5. COMPETITOR ANALYSIS
Today’s environment in the Chinese chewing gum markets is fierce and highly competitive. In the markets several international and domestic players exist and they fight for market share with a wide variety of choice to consumers. While considering these facts we see yet, that there is potential for us to conquer bigger share of the markets. One essential step in this is to understand our competitors.
From the existing market players we perceive Wrigley’s Confectionery China as our main competitor as it had almost 65 % market share in 2014 (Zhuoqiong, 2015). Under Wrigley’s operate brands such as Extra, Double Mint and Five. These brands form the basis of the outstanding market share that Wrigley’s has. Wrigley’s offers also xylitol and sorbitol sweetened chewing gum. Although it has to be noted that Wrigley’s is not offering 100 % xylitol as we do (Wrigley China, 2015).
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Other main competitors are Stride, which is part of Mondlēz group (Mondelēz International, Inc., 2015).
With its market share of 5,5 % (Zhuoqiong, 2015) it is potential competitor. Lotte that has a portion of the 9,5% share of “others” (Zhuoqiong, 2015) is also seen as a potential competitor. Stride and Lotte are both offering xylitol options in their products portofolio. In Stride gum, the amount of xylitol is less than 2 % (Fooducate, 2015), while in Lotte the amount is as high as 86 % (LOTTE Confectionery, 2015). Competitors analyzed in table 1 (appendix A) are perceived as the most potential ones and therefore carefully analyzed. Figure 5 (appendix B) shows the market shares of 2014 for the chewing gum producers to give broader picture of the
markets. In table 1, we have analyzed our competitors based on the price, appearance, ease-of-use, variety, healthiness, availability of sugar free option and taste. Each one of these attributes is weighted based on the relevance it has in the markets. Then each main competitor is assessed in scale 1 to 10, where 1 is not competent and 10 is highly competent. The weighted score shows the most potential and biggest competitor to us, from our perspective. Higher the score, bigger the competitor. In this perspective we perceive the Wrigley’s China to be our main competitor with score of 5,9. Overall, we perceive that we are differentiating ourselves from the competitors with our Nordic positioning; including the use of Nordic flavors and Moomin characters and most importantly with the offer of fully sugar-free option as our chewing gum is 100 % sweetened with Xylitol. 5.1 POSITIONING CHART The market competitors’ positions were analyzed based on how long the taste lasts when the gum is chewed. In addition, the degree of xylitol was also analyzed, since these are most important product attributes to us. Based on information discussed in the previous chapter, a positioning map was drawn to illustrate the current market positions of different brands. The positions can be seen in figure 1.
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
Relativism can be hard to understand. It’s in our nature as human beings to base thing off of the knowledge we already know. Relativism is the idea that, when faced with another culture, we must try to comprehend it instead of judging it based on our own culture’s values and morals. Human rights advocates opposing the tradition of female genital modification (FGM) is an example of relativism (page 30). Female genital modification can include the removal of the clitoris or a process in which the female anatomy is modified in such a way that constricts the vaginal opening. Both procedures reduce female sexual pleasure and, it is believed to prevent the likelihood of adultery. Although a tradition in societies in Africa and the Middle East, human
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
aspects: Carbonated soft drinks industry's structure, evaluation of driving change factors in this industry and finally analysis of key strategic factors it is faced with.
The Holland Sweetener Company (HSC) is planning to enter the low-calorie, high-intensity sweetener market which is currently dominated by NutraSweet. Below we first analyze our target industry. Next we look at what kind of response should HSC expect from NutraSweet upon its entry into this market. We will also analyze few likely scenarios that could play out and we will try to estimate the likelihood of each scenario. Based on our analysis, we will give a recommendation for HSC to plan their entry into this market.
The recent product, liquor filled chocolates is a viable business that can sell if it is implemented professionally. This recent innovation should be able to acquire attention from the market owing to its combination of selling products. Put simply, the liquor-filled chocolates are chocolates that contain alcohol. According to Novellino (2011), Chocolate-candy sales summed up to $16 billion in 2008 in the U.S. Furthermore, the statistics on alcohol reveals that liquor sales hit $19.9 billion in 2011. What does the statistics reveal about the product? This reveals that the market for the two products is present and combining them will result in a profitable business. This paper is a report on targeting and segmenting the new liquor filled chocolates as a potential business.
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
Recently the company sales was hit with a growing demand for low-carb snack bars. Customer preference has changed towards the NRG-A and NRG-B bars and so they want a product with low-carbohydrates in it. Fitter Snacker decides to put a new low-carb bars into the market because of its plans to remain in competition even though it isn’t recording any lost in sales.
The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. Given the U.S. Industry consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountain and other. Out of the five channels the case describes vending as the most profitable channel for the soft drink...
Dr Pepper Company is the oldest major manufacturer of soft drink concentrates and syrups in the United States. Dr Pepper is the company's principal brand. Cadbury Schweppes PLC acquired Dr Pepper/Seven-Up Cos. Inc. in March 1995. The new business will be called the Dr Pepper Company, which will focus on the Dr Pepper brand by handling all beverage system sales, which account for 75 percent of its business, in addition to related independent bottlers. The second operating group will be Cadbury Beverages/Seven Up Co., which will service independent bottlers not carrying Dr Pepper. Dr Pepper/Seven Up soft drink brands now hold about 16 percent of the U.S. market. Dr Pepper and Seven-Up are among the top 10 carbonated soft drinks, with Dr Pepper being the top non-cola soft drink. Other soft drink include: A&W Root Beer, Canada Dry, Schweppes, Welch's, Sunkist, Squirt, Crush and Hires (Levy 1999). According to the soft drink industry report, there is large sales growth recently in non-colas. Dr Pepper was number three in the industry. The reason is because non-colas have above-average caffeine level, and will be aimed at the 12-to 21-year-old market. Obviously, management sees this product as an opportunity to more fully participate in the growing popularity of non-colas.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging