Zorba Delicacies Limited a food production company which was built in 1976, by a Greek-Cypriot national who lived in North London named Robert Babakian. He observed, houmous was not broadly recognised in this area. So, he thought, if he can improve the demand of this product it can give him good business opportunity. Then, he decided to make his own houmous dip made from a traditional Greek-Cypriot method. And, named the company Zorba Delicacies Limited. Afterwards, he sold zorba to a private stockholder in 1996. In 1998, to growth product choice, a new factory was built in South Wales. This factory enhanced the product range of more than 80 lines. In 2003, zorba was sold to the Entrepreneurial Food Group. In 2006, new art factory was built next door to the original site. In 2011, they are enabled with a new soup production for The Real Soup Co. From a little start up Zorba Delicacies has grown-up into a multi-million-pound producer of dips, deli fillers and soups. Moreover, they are one of the largest employee’s company in this sector with a skilled workforce of more than 350 people. Besides, they are now working with some of the UK’s leading grocery stores to make a varied choice of exclusive ‘own label’ dips and deli fillers for examples, Tesco, Sainsbury, Asda, Morrison, Lidl besides they also supply the discounters and smaller retailers too. Their production sector always trying to produce new flavours of product particularly traditional, contemporary or bespoke flavours and different packet size as customer want.
Moreover, for their outstanding production and verities of flavour, in recent years they have won many awards. Counting with, the Grocer Own Label Food & Drink Awards, the Wholesale Q Quality Awards, Food Awards Wales and the Café Life Awards. Some of their current private label achievements consist of the ASDA Beetroot & Mint Dip (2016 Grocer, Silver), SPAR Houmous (2016 Grocer, Finalist), LIDL Red Pepper Houmous (2015 Grocer, Silver) and the ASDA Moroccan Houmous and Jalapeno Houmous which each won a Grocer Gold in 2010 and 2011 respectively.
In this case study I will try to discuss about one of Zorba Limited’s product houmous which is makes up over half of their business and 60% of the gross profit margin thus, it is considered helpful to their success in the future. Therefore, I will try to come up with a marketing strategy which will help to increase the sale of houmous in one of their retailers Morrisons which contains 8% of houmous market share.
The main purpose of strategic setting up is to generate a company into stability with the exterior environment as well as to sustain that stability long time (Sackett, Jones, and Erdley 2005). Companies achieve this stability by appraising new plans and facilities with the commitment of increasing corporation prestation. SWOT examination is an initial policymaking implement that crates the step for this work. SWOT analysis is an investigation of a firm’s inner strengths and weaknesses, its opportunities for progress and development, and the threats the exterior atmosphere raises to its existence. To analysis current situation of a company, strategic marketing academics (Ansoff, 1965; Andrews, 1987; Porter, 1991; and Mintzberg et al., 1998) believe SWOT (Strengths, Weakness, Opportunities, and Threats) analysis offers the substance for understanding of the looked-for position of company’s variables or issues. By knowing the positive and critical, inner and exterior problems in the four steps of a SWOT analysis organisers can better recognise how strengths can be supportive to appreciate new breaks as well as realise how weaknesses can slow down the development or expand administrative pressures. Furthermore, it is likely to assume behaviours to stunned threats and weaknesses (e.g. Hofer and Schendel, 1978; Schnaars, 1998; McDonald, 1999; Kotler, 2000), or upcoming approaches, from SWOT investigation. Learned et al. (1969) defined SWOT analysis and it has grown-up as a crucial means for focusing complex strategic circumstances by dropping the amount of data to advance decision-making. Glaister and Falshaw (1999) claim, SWOT investigation is one of the most appreciated and widespread tackles of strategic forecasting besides, they also found, SWOT analysis one of the highest graded methods and investigation systems used by the UK’s firms to develop their strategy. Many authors used SWOT for their research for example, Dyson (2004) examined the strategic development course at the University of Warwick (UK) by connecting SWOT analysis to resource-based preparation in a repetitive method, surrounded within overall strategic planning besides, Hai and Tsou (2009) exercised SWOT to build a strategy for the Department of Information Management of Shih Chien University’s Kaohsiung in Taiwan. For this case study, I would like to use SWOT analysis system in order to analyse zorba Limited’s current situation. And try to understand what are the strength and weakness of houmous. As well as, what are threats of and what is the future opportunity of houmous.
