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Growth at Hubbard's Foods(3)

By Gordon Knight,2014-11-28 16:57
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Growth at Hubbard's Foods(3)

    Developing a Winning Strategy for

    Growth at Hubbard’s Foods

    SUMMARY

    Hubbards Foods is a New Zealand cereal manufacture occupying an 18.5 per cent share of cereal market in New Zealand which makes it a third-largest player in the market. As the steadily growth in demand of the market, Hubbards factory is becoming too small for the growing company, and Hubbards facing a question that whether it should expand the business further and capture some of the untapped markets or not. This report highlight the cereal market development and opportunities for Hubbards Foods, review its current performance in the market and improvement opportunities, and make decision and work plan for the second phase of Hubbards developing.

CURRENT PERFORMANCE

    1. Products

    Hubbard’s has a range of products whose target are both the high price range and low end of the cereal market, 23 breakfast cereals aimed at the mid-high price range in the cereal market, and an organic muesli is in the very high price range, the products of the company are mainly aimed at the high price range. Meanwhile, it also provides products for many supermarket private labels, which are usually at the lower end of the price range for cereal, for example, rice puffs and cornflakes. 2. Brands

    [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    The company’s main high-quality cereals are under the brands of Hubbard’s. The main products are Orchard Muesli, Black Forest Muesli, Apricot Natural Muesli, Berry Berry Lite, Berries, Apple & Cinnamon, Guava, Apricot & Nuts, Yours Fruitfully, Simply Toasted, Simply Toasted Apricot, Oat Bran Muesli, Fruitful Breakfast, Fruitful Lite, Berry Berry Nice.

    2. Market share

    Hubbards has an 18.5 per cent share of the cereal market in New Zealand, which makes them the third-largest player in the market. In 2000/01, Hubbards exported 14.4 per cent of its production, mainly to Australia, but a small amount was exported to the United Kingdom, Singapore and Hong Kong.

    3. Scale

    Since Dick established the company, it has grown steadily in staff numbers. The company is now outgrowing the definition of a small l-medium enterprise, which in New Zealand is a company that employs fewer than 100 employees. Hubbards now employs approximately 120

    staff at any one time.

OPPORTUNITIES

    1. Growth in demand

    Strong growth in demand of the cereal market is increasing in recent yeas, although a new factory in Mangere, Auckland was purpose built for Hubbards, and this larger factory is working to almost 100 per cent capacity and again becoming too small for the growing company. [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

There is a considerable large market untapped and Hubbards could

    capture it.

     2. Oversea market

    In 2000/01, Hubbards exported 14.4 per cent of its production, mainly to Australia, but a small amount was exported to the United Kingdom, Singapore and Hong Kong. So there is still a large market waiting for Hubbards coming in Europe and Asia.

    3. Chinas joining WTO

    Chinas joining WTO in 2001 is a big opportunity for Hubbards. As we

    know, China is such one of the largest market in the world that no multinational enterprise could afford ignoring it. At the same time, Chinas joining WTO make it more convenient to enter Chinas market for

    most of multinational enterprise. Hubbard’s could also be privileged for

    tariff, legislation and so on while entering Chinas market.

    4. Famousness

     Hubbards is the third-largest player in New Zealands cereal market

    with many products being well known by people. So it could put more money in expanding the business than advertising to let people know the brand. Mean while, people will be easy to accept both the old and new product as Hubbards famousness in the cereal market, which will reduce the advertising cost of a new product.

MAIN PROBLEMS

    1. Positioning

    Hubbard’s products aimed at both the high price range and low end of [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    the cereal market, which means it doesn't position itself correctly. 2. Market share in oversea market

    Hubbard’s exported 14.4 per cent of its production, mainly to Australia, but a small amount was exported to the United Kingdom, Singapore and Hong Kong, which means Hubbard’s food market share varies in

    different countries, it’s lager in Oceania than in Asia and America where

    it should increase its market share

    3. Development

    The company is growing steadily and quickly and the factory is becoming too small for the growing company.

    The company is falling behind on the information technology front and the production process has become more complicated, because of the large number of products and various packaging requirements. There is no standard work flow through the factory and work in process backs up behind machinery while waiting for spare capacity.

4. Management

    Dick has a distinctive and simple no-nonsense style of management and he makes an effort to ensure that he provides a family culture at the factory, which means the mode of management of the company is unitary and obsolete, diversity of culture in the company is needed to create a more free and innovative atmosphere for the company. At the same time, it has not set up a consummate performance assess system to improve the work efficiency.

    5. Promotion

    [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    Traditionally, Hubbard’s has not utilized any forms of advertising, other than the newsletter. Hubbard’s has never believed in heavy advertising for brand or products. So we can say that marketing does not run deep in Dick’s consciousness and Hubbard’s has not set up a well-rounded

    marketing department.

    6. Staff satisfaction

    Staff satisfaction about remuneration and job training is not very high. The charts attached in the case indicates that about 50% of the staff is not satisfied with remuneration and job training or think it is just okay.

ALTERNATIVE OPTIONS FOR HUBBARDS DEVELOPMENT

    1. Reposition the brand of the company.

    2. Make standard for work flow

    3. Improve the staff satisfaction

    4. Technological innovation

    5. Integrated marketing

    6. Management diversity

    7. Mergers

    8. Setting up more factories

    9. Expanding products and markets

REASONS FOR REJECTING THE OTHER OPTIONS

    1. Closing down or selling up

    Hubbards has a strong earning power and is in a good financial status, there is no need for it to close down or sell up. Besides, Dick has abundant [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    experiences in foods production and business administration and he is leading Hubbards to a profitable way. So its much better for Dick to keep

    it than close it down or sell it up.

