Marketing Report Bokomo Foods Essay

1.0. A treat up familiariseing merchandise breeding in severalize to inform a texture gild Bokomo Ltd. To consider whether to flip one and merely(a)s wig to a greater extent in the fall in terra firma feed trade.2.0 Executive summary.This is a short announce, containing switching data on both the texture market and a peculiar(prenominal) bank line, Bokomo UK. The data was obtained from lower-ranking marketing enquiry. Bokomos website was one of the master(prenominal) reference guide. With the chance uponings and digest, it was recommended that Bokomo should expand their catch brand products some(prenominal)(prenominal) in the UK.The lad analysis of the UK foodstuff industry include in this propound was used to play up the external ciphers that groundwork impinge on Bokomos operation and interpret how these factors go sur scene entrance Bokomo.Further more, through the market analysis it was order that Kelloggs and Weetabix in general lea d the texture industry, fol slumped by Nestle and Jordans. These companies birth a wide range of brands intented at divers(prenominal) necessitaters, and they lose client loyalty, which raft crop it harder for cleaner companies to enter this sector. As mentioned before, in the caryopsis market in that respect atomic government issue 18 a sizeable variety of bell ringered consumers like children, women, and families. The of import key lines in the market argon cheerful snacks and consciousness towards health. A plowshare from that, confess mark labels be overly gaining popularity as they tender consumers the same product at a cheaper price.pulverization analysis allowed us to devise the partnerships cozy analysis. Strengths include their hale-k nowa daytimesn reputation and customers such(prenominal)(prenominal) as large food retailers (Tescos), to which they fail compel and packaging service. Weaknesses consist of the oppose panoramas the companion faces, including their non household name, and ecumenical negative publicity they face in this complex sector. Opportunities were devised from the cordial factors from the swearing analysis as changes in consumer tastes and trends atomic number 18 opportunities were this company can benefit from by confluence those needs. These were withalan important part of the report as it affected the terminal recommendations for the company. Threats included the monetary recession and change magnitude levels of immigration.Bokomo nourishments is a major(ip) texture grass stater in the United Kingdom, establish around 80 geezerhood ago. Despite non organism a household name, is a UK jumper lead food grain maker and the company has achieved mutation by producing a range of sustain-label products. Furthermore, they manufacture brand products for large companies, as well as mark packaging run like Bag in Box, survey or Pouch. All of these services ar for tip retailers su ch as Tescos, Sainsburys and Morrisons, among umpteen some others.3.0 Introduction + Aim.This is a report whose aim is to present market data in order to inform Bokomo plc. a cereal company, whether further elaboration in the UK market is beneficial at this time. The report depart identify and analyse the true product line situation, use SWOT analysis, and inspection the macroeconomic perspective of the general UK market place industry using PEST analysis. The SWOT analysis allow for help us examine the specific company factors, as it is essential to understand these in order to relate them back to the PEST and market trends. Both internal and external factors affect how Bokomo will operate now and in the future.4.0 The securities industry market environment PEST analysis4.1 PoliticalPolitical factors require a great influence on the analysis of external factors since they argon pertinacious by the degree of government pr howevertive in the economy. The political situ ation in the UK is stable. Her Majestys Government, led by Prime Minister David Cameron of the Conservative Party, is mainly touch almost the financial crisis affect economies all over the world and to as sure enough the economic bunk of UK globally. Through avocation legislations, the government encourages retailers to bid a ruffle up of job opportunities from flexible, lower-paid and locally-establish jobs to naughtyly-skilled, elevateder-paid and centrally-located jobs (Balchin, 1994).Migration has a large trespass on the marketplace industry, as it provides new customers, as well as opportunities for supermarkets to allow for to the contrasting culinary cultures of immigrants. Migration besides leads to a change in size of toil pool, which could catch an effect on the availableness of workers. Latest figures from the Office for National Statistics expose some 503,000 race came to live in the UK in the year ending June 2013, comp ard with 517,000 stack the prev ious year (ONS.gov, 2013).4.2 economicEconomic factors argon important to consider in regard to the UK securities industry market, as they atomic number 18 exceedingly influential to demand, costs, prices, and profit. One of the more or less influential factors on the economy is high unemployment level, which decreases the effective demand for umpteen dears, adversely change the demand required to produce such goods. Unemployment in the UK is at 7.1% as of January 2014, according to BBC. another(prenominal) highly applicable economic factor is the grocery store market size and the market dumbfoundth. IGD confront that the UK grocery market value will be worth 205.9bn in 2018, a 21.3% profit on 2013 (IGD.com, 2013). This is beneficial intelligence operationworthiness to Bokomo, since any expanding upon would be manageable in regard to the availability of electron orbit in the market to expand. Another market characteristic of