FISH TANK FILTERS
Porter’s Five Force Model SWOT
Estimation of Demand
Positioning: Product Feature Comparison, Points
of Parity and Points of Difference, Perceptual
Distribution Channel and Physical Distribution
Learning from this Project
Nemo Fish Tank Filters manufactures and sells four types of fish tank filters: biological, mechanical, fresh water and sea water. Nemo sells its products directly through retailers and its span of coverage is limited to the pet stores in Udupi and Manipal. Nemo prides itself on its economy and durability of offering in comparison to its competitors. All its filters are priced at Rs.330, a price range which falls in between its two strongest competitors.
The target market for this product is mainly newlyweds or households with children. Nemo plans to sell its filters to this segment as fresh purchases or re-purchases, either when purchasing fish to re-fill a tank or as renewal after the product life cycle.
PORTER’S FIVE FORCE MODEL
The competitive environment for the fish tank filter industry can be assessed using Porter’s Five Force Model. This model helps in ascertaining the attractiveness and level of competition of the industry as a whole.
Threat of New Entrants
•Threat is low
•Low involvement product in low margin segment of Rs. 300 - Rs. 500 does not significantly attract marketers
Threat of Substitutes
•New age electronic filters are entering the market, which are expected to gain popularity fast
•Due to import of cheap Chinese products
Bargaining Power of Suppliers
•Raw Material requirements are simple and easily available
Bargaining Power of Buyers
•Few but similar products with similar pricing available
The competitive position of the company as an individual player in the market can be assessed through the SWOT Analysis.
> High economy
> High relative
> Low brand
> Limited market reach
due to small capacity
> Absence of strong
players in this segment
> Low cost Chinese
> Growing trend of
keeping fish as pets
ESTIMATION OF DEMAND
Number of households in Udupi Taluk
Number of households that own fish tanks (approximately 8%)
Product awareness (33% x 104608)
Purchase intent (28% of 8368)
Estimated market penetration (43%)
Educational institutions, hospitals/clinics,
Generally purchase tanks of capacity >>> 50
Middle class families with children, newly
wedded couples, retirees
Generally purchase tanks of capacity < 50
Our choice of target segment is limited by the capacity of our filters (30 litres – 50 litres). Since the household segment is most likely to purchase small or medium sized tanks, they will look for filters that accordingly match this capacity. Our filter has been designed to fit the range of 30 – 50 litres, therefore, our main target segment is the household segment. In addition, this segment has great promise as the number of households and average household income is steadily growing. This segment is also relatively easy to access as they usually frequent pet stores to purchase fish tanks.
By concentrating on a single segment, we will be able to focus all our resources and commitment to maximizing the returns from this segment. This will allow us to develop a deep understanding of the customer’s needs and achieve a...
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