PORTERS FIVE FORCE MODEL

THREATS OF SUBSTITUTE PRODUCTS

NUTRINE CONFECTIONERY COMPANY LIMITED spanning diverse

products and services like Confectionery, Chewing-gums, fruit bars etc.

NUTRINE has a wide range of more than 72 varieties of candies, toffees,

lozenges etc. Being the leader in the industry for more than a decade,
NUTRINE has always endeavored to satisfy the customers changing wants
and desires with its special emphasis on quality, range and cost effectiveness.

There was a big threat of unorganized sector in the rural India and there were
competitors like Parle, Parrys and Ravalgon.

Nutine has substitute products in confectionery,chocolates,gums ,instant

foods and fruit bars from the companies like parrys.bakemans,nestle and
parley.

Parley is one of the major competitors of nutrine in all kinds of products.

THREATS OF NEW ENTRANTS

The market has been evolving with the entry of many multinationals. More
investments were taking place in the industry. This category would grow at 8
to 12 per cent annually. The organised market was 60 per cent and the
unorganised 40 per cent. In five years the organised segment would raise its
share to 80 per cent.

COMPETITORS

Its main competitors are Parle, Parry and Ravalgon. The production
capacities of this companies are almost equivalent to the nutrine. so to be the
leader in the market nutrine has to work on its product mix for all its products.

Company need to focus on its production capabilities to keep up in the

market.

All this companies are having substitute products in confectionery,gums,fruit

bars and chocolates.

BARGAINING POWER OF SUPPLIERS

Nutrine was into contract farming. In contract farming what they were doing
was taking land on lease and ask farmers to grow the crops and the other
necessary fruits which were required for the production.

There main strength was backward integration.its manufacturing plant was

under horticultural belt which was the biggest advantage for the
company.vegetable and fruit processing was development in that region.

Another component in raw material is sugar since sugar in a not a unique

material supplied by any supplier so even in case of sugar the bargaining
power of supplier is less.

BARGANINGPOWER OF CUSTOMER

Product differentiation in confectionery market is low.every confectionery

company in the market has same variety of product within the same price
point. This situation creates mercenary consumers who are totally inclined
toward price point.so company launches too many policies to attract
customers. This makes the confectionery market highly consumer controlled
market.

So the bargaining power of customer is extremely high.