Marketing plan for dried crusts «Allez-croquer», страница 4

“Sibirsky Bereg” may exploit the positive image that it has as a public company when getting in contact with B2B customers. Also it may gain an increase in sales if it produces dried crusts from dietetic bread by capturing a healthy trend. Furthermore the company may capitalize on the higher pace of life in France and the lower costs on eating out by making an emphasis on the convenience of the product to eat.

The main vulnerability may be the appearance of a great variety of healthy substitutes of the product which may diminish the importance of the health factor concerning our product and reduce competitive advantage of the product. Also it may be difficult to make the French accept the product and the lack of the relevant experience on the French market may aggravate the situation.

As for the problems “Sibirsky Bereg” may face, that are the heavy costs necessary on the target market which may be hard for the company due to its high financial leverage. The company may need extra finance which may undermine its financial stability and increase its WACC (weighted average cost of capital).  Besides ingrained eating habits may be even more difficult to overcome due to the fact that “Sibirsky Bereg” and its brands are not known on the market.

The restriction the company may face is the appearance of numerous competitors once the company manages to create the product category. The product is quite easy to copy so the entrance barriers are not very high. Besides communications with business partners may be complicated by the newness of the product and the company on the market.

Finally concerning or analysis of SWOT of “Sibirsky Bereg” we would like to provide some actions as a part of our “USED” SWOT.

Recommendations

So first of all we would recommend adopting the product to the market in order to overcome the eating habits of the French. Moreover we would advise conducting a thorough market research to get the better understanding of all factors of this new market. Furthermore to withstand the risk of new competitors and substitutes we would advise the company to elaborate the Emotional Selling Proposition and try to create other competitive barriers as well as concentrate on the whole set of advantages that our product can provide (healthiness, speed, convenience). Finally we would recommend the company to create the distinctiveness of the product itself to facilitate communications with B2B clients (when there is no package) and get customers used to it. For example we can suggest utilization of the form of baguette. We believe that these actions would help “Sibirsky Bereg” to be successful on the market.

Porter`s 5 forces analysis

Buyer power

Buyers are weak on the snack market. There are a lot of consumers and they are fragmented. It means that no buyer has any particular influence on product or price.

Supplier power

Suppliers also have little power on the snack market. The product is oriented on mass market, so it is standardized. As a result, there are many competitive suppliers.