COMPETITIVE ANALYSIS

Competition can be defined as “The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. It is the product of vying for customers by the pursuit of differential advantage, i.e., changing to better meet consumer wants and needs. In economic theory, various competitive states such as monopolistic competition, oligopoly, perfect competition, and monopoly are delineated based on the degree of control that sellers have over price.”
                                                           -  American Marketing Association

Direct Competition is a market situation where two or more firms offer essentially the same good or service.
A Direct Competitor is a  term that describes a company that produces a virtually identical good or service that is offered for sale within the same market as those produced by another company.

Indirect Competition can be defined as competition among the suppliers of different types of products that satisfy the same needs.
Indirect competitors are suppliers who have provide different products in the same market to serve the same set of needs.

Competition in the case of Frooti

When analysing the competitive market for Frooti we can come up with 3 layers of competitors. The innermost layer consisting of Maaza, Slice and Jumpin signifies direct competition. These products are the closest substitutes for Frooti and are very similar in terms of taste and price. 

The intermediate layer represents a mild level of indirect competition as compared to the next layer. Tropicana and Real Fruit Juice cannot be classified as direct competitors because they have positioned themselves differently in the market and there is a considerable difference in the taste of these products. Also these products are available in different quantities and priced higher than Frooti.

The outermost layer consisiting of Aerated drinks, Appy Fizz, Grappo Fizz and Mineral Water etc signify indirect competition. These products cannot be classified as substitutes for Frooti and the only competition among them is to satisfy the generic need of thirst.