The Competitiveness In The Food Industry Marketing Essay

The battle In The Food Industry Marketing EssayMelville, N. et al. (2004) delimit the eco no.ic nourish of data technology in the organizations as the organizational performance impacts of education technology at some(prenominal) the intermediate process work aim and the organization-wide level, and comprising both efficiency impacts and competitive impacts. The association performance by using it could come upon positively with the nodes and with the competitors both at the mid level process and the organisational level process.Adding value to the business comes in the form of hail reduction and by improving the quality of customer serve well.What is cost reduction and how it could be achieved?The numerate expenditure of comp all for the purpose of master(prenominal)taining its inventory attention effectively, staffs work schedules and their fee records and relations with the customers. We could drastically reduce this cost by using customised softw atomic number 18. By using IT we could implement effective software for shack down of the inventory, at that placeof it saves Brobdingnagian money for spending on man power. And even in customer receipts we could easily reduce the cost by proving a global call centre rather than manpower at separately site.What is study technology?According to Hitt, L. Ms (1999) research, the information technology has been defined as computers as well as related digital dialogue technology, it has the b driveway power to reduce the costs and save time for information processing.Information technology could help comp all in many ways, much(prenominal) asData choice management Data resource management is managerial activity. It is serviceable in managing data sources between the company and its second holders. line of descent management By using specific software for the track products usable in our storage area we could plan what we unavoidableness for the mean solar day or for the access days, a nd we hobo plan and interact with our submitrs and order for the in the buff corporal as accordingly.Customer relationship management Normally called with acronym CRM is huge success when it comes to the interactions with the clients and customers. The primary purpose of the CRM is to track down the buying deportment of the customers handle what they are buying, which product is bought down by which age group, what sheath of products are selling in that failicular(prenominal) area and so forth etc, therefore we rump plan our business needs effectively.How this IT could physical exerciseful in our particular company and how mountain we get out competitive advantage with this?Our companyHistoryNandosis acasual dining restaurant founded in 1987 by Robert Brozin and Fernando Duarte fromS give awayh Africawith aPortuguese/Mozambi backsidetheme. Nandos was Chickenlandearlier and they renamed it to Nandos afterward Duarte. Nandos operates in 28 countries and on tailfin conti nents.It specializes inchickendishes with either lemon and herb, medium, hot or extra hotPeri-Perimarinades (properly known asGalinha Afri evokea). In some countries, Nandos has cutting(prenominal) flavour options like mango and lime, lemon and herb, or Mediterranean. The restaurant merged influences from former Portuguese colonists fromMozambique, many of whom had settled on the south-eastern side of Johannesburg, after their homelands independence in 1975.It has branches all oer the world. Primarily focused on English speaking countries now it spreads all over the world where the muckle prefer spicy chicken. It is famous for its peri-peri chicken which is its own grade.It has 230 branches across UK and it has close to 6600 employed in all these branches. It primarily focus on its market-gardening. It was awarded no. 1 in nutriment labor by Sunday times. And it has an investor award. designate1Porters five force modelFilePorters five forces.PNGA graphical facsimile of P orters Five ForcesBargaining power of supplier the majority of supply is from Faccenda and Freemans of Newent and trivial supply from Holland and Germany. Nandos has its own name in the industry although it does matter the rude(a) materials. As long as the supplier is happy with the business there would be no problem, the suppliers are pretty famous in their single fields as they bedevil very much contracts in their hands. AlthoughWe nookie say the negotiate power of the suppliers is low. The Nandos requires huge volumes of raw materials when one supplier step down some new(prenominal) one could take up. And there are many suppliers available it would be easy to us to go for an other(a) supplier scarce it is not easy to supplier to loose Nandos. It is win- win situationsThreat of new entrantsThere is lot food market for the food industry and in particular for chicken food as it widely eaten there so much scope for new markets. Nandos has its own name and it has niche mar ket there and there would be no affect if any new restaurant comes in. Nandos is more than concentrated on its culture and being better(p) than the bigger it is very difficult to new entrants to compete with the Nandos. So we groundwork say the threat of new entrants is comparatively low.Threat of substitute products or servicesItems like Portuguese vinaigrette and some cooking sauces, pasta sauces could not stand in the market because of some brand companies in the particular distributor point field.Instead Nandos concentrated on some other items like marinades and peri-peri sauces where it has its own influence.The price factor is very important to not to lose the customer. The customer always looks for the cheap price for the same product. Considering the food products of Nandos, they are pretty famous for its taste rather than cost thus we can say the threat is low.Bargaining power of customersThe power of customer is defined by the volume of them and their information like their age, sex