Swot Analysis

1856 Words Jun 10th, 2011 8 Pages
MAPUA INSTITUTE OF TECHONLOGY

MARKETING COMMUNICATIONS PLAN
(NESTLE KOKO KRUNCH)

DRAFT I – THE INDUSTRY

BONGALOS, ALEXIS S.
ROJO, JOHN EMMANUEL S.
EMG 111 – B1

PROF. MARVIN I. NORONA

I. THE INDUSTRY

A. Industry Definition:

Nestlé Koko Crunch is in the Food Processing Industry. This is where the set of methods and techniques used to transform raw ingredients such as goodness of whole grain and it provides eight essential minerals, plus iron and calcium into food to the consumption by humans. In the Koko Crunch it is a food processed with typical refined grains, like white rice and plain white bread, strip out the other parts of the grain. It uses these to produce attractive, marketable and often long shelf-life food products.
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3. Porter’s 5-Forces Model of Competition

Porter’s Five Forces Analysis

Competitive Force Magnitude of Force Conclusion
Intensive of Rivalry Relatively strong Reduces profit potential of the industry.
Supplier Power Moderately strong Increase profit potential of the industry.
Buyer Power Relatively strong Reduces profit potential of the industry.
Threat of Substitutes Moderately strong Reduces profit potential of the industry.
Threat of New Entrants Relatively Weak Somehow increase profit potential of the industry.
Overall Conclusions Most of the forces are moderately strong, which stables the profit potential of the industry.

a) Intensive of Rivalry:
• A lot of Company in the food processing industry also offers cereal products. E.g. Cinnamon Crunch Crispix – Kellogg's, Choco Crunch – Quaker Oats, Oatmeal Crisp – General Mills etc.

b) Supplier Power:
• Nestlé Koko Crunch has its wide coverage in terms of its supplies. It is in all supermarkets.
c) Buyer Power:
• This cereal is for all ages but this requires teeth to eat. This is best for kids and teenagers because they love the taste and good for the adults because it has calcium.
d) Threat of Substitutes:
• Koko Crunch has its leveling price. That is why; there are a lot of substitutes that can be bought by the customers.
e) Threat of New Entrants:
• A new product of some other industries is not really a threat. Some customers are afraid to taste such new products for they are not sure if the taste is good.

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