Evans Food

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Outcomes – Short Term & Long Term

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Marketing Objectives

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Suggested Strategy models/ frameworks

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KOTLER’S 4 Ps

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PORTER’S FIVE FORCES

- Threat of New Entrants

What are the barriers to enter the market?

It is difficult to enter the market in the current scenario given the higher cost of pork skins. Evans Food has an edge over any new entrant due to its established distribution network and 5 manufacturing units.

- Competitive Dynamics

How have the competitors performed?

The industry growth rate is 1-2% and competition in US market is mainly from Frito Lays and Rudolph Foods. Market Size is US$320 Mn out of which Evans Food has a share of US$ 60 Mn.

Currently, competitors are facing the same issues of increased pork skin prices and hence have no motivation to reduce prices.

- Supplier Power

How easy is it for the suppliers to drive up prices?

The supply of the raw material for Evans Food, i.e pork skin is limited by the global population of pigs. Although there are multiple global suppliers, they have driven up the prices due to outbreak of PEDv.

Currently, the company does not have the ability to substitute the suppliers.

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- Buyer Power

How easy is it for the buyers to drive prices down?

The buyers do not have leverage to drive prices down. The customers of Evans Food are the large retailers, convenience stores, discount stores and vending machine distributors who then sell the product to end consumers. Although the distribution network in terms of retailers / stores etc is sensitive to price, the end consumer has scope to absorb staggered price increases.

- Threat of Substitutes

What is the perceived level of product differentiation?

There are no substitute products to pork rinds – it is especially known for its savory crunch with delicious taste coupled with health benefits.

There is a very high level of product differentiation, enforced by its popularity among the weight-conscious fans of Atkins diet. This is further enhanced by Men’s Health Magazine’s endorsement of pork rinds as a “junk food that is good for you” and other celebrity fans of pork rinds.

Conclusion

Evans Food has a leadership position in the market as the largest producer of pork rinds. Since it has grown on the basis of this strength, it should be able to leverage this to increase the prices of pork rinds in a staggered and transparent manner to return the company to profitability. Pork rinds are a differentiated product, and hence the end consumers would be willing to absorb the price hikes leading to a win-win situation for Evans Food and retailers.

Simultaneously, it should focus on building its brand value through advertising campaigns and funding research in eradication of pig related diseases.