SBU: Processed foods & beverages
Strategic group: Nestle (Maggi), HUL (Kissan), Dabur (Real)
Industry Analysis: A. Bargaining Power of Suppliers-Low * Switching costs- low * Differentiation of inputs- low * Threat of forward integration- high * Supplier concentration- low
The Porter’s “Five Forces” framework for packaged food & beverage industry analysis
Bargaining Power of Buyers-
Low
* Buyer concentration: less * Buyer Volume: low * Switching cost: low * Brand identity: strong * Ability to backward integrate: less
Threat of Potential Substitutes-
High
* Price performance differentiation: low * Switching cost: low * Buyer propensity to substitute: high
Threat of New Entrants- Medium * Brand Identity: strong * Switching costs: low * Access to distribution: tough * Proprietary product differences: low * Capital requirements: High * Access to necessary inputs: Tough
Industry competitors
Degree of Rivalry- High * Industry is expected to grow at CAGR of 9% * Brand identity: Strong * Switching costs: low * Product differences: low * Diversity of Competitors: high
B. Key Success Factors: a) Distribution-related KSFs: * A large network of distributors * Efficient and responsive supply chain * Efficient usage of Retailer shelf space as Display * Trustworthy relationship with retailers
b) Marketing-related KSFs: * Top of the mind brand recall * Motivated Sales team trained in having good product knowledge * Point of Sale advertising * Special offers and bulk buy deals for retailers * Attractive and strong product packaging
c) Other types of KSFs: * High product quality standards in norm with food standards and guidelines * Product innovation capabilities with respect to new product launch and time to market
C. Industry’s Dominant