TheCandyStore.pptxMarsa’s Candy Store
By: Maryam Mardo
Agenda
Business and Product
Porter’s Five Forces Models
Buyer Power
Supplier Power
Threat of New Entry
Threat of Substitution
Rivalry Among Existing Competitors
Where ‘The Candy Store’ aligns?
Techniques
Why these techniques would work?
Logo
References
The business aims at launching a candy store in Metro Detroit in the State of Michigan.
The main products of the business would be an organic candy and a sugar-free chocolate (Gaines, 2019).
Target market of the business would be the people who want to attain sweet satisfaction without consuming artificial flavors and items.
Business and Products
Porter’s Five Forces Model
Rivalry among existing competitors
Threat of new entry
Buyer Power
Threat of substitution
Supplier Power
In US candy market, the power of buyers is high because of increased number of new products (Grand View Research. 2018).
There are many substitutes available to the consumers which increase buyer power.
Price sensitivity of the buyers is high that drives the confectioners to lower the price of the products (Haribo V Lutti. 2014).
Buyer Power
Supplier power is not high. The main items which are used in manufacturing of chocolates and candies are gelatin, colorants, cocoa and aroma.
Many suppliers of the abovementioned ingredients are accessible to the confectioners. Therefore, supplier power of bargaining is low.
Supplier Power
Threat of New Entry
Threat of new entrants is low to medium because the customers can not become fully aware of the quality offered by small candy businesses or know about the brand name.
The confectionery market is a concentrated market and therefore, threat of new entry is not very high (Haribo V Lutti. 2014).
Threat of Substitution
Threat of substitution is high because there are many alternatives available in the market that can satisfy the same need.
Anti-obesity campaigns have triggered new offers in candy industry (Haribo V Lutti. 2014).
Rivalry Among Existing Competitors
Competition is high among current confectioners.
There are various substitutes and well-established competitors in the market in Michigan.
Buying power of customers is high that also enhances rivalry among current competitors.
Where ‘The Candy Store’ aligns?
‘The Candy Store’ aligns in category of new entrants.
It aligns this way because this is an entirely new business in the market. However, the threat of substitution is already there and high.
Rivalry among current competitors is high, hence, ‘The Candy Store’ has to work hard to be established in the market in Metro Detroit, Michigan.
Techniques
The three techniques which I would use for my business are
The use of simple and organic ingredients in candies/chocolates (Nunes & Watts, 2016).
No food colorant
A combination of fruit and chocolate, and candies and fruits
Why these techniques would work?
These techniques would work for this candy business because of the current demands of the buyers that are the organic/simple ingredients and honesty.
Logo
References
Gaines, M. (2019). How to start a candy store business. Retrieved from https://smallbusiness.chron.com/start-candy-store-business-4640.html
MindTools. (n.d.). Porter's five forces. Retrieved from https://www.mindtools.com/pages/article/newTMC_08.htm
Grand View Research. (2018).U.S. candy market size, share & trends analysis report by product (chocolate, non-chocolate candy), by end use, competitive landscape, and segment forecasts, 2018 – 2025. Retrieved from https://www.grandviewresearch.com/industry-analysis/us-candy-market
Haribo V Lutti. (2014). Porter five forces’ analysis. Retrieved from https://haribolutti.wordpress.com/2014/10/19/porter-five-forces-analysis/
Nunes, K. & Watts, M. (2016). State of the industry: Confectionery Retrieved fromhttps://www.foodbusinessnews.net/articles/7239-state-of-the-industry-confectionery
Thank You!
