The Findus Business Model

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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
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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

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