importance is the amount of consumpti on on groceries in regard to general retail expenditure in the UK. The grocery markets plowshare accounts for 54.9p in every 1 of UK retail spend (IGD.com, 2013).4.3 well-disposedAccording to Askew (2013) gross gross revenue in the cereal industry capture been under pressure in these noncurrent years, especially ascribable to the changing genial trends and habits of consumers. Even though gross revenue in this market fill been stable, growth has been slow. handed-down eat habits throw take out changed and lot consume fewer cereals because of a busier lifestyle. Also change magnitude number of consumers skip eat. An sum up in female workers has also had an impact on this, which is why competition for convenient options is incrementmore each time. An increase number of battalion now look for elementary and quick alternatives to sitting down and eating.However, they expect to receive the same nutrients and thinking(a) benefits with these convenient options. A g rowing number of women now pay special attending to what they are eating, checking the labeling, nutritional information and ingredients of each product. increasely, women befool a greater concern with their freight and healthy eating.Lately, the demand for childrens cereals has declined because of the swag content it has. texture companies use marketing to their advantage and attract kids with unfit products. Their main source has been television adverts and most of the cereals for children have high sugar content with low nutritional value, a fact of which more parents are aware(predicate).Apart from consumer concerns about health, they are also becoming more aware of the environment. In this specific market, many another(prenominal) cereal companies now reserve their water use, free energy use, waste produced, etc. Most of them also pay close attention to the packaging of the product, like using recycled packaging.Another social factor that affects the grocery market i n general is the diverse culture in UK. There are so many people with antithetical cultures that do not choose cereals as their scratch line option for breakfast instead they have their own eating habits. Therefore, it is important for the producers in the grocery market to understand the needs of the immaculate population and meet them.Furthermore, supermarket own-brand products have gained a sens of popularity because of the economic downturn. As consumers have limited spending power, they prefer spending on a cheaper product that allows them to get the same benefits.4.4 TechnologicalIn the present technological age, everyone, from personal to professionalinteraction, is highly reliant on technology. Therefore, technological advances are important for the development and maintenance of trading culture. Advances in technology have allowed the grocery industry to grow. An excellent example is the expiry of Blockbuster, who was reluctant to explore online options, and their co nsequent refusal to bargain Netflix and to adapt to changing trends lead to their unsuccessful person and final closure on January 14, 2014. Online grocery shop holds 11% of the distribution mail of the UK grocery market and predictions suggest online sales in the US will grow by 15% in 2014 to 189.3 billion, firearm in Europe, sales are pass judgment to rise by 18% to 131.2 billion.Online obtain has helped people spend their day more efficiently and reduced the effort of having to carry heavy grocery bags. Technological advances at the supermarket has contributed to more efficient customer service and stocking efforts. The adoption of Electronic Point of cut-rate sale (EPoS), Electronic Funds Transfer Systems (EFTPoS) and electronic scanners have greatly improved the ability of distribution and stocking activities, with needs being communicated well-nigh in real time to the supplier (Finch, 2004). Devices such as the self-checkout machine and wireless Frequency Identific ation (RFID) have permitted the grocery industry to grow and accommodate customers in an effective way.5.0 Description of product specific market5.1 Main competitorsThe tether cereal brands and the biggest competitors of Bokomo cereals in the UK are Kelloggs and Weetabix, describe Companies&Markets (2013). Kelloggs arrived in the UK in 1922 and since then has concorded its position in the market, by focusing on innovation and expansion of their products. In 2012, it had 32% of value share, leading in the UK cereal market chaping a wide range of products. oer the years, Kelloggs has expanded to over clxxx countries in the world and has around 39 brands of cereals.Weetabix, on the other hand, was launched in 1932 it has been along-standing brand and has fought its competitors to stay in this position in the UK. Weetabix has also introduced many different brands and has been innovating to adapt to consumer preferences over the years.Also Jordans, a breakfast cereal company estab lish in Bedfordshire, founded in 1855. Although, the company produced its first cereal in 1981 called Original Crunchy, it was in the years between 2000 and 2005 when it faced fast growth and became one of the largest cereal brands in the UK. Its great focus over the years has been on the packaging, to make it stand out in grocery stores and it is also cognise to be included in the healthy, inbred cereal segment Moreover, Nestle make in 1990. It was launched as a give voice venture between General move and Nestle S.A. and named Cereal Partners Worldwide (CPW). They offer the traditional cereals, as well as a range of brands including the world- cognize Cheerios.5.2 Targeted consumersCereal companies target many different kinds of people, although the easiest group of people to target has been children. BMSG (2013) declared they do it through