Strengths are the abilities that qualify to achieve a company’s goal. These are the foundation of a company’s success and on the base of this an organization’s success can be sustained. There are some strengths of zorba limited. First of all, there are always innovative and always try to drive with trend. They take trip to the some of world’s global food fair to bring the latest food trends. Usual tours to global food fairs with Anuga, SIAL, the IFE, besides to UK markets such as Borough Market and Dalston Yard, guarantee them to keep update with what’s happening in this exciting, fast-moving sector. Driving the market through innovation and new product development is key to their success. Besides, their chefs always observe international nutrition trends therefore, they can produce fresh and inspirational new foods for the UK market. Encouraged by universal taste trends and supported by expert market examination, this expert information and widespread skill allows them to produce a wide range of great tasting, best quality fillers for any occasion. Moreover, they always try to produce quality product, before making the dips and deli fillers, they will have undergone general development, testing and trialling to confirm they fulfil customers demanding and non-negotiable standards for quality, taste and texture. Furthermore, to understand exactly what our customers want, they talk to them. They embrace consistent innovation meetings.
They collect ingredients on a global scale and work only with expert dealers of meat, fish, dairy and vegetables to guarantee full ‘field to fork’ traceability. Because, ingredient origin and quality are at the head of a product quality. And zorba limited always devoted to picking only the very best ingredients with some which support a Denomination of Protected Origin (DPO. Before using the ingredients, their chefs will have judged each ingredient for the appropriateness, taste, colour and texture after that ingredients will be included in the recipes.
Weaknesses are the facts that avert a company to achieve their goal in full potential. These also decline a company’s achievement and development. These are the reasons for a company could not fulfil the values they should. Houmous generally purchased by amateur aged group (like 35 to 54) however, it has less purchased by young generation under 28. Furthermore, when it’s come to life stage houmous has good market for pre-family as well as family with kids but has small market in family with adult kids as well as it has not much preferable by older dependents. Besides, most of the non-users don’t buy houmous because they don’t think houmous as more than a snack (ragdoll research). Many people do not want it their daily meal they do not think houmous more than a snack, besides, people do not like houmous with sandwich, most busy like sandwich for their lunch box so, houmous is losing its place in people’s lunch, as like some people says they only eat houmous only with snack. Because, they do not think houmous more than a snack that’s why people do not use it or store it for their meal preparation. They also do not prefer to store houmous in their fridge in regular basics.
Opportunities are offered by the situation within which an organization runs. These rises when a company can take advantage of circumstances in its environment to strategy and implement strategies that qualify it to become more gainful. Corporations can increase competitive benefit by using of the chances. Choosing the goals that will best assist the customers whereas receiving wanted results is a tough job. Zorba limited has also some opportunities if they can use these rightfully they can increase their market as well as customers. Houmous is not that much favourable to young generation as well as kids though they produce different types of houmous. However, in this modern era, fitness is turn out to be more essential to consumer concerns as well as positive health identifications are more essential than nutrition based requirements so, if they can find out why they do not prefer houmous and if they can change the things and make houmous more favour to young generation as well as kids it can helps them to increase their customers as well as sales. Though, vast amount of people buys houmous for occasionally, but they do not think houmous more than a snack as well as they do not prefer houmous to store in their fridge or in their regular meal. Probably because, houmous is short life product with high wastage. So, if zorba can change their houmous little bit and make a new meal in order to increase their sale. Moreover, lower class people do not purchase houmous very much so find out why they do not purchase can open a door to increase the sale of houmous.
Threats rise when circumstances in exterior environment endanger the consistency and productivity of the company’s business. They complex the susceptibility when they relay to the weaknesses. Threats are uncontainable. Threats can also come form competitor. Zorba main competitor is Bakkavor limited. Bakkavor has 52.6% market share in top 10 retailer while, Zorba has only 47.3%. Besides, Zorba has 49% market share in total grocer shop while Bakkavor has 51%. So, if Zorba Limited’s houmous sell decrease Bakkavor will get the market share more.
