakash19058

PRODUCT MANAGEMENT
PRODUCT MANAGEMENT

CATEGORY: BREAKFAST CEREALS
CATEGORY: BREAKFAST CEREALS

Category Analysis
Aggregate Market
Factors| Analysis| Assessment Market Attractiveness|
Category Size| * Rs 7514 million in 2012 * Breakfast cereal category contains four primary brands – Hot Cereals, RTE Cereals, Children’s Breakfast Cereals and Family Breakfast Cereal| ++| Category Growth| * Average annual growth rate of 28% between 2006 and 2011 * Expected sales forecasted at Rs 15614 Million in 2016 and expected to grow at the rate of 16% * Category is expanding: Existing brands are coming up with new products and market penetration is also increasing| +| Product Life Cycle| * Category is currently in the growth stage of Product Life Cycle| ++| Sales Cyclicity| * While cereals are fairly priced, they are not affected by any kind of GDP variations| ++| Seasonality| * It is an year round sales| ++|

Profits| * Gross profit margin of 40 – 45% * Increasing competition and new product launches might affect the profit margin| +| Threat of new entrants/exits| * Less chances of new competitor coming into picture * Big four players (Kellogs, Frito Lay, Baggry’s India and Mohun) strongly in place * New product launches by existing player will be a threat| +| Economies of scale| * Competitors with more product variation with respect to Hot cereals and Breakfast cereals will experience economies of scale as compared to others| +| Product Differentiation| * Product differentiation is in terms of ingredients, cereals and target age group. Difficult to differentiate different products.| -| Capital Requirements| * Capital requirements is high taking into consideration distribution and product differentiation| ++| Switching Costs| * Switching costs are high, making entry of potential competitors less| +|

Factors| Analysis| Assessment Market Attractiveness|
Distribution| * Over the forecasted period distribution will be of importance to enter tier II and tier III market * Distribution is mainly done through small independent grocers or hypermarkets/supermarkets * To tap rural markets competitors tie up with small time grocers| -| Bargaining Power of buyer| * Intense competition amongst four major players gives retailer a strong power| -| Bargaining Power of suppliers| * With higher inflation with respect to cereals, cost of the end product increases, hence supplier also have strong power| -| Pressure from Substitutes| * Very high pressure from substitutes because traditional breakfast in India still has most of the consumers| -| Category Capacity| * Since four players are already ruling the market, difficult for a new competitor to enter or category to expand| ++| Current Category Rivalry| * Intense rivalry between the top two brands Kellog’s and Frito Lay. Both trying to capture untapped markets| -|

Environmental
Factors| Analysis| Assesment Market Attractiveness|
Technological| * Technology will play a major role with respect to distribution and customer relationship management| +| Economical| * If economic condition worsens, prefer might prefer other variants like bread/butter or home cooked breakfast| -| Political Regulatory| * Not enough regulations with respected to this category| +| Social| * As times are getting busier, and everybody preferring instant/minimum time of preparation, this category is poised for high growth| ++|

Competitor Analysis
Value Share
Kellogg India Ltd...
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