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Buyer Power in Biscuit Industry Analysis

The document discusses Porter's Five Forces model as it applies to Parle, India's largest biscuit manufacturer. It analyzes the competitive rivalry in the organized biscuit industry, threats from substitutes like snacks and home-made foods, bargaining power of suppliers and buyers, and barriers to new entrants like financial strength and distribution networks. The organized sector accounts for 60% of the biscuit market, with Parle, Britannia and others being the major players.

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0% found this document useful (0 votes)
106 views16 pages

Buyer Power in Biscuit Industry Analysis

The document discusses Porter's Five Forces model as it applies to Parle, India's largest biscuit manufacturer. It analyzes the competitive rivalry in the organized biscuit industry, threats from substitutes like snacks and home-made foods, bargaining power of suppliers and buyers, and barriers to new entrants like financial strength and distribution networks. The organized sector accounts for 60% of the biscuit market, with Parle, Britannia and others being the major players.

Uploaded by

paiabhi87
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd

PORTER’S FIVE FORCE MODEL

About Parle
• India's largest manufacturer of biscuits and confectionery

• Established in 1929

• 35% share of the total biscuit market

• Good And Reliable Quality

• Cater to all tastes from kids to senior citizens

• Products to the mass with the affordable range


BISCUIT INDUSTRY PROFILE
Two Sectors of Biscuit Industry

Un Organised
Sector
40%

Organised Sector
60%

Organised : Unorganised :: 40 : 60
BISCUIT INDUSTRY MAJOR
PLAYERS
Major Mkt Share ( Organised Sector)

Others
10%
Priyagold Parle G
15% 35%

Sunfeast
9%

Britania
31%
RIVALRY AMONG
COMPETING FIRMS IN
INDUSTRY
COMPETITORS
• BRITANNIA AND ITC MAJOR
COMPETITORS.

• SIMILAR PRICING

• SIMILAR PRODUCTS

• DISTRIBUTION NETWORK
THREAT OF
NEW
ENTRANT
THREAT OF NEW ENTRANT
• BARRIERS TO NEW ENTRANT

• FINANCIAL STRENGTH

• DISTRIBUTION NETWORK

• SWITCHING COST OF CUSTOMERS


THREAT OF SUBSTITUTES
SUBSTITUTES
• Size of the SNACKS INDUSTRY

• Changing needs of the consumer

• Switching cost of consumers is high

• Other substitutes like home made snacks,


chips, packed foods etc.
BARGAINING
POWER OF
BUYERS
Bargaining Power Of Buyer
• Large number of buyers for biscuits

• Most of the Parle biscuits are undifferentiated and can be


replaced by substitutes.

• Customers liking of bakery products like pudding, toast,


butter etc.

• Customer can switch to other products easily.


BARGAINING POWER OF
SUPPLIERS
Bargaining Power Of Suppliers

• EASY AVAILABILTY OF RAW


MATERIALS.

• INCREASING PRICE.
Threat of
new
entrant

RIVALRY AMONG
BARGAINING POWER COMPETING FIRMS IN
OF SUPPLIERS Threat of substitutes
INDUSTRY

Bargaining
power of
buyers
SUBMITTED BY
ROLL NO. NAME

71 NIRAJ HARKHANI

86 ABHISHEK PAI

94 YASHICA SALIAN

102 SUSHANT SHETTY

115 BHAVNA AILSINGHANI

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