HUNGER BAR

By:

FROM HUNGER TO HYPER

Group 4

ABOUT

Products has been India's largest manufacturer of biscuits and confectionery

Extremely widespread distribution network
Beacon of faith and trust
Concentrating on consumer tastes and preferences

INTRODUCING

HUNGER-BAR

THE CARBOHYDRATE-RICH BAR

DUAL PURPOSE BAR

PROTEIN-PACKED ALTERNATIVE

OCCASIONAL MEAL-REPLACEMENT

SWOT ANALYSIS
STRENGHTS

s well established brand name

Good distribution network

Promotion of s nutrition bar as a fulfilling,
nutritional and convenient snack

WEAKNESS
Oats and peanut flavour does not appeal to
many
Nutritional supplements are not considered
healthy

OPPORTUNITIES

THREATS

Tap rural markets and growing cities in India

Competition from new and existing substitute

products such as Snickers Bar

Inclination of people towards healthy options

Rising prices of major raw material costs

PESTEL
POLITICAL
Stable political
environment
Support for make in
india
Goods & Services tax

ECONOMIC
Growing GDP
Increase in
disposable income
Decreasing Inflation
rate
FDI

SOCIAL

LEGAL
Increasing health
awareness
Young demography
Current lifestyle

Labor laws
Food product approval
under FSSAI
requirements
Tax Policies

ENVIRONMEN
TAL
Reduction of Gas
Emission
Recyclable Packaging
Environmental
Regulations

TECHNOLO
GY
New inventions &
Development

PORTERS FIVE FORCES

Porter five forces analysis is a framework to analyze level of competition within an industry
and business strategy development.
It draws upon industrial organization (IO) economics to derive five forces that determine the
competitive intensity and therefore attractiveness of an Industry.

Forces are
Threat of new entrants
Threat of substitute products or services
Bargaining power of customers
Bargaining power of suppliers
Intensity of competitive rivalry

THREAT OF NEW ENTRANTS MODERATE HIGH

Initial investment required

Barrier to entry
Expertise required
Supply chain
Product differentiation

THREAT OF SUBSTITUTE PRODUCTS VERY HIGH

Substitute products
Switching cost
Quality of substitute product
Availability of substitute product

BARGAINING POWER OF CUSTOMERS - HIGH

Customer attitude
Consumer concentration
Price sensitivity

BARGAINING POWER OF SUPPLIERS - LOW

Large number of suppliers
Switching cost linked with suppliers
Supplier product differentiation
Quantity suppliers can supply

INTENSITY OF COMPETITIVE RIVALRY - MODERATE

Number of competitors
Cost of production
Identical products
Innovation
Product Category

INDUSTRY ANALYSIS
Growth of chocolate based product industry in India
(figures in million rupees)

6,000.00

60,000.00

54,361.33
49,346.89

50,000.00
40,573.06

40,000.00

4,790.87

5,000.00

4,000.00

32,261.43
30,000.00

28,165.20

3,000.00

20,000.00

2,000.00

10,000.00

1,000.00

0.00

2009-10

2010-11

2011-12
Sales

2012-13

2013-14

0.00

1,481.50

2009-10

2,672.10

2,563.67

2011-12

2012-13

1,674.10

2010-11

2013-14

PAT

Source - http://industryoutlook.cmie.com/kommon/bin/sr.php?
kall=wshreport&repcode=505005005000000000000000000000000000000000000&repnum=30051&frequency=A&icode=01010111017001
00

INDUSTRY ANALYSIS CONT

CURRENT MARKET SHARE OF VARIOUS PLAYERS IN INDIA
Market Share
Mondelez

3%

Nestle

3%

Mars

Amul

Ferrero

Others

8%

6%

18%

62%

Source
http://www.confectionerynews.com/Markets/Indian-chocolate-maket-Cadbury-Glow-and-Kit-Kat-Senses-premium-push

