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0 Executive Summary

1. The current marketing plan for Hanschell Inniss is designed to position the product, Farmers Choice, at the best value for money and support the sales target. 2. The product has 40% of the market share and is available in bacon, slice ham, chicken chunks, burgers, and wieners. These are sold throughout most retail outlets at prices comparable to competing brands. 3. The new marketing strategy is aimed at health conscious females between 24-45, who need to prepare a quick but nutritious breakfast for them and their family.

The aim is an assessment of the product line of this Barbadian retail company and an attempt to introduce a healthier product to the customer. The process embraces marketing techniques and processes to be gone through in making a logical and informed decision as to the role out of a new product. This is not structured to be the only method but it has considered some nuances to be considered by the small open economy. The paper was prepared by Jepter Lorde and supervised by Aldon Tull, tutor at the Barbados Community College in the area of Marketing.

Company Background

For approximately 122 years Hanschell Inniss Limited has been providing Barbadians with the finest selection of produce, foodstuff and other supplies. Founded in 1884 by Valdemar Hanschell, who was of Danish descent, the then Hanschell & Company supplied ships with ropes, sails, salt, fresh fruit, meat, vegetables and water in addition to any other items required. The Company also loaded the ships with Barbadian products destined for Europe and North America. While Ship Chandlery continued to be the primary business focus in the early 20th century, eventually the company branched into the local liquor market with Cockspur and Best Matured Rums. In addition, other well-known spirit brands were imported. In the late 1960s, the company diversified into food distribution with the amalgamation of James H. Inniss. Then in 1973, J.N. Goddard and Sons Ltd. (subsequently Goddard Enterprises Ltd.) bought a majority interest in the business, thus bringing Hanschell Inniss under the Goddard's umbrella. By the 1970s, a new rum-bottling plant was established and Hanschell Inniss was able to introduce additional quality liquor brands Old Gold, VSOR, Cockspur White and 151 proof. As the international reputation of Cockspur grew, it attracted the interest of International Distillers & Vintners (IDV), which approached Hanschell in 1992 and subsequently an agreement was reached which allowed IDV to handle the worldwide distribution of the Cockspur brand. Having successfully entered the liquor and food distribution market, there remained one product line not represented and that was meat. So in 1979, Hanschell Inniss became involved in meat processing. In 1979 Hanschell Inniss Harrisons purchased a small meat cutting and packing plant and started operating a department to produce hamburger patties. The first product in foodservice was all beef patties and for retail was "Eve" branded hamburgers. Staffing started with one meat cutter and a manager. Within a few months of starting, a decision was made to build a small plant of 1,200 sq. ft. to expand production. By mid 1980 this plant was up and running, supplying foodservice and retail with fresh pork sausages and hamburger patties.

Within two years further expansion was needed and in 1982 a 12,000 sq. ft. addition was designed and built. Help and guidance was obtained from various sources, especially from Griffith Laboratories, Canada Packers and Schneiders of Canada. This expansion allowed for the addition of hams, bacon, wieners and sliced meats to the existing product range. It was at this time that a separate company, H.I.H. Manufacturing Ltd., was formed to carry on the meat processing operations. In 1990 H.I.H Manufacturing Ltd. was amalgamated with Barbados Packers & Canners Ltd., a company established in 1976 which in addition to frozen meats also produced canned meats. This new entity became Hipac Limited. In 1992 Hipac Ltd further expanded its portfolio of products into breaded chicken products such as nuggets, fillets and patties when it merged with National Foods Ltd. Today Hipac has a staff of over 170 persons. In addition to the traditional range of hams, bacon, wieners, sliced meats, hamburgers, fresh sausages, canned vienna sausages and luncheon meats, breaded chicken nuggets and patties, the company has expanded into easy-to-prepare seafood products such as breaded shrimp nuggets, fish sticks, "Bajan" seasoned fish fillets, and a line of canned Caribbean specialty products such as traditional soups, curries and great cake. With its motto "Nothing Less Than The Best" Hipac Ltd. has grown from humble beginnings to a company that now produces a wide variety of high quality products. With more than a century of solid achievement, Hanschell Inniss has become one of the leading businesses in Barbados.