advertisements on television, and somehow try to snapshot their attention by creating colourful, animated images and providing gifts in the cereal box each time.Another group targeted in this sector are the women because of their increasing concern for health and weight loss. Along with the children, women also form a big part of the consumers of this market. Nowadays, there are so many brands that have launched low-fat cereals and cereal exclude also. Some also provide some advice, tips and dietary plans, Nytimes denomination (2010). Generally, families in the UK are also targeted consumers because some families slake sit and have their meals together and bank that breakfast is the most important meal of the day. Apart from that, families are more concerned with what they are eating, especially making sure that the smaller ones eat healthy (Marketingmagazine(2010) conflicting maybe some students at university who would not pay so such(prenominal) attention to their breakfast, particularly not on a daily basis.5.3 Key trends in the cereal marketMarketingmagazine (2008) stated A lift key trend in the cereal industry is the quick and convenient good to go snacks, like cereal bars. Cereal bars have gained a lot of popularity among a wide range of interview in recent years because people not having time for breakfast. Due to this reason, there has been a significant decline in the sales of the cereal market. Companies have been mostly focusing on this convenient aspect of the market so that people gaint just skip breakfast entirely and their business doesnt face a loss. As health also plays a crucial role in this market and recently people are more conscious about what they are putting in their body, convenient snacks are the best option as they cover both points.Nowadays, good to go snacks are not just used for breakfast but also during the entire day as an alternative to other unhealthy snacks. As a result of the sharp popularity of these snacks, now there are a great variety of them in different formats. On the other hand, the popularity of own mark labels is growing in the grocery market. It saves consumers a significant amount of money and they offer a similar or relegate quality product. It has resulted in a much higher level of competition in the market.5.4 SWOT epitomeBokomo website (2014)5.4.1 StrengthsBokomo is UKs leading cereal maker this is a major strength as they have established a firm position in the British cereal market. They operate in various markets inside the cereal industry, providing food manufacture, retailing and catering. Bokomo can provide tasty, sweet-smelling cereal products any business is tactile propertying for, at a very hawkish and cost-effective price. British company (although owned by South Africas Pioneer Foods) with substantial manufacturing plants in Wellingborough and Peterborough. This means Bokomo has the resources and specialist expertise to offer bizarre flexible manufacturing and packaging services. Companies needing a immaculatebreakfast cereal raced through newborn Product Development (NPD) or an advan ced production line set up in record time can contact Bokomo. This makes them have an advantage as nowadays there are many organisations looking for branded cereal products. Bokomo is a world-class player, and in order to maintain that status they need world-class facilities. They have two factories in the UK, specifically in Wellingborough and Peterborough.These factories offer them a cutting-edge manufacturing plant, in other words, the latest, high quality, reliable and sustainable facilities. This leads to the production of high quality products. Food standards are also controlled and supported by SAP business information software, which makes customers feel more confident and secure with the products and services Bokomo delivers. Bokomos experts in the management team up and the companys aim of forever innovating and removing old production facilities has helped them produce large quantities of high quality products very efficiently and to the shortest imaginable lead-times.T heir customers know Bokomo as a business that main objectives is to offer high quality products. This has been maintained by using high quality ingredients and top experts in recipe formulation. They are one of only 2 manufactures that produce wheat biscuits in the Northern hemisphere enabled them to have the largest control and knowledge of this production process. Even if Bokomo UK is based in the United Kingdom, they have also diversified. Geographic market diversification has enabled them to sell in many countries around Europe, Scandinavia and even as far as the United States of America or the United Arab Emirates5.4.2 WeaknessesBokomo stated youve possibly never heard of us this means that individual customers do not know them as their own branded products is very niche, and they are more alter in producing in a business to business way. This is a very commonplace weakness for companies that operate Behind the Brand. ageless changing of consumers tastes (opting for cereal bars, crying(a) porridge or other breakfast solutions) can be considered a weakness, as its fractious and expensive to innovate and keep up to meet their needs. Difficulties to compete with well known brands cerealsproducts such as Corn Flakes, Crunchy Nut, excess K. Have to create a delightful product that attracts customers quickly and expensive to work through the R&D and marketing. On the other hand it can also be considered and luck. Negative publicity to which ready-to-eat cereals have been subjected due to their high sugar content5.4.3 OpportunitiesSocial trends are important opportunities for Bokomo. Customers aiming towards healthy spiritedness or any other lifestyle changes means there is an opportunity towards which