3. Environmental analysis:
Environmental analysis is a strategic implement. It is a technique to recognise all the exterior as well as interior foundations, which can distress a company’s work. The examination involves measuring the point of threat or opportunity the aspects could existing. These assessments are far ahead interpreted into the policymaking procedure. The study supports line up strategies with the organization’s atmosphere. In this modern era market has changes every single day. Numerous new stuffs advance over time besides, the entire situation can modify in individual seconds. There are aspects that are elsewhere company’s influence. Nevertheless, an organization can switch a lot of these effects. Productions are momentously prejudiced by their environment. Entirely conditional issues which control everyday circumstances influence companies. Therefore, businesses essential regularly analyse the skill atmosphere and the market. The marketing environment of a company involves with two different points, the internal environment, which is based on detailed adjustable inside of a corporation as well as the external environment, which is based on flexible exterior to an organization. Furthermore, the external environment is separated by two different groups, macro-environment and micro-environment.
The internal environment contains altogether fundamentals those are endogenous to a company, which are shaped and completely organized by it. The investigation of the internal environment essential to response completely store linked interrogations, explain all store management matters besides stand for the first step in describing up the marketing approach. This element has creating a “value chain”, the value chain examination is built on the linking among the organization’s incomes as well as its competitive situation besides, it discovers in what way these elements participate to the effectiveness (Porter 1985:121).
The external environment includes set of issues that make up a multifaceted, mixed construction, involving of a system of exogenous adjustable co-ordinated by the particular funds of the firm endogenous mutable. The external marketing environment contains of two main factors, the micro-environment and the macro-environment (Balaure 2003:75). The micro-environment of a company contained from individual’s elements that are in through connection with the business, of related eternal and extreme strength, allotted from the necessity of reaching current as well as upcoming goals. These factors are: stock dealers, facilities suppliers, workers, opponents, government organizations (Dumitru 2004:26).
The macro-environment contains the whole aspects that are affecting circuitously, in long period
Besides, with low strength, creating corporate chances for the business on the other hand, pressuring and driving the business to adjust, without no option of a straight impact of these issues. The macro-environment elements are the demographic environment, the financial situation, the technologic atmosphere, the traditional location, the political atmosphere, the permitted and official environment as well as the natural-geographic surrounding (Balaure 2003:78). Zorba Limited’s has earned 60% of their income from houmous. Most of the buyers of houmous are middle aged people roughly from 34 to 54. Unlike middle aged people, when it comes to aged group customers they do not prefer to buy houmous that much. As well as, like young generation do not prefer to buy houmous. Moreover, pre-family group and group with child bellow 5 years old them like to buy houmous but it comes to family with young kids they do not like houmous as like the other group it might be because, of their children who does not like to eat houmous. Though, price of the is houmous is low than other grocery product but shoppers only buy houmous nearly 8 times in 263 trips in a year.
