Page 31 - Case Lab Teaching Note

Threat of new entry

As the market is growing at 9 percent annually, new entrants may
consider it a profitable venture

As branded players (Burt Chips) are priced similarly, new players
might penetrate by adopting a lower price or by offering more

grammage at the same price

New players with a distinct USP and marketing strategy may find it
easier to enter the market (Red Sky)

Veteran players such as Kettle enjoy economies of scale, well-
established distribution and good distributor relations.

Threat of substitutes.

The European Snack Segment is high-volume, low-involvement
driven (thrives on impulse buy)

All snacks are considered to be substitutes of each other Biscuits,

Wafers and local snacks are all substitutes of one another