FDF Company is interested in increasing its production capacity of cakes and muffins, which would be sold to airlines. In fact, the envisaged project is expected to be supported by an extra line that would be important in significantly increasing the production capacity of the business establishment. The project will deal with three new flex stages, which are mixing, depositing, and baking processes.
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The stages would be essential in producing muffins and mini cakes in the UK. It would be important to choose a company that would supply the equipment for the production of the planned goods. It would be expected that the food products would be of high quality so that they can be characterised by excellent sales in the markets.
Brook Food Company would be selected as the preferred supplier of the equipment to be used in the production because they are convenient and meet all the standards in muffin and cake making.
This paper aims at discussing the background and capacities of the selected organisation. In addition, it focuses on analysing the backgrounds and capacities of competitors of the selected firm. The following are the specifications of the new line products:
- Moisture content in muffin bar: 25% approx.
- Bake Time Required: 45 Minutes
- Bake Temperature: 370F
The attributes of the muffins would ensure that they would be of excellent quality that would lead to significant sales in both local and foreign markets. The specifications of depositors, mixers and ovens are shown below:
- To produce 4400 muffins / per hour
- Cupcake size (10 – 100gr approx.)
- 6-8 heads
- Ability to mix 400 kg
- To produce 4,400 muffins / per hour
- Four trolley racks either in 1×4 or 2×2 format convectional pass through an oven
- To bake 4,800 muffins / per hour
Thus, the equipment of the firm would be selected for the project. The firm has the largest market of for second hand machines in the UK and in foreign markets. In addition, it is characterised by good equipment for mixing, depositing and baking stages.
Backgrounds & Capacities of manufacturers (Depositors, Mixers and ovens)
Brook Food Processing Equipment Company
This firm is involved in supplying new, refurbished and used machines that are utilised in making bakery products in the UK.
The sale of used and refurbished products is one of the company’s strategic marketing tools because the sale of second hand goods is a good idea to the customers with relatively small investments that cannot be used in purchasing new baking machines.
As the UK’s largest supplier of bakery equipment, the organisation has aligned its policies and strategies in a manner that enables the it to be respond to customer tastes and preferences in different segments of the market.
As a result, it has been able to pride itself as being very responsive to client needs, enabling it to retain a large number of loyal customers who have in turn enabled it to enjoy a large market share in this highly competitive market. According to the management, the company aims at placing its customer’s preferences at the forefront.
Thus, the management conducts frequent market studies to gain customer views with regard to improving the quality of goods. In addition, such studies are important in adopting the best problem solving approaches within the firm.
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This firm is a branch of a multinational organisation known as ALI Group, which has 73 companies that carry out operations in 26 countries. It is one of the pioneer firms in the manufacture of equipment that are applied in the food industry.
The machines that are sold by the organisation meet the ISO9001 and ISO4001 standards. Across the globe, the management of Mono Company ensures that customers are provided with added-value services so that they could be loyal consumers. In the context of the proposed, the mixers marketed by the firm cannot be accepted because they do not have adequate capacity. In addition, they do not meet the specification requirements.
The business establishment was started in 1983 and in Italy. It specialises in designing and manufacturing equipment for large-scale production of sandwich, cakes and muffins, among other confectionery products. The management of the company gives value addition by offering customers free trials for testing their purchased machines.
In fact, consumers are invited for testing to ensure that products meet their required standards. However, the FDF manufacturer cannot accept the equipment of the organisation because they are too large. In addition, mixers and ovens do not meet product specifications.
The company is located in the UK and it is involved in the production of baking equipment, which could either be complete or in the form of unit machines. Their machines are used by both local and foreign firms in the UK with the of conducting various operations with regard to baking.
The mixers and depositors of the firm are very good in the context of the proposed project of increasing the production capacity of FDF Company. However, their ovens do not meet specification standards that are crucial in producing high quality baked products, which would result in an increase of market share and gain of competitive advantage.
Competitors Stance and Capabilities
Raise Bakery is a family-owned bakery company with its headquarters in Sussex, in the UK. The company manufactures a diverse range of tasty products that have enabled it to gain significant market share. Essentially, the company produces baked cupcakes for several airlines such as Virgin Atlantic and Qatar Airways.
Due to the high quality of these products, most of them are sold to first class passengers of the airways that make up a large segment of the company’s market share. In fact, the family business has a long history of supplying high quality baked products to the flight companies. It has been providing the goods on the premises that it understands the needs of customers and any dynamics that would be associated with consumers.
Market research has enabled the firm to identify the types of cakes and muffins that its customers need. Due to the broad spectrum of customers with regard to their origins and tastes, the marketing department of the firm conducts frequent surveys that are intended to gain important insights of customer needs.
As a means of attracting and retaining customers, the company ensures that it packages its products in gorgeous materials that are focused on capturing the attention of clients. The company specialises in the production of moist sumptuous cakes on a large scale, though they retain baked-at-home taste and touch. This is made possible using the industry’s finest ingredients that are sourced mostly from British suppliers.
The company also manages to retain its loyal customers by working in collaboration with individuals and groups to facilitate and promote several charitable attitudes as well as to mentor and inspire other upcoming bakers. This makes the company appear like a partner to most of its customers who benefit from some of the projects that are constantly initiated by the company with the goal of increasing its market share.
As a way of endearing it products to customers, the company bakes many tasty products such as brownies, cakes, muffins, and cookies, using some of the best recipes and ingredients. The company also undertakes the branding of a diverse range of cake products, making them superb for parties or gifts to prospects and clients.
