Porters 5 Forces for Del Monte India

Topics: Marketing, Retailing, Del Monte Foods Pages: 4 (909 words) Published: September 16, 2010
Company name: Field Fresh Pvt. Ltd. (Del Monte Foods)
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-
* Buyer concentration: less
* Buyer Volume: low
* Switching cost: low
* Brand identity: strong
* Ability to backward integrate: less

Threat of Potential Substitutes-
* 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...
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