The client was a leading agribusiness and food company with operations across the globe. It sold products and services at numerous points along the food production chain
The client was proposing to setup a Greenfield refining unit to produce vegetable fat from Palm and Palm kernel. The top management, thus, requested UC Strategy to assist it in conducting market assessment of a vegetable oil based substitute for Cocoa Butter in the chocolate industry
In order to conduct a market assessment, UC Strategy used the following approach:
- As a part of the assignment conducted discussions with more than 20 respondents across industry
- Segmented the chocolate industry to identify different chocolate and confectionary types
- Understand key ingredients used (e.g. Cocoa butter, other vegetable oil-based fats)
- Examined the driver for usage of specific ingredients (Shine, taste etc)
- Understood and highlighted any regulatory guidelines impacting the choice of the customer based on products
- Examined the usage and receptivity to switch to substitutes. Spoke to the formulation/ R&D people to understand the specific dynamics
- Understood and highlighted the switching criteria (largely focused on the product quality)
- Trends in pricing of the ingredients were analysed
- Examined the buying behaviour and criteria.
- Assessed the procurement and supply chain dynamics
- Frequency of purchase/ Delivery expectations
- Vendor approval criteria and process etc.
- Prepared a competitive landscape and benchmarked other players in the industry
- Assessed the market forecast for vegetable oil-based substitutes
- Examined the value chain and supply scenario in India.
The client received a detailed market assessment of the cocoa butter substitutes.