INDUSTRY ANALYSIS CONT

GROWTH OPPORTUNITIES AND FORECASTING
India is forecast to deliver 9% CAGR over 2014-19 in confectionary with chocolate products

driving over 2/3 of absolute growth

Chocolate consumption is expected to record the highest percentage growth from emerging middleincome markets including India, indicating the strong positive correlation between GDP per capita
and confectionery
India ranks in one of the lowest per capita consumption levels globally, so perhaps it offers the
greatest long-term growth potential
Chocolate products are expected to continue to be the fastest-growing sub-category of
confectionery, accounting for around 60% of the increase in absolute retail sales in 2014-19.
Sourcehttp://timesofindia.indiatimes.com/business/india-business/Choco-pie-may-grow-fastest-in-Chindia/articleshow/48062843.cms

MARKET SEGMENTATION
Geographic segmentation
done on the basis of:

Demographic
segmentation done on the
basis of:

Metropolitan Cities, Tier 2 and Tier 3

cities
Socio-graphic Locations
Location with high or low level footfalls

Age Groups : below 15, 15 35, 35

60, above 60
Income Groups

Psychographic
segmentation done on the
basis of:

Behavioural segmentation
done on the basis of:

VALS Framework
Consumer Lifestyle

Frequency of purchase
Usage Rate
Brand Loyalty

TARGET SEGMENT
Geographic

Demographic

Metropolitan Cities
Tier 2 Cities
Education Hubs
Corporate hubs
Popular Tourist Destinations

Age- Mostly but not limited to 15 to 35

Income Group- Lower Middle to Upper
Middle
Our consumer is a conscious aware
consumer who strives to maintain balance

Psychographic

Behavioural

As per VALS framework, Hunger Bar is

an achiever and striver type.
Fast moving, health conscious consumer

Occasion: Regular
Usage Rate- Medium to High
Loyalty Status- Strong (Projected)

PRODUCT POSITIONING
POPs and PODs

POPs
Packaging
Taste
Size variants
Base
Ingredients

PODs

No refined sugar

70% organic materials

Micronutrient rich

Gluten and Lactose

free

Affordable price

PRODUCT POSITIONING CONT

Rich source of healthy calories with relatively better price-value

combination
Easily available owing to strong supply chain of
Attractive in low-medium income market due to strong customer loyalty
of
A replacement to unhealthy, saturated fat rich regular snacks

PRODUCT POSITIONING- COMPARISON

Health

Hunger -bar
Low Price

Mars
Snickers

Nestle MilkyBar

Nature Vally
Crunchy
Naturals cranberrry
delight
High Price

Mondelez fruit
n nut

Mondelez Five star

Nestle Munch

Taste

PRODUCT POSITIONING
STATEMENT

For health conscious consumers, Hunger-bar is

the grab and go snack which provides energy
and nutrition as it contains nuts, caramel, cocoa
and oats which are rich source of healthy calories

PRODUCT PRICING
(FOR A 50G PACK)

Raw materials:

Nuts Rs. 2.5

Cocoa Rs. 3

Oats Rs. 1.50

Honey/ palm sugar Rs. 0.2

Flavoring Rs. 1

Manufacturing and Packaging Rs. 1

Distribution and storage Rs. 1

Profit Margin Rs. 5.8

Taxes Rs. 4

TOTAL: Rs. 20

PROMOTIONAL STRATEGY
Pull Strategy via extensive media advertisement
Leveraging upon s product portfolio, promotional strategies can be used to make the product
reach the consumer in its initial stage
Large scale distribution at key markets such as educational hubs, corporate hubs, tourist
destinations etc.
Point of sales placement everywhere
Optimum utilisation of various main stream marketing channels such as
Television Media
Print Media
Radio
Billboards
Out of Home (OOH)
Extensive use of digital media for marketing via different competitions, strategic alliances,
affiliate marketing and viral methods (Memes etc)- Facebook, Twitter and YouTube
Leveraging upon s existing superior Distribution Channel (Over 33,00,000 distribution outlets)

THANK YOU