MARKETING MANAGEMENT

Group 9
Sneha Bansal, MBA/06/047

Tej Vakhariya, MBA/06/051

HATSUN AGRO Uddipana Dihingia, MBA/06/052

PRODUCT Vaibhav Kapoor, MBA/06/053

Vajja Aravind Kumar, MBA/06/054

Porter's 5 Forces Model


Competitiv
e rivalry :
High
• Vast no. of strong rivals.
• Low switching cost.
• Ranked 12th in index (1.4 out •
of 10).
• Policies to improve
affordability, accessibility and
to address malnutrition
challenges.
• Good market share in
southern India
• Almost half of dairy products
meets the HSR threshold.
Threat of
new
Entrants:
Moderate
• Large number of industry
distribution channels.
• 100% foreign equity in
single brand retail and 51% •
in multi-brand retail.
Lower tax threshold for • They never default on their
FCMG products.
• Foreign investors' minimum•
capital requirement is of • Amul gives 80-82% of its
$100 million.
• Less entrants due to • Mother dairy has a
slowdown because of Covid
19
• Regulations like Food and
Safety Standards (Labeling
and Display) Regulations
2018 and Food Security Bill
• Licensing by the Food Safety
and Standards Authority of
India (FSSAI)
Bargainin
g power of
Bargaining buyers :
High Threat of
power of
substitutes
suppliers :
: High
Moderate • Too many players in the
market providing
similar products.
Farmers are the main • Many alternatives of
• Low switching cost.
suppliers. dairy and non-dairy
• More than 95% of the
company's revenue in products.
payments to the farmers. • Closest substitutes -
2019-20 is from branded
Active bulk coolers. Sheep, goat milk and
product sales to retail
drinks made of
consumers.
revenues back to the almonds, soy, rice,
• Amul offers 1L pack of
farmers. cow ghee for Rs 497 coconut, other nuts
and cereals.
while Hatsun offers it
specialized team to guide • Nestlé's items such as
for Rs 690.
the farmers on post harvest boiled water and
• Amul offers 500ml
care. pasteurized milk
Liquid milk for Rs 28
pose a risk of
while Hatsun offers it
replacements.
for Rs 25.
• Dairy product must
be at the finest
quality and
attractive enough to
encourage repeated
orders.