The excellence of a goods, offers exclusive cost to customers is frequently pretended by the company’s product development ability. By developing and introducing of a new products, new potentials and marketplaces can be achieved or formed. Inventive contribution from consumers and markets are frequently point out as important input which offers a compact basis for effective product development (Munksgaard, Freytag 2011). Product development is the formation of primary products, present product development or adjustment and making of new varieties, by the support of firm’s technical investigation section’s efforts (Ph. Kotier, 2003). He also added that a firm can get new goods in two systems, that is to purchase another firm or authorization the copyright to manufacture other’s food or a firm’s investigation section help. However, D. Dougherty (1992) says, new product development is a method of connecting technology and shopper, besides it is (Zhang, 2009) the basis of a probable competitive benefit of the firm. Business research and development (R&D) uses
science as well as knowledge to produce new or developed foods or methods for making profit businesses (IRI 2000). Product development, is a crucial segment of R&D, it can be realised by way of an action which is predictable to develop a firm’s competitive benefit and upcoming achievement in periods, particularly, of productivity as well as market segment. In based of expectation and faith that obvious repay will be better than spending, significant calculations of currency are expended on R;D (Suomala, Jokioinen 2003). According to self-governing academics, Product Development and Management Association AMR Study, Booz-Allen Hamilton statistics demonstrate that around, 75-80 % of US new goods makers practice Stage-Gate system or its variations. R. G. Cooper has designed Stage-Gate method as a New Product Development implement, it is exercised by maximum of the top firms everywhere the globe. Stage-Gate method, broadly practiced in new-product developments, it was created in 1980 (Cooper, Edgett 2010). The method was established built on investigation approved out by examining sucessful developments and successful involvement of improved a goods. Cooper’s Stage-Gate method is a theoretical as well as operative guide line for leading a new-product development as of the knowledge to a merchandise promotion. Stage-Gate gaps the determination into distinctive steps divided by organisation choice entries. Cross-functional sides essential to magnificently accomplish the determined set of linked cross-functional actions in individually step former to locating organisation support to advance to the succeeding step of product development. Moreover, to the finding step, there are five crucial steps finding actions planned to find the opportunities and to create new product concepts (1) scoping: a speedy and low-priced appraisal of the practical quality of the plan and its market predictions, (2) shape professional situation: this is the serious study period besides, it can create an opportunity or can destroy the hole the plan, (3) development: strategies are converted to actual distribution, (4) trying as well as justification; (5) promotion. Cooper’s finding step contain with Scoping, Practical valuation. Full examination steps, it helps the instigator to recognises as expertise improvement method, additional the succeeding steps are known as New Product Development steps.
In today’s modern era, for company’s time consumed is costlier rather than the bigger expenses, business creates all energy to fast-track the engaging on the marketplace and reduce the NPD method, thus, several industries disagree to serial tactic to product development besides, they are considering for quicker and more easy methods. Therefore, corporation’s selects a similar product development technique of operating in groups (Kotier 2003). By using this system firm’s sections job attentively organised whereas moving out numerous steps of product development to prevent wasting time as well rise productivity. Firms assemble deputies from several sections to arrange a group which generates a product from the starting to the finish. Zorba limited should assemble their chefs, marketers, retailers as well researchers to develop their product Houmous slightly and make it more preferable for young generations.
The Oslo Manual and Eurostat ar.d together established the OECD and at present it is in 3rd publication, describes innovation like “the excution of a new or considerably enhanced product quality (food or service) else method, a new promotion technique otherwise a different cooperative way in commercial exercises, factory regulation or exterior dealing.” K. Urabe (Japanese management system expert) explains the subject of Innovation, “Innovation is the creating of new thoughts as well as their execution of fresh products, methods otherwise facilities that effect in national economic as well as employment increase, increase revenue of innovative firm” (Urabe 1988). “Innovation is the effective presentation of innovative tools, concepts and approaches in industrial practice besides demonstration of the fresh else developing current services and methods (RIS)” and in today’s it one is broadly used for every kind of innovation in expressive relations. Hauser et al. (2006) disagree and says, the principal innovation is the aim of increasing productivity, making new as well as developing current goods. They distinguish among 4 kinds of inventions, i.e. “Product Innovation”, “Method Innovation”, “Marketing Innovation”, and “Administrative Innovation” (OECD 2007). The tiniest obligation for an innovation is that the goods, method, marketing system or executive method essential to be new (or considerbly better) to the company. The innovation method contains some organised stages, it starts with problem investigation in order to generate some ideas, idea assessment, project preparation, product development besides assessment, and lastly to product advertising. This stage relates to one another. These steps can be considered on 3 general segments, it signifies a basic innovation procedure (TUHH 2008). Zorba limited has well developed chefs as well as they has NPD team who are always trying to make something innovative they can use them as an asset and they should change houmous like as today’s young generation prefer to eat as healthy besides more delicious and they can eat it more with lunch box or daily meal. In recent Kantar Worldpanel research shows that in Morrisons most of the people buy houmous as tea time meal but they purchased it less for snacks. So, their team member should consider it make houmous more good for snacks.
