Case Analysis

THE MICROWAVE FOOD INDUSTRY

Ð'* GOLDEN VALLEY MICROWAVE FOODS (GVMF)

Ð'* Company Introduction:

Ð'* GVMF was started by a Jim Watkins.

Ð'* President and CFO of GVMF.

Ð'* Worked as a research member team in Pillsbury for approximately 8 years.

Ð'* Left Pillsbury because he found Pillsbury was not interested about microwave foods.

Ð'* Jim had a strong haunch and belief that Microwave Food Industry is going to boom.

Ð'* Therefore he started GVMF with 250000 venture capital. Later it went public in 1986

A. Customer Analysis:

Segments

Market (Billions)

Comments

Microwavable Popcorns

Microwavable French Fries

Microwavable Breakfasts

B. Customer Motivation:

Segment Motivation

Microwavable Popcorns

Microwavable French Fries

Microwavable Breakfasts

1. Unmet Needs:

C. Competitor Analysis:

Major Competitors/

Major Players

Their Brands/ Products Market Segment Penetration Characteristics/

Strategies Strengths Weaknesses Other Comments

ConAgra Inc.

Established in1919 in Nebaraska. Baller Ball Turkey

Orvile Redenbacher Popcorn.

Peter Pan Peanut butter.

Amour Luncheon Meat. Food Inputs and Ingredients (Crop Protection fertilizers, Chemicals and Seeds

Refrigerated foods like beef and pork product, other meat products and cheese products.

Grocery and diversified products like tomato products, oils, popcorns, beans and frozen foods. Second largest food processor in US.

Employed over 100000 people worldwide.

ACQUIRED GVMF for $ 346 Million on stock swap.

Strong penetration in grocery stores and department stores.

PepsiCo.

Gourmet Snacks

Kebbler Co.

Frito Lays

Tera Chips.

SECTION 3: MARKET ANALYSIS:

Actual Market Size, Market Profitability, Cost Structures, Distribution Systems, Market Trends & Development, Key Success Factor.

Source: Comments:

Market Size and Growth:

The snacks food industry was comprised of many different products, with an estimated market size of ranging from $10 to $ 15 billion and market size is increasing at a $2 billion per year. So we can say that the market is very lucrative during 1990s.

Product Verities: Major products include chocolate candies, non chocolate candies, gum, nuts, granola, salted snacks, meat snacks, ice bars, baked snacks,

Factors Affecting Sales Level

Increasing demand for ready to eat meals for busy people and a strong buying power of children were thought to be $ 9 billion annually.

Segments with High Unrealized Potential

Barriers to