Objective & Agenda

Food Co. Case Study

Industry Analysis
Industry size, classification and statistics
Major trends and challenges
Major Demand drivers
3C&P: Company
SWOT Analysis
Financial Analysis
3C&P:Competitor
Porters 5 force analysis
3C&P:Customer&Product
Product 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 THREATS
New 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 Buyers
Switching cost is high
Threat of Backward Integration is low
Bargaining Power Of Suppliers Less 2
Large number of Players in Market
Less margin
Threat Of New Entrants High 4
Low Capital Requirement
Not much Technical Expertise required
Low pre qualification Norms
Industry Rivalry High 4
Industry is fragmented
Consumer Loyalty is less.
Product differentiation is low
Exit barriers are high
Threat Of Substitute Products Low 2
Less substitutes available
Product 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
Get passionate people to
Research
Industry
&Cometiin
and build brand salience; POS will help improve brand imagery
Suggested Advertising Communication Themes
endorse the brand not
necessarily high profile
celebrity endorsers, but
popular individuals who are
passionate about what they do
Gifting during festivals
Gift yourself, Gift
others - a perfect gift
for the passionate
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 Advertising
Magazines
Besides corporate magazines already
Business 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
Billboards
Outside airports,
studios, 5 star hotels
IT parks,
In-Flight entertainment
for international flights bound into India
Point of Sales Marketing
E- displays and screens
At the POS technology enabled
electronic catalogues can be
used to display various ideas
around Passionate.
Branded FC collectibles
Refine packaging to include a
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
Devanagari
Watch
Integrated
Campaign