The company’s products are supplied to more than 20 Virgin Atlantic flights on a daily basis. This underscores the great value that the company’s customers attach to its precious products.
According to the management, the high number of loyal customers has been achieved and maintained due to the company’s policy of producing excellent products that are manufactured using the best products. The company also boasts of an excellent customer service.
The company has specialised in classical Britain recipes for many years since its inception. In case where the company manufactures a product that is not British in nature, it always makes sure that there is a bit of a British spin that is incorporated in it in order to give the product a homemade taste.
This encapsulates the company’s long-term policy and strategy framework: to produce and supply homemade recipes on a massive scale at the most cost effective prices.
The company places a lot of value on its clients as the management boasts that if someone were to walk into any meeting, they are always likely to encounter the company’s products accompanied by a cup of tea and a smile to cap it all. The management has a firm belief that the company’s products must be produced with great care and their supply backed up by great service so that customers can keep coming back for more.
From the office staff to the production team and through to the supply team, the management has placed stringent measures to ensure that product quality and customer service are maintained at the very best levels.
The major competencies and capabilities of Raise Bakery are anchored on its long term philosophy, which mandates the management with two basic strategies that are supposed to be achieved:
To be the best company in the United Kingdom starting from the products that the company delivers to the quality of service that the company avails to its clients and suppliers.
To act responsibly by supporting global and local communities and groups and take ample care of stakeholders who choose to partner with the company in the provision of its products in both local and foreign markets.
Traiteur de Paris
This is the second largest competitor of the selected business establishment, which is characterised by a substantial presence in global markets. In fact, about half of its high quality goods are distributed to international markets.
The company is based in France, but it has a good distribution network of about 300 partners in 30 countries across the world. Its operations for 10 years in local and global markets place the firm as one of the best manufacturers and sellers of baked products. Some of the products that it produces are mini cakes, starters and desserts.
The business establishment has been able to capture both local and international markets due to its commitment to offer high quality goods. It responds to customer needs by committing itself to meeting high standards. In fact, the company encourages its workers to have a passion for offering consumers with unique French cuisines and patisseries.
The management has invested substantial funds in deciphering customer wants, which it aims at satisfying. For example, it conducts frequent surveys in all the continents with the aim of knowing want their customers need. The continued focus on foreign markets has enabled the organisation to acquire a significant market share of baked products in the recent past.
Due to its high-level innovation, the company has achieved significant growth trends from 1996 to the present. For example, in 1996, it started a kitchen in France that specialised in fresh products. In 1999, the management saw that there was a need to start selling some frozen products because customers were increasingly placing orders.
In 2000, the firm completed the construction of the hi-tech production plant that was aimed at producing frozen goods. Two years later, the business establishment commenced manufacturing frozen desserts, which recorded very good sales in both local and foreign markets.
In 2006, the management thought that it could be important to focus on offering customers with customised portions that would result in increased sales of its goods. Thus, it opened a modern production plant that measured about 12000m3.
In 2010, the company undertook major approaches that were aimed at creating and maintaining partnerships with well established retailers and wholesalers in 30 countries across the world. The establishment of the network was essential in achieving substantial increases in sales and profits.
Tipiak is a firm that is based in France. Its shareholding is characterised by about 2,741,940 pounds. However, Billard and Groult, the founders, control about thirty five percent of the firm’s shares. The following are the four main classes of goods produced by the organisation:
- Crusty bread
- Frozen ready meats
- Dry grocery products
Tipiak has excellent annual turnovers. For example, in 2012, it recorded a turnover of 175.3 million pounds, which was an improvement of 1.9% achieved in the previous year. The management asserts that much of the turnover is attributed to the sales of cocktail and frozen ready meats. In fact, these categories of products account for about 62% of annual turnovers.
In order to ensure that it meets the demand of customers, Tipiak has ensured that it has a sufficient number of workers who are dedicated to producing excellent performance results. Currently, over 1300 workers are involved in the daily activities of the business establishment.
In addition, the major strength that the management of the firm has focused on implementing is constant efforts in meeting the standards in research and development. Through the adoption of the R&D approaches, the company ensures that it offers products that are safe for human consumption.
This is a group of 38 companies that are based in Italy. The it is documented that the organisation is one of the biggest confectioneries across the world. In fact, it has a global presence that is characterised by 18 production plants distributed in many countries. To ensure that it meets customer demands, the firm has employed about 21500 workers who are stationed in different nations to carry out various roles on behalf of the company.
Over the years, the firm has been recording excellent performances due to the prudent approaches that are adopted by the management. For example, in 2012, the company recorded a turnover of 7.8 million pounds. In fact, it is documented that it makes an average of 7.795 million pounds on an annual basis with regard to revenue. It has high production capacity that can handle 4.6 billion units of chocolate products every year.
The high number of production is supported by hi-tech equipment that are based on production plants across the world. The business model of the business establishment is based on customer satisfaction. For example, it produces products that are aimed at focusing on customer needs. Examples of these are Mon Cheri, Ferrero Rocher, Hanuta, and Giotto, among others.
It is apparent that the envisaged project would be accomplished by using equipment from Brook Food Company that is based in the UK. The firm focuses on selling and servicing both new and used baking machines to both and international customers.
The analysis of the four competitors analysed in this paper shows that they are sizeable firms that have local and foreign markets. Thus, strategic management and marketing approaches will have to be adopted to gain market share and competitive advantage.