The aim of this chapter is to show the practical relevance of the concepts explained above. Following an overview of Findus Italia, the Italian leader in Frozen Food market and one of the most renowned players in the Italian FMCG industry, an analysis of the company’s business environment and business model would be presented. Then, I will describe the outcomes of a brainstorming and ideation session aimed at developing some future scenarios of the Findus business model and generating ideas for innovative business models starting from the current Findus business model. The expertise and the insights that my team colleagues at Findus shared with me have been extremely valuable to me to complete this chapter.
The Company
History
The Findus
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An FMCG company like Findus creates value for final consumers; thus, Findus business model focuses on mass market, without distinguishing among different needs and segments. Findus products aim to satisfying the major needs of a single large group of consumers. The main target of Findus coincides with the average Italian shopper; however, Table 3.3 helps identifying the target most in line with Findus offer. The table shows the Penetration Index of total Findus portfolio compared to the penetration of Frozen Food among different segments, thanks to GFK consumer panel. Accordingly, Findus penetration is well distributed among the Italian country, with a lower performance only in Northeast, where Esselunga and its Private Label are stronger. Regarding the income level of Findus buyers, there is a higher penetration between medium and medium-high income households. Lastly, the most common family composition consists of 3+ components with children and the responsible shopper is 45-54 yo. Moreover, not commercializing its product through discounters, Findus gives up to a large segment of shoppers loyal to this channel, which are mainly medium-low or low-income …show more content…
Prices are fixed for the market and consumers pay to obtain the ownership of the physical product. In this system, Findus, like all the other players of the food industry, relies on developing high volumes with low margins. For this revenue mechanism to be sustainable, it is crucial that products are widely distributed, to be always at reach for consumers, and it is common that they are traded at a price reduction, to boost volumes and win the competition. In particular, Findus products usually have a price index of 130-150 against the market, which allows the company to gain some extra margin thanks to the quality perceived by consumers and to the value of its brand. Transaction-based revenue streams are the standard in the frozen food industry, however the digital revolution may allow for other scenarios to open and some disruption may happen in the near future, mainly with the decreasing costs of
Contents Terms of Reference 2 Procedure 2 Findings 3 Current Structure 3 New Structure 4 Employee Relationships 4 Instructing Staff 5 Contingency Variables 5 Conclusion 6 Recommendations 6 References 7 Appendix A 8 Terms of Reference I am a HNC business student. I am writing this report as part of my course. This assessment covers outcome 4 of the Managing People and Organizations' class.
In Attachment 6, this chart shows how $100 is spent in a typical Centralia Supermarket. This chart breaks down the budget and will show why grocery and produce are specific categories to pay more attention to than others. In Attachment 7, the chart shows the association of store characteristics with major food stores in Centralia. These are the results from the first study that was conducted. The participants scores show how Hi-Value is perceived and compared against their competition.
The price of raw materials is high with low consumer switching cost. However, the increasing demand for healthy and organic food is creating openings for smaller competitors to enter and hide from the pricing
Leading up to 2012, Diamond Food's had been a rising superstar on Wall Street. The company transformed itself from a sleepy cooperative nut distributor to a 21st century snack power house. While some of that transformation was done organically through better marketing and margin expansion, most of the company's transformation was done through acquisitions. Mr. Mendes, the CEO of Diamond, believed that better prospects lie outside the wholesale industry and refocused the company on the providing relatively healthy snack options at grocery stores. In the broad sense Diamond had been doing well up until 2011, but it would not last.
This indicates that Metro’s sales have increased more in comparison to the year before, which shows the strength of the company in the marketplace. Metro has also recently announced plans to purchase the remaining minority interest of Adonis, a well implanted grocery store in Montreal, and Phoenicia Products, a food supplier, to take their full control and bring more into the Metro family. As the demand for ethnic food is rising, this shows that Metro’s sales growth will continue to increase throughout the next couple of years. It’s larger inventory turnover rate indicates customers are purchasing their products. This increases incentive for investment as greater sales will lead to great return to investors.
Running head: pantry inc. case analysis 1 pantry inc. case analysis 20 Pantry Inc. Case Analysis Sekia Grimes GEB5787 Table of Contents Introduction 3 Industry Analysis 4 General Environment 4 Sociocultural………………………………………………………………………………4 Political/Legal…………………………………………………………………………… .4 Economic…………………………………………………………………………………5 Porter’s Five Forces ……………………………………………………………………………... 5 Rivalry……………………………………………………………………………………5 Threat of New Entrants…………………………………………………………………..
