birds eye and the uk frozen food

7/25/2019 Birds Eye and the UK Frozen Food

1/4

WAC On Birds Eye and UK frozen Food IndustryJUNAID BAIG 101081!

Birds Eye and the UK Frozen Food Industry

Issues:

1. Birds Eye "as #osin$ %ar&et s'are in an industry "'ere on(e t'ey "ere

do%inated)*) Ne" entrants "ere (o%in$ in t'e %ar&et t'at "as s+e(ia#ized in one

se$%ent of freezin$ food industry)) In(reased rate of ne" +rodu(t #aun('es (o%,ined "it' ne" %ar&etin$

a++roa(' #ed to (onsidera,#e di-(u#ties in desi$nin$ an ad.ertisin$ +o#i(y

"it'in t'e #i%its of ad.ertisin$ ,ud$et)

/) 'e Ca+ita# (ost of Birds Eye "as .ery 'i$')!) Distri,ution Cost of Birds Eye "as .ery 'i$')) Unre#ia,i#ity of 2a('inery and #a(& of 3&i##ed 4a,or)

Analysis of Issues:

In 1556 Birds Eye "as #osin$ %ar&et s'are in an industry t'ey on(e

do%inated) O.er +re.ious de(ades t'ey 'ad esta,#is'ed t'e%se#.es as t'e

#eadin$ +#ayer in t'e UK frozen food industry) In 1566 t'e (o%+any re+orted

a net #oss of 657000 Britis' ounds)

Fro% 15/6 to 15807 867000 ne" entrants (a%e in t'e %ar&et of UK frozen

food industry7 t'ey $ot 89 s'are of t'e tota# %ar&et in 158* fro% :ust *09

%ar&et s'are in 15) 2ost#y t'ey "ere s+e(ia#ized in one ty+e of +rodu(t

due to "'i(' t'eir O.er'ead (ost "as .ery #o" as (o%+ared to Birds Eyes)

Durin$ t'e 15!0s and 150s Birds Eye 'ad ,ui#t and de.e#o+ed t'e frozen

food %ar&et in t'e UK) Usin$ te('no#o$y de.e#o+ed ,y C#aren(e Birdseye7

Birds Eye i%+#e%ented ;ui(& freeze te('no#o$y in 158 to introdu(e a

fres'er7 'i$'er ;ua#ity +rodu(t to t'e UK (onsu%er) After t'e (o%+any "as

,ou$'t ,y Uni#e.er in 15/*7 t'e de.e#o+%ent of t'e frozen food industry "as

under"ay) 'e industry fa(ed %any ('a##en$es in t'e 15/0s) Frozen foods

"ere un(o%%on and #itt#e infrastru(ture "as in +#a(e to fa(i#itate t'e

sour(in$7 +rodu(tion7 and distri,ution of frozen food) In addition7 fe" retai#ers


2/4


'ad freezers in t'eir stores to sto(& and se## frozen +rodu(ts) 'ese

('a##en$es "ere addressed t'rou$' Birds Eyes in.o#.e%ent in t'e entire

su++#y ('ain)


3/4


Ealuation:

1. By 3+innin$ o? t'e 3u++#ier and distri,ution ,usiness t'ey (an redu(e

t'eir o.er'ead (ost "'i(' "as .ery 'i$') Due to s%a## size t'ey (an a#so

;ui(y res+ond to t'e %ar&et ('an$es)

2. ri.ate #a,e# 2ar&et is $ro"in$ at a ra+id rate) 'eir s'ares in(reased

fro% 9 in 1560 to *89 in 158*) 3o By se##in$ to t'e ri.ate #a,e# %ar&et

t'ey (an in(rease t'eir %ar&et s'are ,y *89 e.en t'ou$' t'e +ro=t

%ar$in is #o" in t'is se(tor ,ut sti## its +ro=ta,#e for Bird eye to $ain as

%u(' %ar&et s'are as +ossi,#e)

3. By usin$ t'eir ,rand re(o$nition to e@+and into ot'er +rodu(ts and ,y

#i(ense t'eir Brand na%es to ot'ers t'ey (an earn so%e e@tra re.enue)

4. By de(reasin$ t'e no of +rodu(ts in +rodu(t #ine t'ey (an easi#y %ana$e

t'eir ad.ertisin$ ,ud$et for #ess nu%,er of +rodu(ts)

!e"ision #riteria:

I too& %ar&et s'are and ,rand #oya#ty as a de(ision (riteria)

!e"ision:

As a ('air%an of Birds Eye Foods 4td I "i## s+in o? our su++#ier and

distri,ution ,usiness and "i## se## our +rodu(ts to t'e ri.ate #a,e# %ar&et)

$e"o%%endations:

1. 'ey s'ou#d redu(e t'eir rodu(t #ine to 'and#e t'e di-(u#ties of

desi$nin$ t'e ad.ertisin$ +o#i(y)

*) 'ey s'ou#d s+in o? t'eir distri,ution and 3u++#ier ,usiness to de(rease

t'eir (ost of (a+ita#)

) 'ey s'ou#d e@+and t'eir ,rand into ot'er +rodu(ts or #i(ense t'eir ,rand

to ot'er %anufa(turers to in(rease t'eir re.enue and %ar&et s'are and

de(rease t'e ,usiness ris&)4. Birds Eye s'ou#d (onsider se##in$ to +ri.ate #a,e#s as t'eir s'are in t'e

%ar&et +#a(e 'as ,een in(reasin$ at a ra+id rate)


4/4


E&hi'it 1 Brand (hare of the UK retail %ar)et for frozen foods

1*++ 1*,- 1*,4 1*, 1*2

Birds Eye * 0 /! *5 *0

O"n #a,e# 1/ *1 *8

Findus 1 1 11 8 /

Others *0 1 *1 ! /0

$oss ! 8 8

E&hi'it 2 Fore"asted Birds Eye (hares after (ellin/ to 0riate a'el

ar)et

1*+ 1**- 1**4 1** 2--2

Birds Eye !! * 5 6 8

birds eye and the uk frozen food

Documents