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SHUBHAJIT NANDI.

UNIVERSITY OF KALYANI.
DEPARTMENT OF BUSINESS ADMINISTRATION
ROLL-03

CASE STUDY ON NORTH INDIA FOOD COMPANY.

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SPACE ANALYSIS
SPACE ANALYSIS

FINANCIAL STRENGTH

COMPETITIVE
INDUSTRY STRENGTH
ADVANTAGE

ENVIRONMENTAL STABILITY

Financial Strength: (FS)


As NIFCO’s products were sold in all the metros specially in north
India and the products had a premium image so it can be easily
concluded that NIFCO had good market share in India and also had
good financial strength.

Compititive Advantage: (CA)


Many NIFCO brands were house hold names in North India. Besides
NIFCO products had a premium image and all NIFCO products were
well supported by media advertising as well as trade and consumer
promotion scheme. So if NIFCO try to launch a new product then
they would always get a competitive advantage.

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Environmental stability: (ES)
In the case study it is clearly mention that “whole sale price index of
coffee had been increasing over the years. Production had also been
increasing. The yield pattern of coffee plants followed a cycle with a
peak every five years or so”. From this it is clear that drinking habit of
coffee was increasing day by day. Besides the new prosperity of
agriculturist in northern India had created a whole generation of
consumption oriented modernized farmers. So it is clear that at that
time Environmental stability was quite good.

Industry Strength: (IS)


Industry strength depends upon the Financial strength, Competitive
strength, and Environmental strength. As these three were good. So
Industry strength was also very good.

Conclusion: From the Space analysis it is clear that NIFCO’s


decision to enter into the coffee market was good. But still they need
to do some further market survey before launching their new product.

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BCG Matrix:

Stars ?
Ole,Gusto,Riviera,Chic, NIFCO
Nelson.

Cash cow Dogs


Diamond

(* It is concluding from the case study)

Note:

 Question marks are new products with a potential of success but


needs money for development.
 Stars are market leaders typically at the peak of their product
life cycle and are usually unable to generate enough cash
maintain the high market share.
 Cash cows – when the market growth rate slows down stars
become cash cows.
 Dogs- low market share do not have potential to bring in cash.

From BCG Matrix it is clear that NIFCO had enough capability


to enter into the Indian coffee market, as NIFCO was well
known brand and also had enough money to enter the new

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market. So NIFCO falls under Question marks category in BCG
Matrix.
Ole, Gusto, Chic, Nelson and Riviera (From Exhibit 3) were
heavily promoted national brands. So they fall under Star
category in BCG Matrix. Diamond had very less market share
(from Exhibit 3).so it falls under Dogs in BCG Matrix.

TOWS Analysis

The scanning is done through TOWS analysis.


Threats and Opportunity ----External Environment.
Weakness and Strength ----Internal Environment.

 Threats:
There are well known heavily promoted national brands
of coffee like Ole, Gusto, Chic, Nelson and Riviera.

 Opportunity:
1. Maximum coffee brands available in the market
adopted similar positioning strategy. It was great
opportunity for NIFCO to adopt different positioning
strategy to capture the market very easily.

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2. It was great opportunity for NIFCO to attract
housewives by making reusable container and giving
offers.
3. Instant coffee was gaining ground with the younger
people in middle and above income classes. So it was a
great opportunity for NIFCO to target that segment.

 Weakness:
1. NIFCO was doing biasness in its research as it was
taking housewives in research whose husbands and
families were taking coffee.
2. They were focussing mostly in Northern India.
3. They were doing research based on a fixed income. The
perceived segment was biased. As the middle class
would take coffee in home.
4. The sampling was biased.

 Strength:
1. NIFCO was financially very strong.
2. NIFCO was environmentally very strong.
3. NIFCO had good distribution channel.
4. NIFCO products had a premium image.
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