Ginsters Report

GINSTERS Table of Contents Introduction and Background Ginsters is the chief(prenominal) snitch of the Samworth Brothers, a privately owned family business active in various victuals spheres. Its intersection point range accommodates outgoingies, savouries, pies, wraps and sandwiches. Ginsters is based in C removelyington, Cornwall. The brand has been building its enfranchisement as authencetically Cornish and a brightenical anaesthetic product with local ingredients. More recently its too exhausting to associate its brand with the ascertain of fresh and timbre ingredients.This is reflected on packaging, de p bentage and rising product crackment (Ginsters Official website, 2010). The task at consider is to discover the Critical supremacy Factors for Ginsters, at that placefore analytical tools and frameworks were used such as pulverisation, STP and the Marketing mix synopsis. The external and warring environs were in addition analyzed. The first section ho lds the critical evaluation of Ginsters CSFs, while the jiffy section is concerned with explicateing recommendations for a trine-year scheme for the firm. 1.Ginsters Critical Success Factors 1. 1 CSFs According to Rockart and Bullen (1981), Critical Success Factors (CSFs) atomic number 18 the limited digit of instructions and the factors that atomic number 18 fundamental for the continual achievementful performance of a company. The identification of CSFs is important because it al depresseds governing body of ruless to concenter their efforts on building their capabilities to arrest their CSFs. On the other hand, it may even allow firms to assess whether they let the capabilities to develop the necessary requirements to meet CSFs.Daniel (1961) was the first to introduce the concept of CSF. The concept was then used to assist in defining the CEOs instruction needs that are most critical for a business (Rockart, 1979) (Zwikael and Globersonz, 2006). The CSFs manner is straight-forward, that it has a complexity as it foot be viewed from several(prenominal) perspectives. Geller (1985) points out that CSFs seat be generic to a given combining of conditions in the diligence, grocery store and external environment. They rotter also be scene specific in terms of the organization.Further to a greater extent(prenominal), Rockart and Bullen presented five key sources of CSFs, the industry, competitive scheme and industry position, environmental factors, temporal factors, and managerial position. It is also important to note that CSFs can be monitored or measured to ensure they are close up important and valid as they can permute over quantify (Bro in that locationrton, 2004). 1. 2- Human resources training The first CSF for Ginsters is its ability to develop human resources. imbed in its scheme is the recognition that people are important assets of the organization (Ginsters Official Website, 2010).This is limpid as it achieved the st atus of top-service supplier to UK supermarket giant Sainsburys. Ginsters came up with a way of enhancing the efficiency and productivity of its workforce. It designed and implemented a unique branded management-development program, which it dubbed Platinum (Politt, 2006). This cut staff turnover to half, rationalise absenteeism, increase staff stability, reduced production- argumentation down time building on improved relationships between engineering and production, and succeeded in offering higher service to its supermarket customers, following the introduction of a impertinent training course (Politt, 2006). . 3 brandmark Image and Advertising A full STP analysis conducted for Ginsters ( moot Appendix) has derived important conclusions on Ginsters success factors. The decision to produce and distribute products totally in the unify Kingdom has ultimately been positive and successful for the company, as it has increased its UK customer base. In 2009, Ginsters spent over 1 m eg pounds on advertizing, which has generated considerable attention for the company (Mintel Report, 2010). Ginsters has consistently used advertising and it leads the pack in the pies and pastries household of the market (Mintel Report, 2010).This is important and is evident by its great brand reputation a turgid with goods that represent tonus and trus bothrthiness. Ginsters has ceaselessly promoted its Cornish heritage, emphasizing the greatness it gives to local sourcing and the use of 100% British ingredients. The brand has also evolved immensely. Ginsters marketing scheme has developed to highlight the wideness of fibre ingredients that are put in the pasties. This is of critical importance because consumers are confident that Ginsters products lead deliver on attribute and taste.Understandably, the pie and pastry industry is highly competitive with Ginsters competitors being able to produce virtually all the products that Ginsters is able to produce. That being said , Ginsters success lies in its convenience and impulse sector grownly due to sales of chilled savoury pastry. In fact, Ginsters has been recognized as the number one food on the go brand in the last four years (Doonar, 2004). 1. 4 Fragmentation of meal propagation and rise of chilled food industry & The ability to tail end and reach segments of market These are two important and correlated success factors for Ginsters.The chilled and prepared foods market has evolved in the past 10 years and has pay off a very dynamic area of the food market. This is largely due to the trend in consumer behaviour where lifestyles are influencing mealtime. This has made mealtimes more fragmented, informal and less important. This environmental social change has resulted in suppliers and retailers placing more emphasis on the chilled cabinet. Moreover demand for chilled foods has soared. This is a type of environmental CSF is one in which the firm has no visit over.However, looking at Ginsters reaction to this environmental change is also a strategic critical success factor. Ginsters understood the impact of these changes on consumer get behaviour and they adapted their products to meet this demand. This becomes clear in their ability to object glass the largest group that conforms to this environmental change, which are young people and business professional, and grasp their target by presenting their products in the unspoilt locations such as gasolene station, convenience stores and university union shops (Keynotes food industry report, 2010).Ginsters has also eudaemoniaed from getting the right product mix to serve their target market as the SWOT analysis shows that its products are location independent, convenient, deeply filled, easy to eat and not un effectual (Mintel Report, 2010). 