Hanschell Inniss employs 190 people across its various departments.

Hanschell Inniss Today

More than a century and several investments later, the operations of Hanschell Inniss Ltd. extend well beyond the ship chandlery business that had been its origin. Today the company comprises four divisions retail, food service, ship chandlery and export.

Retail Division
The Retail Division markets and sells several major brands such as Eve, Kellogg's, Pillsbury, Farmers Choice, Johnnie Walker, Gordons, Green Giant, Island Cuisine and Kraft among others. These are retailed to supermarkets, mini marts, shops and convenience stores and deliveries are made within 24 hours of receipt of orders.

Food Service Division

The Food Service Division is made up of a knowledgeable team that can act as advisors to clients. This Division sells and markets all of the company's brands to hotels, restaurants and small entrepreneurs around Barbados. Deliveries are made in refrigerated vehicles with the capacity to deliver frozen, chilled and dry goods twice daily on Mondays to Fridays and once on Saturdays.

Ship Chandlery Division

The Ship Chandlery Division offers all of the company's products to all ships calling at the port. In addition to food products, this Division also provides decorations, flowers, palm leaves and housekeeping supplies as part of their service to the ships. For food products, a transshipping service is available.

Export Division
Hanschell Inniss' Export Division is responsible for the exportation of the Company's products mainly viennas, sausages, luncheon meats, cooking oil, margarine and liquor brands to other Caribbean islands.

2.0 Market Segment and Buyer Behaviour

Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product needs. Market segmentation is one of two general approaches to marketing; the other is mass marketing. In the mass-marketing approach, businesses look at the total market as though all of its parts were the same and market accordingly. In the market-segmentation approach, the total market is viewed as being made up of several smaller segments, each different from the other. This approach enables businesses to identify one or more appealing segments to which they can profitably target their products and marketing efforts. The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. When purchasing a product there are several processes, which consumers go through, these are Problem/Need Recognition, Information search, Evaluation of different purchase options, Purchase decision, Post Purchase Behavior. There are in turn four typical types of buying behavior based on the type of products that are to be purchased. Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. Habitual buying behavior is where the individual buys a product out of habit. Variety seeking buying behavior is where the individual likes to shop around and experiment with different products. In turn this processing is determined by the good to be purchased, which is divided into convenience goods, these are relatively inexpensive, frequent purchases; shopping goods for which consumers wish to compare quality, price and styles; specialty goods are items that are extraordinary or unique enough to motivate people to make an unusual effort to get them; and unsought goods these are items that are seldom sought, and which are purchased due to adversity instead of desire. Hanschell Inniss need not invest in segmenting the market in which it is operating; this assessment is based on the primary data response, which has afforded exposure by demographic age and gender. Consumer buyer behavior although complex is driven by the good and the good offered by Hanschell Inniss can be defined as a shopping good, in this case the need would be to adopt a position of reminding current shoppers of the attributes of the brand based on the

awareness of the brand. There is no indication of segmentation and the approach should be to a mass based audience currently seem to be the most efficient instrument for utilizing resources and effectively responding to needs of a socio-economic kind. Advertising does this, among other ways, by informing people about the availability of rationally desirable new products and services and improvements in existing ones, helping them to make informed, prudent consumer decisions, contributing to efficiency and the lowering of prices, and stimulating economic progress through the expansion of business and trade. Essentially in making the effort to this mass based audience Farmers Choice will be able to more efficiently convert advertising dollars to sales without the need to go in-depth research a genuine and distinct long term advantage.