Since the 1980s, marketing strategy has been a key attention for hypothetical investigation. Marketing journal offers several opinions in linked with marketing strategy design. Nevertheless, almost every view accept that marketing strategy offers the process of using the firm’s abilities as well as supplies to gain marketing objects. An appropriate marketing strategy offers an outline for marketing behaviours. To make a marketing strategy, a company must consider 4 crucial aspects: (1) Firm condition – What are the company’s goals, their skills and Their supplies? (2) Market condition of this product – What is the marketplace of the product? Is it increasing, developing or decreasing? What is the existing scope and predictable upcoming development percentage of this product type? (3) Competitive condition -How many companies produce this product? What are their qualities as well their marketing tactics? (4) Environmental condition – What are the firm’s exact environmental opportunities and threats?
M. R Svendsen et al (2009) examined the influence of a company’s marketing strategy on including consumers in Product Development. The consumer engagement in product development scale explain the step to which the consumer is engaged in product development methods. Customers’ needs and their proper information through the real practice of goods make them a crucial exterior source for product development. Some clients are not only well-informed but also intelligent to advance their personal new goods. These inventive consumers can be located in virtual societies. By engaging customers with the product development process Zorba Limited can know what customer want and how much change they need to do. They can easily connect with them especially young people through social media as nowadays this spent most of their time in social media platforms. Besides, by doing this it will make them more interesting to purchase Houmous in their next shopping. Parrish et al. (2004) uncovered, now companies exercised both push and pull marketing method. Push marketing is while a goods is originally established by the business after that marketed to the shopper, i.e. offering the purchaser a product they did not realize they wanted. Besides, pull marketing is explained, a product is industrialised on based of purchaser requirements, i.e. knowledge about the gaps in present markets or products and evolving or improving a product to seal this gap. Besides, he also paid special attention on competitor orientation. Competitor positioning explain the scope from where the firm gains knowledge about competitor’s activities in the target marketplace, and the company’s readiness to capture tactic and goods concurring to competitor steps.
To sum up with that to increase their product Houmous sale Zorba Limited should consider about product development method and make it more interesting to young generation. Whom are they losing market. Children like to eat Houmous but when their getting young they do not like to eat Houmous that much as it also happens with family to pre-family or family with child buy more than family with young with young maybe because of the children. So, Zorba Limited should make Houmous more interesting to young child in order to increase Houmous sale. They can also assemble their different sectors professional in their product development process. Besides, it will help them to get aspects and ideas which will them to change Houmous and make it better. For this they can also engage customers in the product development process and know what they want Are the Want it healthy product? Or they want something more tasty? Social media platforms make it easier for them to connect with their potential customers. They can easily contact their potential customers through social media platforms. Company’s marketing strategy could have both positive and negative outcomes on consumer involvement. It can make Houmous more interesting to them in their next shopping.
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Student Number: 17094224Date: 18-01-18
Zorba Delicacies Ltd
Analysis and Strategic Decision Making
Background: (to include key elements of research findings from your situational analysis, that have led to your decisions)
There are always innovative and always try to drive with trend. They have well developed chefs who are always try make something new and understand customers demand to understand customers demand, they talk to them. They also keep a regular innovation meeting, as well as they always monitor global food trends. They also have a NPD team who always keep their eyes on global food recipe. With the inspiration they try to make quality product.
Marketing Objective (s): (to include the gap you have identified and your approach to addressing that gap)
By doing SWOT analysis I noticed that young generation does not like Houmous that much. As well as when it comes to family pre-family and families with children purchase Houmous more than the families with young children maybe this is because of the children choice. Besides, I found that Houmous is losing place in lunch box.
Strategy: (to include the strategic approach you have chosen and your rationale for this approach)
In order to increase sale of Houmous and get young generation attention Zorba Ltd first they should engage with customers try to what they want. By addressing their demand, they can know want sort of change they need to do for their product. After understanding customers demand their NPD should take consider about the customer demand gather their idea to change Houomus slightly.
Action Plan: (a brief outline of how your proposals will be actioned, related to your chosen strategic approach e.g segmentation, supermarket, communication, product development etc)
By identifying this gap, I prefer to do product development. If Zorba Ltd can change Houmous slightly and make it to preferable to young generation they can increase the sale more.