Company Analysis

Market Oriented Strategic Planning

S ubmitt ed by: Group 8

Aa stha Tulsy an

Hima nshu Nina wa t

Sa k shi S ha h

S hubha m Cha uha n

S hubham Gupta
S hiva m Garg

Utsav S ha rma
Vision & Mission
Vision
Core Ideology Envisioned Future
Core Values Core Purpose BHAGs Vivid Descriptions
Love & Service Be sustainable- Use
Care & Integrity Empower people to less energy water Be the best snacking
Do what is right Snack right and waste and use company
Grow everyday the best ingredients

Mission
Lead the future of snacking around the world by offering the right
snack, for the right moment, made the right way.
Strategies
Hambrick’s diamond
Arenas Vehicles Diffrentiators Staging Economic logic
Broad range Internal development Quality Availablity in rural areas Economies of scale
Chocolates, beverages,
Startegic alliances Right snack International expansion Smaller SKUs
biscuits, candies, gum
Expansion of buiscuit
Operations all over India Acquisitions Variety Diffrentiated offerings
porfolio
Retalers, distirbutors,
Licensing More milk Global offerings
modern trade and direct
All age groups- Distingusihed Cadbury synonymous with
products chocolates
Indian employees

Diffrentiated Positioning Trade-offs Activity Fit

No advertisements for Heavy investement in R&D-

Satisfying broad needs of
children below the age of 12 Team consists of 2400
many customers. Huge
years- Responsible scientist and engineers
variety available
marketing working in 11 R&D centres
Powerhouse of brands: Investment in new brands,
No partnering with suppliers
Cadbury Dairy Milk, Orea, incubating & repositioning
who haven't conducted
Bourvita etc. High brand existing brands- Discover full
ethical audit - CSR
value and loyalty potential
 H
GE Matrix
Allocation of resources
M e d iu m

SBU Suggested Strategy Investment (INR CR.)

Chocolates Invest and Grow 500
Beverages Protect existing share & invest for growth 450
Chocolates Beverages Biscuits Invest for growth 620
Biscuits and Cookies Candy
Low

9.00 Protect. Develop and build for revenue

Candies 430
generation.
6.00
Total 2000
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0.00 3.00 6.00 9.00

Low Medium High

Competitive Positioning
SWOT- Chocolates
SWOT- Beverages
Porter’s Model : Biscuits
Rivalry among competitors – HIGH
• Several players(National, International)
• High industry growth
• Low switching cost
Barrier to exit – LOW
• Unspecialized machinery
• No Govt. interference
Government actions – MEDIUM
• Duties levied on imports
Bargaining power of suppliers – LOW
• Large number of suppliers
• No forward integration
• Disruption through backward integration
not possible
Bargaining power of buyers – MEDIUM
• Low switching cost
• Large customer base
• Too many substitutes
Threat of substitutes – HIGH
• High number of close substitutes
• Low switching cost
Barrier to entry – MEDIUM
• Economies of scales difficult to achieve
• Easy access to raw materials and tech.
• No significant protection for operators
• Difficult to position new brand
Porter’s Model : Chocolates
Rivalry among competitors – HIGH
• Large number of competitors
• Fast industry growth
• Low switching cost
Barriers to exit – LOW
• Equipment can be used in other industries
• No Govt. interference
Government actions – MEDIUM
• Protection of interests of local coco
suppliers
Bargaining power of suppliers – MEDIUM
• Medium number of suppliers
• Competitors doing backward integration
• Switching cost for supplier is low
Bargaining power of buyers – MEDIUM
• Large number of buyers
• Threat of backward integration is very low
• Industry’s threat of forward integration
Threat of substitutes – HIGH
• Easy availability of close substitutes at low
prices
• Unregularized local sweets businesses
Barrier to entry – HIGH
• Significant differentiation in brand image
required
• High capital investment
• Economies of scale difficult
Growth Opportunities
Chocolates
• Overall growth of Indian chocolate market has
been forecasted at 12.8% and to reach US $ 1.8
bn.
• Chocolate has been most popular confectionary
items with 61% of Indians eating chocolates daily
or once a week.
• Changing health trends with reduction in sugar
consumption
• Dark chocolate emerging as favorite option for
Indian consumers and one of the key-driver for
new product development
Biscuits
• Biscuit Market to reach USD 1.1 billion by 2025,
expanding at a CAGR of 9.0%
• Rising demand for healthy snacks, coupled with
high per capita food consumption is contributing
to the growth of the Indian market.
• Rising awareness about health and fitness and
growing preference for healthy snack products,
especially among the working professionals and
millennials,
• Manufacturers are actively indulging in the
production of healthy biscuits in different flavors
to enhance the taste.
• strong opportunity in the Indian market owing to
rising health awareness and growing food safety
concerns
Strategy Recommendations
Chocolates
• Focus on market penetration by improving the
existing product to increase its market share and
drive out competitors,
• Can be achieved by decreasing the price of the
existing product to make the offering competitive
and motivate the customer to buy more
• Increasing promotion and distribution efforts to
improve product reach
• Attract customers from weaker competitors and
encourage non-users to start using the product
• Encourage current customers to buy more by
consistent marketing efforts.
Biscuits
• Focus on product development and introduce a
new product in the healthy biscuit segment
• Company is missing out on a significant number of
customer base and revenue that can be generated
from this customer segment
• Categorize customers in groups and target the
healthy biscuit customer segment
• Invest in R&D
• Try to acquire a local brand with already existing
healthy biscuit product line and merge the
resources to accentuate the product offering in the
concerned segment
THANK YOU