COMPETITION AND INDUSTRY

COMPETITION AND INDUSTRY

To be a long term player in the market is the ultimate goal for any company.

Competition is commonly referred to the rivalry that exists between firms for selling their products of a particular category to the same segment of customers. However it may be defined more generally as rivalry between individuals and firms to gain greater advantage or superiority over each other. 

Competition is to be ahead of everyone else, to serve the consumer in the best possible way like no-one else, to always strive to be a leader and be competent at every level. These players of market are addressed as COMPETITORS.
They are those who can affect the business of a company directly or indirectly and are considered as major threats.

TYPES OF COMPETITORS

We can classify competitors in two categories Direct competitors and Indirect competitors.

DIRECT COMPETITORS
Within a market businesses are faced by direct competitors. These are firms that produce the same or very similar goods e.g. fruit and vegetable sellers on a Saturday market. However, most products are differentiated in some way. VPJ has a monopolistic position in the market since it represents 90% share in petroleum jelly market. Direct competition (mainly from private label petroleum jellies) that were sold through mass merchandisers such as K-Mart and competed only on price(usually 30% cheaper)holds the 10% share.

Although vaseline is one of the leading brands which has a high market share with 90% of the petroleum market, it still faces direct competition from Nivea (skin cream / lip care), ponds (skin care),
 Johnson & Johnson (petroleum jelly), Vasocare petroleum jelly, Vi-john petroleum jelly. 

INDIRECT COMPETITORS

In addition to direct competition, businesses also face indirect competition where products which are close substitutes for one another compete e.g. a butter company competes against a margarine company. However, most products are differentiated in some way. Although HUL controls the petroleum jelly markets there are specific use products such as sun-burn treatment, baby care, skin treatment, lip care which compete against the versatility of VPJ.

Some of the indirect competitors for VPJ are Parachute Coconut oil, Body shop cocoa butter/shea butter, Waxelene, Virgin coconut oil, Boroplus(Emami), Nivea, Garnier, Himaliya Nourishing cream, Olay nourishing cream, Lacto Calamin, lotus herbals, Lakme fruit moisturiser, Nuetrogena oil free moisturiser etc are some indirect competitors for Vaseline Petroleum Jelly.

The challenge here is to reach new consumers in the border skin care markets with specific needs for products like hand lotion, body lotion, moisturising creams etc.