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Business Strategy - Essay Example
Author : vallieabbott
Pages 14 (3514 words)
The structure of the yogurt industry is composed of the following industry players: major suppliers of raw materials, the producers, the distribution networks/channels and the consumers. The major suppliers in the sector are: the milk producers (since yogurt is a fermented semi-fluid milk product); the manufacturers of packaging materials such as cartons, cups, plastic and glass containers among others; and those that provide flavoring substances such as cereals and fruits.
The distribution networks handle yogurt as one of the most interesting products in fresh food division.
The consumers have also their own preferences where market and product development are also hinged on. An adult consumer is particularly interested in the health/nutrition component of the product thus she chooses yogurt with added probiotics, or natural yogurt. She consumes the product as a breakfast or a main meal of the day. While the young consumers eat yogurt mainly as a snack for self-indulgence though they still consider health and nutritional value. For the children consumers, they have mothers who choose the product, are considers self-gratification and at the same time the nutritional aspect.
The dominant competitors in this sector which have a national scope are the incumbent players such as Sitia Yomo, Danone, and Parmalat; and the new entrant Muller. Other firms operating in the dairy industry (Nestle, Granarolo, Lactis, A.L.A., Milkon, Latteria Sociale Vipiteno) had also their share in the yogurt industry, including the importers (Ehrmann, Stuffer) which caters a multi-regional market.
There were emerging challenges among competitors because of the entry of new players in the industry. ...