1. 5 value chain Another critical success factor of Ginsters has been the way it bed its value chain. In terms of inbound logistics, Ginsters has chosen a direct channel approac h that is characterized by low proximity. The place of Ginsters manufacturing facility is within a 20 mile radius of the unrefined material providers.It forms a vertical marketing system (VMS) and more specifically an administered VMS. This type of cooperation helps Ginsters swallow a great degree of control. The system provides 35% of the total raw materials and the target is to reach 50% (Hunt, 2005). Furthermore, concerning operations, increased enthronizations in production technology by introducing automation systems with quality control, ensured the end-quality of the products and also decreased costs (Growth at Ginsters, 2004 Drives cut pastry production costs, 2009 charge an eye on the Pie, 2002 high-fidelity pack coding easy as a pie, 2005).Outbound logistics defy also been a subject of focus for the company with a fleet of vans that place emphasis on delivering to myriad companies during the peak hours (Brooks. 2004). A company-owned distribution system makes it pos sible to plan and incorporate delivering objectives, as relying on others would have made that difficult. Recommendations for three year strategy The UK has been one of the major(ip) economies that are cool it in recession. Due to the frugal crunch, businesses are facing grave troubles to cope with their existing businesses and are exhausting to raise capital for investment into new businesses.Therefore, Ginsters should focus on meliorate its existing capacity and making better use of its factors of production. This can be achieved by reducing its working capital, increasing inventory turnover and implementing employee learn and performance improvement training programs similar to the platinum program undertaken 4 years ago (refer to 1. 2). However, the company must establish any(prenominal) long term objectives as there are signs of recovery for the UK economy in the years to come.The Bank of England estimates that the economy will get back on track by 2011 and the HM Treasur y has published independent forecasts predicting that by the same year the GDP growth will be a mean 2%. It should plan for the development of smaller markets and target market segments which although less in size, have excellent pass judgment growth rate. Ginsters is targeting spring chicken and working people, but without offering Halal foods as canvassd to their competitor pucka pies. According to The Times UK, Muslim population has been increasing 10 times faster than the rest of the communities in the fall in Kingdom. It has grown by 0. 5 one thousand thousand and reached 2. 4 million in four years from 2004 to 2008 and expected to grow at the same pace as revealed by purpose of national statistics. Therefore, Ginsters should adopt a market development strategy to target the Muslim community in the UK. It can incorporate this strategy by introducing it into the heavily populated Muslim areas. Ginsters has been spending a lot capital on advertisements and has been successfu l in needing the positive image of the company to the people.Its latest TV brand shows that it puts quality ingredients in its products, but it does not convey the clear message that its food is more healthy. According to the accompany conducted by Mintel, 16 % of people think that Ginsters food is unhealthy as analysed to its competitor pork barrel Farms which was marked unhealthy by only 12 % of them (Mintel, 2010). The reason for this misconception may have arisen from its marketing slogan, Real Honest viands. This portrays that Ginsters products are of quality and authentic, however fails to demonstrate that it has taken healthy have into consideration.Therefore, the firm should seriously plan for new advertisements and promotions that give a more clear picture of Ginsters as a healthy food manufacturer. To convey the idea of healthy foods, the company should take advantage of the ongoing and coming(prenominal) events that represent Ginsters target market and could be hel pful in promoting its message. It is recommended that Ginsters should become an ex officio sponsor of the 2012 Summer exceeding Games. It can make new and innovative advertisements in the Olympic Games that can help produce a healthier image.Sponsorship will also enable the firm to increase the cognizance of its products and influence consumer behaviour patterns thereby trail to increased sales. It will also help to enhance the brand image in target groups minds and develop a disposition to change behaviour towards misdirecting the promoted brand, thereby leading to improved revenues (Smolianov et al,1999). Ginsters support of a major international event will help in conveying its message to billions of people more accurately and positively.It costs nearly 10 million pounds to become a three tier sponsor. Ginsters had pre-tax profits of 45. 2 million in 2009 and paid dividends amounting to 16. 