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The purpose of this individual report is to give a proposal to Al Kabeer group of Companies would like to expand its readymade food products market.
This report focuses on designing business strategies which can help Al Kabeer group of companies in understanding the market requirements and expanding its existing market in readymade food products market.
Al – Kabeer group of companies were founded over 30 years ago, the group has start to development into multi dimensional and multi products business level with the special offices processing units and cold storages in over 10 counties. It takes pride in distributing a range over 300 products to 8000 retail outlets.
Mission and Vision
Al – Kabeer, “Good taste manifests itself in diverse ways”. It is the basis of everything we do and every goal we strive for and our obsession quality in the procurement, manufacturing and distribution of the frozen food products has helped to establish us as a leader in Middle East of Frozen Industry.
The mission of AL – KABEER Group of companies clearly states that the company is keen to provide a good taste of readymade food product to the customer to satisfy their needs and wants.
Al – Kabeer group of companies satisfy all kind of customers range which includes meat, poultry, seafood, vegetarian products and ready to eat products by providing freshest of meat, poultry, fish, vegetable, herbs and spices all these things are used to make their product taste and quality. And same products like meat and poultry are strictly according to Islamic (Shahriah). All the plants which are built it is international standards with state of art machinery and approved by the ECC.
In this report, our focus will be on designing business strategies for Al Kabeer group of companies in understanding the market requirement and expanding existing market.
Is to expand its readymade food products market.
To provide unique and different food products.
To enhance the quality rather than increasing the profit.
To capitalize the opportunities well in the dynamic market.
External and Internal environmental analysis
According to Adams (2005), SWOT analysis can be used to measure the level of “fit” between the organization’s strategies and its environment and also recommend different ways in which the organization can benefit from the strengths and opportunities and protect itself against weakness & threats.
It’s already well know brand
Our products tastes are unique and special from other companies food product.
Establishment of AL – KABEER brand name in the market help the company in gaining customers trust.
The brand recognition increases company’s dominance in the local market.
High competition in market.
High investment is required in adding new food products.
Marketing is never free and need a lot of resources and budget.
Increase in employee due to expanding the food product market it will benefit the people those who are looking to work for the company.
The local expansion will help the company in penetrating different unexplored market sectors.
The diversification of company in expanding new food products will bring new opportunities and generate increased profit.
The company needs to hard work against the competitors and develop competitive strategies.
The business operations are effected by government laws. ( Peter & Lucas, 2005)
According to Kotler (1998), PEST analysis is a useful strategic tool used for understanding market growth or decline, business position, potential & direction for operations
PESTEL analysis is defined as “the study of political, economic, socio-cultural, technological, environmental and legal factors which provides a useful starting point to any analysis of the general environment surrounding an organization” (Lynch, 2006). Due to the nature of our business, we have decided to conduct PEST analysis instead of PESTEL.
Nation of UAE is combination of seven and each State is ruled by a separate family.
The federation is ruled by President, Sheikh Khalifa Bin Zayed Al-Nahyan.
The Company will follow all the rules and regulations of the UAE business policies.
Currency of UAE is Dirham (DHS).
UAE market is dominates by full of expatriates.
The growth in economics has attracted foreign investors.
Ethical and religious factors in some cultures internet use is not allowed due to the fact that at some point contents may damage their cultural, ethical and social believes. So in UAE there won’t be any problems in selling AL -KABEER food products.
National religion is Islam and the society customers are influenced by Islamic rules.
Women have equal rights.
The technological factor is the most important to our business, as the business itself is of food industry so there use latest and technological machine to make and to pack the entire food product. The growth in technology is of great help to our business.
UAE has coastal area attached to Arabian Sea.
The area is mostly sandy desert.
Lack of agriculture and drinking water.
Civil and commercial, in addition to criminal matters are handled by secular courts.
On the other hand family and religious disputes are adjudicated by Islamic courts.
All the states are independent having their own government with slightly differing rules.
Develop and strategic options
Al Kabeer group to open SR50m Unit to meet demand: Dubai based producer of frozen foods, Al Kabeer group is planning to open a SR50m (Dhs 48.9m) plant ind Saudi Arabia to capitalize on the Kingdom’s hospitality surge.
They were in plan of doing is expansion of the company here in Dubai but the director AHMAD KHAN said “We might as well do it where the market is”
We would meet the seasonal demand, especial during Hajjand throughout the year for Umrah because in this season people around the world comes there and hotels that have come up in Makkah with ready-made heat-n-sever food shops. So it will be based in Jeddah with a 2000 tone of production capacity.
As in last year 2011 AL KABEER exported Dhs250m in food products to Saudi Arabia.