and muddle etc.etc. Nandos has niche market which caters for the lovers of spicy food. These customers are generally young and adult. Nandos has its brand that their chicken is best in their competitors so the customer will not want to go for other restaurant. And there are not substitutes available with this spicyrange with other restaurants we can confidently say that our customers bargaining power is low.Existing rivalryIf want to talk some the particular branch which is Stratford, Nandos we are dealing the primary competitors are The Fox, the Indian gate, Pizzahut, Carrebian image and the Mukhan. All of these restaurants are highly preferable and they fill their best in the particular food. We can say like Pizzahut is famous for its pizza, the Indian admittance for its Indian food although they provide chicken items. None of them are same when it comes to the spicy chicken or peri-peri chicken. Nandos provides huge range variety of products than to other co mpetitors. The price options are also very reasonable when compare to the transnational brand like Pizzahut or very local The Indain gateway. Therefore we can say the the existing rivalry is low.The intensity of rivalry for Nandos is influenced by No of restaurants increases rivalry because more restaurants must compete for the same customers and resources. The rivalry intensifies if the firms dumbfound similar market share, leading to a struggle for market leadership.Task 2 tax mountain chain modelhttp//enduragement.files.wordpress.com/2008/06/porter-value-chain.pngThe time value Chain textile of Michael Porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage.The value chain helps an organization key out how it creates value for customers and locate where its sources of competitive advantage lie. comfort chain models can be created in both qualitative and quantitative forms. Many organizations do not conscious ly be gather in decisions to optimize the sources of advantage resident in their value chain and in so doing, risk losing competitive advantage.What is foster Chain Analysis?A value chain is a chain of value added activities products pass through the activities in a chain, gaining value at separately stage.Value chain allows alignment of processes with customers. This generates a quality advantage. Value chain focuses cost management efforts. It provides for efficient processes which improves the timeliness of operations.The steps in Vaule chain model areInbound logisticsInbound logistics of Nandos deals with receiving goods, storing them . for this we use an dinventory mold management form. It deals with everything related to goods and its transportation. This inbound is very important to maintain the storage warehouse products available effectively without interrupting the business to customers.Outbound logistics inbound logistics deals with the good coming upto the warehous e where as the outbound logistics deals with the products reaching to customers. Nandos has the dedicated transportation service to delivery its products to reach its restaurants on time. It uses PDAs to track down its vehicles on road where they are at particular time so the restaurants and head up chest knows when they will reach the destination. This allows the restaurants to plan accordingly.Marketing and salesTo attract customers Nandos approaches in very innovative yet cost effective manner. It provides customers to win prizes when the make orders at restaurants. Some of its promotions include gift card game, Go PERi-lectric with a bracing of tickets to Irelands Electric Picnic, Brighton Pride and get on a PERi-tastic prize Tickets to the LED festival, Win A Footie Chicken-Fest etc, etc. And Nandos spend considerable amount of money to produce irs restaurants aggressively through print media and electroninc media. In 2010, Advertising Age mag named Nandos as one of the w orlds top 30 hottest marketing brands.ServiceThe service mainly here defined as the interaction with customers and the service we provide to them. The better the service the better the chances to increase its brand value. procuranceProcurement mainly deals with the requirement of raw materials, space to setup restaurants, kitchen machinery etc. engineering science DevelopmentThe technology formulatement is to support value chain activities such(prenominal) as design, strategies and tactics , research and development, processing etc. We discuss almost this in next task.Human Resource ManagementHuman resource management is primarily associated with staff recruiting, staff schedules and salary maintenance and maintaining requital and benefits to its employees and staff.Firm InfrastructureThe infrastructure associates with hierarchical process of the firm. It Includes management, planning, finance, legal issues, overt relations, accounting and quality management, etc.Task 3How IT ca n be used to develop businessI will use Value Chain psychoanalysis to explain how IT help Nandos add value to themselves and set out competitive advantage in food industry. Value Chain analysis consist of primary activities and support activities, which are detailed from belowThe IT can be used to increases the acquaintance of profit zones where there is no profit, It increases the knowledge of forward and/or backward integration opportunities, identifies value process and Identifies win-win bail bond opportunitiesAs consultant for Nandos restaurant we need to advise them to use value chain models for implementing cost comparison between the companies to other competitors.What is Strategy? And How Does Porters Value Chain Model Fit With Strategy?Strategy is your business style and the how, why, what, who and when of traceing that direction. Most businesses analyze their own internal cost structures but most do not analyze their competitors structures.The five Ps of nandos to f ollow to get competitive advantage arePlanPortugese chiken all over the worldPloy not to face competitors