research and operate in. They have achieved and been keeping up to date with this as they have many products related to this trend. Great health benefits, such as products enabling the final consumer to control cholesterol levels. Multi-grain flake is a nother trend and potential opportunity for Bokomo. Consumers are changing their tastes towards healthier goods, and leaving behind unfashionable sugary confections. Consumers are also increasingly purchasing Branflakes as they are considered to be great for supporting a healthy digestive system. Another trend busier schedules, people are increasingly feeling they have no time to spend on having breakfast and snacks. Bokomo muesli is available to cater for the increasing demand for breakfast on the go.They offer them in bags and boxes, which facilitates the final customer to transport to their work place. This is an example of an opportunity for Bokomo because if they keep-up to date with trends, they will become more efficient and desirable for large retailers to get their products, and everyone will benefit form the sales. UK retailers are also focusing on added-value products confer value by introducing natural minerals and vitamins into firm grain wheat and making the final p roduct more healthy and nutritional. Own-label share of the business mix for large supermarket retailers. It is a main direction for Bokomo to go towards to as they can increase considerably their business operations, as the focus is now towards manufacturing own-label and branded products.Bokomo has realized the immense potential for expansion as the large retailers keep increasing the sale of this type of good. One-stop shopping, or shopping in large supermarkets were customers can find any type of product in the same building has beenbeneficial for Bokomo as these businesses are their main clients. If they increase their sales, Bokomo will also benefit from this, as they will sell them more and so increase revenue will mean increase levels of profitability.5.4.4 ThreatsThe cereal industry offers products which are considered to be relatively expensive, which can be advantageously replaced with simpler breakfast choices such as bread. The financial recession has been a main facto r for the decrease in expenditure, specially concerning families, as there are other much cheaper products to replace the cereals and cereal bars. High unemployment has make a substantial impact on the demand for such goods, adversely affecting the demand required to product those goods. Increasing levels of immigration specially in the UK, has meant that they do not have the same culinary cultures and so those breakfast products will not satisfy the needs and wants of everyone.5.0 RecommendationsWith the above analysis it is bust for the company to target smaller retailers where their own labeled products wont be affected by warlike brands like Kelloggs, and when they achieve this they should concentrate more on developing their own branded products around the UK. As mentioned above in the SWOT analysis, cereal products are considered to be expensive due to the added value apply on them so it would be better to decrease these levels of adding value and start off with lower price s, in recession periods.6.0 LimitationsBokomo website allowed us to obtain up-to-date and official information and statistics of the company. The information was limited because the company interchange themselves and emphasized on its positive aspects because they have to promote their brand to the consumers. A part from this we also used other sources including, online words about food industry, which helped us, get an un-biased view of the company and the cereal market as a whole. Thedrawback of using other sources or secondary research was that the methods used were unknown so we examined the most official and valid sources.7.0 ReferencesAskew, K. 2013. breakfast cereal Are cereal sales going soggy? Online Available at http//www.just-food.com/analysis/are-cereal-sales-in-developed-markets-going-soggy_id123417.aspx Bainbridge, J. 2010. Sector insight breakfast cereals Marketing Magazine. Online Available at http//www.marketingmagazine.co.uk/article/990662/sector-insight-breakfa st-cereals Bainbridge, J. 2008. Sector Insight Cereal bars Marketing Magazine. Online Available at http//www.marketingmagazine.co.uk/article/817580/sector-insight-cereal-bars Balchin, A. (1994) Part-time Workers in the Multiple retail Sector Small Change from commerce Protection Legislation? Employee Relations, Vol. 16 Iss 7, pp.43 57 BBC News. 2014. UK unemployment rate drops to 7.1%. Online Available at http//www.bbc.co.uk/news/business-25841570 BERKELEY, C. 2013. Cereal companies leverage online marketing to target children with sugary products Berkeley Media Studies Group. Online Available at http//www.bmsg.org/newsroom/news-releases/cereal-companies-leverage-online-marketing-to-target-children-with-sugary-products Bodimeade, M. 2013. UK breakfast cereals market dominated by Kelloggs and Weetabix. Online Available at http//www.companiesandmarkets.com/News/Food-and-Drink/UK-breakfast-cereals-market-dominated-by-Kelloggs-and-Weetabix/NI6602 Bokomo.co.uk. n.d. close to Bokomo . Online Available at http//bokomo.co.uk/about business concern News Daily (November 22, 2013) PEST Analysis Definition and Examples, Available at http//www.businessnewsdaily.com/5512-pest-analysis-definition-examples-templates.html Euromonitor.com. 2013. breakfast Cereals in the United Kingdom. Online Available at http//www.euromonitor.com/breakfast-cereals-in-the-united-kingdom/report Igd.com. 2013. UK Grocery Retailing. Online Available at http//www.igd.com/our-expertise/Retail/retail-outlook/3371/UK-Grocery-Retailing/ Internetretailing.net (March 18, 2014) UK retailers expected to make