(a) Define Category:
Category for Calbee potato chip would be Product Category and the product falls under potato chip snack industry. This report will be specifically be looking at only the potato chip snack industry and will be observing other competing products with same features. Additionally, no other snack industries will be discussed in this report; such as, apples, pies and cakes etc. When observing the snack market, potato chips can form a market by itself in Singapore. For instance, we can look at different types of potato chip snack flavors that the Calbee and other competitors may offer such as, salt and vinegar, hot and spicy, BBQ and many others.
(b) Define competitors:
There are several competitors when dealing with Fast Moving Consumer Goods (FMCG) especially in the potato chip snack market. This section will closely look at different flavors and similar flavors that competition offers. Competitor number 1: Pringles: Offers diverse range of flavors that Calbee Potato Chips do not offer for instance: Soft Shell Crab, Grilled Shrimp, Blueberry and Hazelnut and Seaweed. In addition, it flavors match to taste of locals and south east Asian market. Competitor number 2: Lays: Offers similar flavors that Calbee Potato chip snacks offer such as, seaweed, original salted, sour cream and onion, barbeque, Limon and salt and vinegar. Competitor number 3: Jack and Jill Potato chips: BBQ, lightly salted, spring onion and garlic and salsa flavored.
(c) Compare the following among the defined competitors and your brand: (1) Target Segment:
Calbee potato chips are considered Fast Moving Consumer Goods (FMCG); therefore, the product itself is not expensive and is enjoyed by people of all ages and different genders. However, most of its focus is on the young and middle aged groups (Generation Y). This perhaps can be that older markets tend to be more health cautious or have brand loyalties with other brands. In addition, younger generation may not be as health cautious compared to older generation, because younger market in particular may be active in playing video games, attending movie theaters and parties where snacks are highly present.
Moreover, younger generation in Singapore tends to have stressful lives; and stress is highly correlated with craving for snacks such as potato chips. Lastly, with Singapore being a rapidly growing country and younger Singaporeans earning more income, the target segment has more disposable income to enjoy things such as snack items.
(2) Brand Positioning:
Calbee potato chip has positioned itself as fairly cheap, not too expensive; yet do not have variety of flavors for consumers to choose from. From the positioning map it is a cost leader for potato chip snack market. This section will discuss three main competitors in the Singaporean market. First competition to be discussed is Jack and Jill potato chips. Jack and Jill prices are considered lowest out of all the competition and are priced slightly lower similar to Calbee potato chips. This endangers Calbees position in Singapore as they can be substituted by Jack and Jill. In addition, Jack and Jill and Calbee have almost identical flavors, which may limit variety of flavor choices and especially with price sensitive consumers such as, younger market may want to opt for Jack and Jill. Second competitor observed will be Lay’s potato chips. Lay’s positions itself as a higher priced and provides unique flavors that Calbee potato chips are not able to offer in the Singaporean market. In addition, Lay’s has a very strong market presence and distribution channels in Singapore; which are able to reach out further to consumers. Last competitor for Calbee potato chips will be Pringles. Pringles in the Singaporean market is the highest priced potato chip snack market. With high price, Pringles also offer the most variety of flavors compared to its competition. Like Lay’s...