4.0 Competitive Analysis 4.1 Market Share Brand Awareness & Positioning

Brand Awareness can be defined as the level of brand recognition that consumers have of a particular brand and its specific product category. Brand awareness can examine three levels of recognition: whether the brand name is the first to come to mind when a consumer is questioned about a particular product category; whether the brand name is one of several that come to mind when a consumer is questioned about a particular product category; and whether or not a consumer has heard of a particular brand name. Positioning simply can be defined as customers perception of the product offer relative to competitors. SBI was either unable or unwilling to share information on Brand Awareness and Positioning. A survey was then commissioned in an attempt to capture this aspect of the analysis and make use of prevailing techniques to as accurately as possible reflect the perception of customers, these are the semantic differential scale which asks a person to rate a product, brand, or company based upon a seven-point rating scale that has two bi-polar adjectives at each end and the dichotomous question is generally a "yes/no" question. These simple questions seek to measure the results in one instance and establish consciousness of the brand. The premise of the data responses was based on a definition of Brand Awareness, that is, knowledge or consciousness by the public of a brands existence and quality. The raw data and calculations are shown in Table 1 and Figure 1 respectively. The interpretation is as follows. The survey returned data that was averaged individually and collectively in order to arrive at 2.98. This falls in the 40-percentile range of the survey and gives only a moderate assessment of the Home brand. Given the strong infrastructure of SBI and the parent Companies this can be seen as inadequate and would require a re-evaluation of the present positioning. The survey was able to capture responses from both gender and age demographics, with responses in the 10-19 age group having no awareness of the brand and also in the 30-39, obviously positioning is not what is done to the product, it is however what is done to the mind of the prospect, that is, the product is positioned in the mind of the prospect.

On the other hand H Jason Jones determined that their Brand JJ was just as well known as their competitors and that the Burgers are the best on the island they alluded to the fact that they controlled more than 50% of their target market, which consist of hotels, restaurants and schools and that individuals were the smallest segment of their market. The market for hotdogs and slice ham is relatively smaller as compared to the burgers, as they are unbranded but of the same quality as the their competitors Eve, Home and Farmers Choice brands as they are all produced by the same company. H Jason Jones also stated that their products has brand equity, as customers were aware that to purchase the JJ brand is to purchase a quality product, whether it is in the Meats, Doors or Beverages. Market share, in strategic management and marketing, is the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research, although sometimes primary research) to estimate the total market size and a company's market share. (Table 5)

4.2 Product Contribution Information and Current Strategy

Current strategy formulation at this time is very difficult for SBI for the individual brand items. This is due in part to the removal of the Hamburger brand item in an attempt to introduce the brand item Perronne, it must be understood that this is a necessary repositioning because of the brands dependence on Hanschell Inniss for production of three of its brands. Interviews with the distributors have indicated a ranking of individual brand items, these ranking are seen in Table 2. Given the obvious sensitive nature of the situation SBI is limited by the amount of options with respect to attempting to aggressively pursue increase market share. It is believed that SBI should adopt Market Follower strategy or the hitch-a-ride strategy. This business plan strategy is normally associated with companies in industries that are stable. This company type is content to just follow the pack. They typically don't innovate nor challenge the industry with new ideas. It's like they are worn out or have grown old. They just plod along taking what they can get, changing very little and running along with everyone else. While they can survive and make money, they are not stars and will not be market leaders unless they make significant changes in how they do business. Of all the strategies, this is a dangerous one for a new company and it is not recommended that a business plan be created with this type of new business in mind fortunately for SBI they are an established company and can afford this position given the present circumstances. A follower can gain many advantages. The market leader often bears the huge expenses of developing new products and markets, expanding distribution, and educating the market. By contrast, the market follower can learn from the leaders experience. It can copy and improve on the leaders products and programs, usually with much less investment. Although the follower will probably not over take the leader, it often will be profitable. Essentially SBI must know how to hold current customers and win a fair share of new ones. It must find the right balance between following closely enough to win customers from the market leader while following at enough distance to avoid retaliation. Each follower tries to bring distinctive advantages to its target market- location, services, financing. SBI can be a major target of attack by competitors; SBI must therefore keep manufacturing costs low and product quality and services high. It must also enter new markets as they open up.

