Birds Eye and the U.K. Frozen Food Industry
By: July • Research Paper • 3,056 Words • March 26, 2010 • 1,451 Views
Birds Eye and the U.K. Frozen Food Industry
Birds Eye and the U.K. Frozen Food Industry
General Foods Corporation was successfully manufacturing and marketing “Birds Eye” frozen food in the late 1920. They were also the original owners and incorporated in August 1938. By the 1940’s, a new owner, Unilever had a strong interested in the business and took over. He wanted to make this business innovative and profitable in the growing economy. There is couple of issues dealing with Birds Eye currently in the United Kingdom, which include market position and market shares. The industry was at 70 percent of the market share and over the years, the percentage decreased. In the 1960s, Birds Eye showed a decrease in market share and return of capital. The lack of sales was also a concerned for Birds Eye, which resulted negatively to their profit margin. Clearly, the frozen food industry is not growing as rapidly as its use to. They can regain there market share by evaluating and understanding different taste, style and trends of the consumer.
There was many opportunities that Birds Eye past up that they could have benefited from. They past up the opportunity to create their own label of frozen food and market it to consumers who have freezers in the household, and caterers. This can be an advantage for their competitor but a threat for Birds Eye. Another opportunity that they steered away from was home freezers, which affected a great deal in the frozen food market.
Among other leading firms striving to be the best, Birds Eye Foods Ltd. strived to be the leading provider of frozen foods in the growing market. By 1938, the company began their business in the United Kingdom. They have a strong brand name and recognition and have been a leader in the business for sometime. Birds Eye’s vision is providing the best products and raw material to consumers on a daily basis. The business will be successful on the demand of everyday products in the market and all over the world. This will help build the industry and help develop some of there main products. This industry as a whole will go all out to provide exceptional products and services to its consumers.
The company’s objective is to make their products more convenient. Birds Eye promotes consumer loyalty, value and recognition for their goods and services. The industry increased dramatically from its main products such as fruit and vegetables, fish, and meat. These groups of produce are why Unilever became strongly interested in the business of Birds Eye.
They also tried different types of product lines like fish and beef burgers that only accounted for 40% of the revenue. The company’s main customers are those who purchase frozen foods at retail channels. They did not just focus in brick and mortar outlets but at home freezer centers and catering establishments. Also, the leaders in the market, maintain sales growth, and diversify there products.
Birds Eye foods Ltd. mission consist of benefiting from their
brand name, brand recognition and brand loyalty. The company has achieved these goals in the past by advertising and marketing their products. Birds Eye brand name is well known and well established gives them the upper hand and an advantage not to worry about any new threats. In 1982, the market share was only at 20 percent. The industry should have restored its original market share position and restored the level of satisfactory for their profitability. The key success to this business in the past was innovation. Birds Eye was able to negotiate to produce open top cabinets with refrigerator manufacturers. This industry is well oriented and has been great advertising products on television. In the 1950s, Birds Eye introduced their new product line of fish fingers and frozen chicken pies. Birds Eye offered different trade discounts to several retailers giving them an advantage in the market. In the past, Birds Eye organization values have achieved brand recognition. They will benefit from this in the long run and they will see an increase in sales, revenue and profit margin. Furthermore, by gaining brand recognition it will result in customer satisfactory and loyalty. Customers will keep coming back for future purchases knowing that they are receiving the best quality products in the market. Having the best prices and quality products will defiantly have an impact on the success for this company. This will help them become more dominate over their competitors. Being an experienced business in the frozen food market will allow them to focus on advertising which is one of their most valuable market segments. Birds Eye is not just advertising any type of products; their advertising high-end products. The National Distribution System is a strong point in the organization that allows them to distribute goods and services nationally.