CONTENTS PAGE 1. EXECUTIVE SUMMARY 2 2. INTRODUCTION 2 2.1 Picard overview 4 2.2 Picard´s corporate strategy 5 2.3 SWOT analysis 6 3. PEST ANALYSIS 6 4. PORTER´S FIVE FORCES Analysis of entering the UK Market 7 5. CONCLUSION 11 6. BIBLIOGRAPHY 12 7. APPENDICES 13 1. EXECUTIVE SUMMARY The aim of this report is to analyse Picard´s market performance as well as challenges in its operating market using the PEST analysis tool, in order to identify if the company has prospects of entering and succeeding in the UK based on Porter´s five forces model. Picard is a French frozen food retailer focusing exclusively on its own brand product lines. The company has grown to be France´s leading frozen food …show more content…
In addition to this supermarkets are increasingly developing their own label range and investing further in the convenience format. On the other hand Picard´s vertically integrated supply chain and close geographical location to the current distribution network is considered a significant advantage. Furthermore UK consumers are the one of the largest frozen food buyers globally and Picard has a leading home delivery channel already established in 6 countries from online and telephone orders. It is therefore concluded that the UK is an attractive proposition for Picard. 2. INTRODUCTION In these straitened economic times, frozen food is a sector that is growing as consumers recognise two main factors. Firstly it offers value for money, and secondly it helps to reduce food waste. The UK frozen food market is worth around £5.1 billion a year and accounts for 8% of the UK Grocery Industry (Kantar Worldpanel, 2010). Although in 2010 the market remained flat, it has shown 11.3% value growth between 2007-2010, with indication that the market will continue to grow this year. [pic] Souce: Kantar Worldpanel, September 2010 Convenience is driving the frozen market sales globally as consumers are looking for healthy and less time-consuming meals (Seth and Randall, 2011). Private label is performing extremely
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Ice-Fili cannot rely on their contractors to have the same level of motivation to constantly be supplying retailers and thus cannot hope to compete against firms like Nestle with their existing strategy. Essential to having a working distribution strategy is choosing where to distribute. Currently Ice-Fili focuses on supplying their products to kiosks, gastronoms, and minimarts. They seem to be ignoring the rapidly growing trend in sales for larger quantities of product being sold in supermarkets. Competitors such as Nestle have been supplying supermarkets internationally for quite some time and thus have a distinct advantage over domestic Russian producers. This will serve as either a major threat or a major opportunity for Ice-Fili as this market is fairly new to Russia and has yet to be divided up between competitors. Marketing Lack of ability to build up strong marketing mix is the common and the most vulnerable point amongst Russian producers. Contrarily, foreign companies have been showing off their matured marketing skills in the industry. This is attributable to the fact that Russian managements are not used to building marketing strategy, having used to enjoy a time without pressure of marketing under the state-run economy system during Soviet era. Consequently the company’s marketing mix is uncoordinated to the extent that its brand identity is ambiguous. The most critical thing that has blurred
By not needing to maintain a high profit margin on the fooditems, this has allowed the supercenters to keep their food prices down in comparison with mosttraditional supermarkets.The recession, which started in 2008, has helped drive the need for private-label products,or as they are more commonly called, store brand products. These private-label productsgenerally cost the consumers about twenty-five percent less than the major national brands thatare offered. Throughout the supermarkets and other types of food retailers, the private-labelsales grew by more than 9% from 2008 to 2009, and these types of private-label sales accountedfor about 35% of Kroger’s overall sales. Most stores do not operate their own processing plantsfor these private-label items; Kroger does however operate their own plants for the private-labelproducts.
Most firms in the supermarket industry operate as retail outlets, comprising of supermarkets and discount stores. Most of these supermarkets operate on very little profit margins, and mostly get their ideas from their customers for their product developments. Supermarkets generate revenue by being determined to meet the needs of their customers’ lifestyle. By so doing they end up creating value for their products and making profits at the same time. Through bulk purchases, they also achieve their economies of scale at cheaper prices and then end up selling at cheaper prices to their customers.
These concepts can be considered when discussing consumer choices offered by Supermarkets which have undoubtedly become a growing part of UK retailing. Tesco alone have 2000 stores in the UK out of its 3700 stores worldwide (Competition Commission, 2008 cited in Allen, 2009, p.73) and a 60% market share of grocery shopping in some towns within the UK (The Guardian, 2007 cited in Allan 2009, p.77).