H Jason Jones is relatively new to the market and as such are making inroads capturing their share of the market, and to keep their product top of mind. Almost every industry includes firms that specialize in serving market niches. Instead of perusing the entire market, or even large segments, these firms target sub-segments. H. Jason Jones is a candidate for this type of current strategy. Niches are often smaller firms with limited resources. Firms with low share of the total market can be highly profitable through smart niching. The main reason is that the market nicher ends up knowing the target customer so well that it meets their needs better than other firms that casually sell to this niche market. As a result, the nicher can charge a substantial mark up over cost because of the added value. Whereas the mass marketer achieves high volume, the nicher achieves high margins.

4.3 Competitive Strengths and Weaknesses S.B.I Distributions

SBI is an amalgamation of three major distributors they are Spring Garden Foods, MER Bourne and Interage Ltd. This has allowed the entity to leverage pre-established market share held individually into an integrated and coordinated acquisition. This has been achieved by streamlining expertise at the position of Brand Manager to avoid duplication and exploiting the experience gained collectively by each entity in the market. Contacts developed by way of years of industry experience equates to invaluable word of mouth marketing and networking, attributes needed to maintain and further build on any attempt to entrench SBI position in the market. Coupled with its association with the Barbados Shipping and Trading as a wholly owned subsidiary and in turn Barbados Shipping and Trading being wholly owned by the conglomerate Neal and Massey, SBI is in a position to access promotion assets through BCB communications, and distribution support through the Super Centre chain of supermarkets for a marketing campaign of any type. The product portfolio is of manageable size and is backed by an inventory control system which attempts to ensure adequate inventory to meet customers needs without incurring additional costs of carrying excess stock hence the use of JIT or Just In Time inventory control system. SBI has combined and utilised the concept of Retailer & Wholesaler Brand, these are goods created by the retailer or wholesaler. They are exclusive to them and carry the store name. To achieve this Perronne has been used as a supplier for a select set of product items, this has been eclipsed however by the constraint of product runs of three product items in Hot Dogs, Bacon and Chicken Chunks being done by a major competitor in Hanschell Inniss.
H. Jason & Jones

H. Jason Jones & Co. Limited, a division of the Kensington Court Group, is located in Bridgetown with easy access to both the South and West coast regions of Barbados. With origins dating back to the 1860s, the company has evolved through an extensive history in import, export, manufacture and distribution in Barbados. They currently have two divisions: Building Products (supplies and manufactures products for the private and commercial construction sectors) Food Service (supplies specialty foods, beverages and systems

to the hospitality and private sectors). The Food Service Division, which includes Meats, Seafood and Customer Beverage Systems, is a prominent supplier to the hospitality industry which encompass small hotels and restaurants to large all-inclusive resorts. The division has also operates retail outlet and free delivery service to private homes and villas. Their product range includes, Douwe Egberts coffee, Sunshine & Vitality juice, Slush Products, Ruprecht beef & steak cuts, French Fries, English cheddar cheese and butter products, Selection of seafoods: Scottish smoked salmon, squid, mussels etc. Burgers and the list goes on. H. Jason Jones & Co. Limited ensures that these quality products and services are backed by exceptional customer service at all times. their product mix consists items bought from Hanschell Inniss which are unbranded but are of the same quality as the Eve and Farmers Choice Brands as they are made on the same product run by Hanschell Inniss. The biggest seller for H. Jason Jones is their burgers, this product category consist of three product items Beef Burgers, Chicken Burger and Jerk Burgers. Their Price is thought to be competitive, and their distribution channels are catering to street vendors in St. Lawrence Gap, Schools, Supermarkets and Restaurant.

5.0 Companys Portfolio Analysis Hanschell Inniss 5.1 Brand awareness Positioning & Market Share

Brand Awareness as stated before is defined as the level of brand recognition that consumers have of a particular brand and its specific product category. It examines three levels of recognition: whether the brand name is top of mind when a consumer is questioned about a particular product category; whether the brand name is one of several that come to mind when a consumer is questioned about a particular product category; and whether or not a consumer has heard of a particular brand name. Positioning is a process of developing a specific image for a product, brand or group of products in the consumers mind relative to competition. Hanschell Inniss was either unable or unwilling to share information on Brand Awareness and Positioning.