Sourcing: It is important that the very first step is in the direction of uncompromising quality. The freshest of meats, fish, vegetables, herbs and spices are always used to get excellent taste and quality. Al – Kabeer group had dedicated their factories around the globe, where the highest quality raw materials are sourced, analyzed at out state of the art laboratory and subsequently cleared for manufacturing.
Processing: Special teams and group are there to take care to ensure that the processing at the factories is done under stringent conditions. The plants which we use are built with international standards and are made with the latest machinery which is approved by EEC. The United States Armed Forces and Australian Quarantine Board and all our products are manufactured with complete adherence to Halal.
Al – Kabeer product range is at all types of palates with one common goal of good taste and healthy product; it includes vegetable, meat, seafood products and ready -to-eat meals. We are proud to market the largest range in the frozen and processed food category in the Middle East.
Mixed Vegetables Green Peas Sweet Corn Paneer
Burgers Chicken Popcorn Zing Chicken Fillets Nuggets French Fries
CK – Fillet & Kofta CK – Tikka & BBQ CK – Jalapeno Sauasages & kebabs Cheese Sticks
Samosa Spring Rolls Meat Balls
Biryani Chicken Pilau Rice Chicken Tikka Makhani Parathas
Meat & Poultry:
Griller Chicken & Chicken Parts Mutton & Mince
Prawns Fish Fillets & Cocktail Shrimps
New Products according to the customer’s demands:
Mango, Strawberries, Guava and Chickoo Pulps Felafel & Kibbeh
Fresh Water Fish Marine Fish
Here first we saw all those readymade food products in product range in which Al- Kabeer group provide to its customers and then we saw few new and unique products which Al – Kabeer group will provide to its customers by understanding their demands and needs.
Competitive Landscape: Al – Kabeer Group of companies led the frozen food category in 2010 with a 15% retail value share. In addition to have an established consumer base for its product and competitive pricing, the company continued to benefit from its wider product base that addressed local and regional specialties.
Company strategy: Al – Kabeer Group has a strategy is to provide to their customers a quality and a testy product rather than earning high level of profits. By dealing in frozen food products, the customers need to be offered with quality food products concerning taste and healthy.
Customer Strategy: The customer strategy deals with customer satisfaction and expectation. The customer expects reliable and quality service which is provided by the company.
Competitor strategy: In present world of high competition, the industry needs to be more competitive. So here Al – Kabeer Group of companies need to strive hard to earn competitive advantage. Because the industry can succeed over its competitor by being unique and having a competitive advantage. Customers mainly prefer good quality products at competitive prices. New entrants to the industry try to decrease the profit margin of the existing ones. So Al – Kabeer should try to be unique so that they can be easily differentiated from the competitors.
Strategy A – “To introduce and sell new frozen food products according to the customers demands and market requirement” Customer needs keeps on changing, so Al – Kabeer should be able to keep on changing their frozen food product as per the customers need and wants.
Earning competitive advantage will create and increase the reputation Al – Kabeer Group of companies
Exceeding customer expectations.
Fulfilling customers need.
Earning a competitive advantage requires.
High expenses involved.
Strategy B – To expand the product worldwide.
Well know in local market.
Can increase sales.
Customers may not like it.
High expenses involved
In order to know about customer changing needs and changing fashion requires expense of doing research on it.
I would prefer the Strategy-A which is, “To introduce and sell new frozen food products according to the customers’ demands and market requirement”
Sales of frozen food products are growing day by day due to globalization and population; people prefer more healthy tasty and unique readymade products and ready-to-eat products. So Al – Kabeer are increasing day by day creating high competition. People mostly prefer to go for high quality, unique, healthy and tasty readymade food products at competitive prices. Thus, Al – Kabeer needs to be highly competitive in order to get more customers and be a successful in expanding their readymade food products market. A competitive advantage will help Al – Kabeer in getting wide reach coverage and maximize the generation of profits.
Implementation & Control
For implementing this course of action Al – Kabeer Group of companies top managers have to do planning for it. Either they arrange a meeting or they just make plans and send them to their subordinates to implement them but a proper planning is required on how to introduce and selling their new product in market. After planning has been done, organizing should be done that how to introduce and selling their new product in market, and the management should motivate and encourage the staff well also. Full motivation and dedication of employees as well as management is required in it.Now after the plan has been put into organizing process, the management or any other top level person should lead the plan to implement it successfully.
Now after leading, the management should also control that if the solution/ alternative is rightly implemented or no.
From the complete analysis, it can be easily concluded that Al Kabeer Group can easily start to expand its readymade food products market because the Kabeer group has already high reputation and well known for quality provider. The idea of expanding its existing market will be highly beneficial and successful and it will lead to high profits.
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