Natural, Objective and Focusing Market of the Foodworld Company

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1.0 Introduction

This section is talk about the natural, objective and focusing market of the Foodworld Company.

1.1 Identifications and natural of the foodworld

Provide the reinforce brand fundamentals product to customers, daily product, bakery, and snack.

The first Foodworld had been established at 1996 in India. Foodworld are operate in the world-standard retailing. Foodworld are operates as a 51:49 joint venture with Daily Farm International of the Jar dine Matheson Group, a US $ 4.5 billion retail giant operating in the Asia-Pacific market with the requisite experience. Foodworld had concentrate on the local market rather than international market. They selling the product included the grocery of all kinds' fresh food (fruits and vegetables) and non-food fast move consumer good (FMCG) product and etc. The foodworld are provide the consumer to get their daily needed product in the under one roof, this is because the foodworld are provide the widest range of the product to the customers choose.

Provide the high nutritional value product, extensive range of international product in India.

Provide service counters like seafood, fresh meat, bakery, sweet, candy and imported cheeses, and also extensive Grocery range and the household most needed.

Fresh food (vegetable and fruit), provide wide range of drink, snack, bakery, confectionary and impulse products.

2.0 Financial analysis

In this segmentation is to analysis the financial performance in the foodworld.

  • Liquidity ratio

    • Liquidity ratio showing the FoodWorld in slightly increment in this few years.(appendix 1.1)

    • This will help the FoodWorld can more easily to get the financial support from institute finance. Example FoodWorld can get a loan more easily.

    • The strong liquidity ratio will attract more investor come to Foodworld to invest.

  • Asset and liabilities
    • Fixed asset turnover showing that FoodWorld doesn't use the company asset in efficiency. They are slightly decreasing in the recently year.

    • Debt ratios showing the FoodWorld are decreasing the debt in recently. This will help a company lower the risk of the liquidity problem.

    • This will help FoodWorld can get supplier more confident in supply the good in credit term.

  • Profitability

    • Company profitability in recent year is increasing

    • The net profit margin and gross profit margin is increasing in the same potion (appendix 1.2). That mean the company is going to growth in the sales at the same time the cost of sales are increasing too.

    • This will do the investors lost the confidence to the management because the management cannot control the cost effectiveness.

  • Company owner equity
  • Recent year the earning per share of the company is slightly increasing.
  • Dividend is paid on year 2005 to shareholder.

3.0 Resources and capabilities

3.1Operation analysis

FoodWorld can growths in market are add values to the service through the supporting activity and primary activity.

FoodWorld supporting activities

  • Firm infrastructure

    • Foodworld they focus on two-kilometer radius housing area. This can help customers more convenience to shop.

    • They can easy to focus the area to do a marketing strategic to attract more customers come to shop.

    • They do not provide the credit sales service to customers (weaknesses). This will impact on reduce customers come to Foodworld for customers who are want purchases in credit term.

  • Human resource management
    • Worker are work in Committed, competent, Cost effective and work towards the goal and objective of the company

    • There can provide high quality of the service to serve the customers

  • Technology development
    • The staff can be easier to control the daily operation business.

    • Have own barcode that can help cashier serve the customers faster. This can help the cashier easily to calculate the total of customers purchase just scan the bar code are provided at good.

    • Have own website to easily the costumers known more about the Foodword.

  • Procurement
    • Hub and spoke strategy. The FoodWorld can easier to control the inventory levels.

    • This can help FoodWorld reduce the handling cost.

Foodworld primary activities

  • Logistics

  • Store does not have enough space keep the inventory in large quantity volume.

  • This will more cost to the Foodworld because unable to get the large quantity when suppliers are offering the big quantity good with the higher discount.

  • Operation

  • Foodworld operating business hours from 0930 to 1930 and six day per week.(weakness)

  • These operating hours will insufficient to the working customers to arrange the time accompany family to shopping.

  • Marketing(this will discuss on the marketing strategic section)

    • The marketing can help to growth of the company business.

    • Marketing can help the company easier set a target places to growth their business.

  • Service
    • Provide the free home delivery with the purchase more than Rs 500 and three kilometer radius area.

    • This can help the Foodworld attract more customers who are does not have transportation but want buy the product in the Foodworld.

    • Provide the item replacement policy to customers. This will increasing the confidence to quality of the product are provided in the Foodworld.

3.2 Human resource management

The human resource is an important resource of the organization.

  • Committed

    • Foodworld are pay high remuneration package to attract worker work hard

    • Provide the great work environment

    • Reward are giving to worker base on the daily performance

    • Foodworld management are always looking to the feedback from the worker either the worker feeling disagreement or agreement to their work to done

  • Competent
    • Foodworld are measure the workers are consistently updating their knowledge by sent them to training and development course.

    • Foodworld provide the National Institute of Retailing (NIR) to help the poor person or person cannot to continue study. After the studies in NIR they can get a job to work in the company

  • They are difficult to find the front line staff, because in India the retail work is considering of low sociality.
  • They are taken the high qualification on the recruitments in the senior management level.
  • The senior management only recruitment has at least 2 year working experience. This will help the company reduce the cost of training staff.

3.3 Marketing strategic

In this section is to using the marketing mixed (4Ps) to analysis the Foodworld marketing strategy. Foodworld are targets the markets to household market and middle class people. This two markets are normally demand on the daily product (food, fruit and etc), focusing in the price of the goods and the convenience place to visit it.

  • Product

  • Diverse portfolio

    • In Foodworld they are provide a deference product

    • The most of their product is in the high relative growth market sharing. The high sharing market in Foodworld is the staple product (rice, vegetable, fruit and etc.) and these products are also having the high growth in the industries.

    • Secondly the Foodworld have high relative sharing market but a bit low in growth in the industries that is a cash cow (refer to BCG matrix). In the cash cow the Foodworld have the identities product is the other food and the personal care and cleaning product.

  • Excusive product like Imported No Frills Brand products

  • Daily product example: rice, vegetable, fruits and etc.

  • Price

  • Foodworld has more competitive else this is because they are always selling the product in lowest price than their competitor.

  • They always are selling the product in the lowest price then market retailing price (MRP).

  • Place

  • In the India is a more geographically diverse because have a lot of population.

  • Focusing in the city of the India. In the city of India have average with the 4000 household in the 2kilometre and average income rupees 4000 per months.

  • Promotion

  • Foodworld provide voucher to customers who has been purchasing until one target.

  • Free home delivery when customers are purchase above the Rs 500 inside the 3 km from the store.

4.0 Political, Economic, Social and Technology (PEST)

4.1 Political

5.0 Five force

6.0 SWOT

7.0 Strategic