As such, a survey was also commissioned in an attempt to capture this aspect of the analysis and make use of prevailing techniques to approximately reflect the awareness and perception of customers. The semantic differential scale which asks a person to rate a product, brand, or company based upon a sevenpoint rating scale that has two bi-polar adjectives at each end and the dichotomous question is generally a "yes/no" question. These simple questions seek to measure the results in one instance and establish consciousness of the brand.

Further investigations revealed that people made decisions on which brand of frozen food to buy based on personal information cues, where price was not often the motivator for qualified buyers to purchase. Most of the consumers interviewed and surveyed, identified underpinning brand awareness and perceived product knowledge of the Farmers Choice brand. They were observed to be motivated to buy, and willing to seek out quality, value and service from either previous experience or the perception of what a good breakfast experience meant to them. There were eight features established to be of importance to the customer when assessing the Farmers Choice brand. From these eight characteristics there were six key buying criteria highlighted to satisfy the buyers needs and wants: Performance Reliability Conformance

Safety Aesthetic

The report evaluated that these five considerations were part of the consumer buying process, and concluded that the customers own expectation, prior experience and brand perception were the driving factors in defining value for money and ultimately the decision process rather than price. Historically, the top three brands in a product category occupy market share in a ratio of 4:2:1. That is, the number one brand has twice the market share of number two, which has twice the market share of number three. Ries and Trout argue that the success of a brand is not due to the high level of marketing acumen of the company itself, but rather, it is due to the fact that the company was first in the product category. Farmers Choice has the enviable advantage of this market assessment when competing. Similarly, SBI and H Jason Jones have struggled to compete with Hanschell Inniss in the frozen food market. These examples support the point that the success of a brand usually is due to its being first in the market rather than the marketing abilities of the company. The power of the company comes from the power of its brand, not the other way around. With this point in mind, there are certain things that a market leader should do to maintain the leadership position; Farmers Choice has achieved this by not boasting about being number one. If a firm does so, then customers will think that the firm is insecure in its position if it must reinforce it by saying so; Farmers Choice has not fallen into this trap. Another strategy that a leader can follow to maintain its position is the multibrand strategy. This strategy is to introduce multiple brands rather than changing existing ones that hold leadership positions. It often is easier and cheaper to introduce a new brand rather than change the positioning of an existing brand. This strategy called a single-position strategy because each brand occupies a single, unchanging position in the mind of the consumer. Farmers Choice has maintained this by introducing new products in the beef burger line by way of veggie and smaller packaging in this category.

Finally, change is inevitable and a leader must be willing to embrace change rather than resist it. When new technology opens the possibility of a new market that may threaten the existing one, a successful firm should consider entering the new market so that it will have the first-mover advantage in it. For example, in the past century the New York Central Railroad lost its leadership as air travel became possible. The company might have been able to maintain its leadership position had it used its resources to form an airline division.

5.2 Contribution Information and current strategy

Historically, Barbados has been a stable market for frozen food products. Farmers Choice is a strong competitor in the wieners, chicken chunks, bacon and slice meat sectors. Recently, however, there has been a declining growth rate in frozen meats and positive growth rate in substitute. In 2009, the frozen food meat market was composed of 18% weiners, 14% chicken chunks, 21% bacon and 2% slice meat. Farmers Choice currently has the opportunity to expand its product line to vegetables, pizza, or breakfast compliments. It is important that the decision will add consumer value. Previously, the package sizes for Farmers Choice products have been larger than those of leading competitors, providing more customer value. The customers perception of the product is the primary promotional focus in this industry. Farmers Choice has been successful in providing a quality product to existing consumers. The companys overall strategy must focus on higher levels of profitability to ensure that investments made today will result in market growth. The brand Farmers Choice currently has 74% consumer recognition. Because of this, the company is in a unique position to expand its product line. The decisions made in the short term, involves a degree of risk. The assessment made by this analysis indicates four criteria, critical to determining a sound current growth strategy for Farmers Choice. These are; consumer value, profit potential, market growth and lowest level of perceived risk. The analysis of each criteria concerning growth strategies for pizza, vegetables and breakfast items, determined that frozen vegetables market expansion is the most favorable strategy.

