Page 10 - Tyrrells Flip Teaching Guide
P. 10
Price Sensitivity is high. An increase in the price of Tyrrells
may promote a switch to Burt or Kettle for most buyers
(except for loyalists)
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