As sellers in this system aim to maximize profit, they will find ways to make production efficient and cost low. And because the buyers are willing to pay for the services and products that they
Diversification in raw material suppliers insures that Grandma’s will not be dependent on a single source. Grandma’s utilizes five bonded public warehouses that specialize in food and confectionery storage, selection based on: proximity to customers, ability to provide prompt customer service and efficient and economic delivery. Grandma’s takes the stress of consistency in supplying due to environmental factors off the suppliers through consciously choosing to diversify their supplier network. Grandma’s does not limit the sales of similar products produced by their manufacturer suppliers entirely, these suppliers can still sell to any nation other than the USA. This allows these manufacturer supplies leeway to make additional capital off of excess products produced.
These firms supply around 25% of retail products where as 75% is purchased from more than 2000 producers. Threat of Substitutes The products that Eataly is offering include wine, pasta, pizza and cheese being their universal product. Eataly is able to differentiate them with artisanal slogan. On the other hand ‘small size market chains’ or larger stores might supply similar or same products from and can be compete or substitute Eataly in long term through changing their structure (Carlucci & Seccia,
The availability of a Nestlé product over an Ice-Fili product is 2:1. To sustain competitive advantage and lead over Nestlé, it is important for Ice-Fili to build distinctive relationships with the distributors, especially Eskimo-Fili and Service Fili to increase its products availability in the impulse segment. It is also potential for Ice-Fili to set up its own independent distribution channels, acquire or invest into a local distribution company such as Service-Fili. The benefits of having lower delivery costs and distinctive access to potential selling points would outweigh the corresponding costs. However, it is only advisable if Ice-Fili has the financial strength to do so (e.g. issuing public bonds to raise capital as part of its financial
Another company is Sysco, a food-service distributor in the U.S. Porter demonstrates that “It led the move to introduce private-label distributor brands with specifications tailored to the food-service market, moderating supplier power. Sysco emphasized value-added services to buyers such as credit, menu planting, and inventory management to shift” (Porter, 2008, p. 90). Like Paccar, Sysco knows how to make them different from their competitors in the high competitive industry. In food industry, customers is very sensitive with price because they have many options for substitute, so companies must have a competitive prices. However, Sysco decides that they should add values to their products and improve connection with their suppliers.
Panera Bread: Ethical Competitive Analysis Panera Bread is presently a recognized as a leader in the fast-casual type of the restaurant industry. However, despite its status, Panera Bread should understand the potential new entrants in the industry by conducting a competitive analysis of the fast-casual sector. The company can conduct an ethical and appropriate analysis by studying major and successful players in the restaurant sector currently dealing in unrelated food products. These companies are probable entrants in the market since they may attempt to introduce new product channels to boost their profits.
The owners of Sisig sought to be the pioneer Filipino food company by providing unique and memorable customer experience to its clientele. The two individuals, Evan Kidera and Gil Payumo, focused on delivering innovative products and benefitting from a growing customer base. Specifically, being one of the food truck inventors in San Francisco, Senor Sisig had an obligation to revolutionize the sector (Kidera et al., 6). In fact, the decision to operate a unique operational model enabled the company to expand its services from one food truck to current three under its fleet. Through the provision of quality products, Senor Sisig has maximized its returns and continues to be the leading food truck establishment in the Bay Area.
Market penetration pricing is about setting a lower price on our product with aim to attract customers to buy our product because of the cheaper price compare with other competitor. In our ice cream industry, we have many competitors such as Gelato and Llaollao, so we can use this strategy to stand out among other competitor and draw attention from the customers. After we had successfully penetrated into the market, we will slowly raise back our price to our normal pricing. (A. Pahwa, 28 January
The primary target customers are people in the middle class. They used to buy cheap mass-market chocolates but desire to buy good quality chocolate. Thanks to the economic growth, there are 86 million are in the middle class in Brazil. • What “job” are the primary targets trying to accomplish Although Cacau Show has variety of products, their main product is truffle which is sold for US$0.57. Thus, it can be analyzed that customers buy Cacau Show’s products to enjoy by themselves at home.