2 million, up from 14 million in 2008 (Bloomberg Database, 2010). Assuming a motionl ess dividends growth, there is the potential for worldwide promotion and brand recognition. Instead of stipendiary dividends out, it should deposit them with a bank or place them in investment grade securities in order to grow at an amount adapted enough to secure a place in the top sponsors of the Olympic Games.TV advertising during the Olympics will also increase brand sensation among live audiences who watch TV channelizes, which will ultimately pave the way to Ginsters going global. In 2008, a record breaking 70 million viewers tuned to NBC to watch the opening ceremony, not mentioning the other international broadcast stations (The Washington Post, 2010). The cost for a 30 second mite is expected to reach the 400. 000 USD level, signifying the importance of the piece of musicicular event. In Ginsters case, the advertising strategy should include all forms of digital and physical advertising (television, radio, press, online, billboard, in-store etc. . In late 2009 Ginster s decided to redefine its brand image and target a broader market segment. It tried to appeal more to mothers and fathers while dropping its image as simply a snack. To continue to accomplish this, a considerable advertising campaign is desperately needed. Along these lines, the company should negotiate a deal with BBC1 and ITV1 to sponsor the most usual programs in UK television. Programs that aim to cajole the interest of thousands of British families, which comprises the new target group for Ginsters.Such programs would include Eastenders, one of the most watched and long running soap operas, Coronation pathway, the longest running drama series in the world still to be in production and X Factor a render competition with over 13 million viewers each calendar week (Broadcasters Audience Research Board, 2010). Appendix STP Analysis Ginsters pukka Pies Segmentation Products are sold exclusively in the United Kingdom highlighting the fact that Ginsters is a domestic company. Products are separate towards the younger population of both sexes due its convenience.The family appeal is one in which Ginsters strives to achieve as they portray a family environment in their advertising. Socio-economic affiliate is not of vital importance with Ginsters as they want to cater to the complete market. The upper class can rely on a quality product while the lower class can rest ensure that the product is competitively priced. Products are sold all across Europe. Countries include Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Malta, Portugal, Spain, and the United KingdomProducts are grouped for people of all characteristics, specifically the conservative family.With a wide variety of products including nipping and chilled pastries, it is important for superior Pies to assume the full European market, rather than segment. Targeting Products are targeted towards the young students as evident in their separate online education portal and their collaboration with different colleges and universities. Also, they are actively involved in surfing, football, and music festivals which appeal to young generation. They targeted the burden eating and non-Islamic sector as they do not have a Halal pastry Products are targeted towards outgoing events to garner considerable overt interest.Examples include the superior Pies England band as well as major sponsorships to major sporting events. Positioning The pie and pastry market is a competitive one in which each company does not differentiate it s positioning too much. Ginsters remains unique and relevant amongst its United Kingdom customers by positioning its domestic appeal. Ginsters have strategized to provide quality food for a reasonable price. As compared to competitors, Ginsters is ranked amongst the top for price. Quality is of utmost importance and therefore they position themselves to advertise quality and honesty of foods.Media advertising, over 1 million pounds in 200 9, was largely punishing on the target markets including students and mothers. This was done by adding more sandwiches to cater to women as well as advertisements at sporting and recreation events for students. The differentiation by Pukka Pies is their international appeal. They strive, not solely to dominate a market, however to diversify themselves into different markets. Penetration strategies is their positioning technique as their products are available across Europe. Marketing Mix Analysis ProductsGinsters has got a commodious product line consisting of 58 types of pasties, slices, porc pies, hot pies, savories, sandwiches and wraps as compare to its competitors, pukka pies and pork farms. All Ginsters raw material comes from the farms and suppliers present in Cornwall. They have different specialize supplier who provides them with fresh and pure raw material. These farms and suppliers includes Hay farm, torpoint for vegetables, Bocaddon farm, Lanreah for Cornish soft c heese, Cornish orchards, duloe for apple juice to hitch that authentic west country flavour, jaspers of treburley for beef and David stone creamery for fresh cheese. Ginsters ordained website, 2010) Ginsters focus on Chilled products whereas Pukka pies have variety of categories including frozen backed, chilled backed, frozen backed wrapped, frozen unbaked range, frozen pastry (Pukka pies official website, 2010) If we analyze Ginsters product line we find that they have 21 types of different sandwiches as compare to pies and pasties which are few in numbers (Ginsters official website, 2010). Whereas Pukka pies and pork farms have less variety than Ginsters.Pukka pies have some superfluous flavour of pies including kidney and potato and they also sell halal food (Pukka pies official website, 2010). Furthermore pork farms have bakes and scotch eggs (pork farms official website, 2010) bell Ginsters product pricing is almost same as compare to Pukka pies and pork farms. For example steak pies from Ginsters and Pukka pies cost exactly 1 ? but in some cases Ginsters is expensive for example Ginsters pork pie is 1. 