Submitted by: Submitted by guiso
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Category: Business and Industry
Date Submitted: 01/23/2011 12:55 PM
Marketing Management
2010/2011
OLYMP‘IA Flavors
Targeting for Growth
Overview
Company Presentation Problem Definition Market Situation & Competitive Situation Market Segmentation Criteria Market Segmentation & Prioritization Application of Concepts & Recommendations Questions/ Discussion
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Company Presentation OLYMP‘IA
Specialized in Nature Products and Fine Chemicals Four Business Units: Flavor (8th), Gelatin (1st), Enzymes and Hydrocolloids (2nd) Focus on Flavor Business Unit Flavor market divided into four end use application segments Yoghurt and Dairy based Desserts (YD) Soft Drinks (SD) Confectionery (CC) Ice Cream (IC) Large production units in France, Germany, Italy and Spain Main regional market: Western Europe; Main European market: France
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Problem Definition
Active competition from top 12 worldwide flavor suppliers
Board of directors decision: become one of top three global suppliers
Marketing approach: European targeted turnover increase of 20% in 36 months
Redefinition of most pertinent market segments
Prioritization of most promising segment under given budget constraints
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Market Situation
Highly fragmented market, top players account for more than half of overall value One-third of total revenues in Western Europe
Main market risks/threats Unplanned price increase of raw materials Growing consolidation among flavor manufacturers Stricter regulatory norms regarding the usage of chemicals
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Competitive Situation
Top two players 25% of the worldwide market (Zeus and Hera)
68 % of the market is represented by the 13 top flavor companies (OLYMP’IA 8th)
Competitors based in Northern/Central Europe and the US
Weak position in key region Eastern Europe
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Competitive Situation
Competitor Yoghurt / Dairy Ice Cream Confectionery Soft Drinks
OLYMP‘ IA
Nr. 3 strongest segment and “cash cow”
Nr. 3 strong innovation highly reactive to customers high price Nr. 2 high...