Joe Coulombe started Trader Joe’s in 1967. Traded Joe’s can be characterized as a low cost, high quality grocery store. Eighty percent private label product mix, expanding its target markets, keeping costs down, and extremely effective marketing powers Trader Joe’s increase popularity. Since 2002, the market value of private food label has risen twelve percent (Datamonitor, 2008). This essay
Now a days, there are variety of frozen food available in the market that are accessible to everyone. There are diversity of food markets open everywhere round the globe and fully stocked with frozen food. Foods like Italian, Asian, American and some other what we know off. Those foods are provided in the market with details on it. So, people read the directions and prepare food according to description as labelled.
In this paper I am going to discuss how and why the food is different in the UK compared to that of the USA. To begin this discussion, I want to go into what shocked me so much about the difference in the grocery stores.
Pars Food Ltd has a vision to grow. Built around the philosophy of “Pars Food, It’s all good”, they strive to stand out within the UK, as well as build a customer base throughout Europe. They provide frozen foods for restaurants involved in fine dining, catering companies and also supermarkets whom avail of their convenience foods such as pizza and ready meals. They are heavily involved in activities such as sourcing, manufacturing, transport and lots more. These processes have to be monitored though quality and supply chain management in order for
New brands of existing products, such as a new food, also give consumers more choice to switch items in order to help them lower their cost of living.
Consequently, most low-calorie microwavable firms that are producing healthy meals has an objective of driving additional purchase of profits from other baby boomers that are representing over 60% of the category volume. This is because they are for an added marketing approach specifically effective regarding competitive pricing so that managers focus on its retail strategy (McGuigan, Moyer & Harris, 2014). As a result, Nestle, which is the producer of Lean Cuisine, has recorded a loss from contracting a low- calorie frozen, microwavable food industry.
It is generally believed that frozen foods are safer because they can be eaten two or more times without losing taste but this is not so in all cases. According to Max Whitmore (2017), they are “considered less wholesome and less healthy than fresh because of the heavy processing, artificial ingredients and additives used for early frozen foods”. When food is eaten fresh, it provides the right and original taste and nutrients to the body than a frozen meal would but this is not to disqualify the practice of preserving food through freezing methods but to create awareness of its effects on us – the consumers. Max Whitmore in his article titled, “The Advantages of Frozen Foods”, recommends that although, many may not accept to freeze their
Ice-Fili’s marketing approach and product distribution could be seen as weaknesses in the company’s primary activities. In 2001 the firm started its first TV marketing campaign years after competitor’s advertised through the media outlets. To date Ice-Fili is still very inexperienced and far lacking of marketing strategies deployed by Western competitors such as Unilever and Nestle. Not only does Ice-Fili need to market more fiercely against competitors within industry, it must also compete against other consumables such as beverages and snacks. Another weakness is the distribution that is handed over to several distribution companies. There is a much higher chance (twice as likely) to find products of its biggest competitor Nestlé than those of Ice-Fili. Another detriment is how ice cream is viewed socially. Currently ice cream is primarily an impulse purchase. If Ice-Fili can change this outlook, it would result in an enormous
Primary research has indicated that there has been a significant decline in the frozen fruit trend following the 2014 hepatitis A issue. Publics no longer consider Nanna’s frozen fruit products safe to consume. Secondary research has confirmed this is greatly due to the processing and packaging of these products offshore and predominantly in China. Consumers have made a rapid shift to competitor’s products which are processed either in Australia or countries outside of China. With the immediate pressure of the hepatitis A issue resolved, it is crucial to determine what the publics’ current perception of the organisation and products are. Through qualitative research, using informal and secondary data, a weak relationship
Frozen food division (FFD) is the key contributor to Giant Consumer Product 's (GCP) profits which have successfully grown over the past 30 years. The company has two main products lines, Italian frozen dinner “ DinardoTM”, and organic frozen foods “Natural mealsTM ”. However, recently FFD has encountered a shortfall in sales volume and
At the beginning, this market segment represents about 30% of the total potential sales. In the current years, there are few ice-cream produces on the markets that are designed for this segment, because of there are increasing group of consumer in this segment are more concerned and aware of the implications of diet on their health. Most of there consumers do not buy ice=cream as a consequence, such as they thought ice-cream have high calories and not good for