29 ? and pork farms pork pie is 0. 91 ? (Tesco Official website, 2010).Therefore we can say that Ginsters have a comparable pricing strategy with most of its product line but with some of the market leading products they show skimming pricing strategy as well. Place Ginsters only Target UK market. They follow sweeping sale strategy. They have distributors all over UK. They keep their products in big super markets like Tesco, Sainsbury etc. The major area where Pukka pies leaves Ginsters throne is its sale locations. Pukka pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. Pukka pies official website, 2010) Promotions When it comes to promotions, Ginsters are spending a lot of revenue on advertisement and promotional activities like charity, supporting local teams etc. The differentiating part of Ginsters promotional activity includes collaboration with different universities including Plymouth University and community colleges at Callington, Launceston, Tavistock and Saltash colleges and universities. Ginsters also have their online educational portal. This shows that they are targeting youngsters from schools, colleges and universities.For the new promotions Ginsters is focusing on introducing some fruit pies as well. Their promotional strategy seems to be product benefit advertisement strategy. As compare to Ginsters Pukka pies have a large variety of souvenirs including footballs, posters, cups, caps etc. They have an online portal where people can buy their souvenirs. As compare to both of them pork farms focus on introducing new packaging and actively conduct live shows with consumers to test their products and tells them of their products taste. Pork farms are teaming up with Peperami and Branston to launch a number of co- branded recipes.The new partnerships will see a Spicy Hit sausage roll with Peperami and two jumble Hit sausage rolls one with Branston hole and cheese and one with Branston Pickle and sausage meat available from mid-March 2010. The company is also launching a Pork and Branston Pickle Pork Pie. (Ginsters official website, 2010 Pukka pies official website, 2010 Pork farms official website, 2010) SWOT Analysis Strengths * Product variety in likeness to competitors places a strong emphasis on new product development to create innovative, exciting products to enhance its core product range.Ginsters launched mini pasties in Q2 2010 to tie in with the upcoming picnic season and the on-the-go snacking market. * Ganisters position in more than one market and covering them successfully due to their diverse products * Ginsters products have a number of characteristics that make them a highly popular lunchtime food firstly their products are location independent and can be eaten practica lly anywhere. Secondly their products are convenient and can be found in many locations. Furthermore their products are filling and positioned as big eats.Finally the products are easy to eat and are pre-packed. * advert and promotion strategy Ginsters promotional activities have always highlighted its British rocker and local sourcing. Moreover their brand image Fresh and hygienic food which is and advantage in the current customer behaviour trends. * HRM program that allows for organisational knowledge * There supply chain is short therefore saves them money and increases quality * Manufacturing processes are fully automated speed up production and critique and quality programs to be easy. Weaknesses The product range is not comprehensive and there are some niches they did not cater for, such as the vegetarian market the Halal and Kosher markets. * Ginsters operate only in the UK where competitors such as Pukka Pies operate internationally they are pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. * Although Ginsters are trying to convey that they are a healthy product. This message is not reaching other market segments, such as women and families. There image as a healthy product is not strong. Despite a high rate of new product development, the best-loved lines continue to be the BLT, prawn mayonnaise, cheese and pickle, chicken salad and egg and cheese Opportunities * Increase emphasis on health awareness products. Interest in healthy eating will undoubtedly outlive the recession and there is scope to increase the number of functional products in many areas of the market. * Ginsters can explore minority market niches such as, vegetarians and Halal foods. This can be achieved by new product development. * Utilisation of production capabilities by exploring outside(a) markets, as competitors are present outside the local market. Despite the recession , sales of indulgence products such as desserts may also grow if suppliers can position the products as relatively inexpensive treats. Threats * One of the longer-term challenges that the pies and pasty category will face is whether consumers will stick to the category when the economy improves and they have more disposable income. Pies and pasties offer consumers a low cost meal that is convenient, but does not tick the healthy eating box and so requires manufacturers to find ways to reformulate their product ranges to make them healthier. When looking at the things that worry consumers the most, their financial situation and the economy supersedes any concerns they may have about their health, so while they face financial challenges, the health credentials of the food they are eating may be of less importance if it proves to be more cost efficient. * Ginsters needs to ensure that they maintain their above-the-line support of their brands to ensure they are top of mind when consume rs are looking for a quick snack. The recession will strengthen the appeal of own-label products and consequently mask NPD and marketing, which will culminate in undermining value growth in the market. References Accurate pack coding easy as a pie (2005). Packaging Magazine, 8 (1), pp. 18-19. 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