MGT490 PROJECT

Industry: Chips/Crisp

Name ID

Arshadul Amin Tuhin 2022182

Yousuf Hossain Ikbal 2021985
Sanjida Zaman 1920566
Masuduzzaman Nahid 1911170
Sadia Jahan 1821685
 Overview Of the industry

 The crisp/chips industry in Bangladesh is a growing

industry.
 The industry is segmented by type, flavor, distribution
channel, and region.
 The major drivers of market growth include the increasing
population and income levels.
 The limited supply of potatoes, and the intense competition
from other snacks such as cakes, biscuits, and crisps.
 The retail segment is the largest segment in the crisp/chips
industry in Bangladesh.
 The other companies’ segment is the second largest
segment.
 The higher contribution of the retail segment to operating
income.
Industry Analysis

Industry Size and Growth Trends and Factors that have shaped the Trend in the last few years or
Decades:
 The crisp/chips industry in Bangladesh is growing rapidly.
 Is expected to grow rapidly in the coming years.
 The increasing popularity of flavored crisps
 The growing popularity of organic crisps
 The rise of private-label crisps
Key growth trends in the crisp/chips industry in
Bangladesh

 Increasing demand for flavored crisps

 The growing popularity of organic crisps
 Rise of online sales
 The crisp/chips industry in Bangladesh has seen a number of trends in recent years, driven by a number of
factors.
Maturity of the Industry

 Early stages of maturity, but it is growing rapidly.

 The industry is dominated by a few large players.
 The industry is facing a number of challenges.
 Despite these challenges, the crisp/chips industry in Bangladesh is expected to grow rapidly.
 The industry is also expected to become more mature in the coming years.
 More innovation, as manufacturers look for new ways to attract consumers.
EFFECT OF SEASONALITY

Availability & Buyers buy all year

Demand. around.

Low consumption
rate.
EXTERNAL ECONOMIC FACTORS

Geographical-Almost all the district in Bangladesh chips available where Dhaka is the Biggest source of
revenue for the chips industry.
Demographical- Economical-
Technological factor

Automation: Chips are processed, packaged, and distributed via automated systems.

Food Safety and Traceability: Various technologies are being used to monitor chips
safety and traceability.

Online Platforms: E-commerce platforms such as Daraz, Chaldal, and ghorer bazar
have made it easier for consumers to purchase chips on online.

Robotics: Robots are being used for tasks such as sorting & packaging.
 Regulatory, Political, and Legal Concerns in the Bangladesh
Crisps and Chips Industry

 Regulatory Compliance
 Such as the product of Bombay Sweets
 Import and Export Regulations
 Political Stability
 Legal concerns
 Intellectual Property Protection
Competitive Environment and Changes in the
Competitive Environment

 Market Saturation
 Changing Consumer Preferences
 Technological Advancements
Porter's Five Forces
• Growing Consumer • Quality and Safety
Demand Concerns
• Abundance of Raw • Reliance and Imported
Materials Technology
• Established Distribution
Networks

S W

O T
• Healthier Snack • Intense Competition
Alternatives • Changing Consumer
• Export Potential Preferences
Challenges the Chip Industry Facing in
Bangladesh

Technological Lack of access to the latest technologies, research, and development resources.
Limitations Hinders innovation and competitiveness.

Skill Gap Requirement for a highly skilled workforce in electrical engineering and semiconductor technology.

Challenges in providing necessary education and training.

High Import Dependency Reliance on imported raw materials, machinery, and technology.

Vulnerability to supply chain weaknesses, currency fluctuations, and increased costs.

Funding and Investment Capital investment is crucial for establishing a successful chips industry.

Difficulties in acquiring sufficient funding due to economic factors or lack of investor interest.

Intellectual Property Importance of protecting intellectual property rights to foster innovation and prevent unauthorized duplication.
Protection Challenges in ensuring strong IP protection, potentially discouraging foreign investors.

Environmental Concerns Chip manufacturing processes pose environmental hazards and generate electronic waste.

Need for sustainable practices and compliance with environmental regulations.

Market Demand and Limited local market for chips, necessitating reliance on exports for long-term growth.
Export Opportunities Difficulties in identifying and capitalizing on international market opportunities.
Navigating Challenges in Bangladesh's Chip
Industry
Product Diversification
• Expand product line beyond
traditional potato chips
• Create healthier alternatives (e.g.,
baked chips, alternative
ingredients)
Quality Control and
Compliance
• Prioritize food safety and quality
control
• Ensure compliance with national
and international food safety
standards
Collaborate with
Government and Industry
Associations
• Work collectively to address
common challenges
• Advocate for policies promoting
chip industry growth
Strengthen the Supply
Chain
• Work closely with farmers and
suppliers
• Ensure a steady supply of high-
quality raw materials like potatoes
Marketing and Branding
• Invest in effective marketing
strategies
• Utilize digital marketing and social
media for broader reach
Consumer Education
• Conduct campaigns highlighting
nutritional benefits
• Promote responsible snacking
habits
Technology Investment Energy Efficiency
• Adopt modern manufacturing and Measures
packaging technology • Implement energy-efficient
• Implement automation and practices
optimization for efficiency and cost • Explore alternative energy sources
reduction to mitigate costs
Distribution Expansion Research and
• Collaborate with reputable Development
distributors and retailers • Invest in R&D to stay on top of
• Utilize e-commerce platforms for consumer trends
reaching wider audiences • Develop distinct and appealing chip
flavors and formats
Sustainability Initiatives Brand Transparency
• Embrace sustainability practices in • Be open about sourcing,
sourcing and packaging manufacturing, and ingredients
• Appeal to environmentally • Build consumer trust and loyalty
conscious consumers
 Conclusion

Due to the increased demand for snacks, rising disposable incomes, and rising
employment of women, the Bangladesh Chips/Crisp Market is anticipated to
expand quickly over the projected period. The middle class in the nation is
expanding quickly, and they are spending more on luxuries. Additionally,
customer’s busy lives and rising popularity of convenience meals present a
huge potential opportunity for the country's potato chip market. With rising
consumer demand for snacks, Bangladesh's chip business is expanding. The
market serves a wide range of customers, from toddlers to adults, living in both
urban and rural locations.
Thank You
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