    2. Leaving it as it is

    There are many opportunities for Hubbards development as it mentioned

    above, so Hubbards should make some changes if it wants to

    development its long term competitive advantage. There are many changes in the business circles, enterprise should pay attention and adjust to the main trend in order to enhance its competitiveness.

RECOMMENDATIONS

    1. Reposition the brand of the company.

    As Hubbard’s products aim at both the high price range and low end of the cereal market, they do not give a clear image to the consumer whether the company's target market. So, the company should do some repositioning work, and it is better for it to aim at the high price range. New Zealand is a developed country, most of the people can afford high price product with high quality. And the point is how to position the brand with high quality and can provide the best cereal to the consumer. In order to give a clear, good image to consumer and be a renowned brand in the high price range cereal market, Hubbard’s has to improve both the quality and

    the packaging of the products.

    High quality and beautiful packaging indicate a slap-up product which

    leads customer’s consumption.

[1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

2. Make standard for work flow

    As there is no standard flow through the factory and the work backs up behind machinery while waiting for spare capacity, which also causes problems for the production planner and scheduler, Hubbard’s has to make standard for work flow both on production and packaging. This innovation may improve the work efficiency and reduce problems for the production planner and scheduler; also, it avoids troubled waters in production.

    Besides, making standard for work flow could also reduce the cost of production, and make most use of the machines as there will be less spare capacity, as well as reduce the cost of machine maintaining.

    Sometimes it is necessary for Hubbard’s to ask some machine designers to develop the appropriative machine for the factory according to the production requirement.

3. Improve the staff satisfaction

    From the survey results we can see that less than 50% of the staff’s satisfaction about remuneration is okay, and less than 20% is good, less than 40% is very good, as for the satisfaction about job training,20% is very badly,10% is badly,20% is okay,20% is good, and 30% is very good. So we can say that about 50% of the staff is not satisfied with remuneration and job training or think it is just okay. Thus Hubbard’s

    has to do some work on improving staff satisfaction.

    Increasing pay and allowances is one way to improve staff satisfaction about remuneration, but reducing work load and making [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    more staff be stakeholders are also means to get more satisfaction; besides, there should be a strict performance assessing system for encouragement and punishment. Increasing pay and allowances to enhance the staff satisfaction is just a temporary method, while making more employees own stock of the company and get profit by his/her investment is a better method to help the employees earn more and love the company and work more. At the same time, a performance assessing system is really needed for the company to encourage or punish people. It will encourage those who work hard and contribute much to the company, and punish those who always make mistakes or lazy in work. If there is a standard that is fair to every body, there should be less complaining when everything is under control.

    At the meanwhile, Hubbard’s should give more good training to the staff. It should discover what the staff need, what’s the most popular

    form the trainings are conducted in. When the employees get training from time to time besides work, they will get improving on their skills in work as well as satisfaction from learning. In the training, there should be more team building activities, too. And get more feedbacks from the employees, know what they really think about the training and improve it next time.

    Besides, always find out what the staff is not satisfied with and give a judge whether the company should make up for them, like the industrial dispute that led to a picket over wage and meal allowances in 2000, the company could resolved it through increased communication between management, the union and employees. Like other this kind of events [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    which the employees could not put up with any more, the company should take measures to do with, but why not prevent it before it happen?

4. Technological innovation

    The company is falling behind on the information technology front and the production process has become more complicated, because of the large number of products and various packaging requirements. So Hubbard’s has to do some technological innovation both on information and product line, like setting up a research and development section for product and working hard on producing high quality cereal and related products.

    It has to utilize information technology as much as possible, too. Information is very important for a company, especially in the global economy world; the company should know the latest news about what is happening in the outside world in order to make decisions like production plan and so on.

    At the same time, the information technology can also be used in production in order to reduce employees’ workload and improve their work efficiency. Information technology is a very important competitive method in modern world. So Hubbard’s has to make most use of it whenever and wherever. As for the packaging, the company should search a better way which is most suitable for the product itself and work on how to make it wrapped beautifully and attractively and catch the consumer’s eyes as soon as they browse the shelf. More over, the

    [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

    packaging should indicate that it is a product with high quality and safety, which make the consumers pick it up from all kinds of products without thinking.

    Technological innovation is a sustainable competitive advantage for most of the manufactures.

5. Integrated marketing

    Traditionally, Hubbard’s has not utilized any forms of advertising, other than the newsletter. Hubbard’s has never believed in heavy advertising

    for brand or products. So we can say that marketing does not run deep in Dick’s consciousness and Hubbard’s has not set up a well-rounded

    marketing department. It is obviously that marketing is an indispensably measure to sell more products, be a leading in the market and get larger market share. Although the company has strong confidence of its products and thinks they are much worthy for the consumer, it still has to arrange some marketing activities for the products. Advertising and promotion activities are needed. It can make some advertising on TV and make some posters; also, it has to initial some promotion activities to raise the turnover.

    Besides, as the market share in Asia is still very small, Hubbard’s has to take some local marketing measures to extend his exportation to Asia where is a really large market for the company. It could look for more franchisers who would be responsible for the local market and enlarge the local market share. Of course, it has to be able to control the franchisers in order to avoid goods fleeing the appointed market. [1]. 上海代写网.http://www.shdaixie.com

    [2]. 北京代写网.http://www.bjdaixie.com

    [3]. 南京代写网.http://www.jsdaixie.com

    [4]. 广东代写网.http://www.gzdaixie.com

    [5]. 天津代写网.http://www.022daixie.com

    [6]. 武汉代写网.http://www.027daixie.com

    [7]. 浙江代写网.http://www.zjdaixie.com

    [8]. 上海论文网.http://www.shanghaidaixie.com

    [9]. 北京论文网.http://www.daixie010.com

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