dub
23
[SWOT, 4P, 5 FORCES]
As for the mesolevel of our analysis, we apply the Porter's Five Forces framework:
Here are the 4 Ps
Product: Baby carrots ShakeDowns (seasoning includes dill, chervil)
People: Our target group is young energetic people caring about health. Those who the following commercial created for:
Baby Carrots ShakeDowns Entering Russian Market.jpg)
Just shake´em
and crunch your cravings !
We suppose there is a specific consumer's need in a Russian market right now - the need for a quick and healthy food under vigorous megapolis lifestyle conditions.
To prepare for market enter, we have conducted a SWOT analysis of Russian green fast-food market:
Strengths
- Growing popularity of organic products
- Existing need for quick and healthy food under vigorous megapolis lifestyle conditions
- Unrecognizable brand
- Unconventional usage
Opportunities
- Occupy market segment using the first mover advantage
Threats
- Low price of traditional fast food
- Unexpected consumers’ perception (“carrots?”)
- Internal rivalry - low/nonexistentThe segment is in a process of a formation
- Bargaining power of suppliers – lowBolthouse owns the farms
- Bargaining power of buyers - moderate
- Threat of new entrants – moderateWith development of a segment the ultimate profitability will grow, which will attract new players
- Threat of substitutes - highCheaper and more accessible burger is always an option
Here are the 4 Ps
Product: Baby carrots ShakeDowns (seasoning includes dill, chervil)
People: Our target group is young energetic people caring about health. Those who the following commercial created for:
Promotion: slogan - "Eat them like a junk food" Price: competitive in a comparison with fast-food
Place: big supermarkets - Lenta, Dixi, MarketPlace
Our main concerns about the enter:
- Free-rider effectInnovation costs (buyer's education, infrastructure development) exceed severely imitation costs of late movers
- Possible issues with quality control on a plantations during further development and expansion in case the raw carrots growing will be transported to Russia.
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2 comments:
Hi, girls!
The project seems to be really interesting and I believe that there is a real chance for successful introduction of BabyCarrots by Bolthouse to Russian market. However, to my mind, there are some issues that should be taken into account.
Competitors:
The market is not saturated yet; however there are some real-similar items in the market:
- Carrot sticks & Apple segments by McDonalds (http://mcdonalds.ru/main-menu/salads/morkovnie-palochki#id=138)
- Crunchy carrot , Bracing radish & Juicy apple by Belaya Dacha (http://www.bdsalads.ru/salads/#section-snacks)
Suppliers:
The main concern here is that in order to introduce a really healthy and fresh snack, it is better to use local production facilities as production itself, storage and transportation in another place is quite time-consuming and may affect the final product (as it is a perishable good). In that case, it can be reasonable to cooperate with Belaya Dacha company, which has its developed production and transportation facilities (http://www.bdsalads.ru/about/).
Buyers & threat of substitutes:
I am fully agree that the threat of substitutes is rather high and it is not easy to predict the consumers’ behavior. In order to reach the target group you have indicated, probably, it can be reasonable to use only not big supermarkets, but also small ones, such as StopExpress (stopexpress.ru).
In addition, there is also a trend of emergence of fast & healthy food restaurant chains, which can also be considered as a distribution channel.
In Moscow:
- Fresh& Co (www.freshandko.ru)
- Prime Star (www.prime-star.ru)
- HealthyFood (h-food.ru)
In St. Petersburg:
- Fresh Point (www.fresh-point.com)
Good luck with your project and I hope my comments will somehow help you!
Thank you very much for, basically, doing part of a researcher's job:) As for the distribution, we're planning to sell our product at all four chains and it really looks like the "win-win" collaboration. As for the production, this issue is a little more complicated. According to my data, for raw veggies Belaya Dacha collaborates with private farmers from Black sea region and from Italy, Spain. As for production, they have two facilities in Moscow and Tatarstan. I think, in order to form a business offer, we should identify what would be the "win" element for them.
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