5.3 Company Strengths & Weaknesses

Competitive strengths and weaknesses is a concept that seeks to deal with two fundamentals that are as a result of direct action taken by the company. Hanschell Inniss strengths are examined in three areas namely the established manufacturing plant, established local and export market and established Brands. The weaknesses are measured in the areas of limited distribution freezer space, competing internal brands. HIPAC as it is known is owned by the Goddard Group and is responsible for supplying Hanschell Inniss with the Farmers Choice Brand. The plant is both HASAP and ISO 9001 certified utilizing cutting edge health and hygiene practices. HIPAC is the only meat processors on the island giving Hanschell Inniss the leverage to negotiate the best prices for raw materials. The export market for HIPAC through the production of Farmers Choice has allowed for expansion regionally, this allows the analysis of other markets, which are more uncertain than the local market; it therefore allows a unique perspective in analysis and therefore an advantage. The Farmers Choice Brand is seen as a quality brand, it is about 30 years of age and was established in an attempt to position a high-end quality product. Through advertising the brand is a household name and a valued brand for Hanschell Inniss. In marketing, cannibalization is the decreased demand for an existing product that occurs when its vendor releases a new and similar product. For example, when Hewlett-Packard puts out a new printer, they realize that older printers will suffer some erosion of sales or market share; that erosion is referred to as cannibalization. Farmers Choice sees competition from a sister-brand, Eve and to date has done very well, this however has implications for Farmers Choice going forward in a maturing market. The fact is clear, the medium which is used to store the brands is at a premium, Hanschell has made the decision to carry a number of competing brands which would have to share market space as well as display space this has resulted in the seeding of space to brands on a rotational basis in order to maintain visibility of all the brands. Investment in plant has been an asset and liability, the inability to secure major distribution channels would limit the ability of the company to penetrate effectively in shopping areas owned by a competing brand. This is compensated by an attempt to have distribution go into rural areas using vans; this is however a very competitive networking system as the competitors has this channel well populated.

5.4 Product Assessment Using BCG Matrix

The Boston Consulting Group (BCG) Matrix Independent products of an organization make up what is called a product portfolio, the firm's products, Farmers choice bacon, wieners, burgers, chicken chunks, and slice ham compete in different markets, a separate strategy often must be developed for each product. The Boston Consulting Group (BCG) Matrix is designed specifically to enhance a firm's efforts to formulate strategies. The BCG Matrix graphically portrays differences among products in terms of relative market share position and industry growth rate. The BCG Matrix allows an organization to manage its portfolio of products by examining the relative market share position and the industry growth rate of each product relative to all other products in the organization. Relative market share position is defined as the ratio of a product's own market share in a particular industry to the market share held by the largest rival firm in that industry. Relative market share position is given on the x-axis of the BCG Matrix. The midpoint on the x-axis usually is set at .50, corresponding to a product that has half the market share of the leading firm in the industry. The y-axis represents the industry growth rate in sales, measured in percentage terms. The growth rate percentages on the y-axis could range from -20 to +20 percent, with 0.0 being the midpoint. These numerical ranges on the x- and y- axes often are used, but other numerical values could be established as deemed appropriate for particular products. The size of the circle corresponds to the proportion of revenue generated by that product unit, and the pie slice indicates the proportion of profits generated by that product. Products located in Quadrant I of the BCG Matrix are called Question Marks, those located in Quadrant II are called Stars, those located in Quadrant III are called Cash Cows, and those products located in Quadrant IV are called Dogs.

Question Marks-Products in Quadrant I have a low relative market share position, yet compete in a high-growth industry. Generally these products' cash needs are high and their cash generation is low. These productss are called Question Marks because the

organization must decide whether to strengthen them by pursuing an intensive strategy (market penetration, market development, or product development) or to sell them.

Stars,-Quadrant II businesses (often called Stars) represent the product's best long-run opportunities for growth and profitability. Products with a high relative market share and a high industry growth rate should receive substantial investment to maintain or strengthen their dominant positions. Forward, backward, and horizontal integration; market penetration; market development; product development; and joint ventures are appropriate strategies for these products to consider.

