Friday 4 October 2013

Competition

Competition

Nestle is a major competitor with presence in North and South Markets
Regional Competitors:
Mother Dairy in Delhi
Mahananda in Mumbai 
Nandini, Aavin, Heritage and Nilgiri in South

Other competitors include Britania and Danone

In gujarat Masti Dahi is the only packed curd in the market



Competitor’s analysis:

(Porter's 5 forces)

  1.Competitor rivalry: A segment becomes inattractive if it has already existent competitors as it leads to slow market growth and similar cost structures. The competitors for Amul Dahi are Nestle, Britania. This leads to price wars, brand wars and ad wars.

2.New or potential entrants: The local or new entrants will face difficulty as there is already high and tough competition, thus there will be very high entry barrier. Though I feel for potential entrants it’s a pretty attractive segment. Since amul has been the oldest brand, it has managed to build trust in the eyes of customers. To compete in this segment is very difficult for new entrants and would require many efforts to brand the new product. eg; danone


3.Threats of substitute product: it is highly a competitive product, and threat from substitute product means the threat from another product to company’s product. In case of amul, there isnt a available substitute.



4.Bargaining power of suppliers and buyers: The segment becomes quite unattractive if buyers and sellers have high bargaining power. In case of amul, due to highly competitive market and a good reputation, it is very attractive segment as no such bargaining is required.

Amul has been a brand leader in this market for a very longtime. starting from mom and pop stores to departmental stores, you will find Amul Dahi easily avaialable and in different sizes and packaging. Amul dahi has become a household name due to its strong brand image.

Due to its strong image and expertise in the sector, I feel it will continue to be the market leader, because of its reach in rural as well as urban cities and trust it has built in so many years.

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