Situational Analysis Rough Draft

[Erica]

Environmental Factors:

Economic Forces and their Impact: NEED HELP WITH THIS PART

Social and Cultural Issues:
Over the last ten years there has been a food revolution that focuses
on the significance of our eating habits and our lifestyle. Modern
consumers have an appetite for international foods and there is a
growing trend for healthier organic options. Consumer intentions to
eat healthy products is fueling the popularity of health foods. This
is where the chia seed comes into play. It was once valued so much
that it was used as currency because this unique little seed has
exceptional nutritive and structural benefits. The chia seed can be
used in conjunction with almost any diet and by people with special
conditions. It can help with weight loss by reducing food cravings and
making you feel fuller faster, provide hydration for athletes, reduce
your blood pressure and can possibly help diabetics control blood
sugar levels.
Because the majority of consumers are not familiar with the chia seed,
Mamma Chia must find ways to educate the public about the health
benefits of the seed and the beverage. Creating this brand and product
awareness must be the first goal of the Mamma Chia team in order in
gain market share.

Technology Issues:
Competitors offer customers the opportunity to buy their products
online. It may be difficult to sell Mamma Chia online due to the fact
that the products are packaged in glass bottles and are perishable. As
product awareness and ultimately demand for the product increase,
consumers may begin to look for ways to buy Mamma Chia online.
Therefore, in the future it will be important to explore ways to sell
the product online to be sure they do not lose that share of the
market.

Competitive Forces:

Buyer Analysis and Power: Still working on this part.

Substitute Products:
Flax is currently considered to provide benefits similar to those of
the chia seed, however it is not easily digested. There are also
several other hydrophilic foods available that offer these natural
benefits. Cactus juice, beet juice, agar, the edible seaweeds, and
many proprietary preparations, which include the silica gels,
mucilaginous substance of vegetables origin, are among colloids that
prove effective. Each one of the above mentioned substances have one
or more drawbacks. They are either too expensive, they may produce
toxic side effects, bad tasting, not readily available, insufficient
hydration capability, or it is indigestible.

Potential Entrants/Entry Barriers:
Currently, the functional beverage market is very crowded. The ability
to find shelf space and grab the attention of retailers can pose a
challenge. It is also difficult to draw attention to a new brand and
product that is first to market. As for other potential new entrants,
Mamma Chia has developed several trade secrets that will make it
difficult for competitors to replicate the product.

Competitive Analysis:
There are currently no other Chia beverages on the market. However
there are several other health beverages that would be considered
competitors in the southern California market. The first is GT’s
Kombucha, which had estimated sales of $80M in 2009. The second is
Sambazon Açaí, which had estimated sales of around $25M in 2009.

GT’s Kombucha is a living culture of beneficial microorganisms that
helps the body find its natural balance and restore vitality. A
Kombucha culture has a wide range of organic acids, probiotics, amino
acids, antioxidents, polyphenols and enzymes that give it its
extraordinary value. This beverage can be purchased at specialty
health food and organic grocery stores throughout most of the U.S. and
is also available for purchase online. The price for a bottle of
Kombucha is $3.99 for a 16 oz. bottle or around $53 for a 12 pack.

Sambazon is the global leader in certified organic açaí and use only
organic ingredients in their products which include juice blends, an
energy drink, an antioxidant elixir, smoothie packs, sorbets, and
supplements. The açaí fruit is a rich source of antioxidants,
unsaturated healthy fats, omega fatty acids, minerals, protein and
phytosterols. Their products are sold in virtually every health food
store, juice bar and conventional grocery store in the U.S. and
online. They encourage individuals and institutions to support social,
environmental and scientific programs that will both preserve the
Amazon and unlock its potential to aid mankind. The price of their
beverage is around $28 for a 6 pack of 10.5 oz. bottles of juice or
$3.59 for a single bottle. A 24-pack of their energy drink can be
purchased for about $50.

These products offer similar health benefits as Mamma Chia, however
these beverages have an unpleasant taste. Mamma Chia has a better
mouth feel, a superior flavor, and will have a well-marketed social
mission along with a comparable price of $3.89.
Consumers can also buy packages of Chia seeds to use in their own
recipes at home. It is suggested that they by added to cereal, yogurt,
salad, muffins, cookies, cottage cheese, soup, peanut butter and jelly
sandwiches, oatmeal, salsa and dips, and smoothies, etc. However, the
problem that people run into is creating recipes with a decent taste.


Sources:
William Anderson. “Chia Seeds: The Ancient Food of the Future.” Living
and Raw Foods. http://www.living-foods.com/articles/chia.html
Lorraine Heller. “First Organic Chia Enters U.S. Market.” Food
Navigator-USA.com. http://www.foodnavigator-usa.com/Financial-Industry/First-organic-chia-enters-US-market
Sambazon Website. http://www.sambazon.com/
GT Kombucha Website. http://www.synergydrinks.com/products.html