but to find a strong market i.e. customersPosition best rather than biggestPattern culturePerspective wants to develop in countries where chiken, spicy and English speaking customersYou further get an edge over rivals by having or doing something that they cant have or do. computing machines have revolutionized the food and beverage industry as they have nearly every other industry. A key management stir of any food and beverage business is the profit margin. In this life-sustaining area of business, computers have also proven to be an indispensable tool. Computer arrangings help manage the entire food service process from ordering the ingredients unavoidable to produce menu items, to forecasting the amount of items to prepare for each dining period based on historical patterns. This helps to reduce osseous food, which is very expensive and comes out of the businesses pr ofit. It also helps in preparing menu items originally hand, which reduces customer wait timeThe information system should mention the undermentioned stepsPeopleDataNetworks,Hardware,Software.It costs us to implement any new information technologies in our system. So we have to analyse what is our need and how it would affect the system and how it drive the sales. No better understanding of the system will lead very bad results thus company should go to losses.The technologies we advice to Nandos to implementOnline ordering system since the Nandos is major food restaurant, it does not have any online ordering system or telephone order system for the customers to order when they are at work or at home. It is not practical to everyone to come to the restaurant to eat in or take way. Some are older some are busy or the restaurtant are really far from home etc. If we could develop a e-commerce website which allows customer to buy online and we could deliver it to them as soon as poss ible it would definitely drive our sales at very huge level. Our main competitors for this area Pizzahut have these both online and telephone order service. The batch who like Nandos and cannot come to the restaurant will opt for the service like this provided by our competitors. The investment and maintenance for a e-commerce website for Nandos may not cost more and the return on investment(ROI) could be get back easily as the sales come from online orders are solely because of website.Presently we have website for Nandos which gives the information about the Nandos available restaurant and their menus with their physical address. We can develop a website the offers online orders and we can integrate this to the already available website.Mobile employment as the technology rigorously increasing on day to day manner, the people using high end mobile phones is always on the high. promise manufactures like Nokia, iPhone and Samsung offers third party occupations to the mobile cus tomers. If we could develop mobile practical application thus it features all available information yet briefly it would tremendously improve the sales. If we could features restaurant addresses and online order facility it will be utilizable because the phone is always handy wherever the customer so he could check it and go to the nearest restaurant to his location.Software program we could develop software solely for the purpose to gather critical information which needed to choose a site where we want to setup any supernumerary restaurants by verifying the demographics and the distance to other available restaurants and customers information particularly related to food business. The program analyse the area and provides the detailed scenario about how many people lives there and their age group and any alimentation habits particularly they have. So that we could make decision depending on the information available. For this application to work out very well we need to get n ose count data from government or third party providers or we may take out a survey which cost us a bit which is one time investment. We can also use the data mining techniques depend on the available data thus any already existed restaurant may affect our business or not.Inventory control Every day there are lots of raw material comes in lots of material goes out in warehouse. If we use a n inventory management application we could easily track down the data available. Therefore we find out what type of item we have stock and what not we have. It helps us to order new material effectively. Thus we could reduce the food wastage. In a long transport it could save several thousand pounds to the company.Communication communication between the head office to restaurants through e-mails etc. Etc. CRM software is very effectual for this service.HR job recruitment information technology is very useful when it comes recruit,emt and human resource management. We could advertise online for the vacancies we have and can accept application made online. Thus it reduces paper publicity cost and paper cost for the applications. Custom software could take all the tasks related to hr.Loyalty card game to drive sales very high we introduce loyalty cards which allow regular customers to get free bees. We could offer them discount prices or occasional offers to them. And by adding this loyalty cards to the technology we could get the customer details so that we could plan them accordingly what they bought, what their age group etc. Etc. And we could send them promotional offers or discount coupons if we have their personalised address or e-mail id. Information technology make out of home dining a more enjoyable experience for the customer and a more profitable manageable experience for business managers and owners. With the care of Information technology we are not only able to menstruum line our business processes but we are also able to get constant information in real ti me that is up to the instant and up to date. In todays business environment we could consider IT as part of the Organization.