Objective & Agenda

Food Co. Case Study

Industry AnalysisIndustry size, classification and statisticsMajor trends and challengesMajor Demand drivers

3C&P: CompanySWOT AnalysisFinancial Analysis

3C&P:CompetitorPorters 5 force analysis

3C&P:Customer&ProductProduct Portfolio Consumer behavior

1

Nishit Chandarana (FT154061)Saket Mohan Jha (FT154039)

Findings and recommendation Integrated Marketing Campaign Consumer behavior research

Industry Overview Size of the Industry is 514 million dollars CAGR of the industry that the as a whole is

not growing. The Industry can be divided into 3 segments

namely Cookies, Crackers and Candy The industry is highly fragmented with about

Crackers Industry is growing at an impressive rate and FoodCo should capitalize on it.

Candy Industry is growing too but is not a major revenue generator.

The demands of the consumer is tending towards healthy eating and therefore they prefer more organic content in their food.

Trends• Consumers are not ready to skip snacks but

eat more healthy natural foods.• Organic food Industry has a rapid growth and

that is an opportunity Growth is expected in fortified products unity

for the different players in the industry. Most companies show a trend of decrement

in CAGR.

• The major challenge is to arrest the decrease in market share for all the payers.

• Provide satisfactory customer service by the method of efficient food delivery.

• To improve branding and capitalize in the growth of organic industry.

• As the consumer have become more health conscious they are moving towards healthy food.

• Efficient resource utilization.

Challenges in the Industry

Demand Drivers in the Industry

Data Analysis• Industry growth is flat• Margins for the companies are shrinking• Tough competition from changing consumer snacking trends

3C&P: Company(Food Co)

STRENGTHS WEAKNESS

Stream Lined Operations Risk - Averse Decision Making

Good Cash on Hand for expansion Less Brand Awareness

OPPORTUNITY THREATSNew Products with high growth opportunity Threats from Organic Foods

Threat from new competitors

3C&P: Competitors(Porters 5 force Analysis)

Force Score Rationale

Bargaining Power Of Buyers High 4

Price Sensitive BuyersSwitching cost is highThreat of Backward Integration is low

Bargaining Power Of Suppliers Less 2Large number of Players in MarketLess margin

Threat Of New Entrants High 4

Low Capital RequirementNot much Technical Expertise requiredLow pre qualification Norms

Industry Rivalry High 4

Industry is fragmentedConsumer Loyalty is less.Product differentiation is lowExit barriers are high

Threat Of Substitute Products Low 2Less substitutes availableProduct differentiation is low

3C&P: Customers and Products• Organic food Industry has crossed a threshold in 2000

when it was freely available in the super markets• Customers bent towards organic food clearly suggests

FoodCo to move towards this domain.• Public Reports in 2002 have suggested that 7.8 billion

dollars were spent on organic food.

Findings and Recommendation

• Improve Distribution Network by implementing IT Solutions like SAP CRM and SAP SCM which will ultimately increase profit margins.

• Market Share can be increased by introducing new products in all categories.

• Integrated Marketing Campaign can launched to revive brand awareness by introducing innovative campaign at all customer touch points like social media, print media, TV ads etc.

Targeted advertising in specific media will help reflect brand character,Advertising and POS

Endorsers

Getpassionate people

to

Research

Industry &Cometiin

and build brand salience; POS will help improve brand imagery

Suggested Advertising Communication Themesendorse the brand – notnecessarily high profilecelebrity endorsers, but popular individuals who are passionate about what they do

Gifting during festivalsGift yourself, Giftothers - a perfect giftfor thepassionate professional

Celebrate your Passion professional achievements and milestones (first job, a promotion) - Rewarding yourself with an FC- a timeless masterpiece to celebrate your passion

My Passion – my pride Inspirational heritage and story of Frederique Constant founders and their values and passion

Channels for AdvertisingMagazines

• Besides corporate magazines alreadyBusiness Today and The Week Magazine

used, Forbes,

• Since the TG is now Professionals, lifestyle magazines like Chip, Verve, Tehelka can be added• :͚The Little Magazine’ featuring art, films,

documentaries, poetry can be an interesting addition

BillboardsOutside

airports,studios, 5 star hotels

IT parks,

In-Flight entertainmentfor international flights bound into India

Point of Sales MarketingE- displays and screens

At the POS technology enabled electronic catalogues can be used to display various ideas around Passionate.

Branded FC collectiblesRefine packaging to includea branded collectible with every

FC watch – Either it can be standard or varying as per the FC

collection Examples: A Frederique Constant

Stamp, a heart shaped ornament

STP and Marketing

Mix

SWOT and Brand Euity

DevanagariWatch

Integrated Campaign