Cash Cows - products positioned in Quadrant III have a high relative market share position but compete in a low-growth industry. Called Cash Cows because they generate cash in excess of their needs, they often are milked. Many of today's Cash Cows were yesterday's Stars. Cash Cow products should be managed to maintain their strong position for as long as possible. Product development or concentric diversification may be attractive strategies for strong Cash Cows. However, as a Cash Cow products becomes weak, divestiture can become more appropriate.

Dogs - Quadrant IV products of the organization have a low relative market share position and compete in a slow- or no-market-growth industry; they are Dogs in the product's portfolio. Because of their weak internal and external position, these products often are liquidated, divested, or trimmed down through retrenchment. When a product first becomes a Dog, divesture can be the best strategy to pursue. The major benefit of the BCG Matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various products. The products of many firms evolve over time: Dogs become Question Marks, Question Marks become Stars, Stars become Cash Cows, and Cash Cows become Dogs in an ongoing counterclockwise motion. Less frequently, Stars become Question Marks, Question Marks become Dogs, Dogs become Cash Cows, and Cash Cows become Stars (in a clockwise motion)


The BCG Matrix

RELATIVE MARKET SHARE High 1.0 Medium 0.50

POSITION Low High I G +20 N R QUESTION MARKS D O I U W S T T H R Medium Y R 0 A S T A E L DOGS E (%) IV S Low 0.0



6.0 Strategy Development and Rationale

Strategy development and rationale attempts to consider the internal and external environment in an effort to charter a clear and unobstructed path, to the set of objectives; both environments will be subsected and the rationale shared to explain the reasoning. The subset of the internal environment is the four Ps and the target market and positioning. Initial primary data has established no clearly defined target market. The demographics of age and gender were represented with no clear concentration to indicate segmentation and therefore a target market, this approach has served Farmers Choice well. A clear advantage can be seen by way of advertising costs which can be spread over a larger market hence reducing overall costs. Analysis has shown that price is not a major consideration in selection; this is due in part by Farmers Choice brand offering larger brand items allowing for depth to the product line. This process allows two things to occur, customers purchase in bulk or larger size and still have the option of purchasing regular. Price observation has shown that allowing for as much as .35 differences this is not seen as a hindrance to purchase. The strategy going forward would be to maintain the present pricing arrangement, while at the same time keeping an eye on the competition for any movement in price. The product, identified as a fundamental to the explanation of the marketing strategy, has served Farmers Choice brand well. Assessed against competing brands it is holding adequate market share. It has been observed that SBI has retreated in the production of hamburgers and H Jason Jones lacks the brand item selection to threaten by way of new product development. Consideration at this time should be to improve on product especially given the response of the survey to convenience, although agreed this is an accurate assessment there is a feeling that effort should be put in having packaging for bacon, wieners and slice ham that allows for easy perforated entry. The strategy of product improvement by way of packaging could allow improved market share but is not a certainty. Placement or distribution has been seen as an opportunity for improvement, Hanschell Inniss does not have at its disposal the distribution network as compared to SBI where the Super Center Marts are able to carry the Home line and afford best shopping position in the display freezers. Hanschell Inniss has within its portfolio the Eve brand which has proven to a sustained competitor and often compromise must be meeting in order to allow these competing brands an

opportunity to occupy space in the limited freezer spaces. There is a need to establish more depots in the village and town centers, this would afford the control of the limited freezer space, eliminating the retailer thus being able to offer best price. It is recommended that Farmers Choice penetrate the frozen vegetable market, this decision should help the product line expand and increase sales. The market growth for vegetables is currently strong and is expected to increase with consumers demand for healthy foods. Marketing frozen vegetables also increases Farmers Choice consumer base; traditionally the company has not targeted a specific group, now it is possible to extend its products to vegetarians. In order for Farmers Choice to enter into the frozen vegetables market, it will have to first create a business analysis with a concept evaluation; the managers need to develop a plan for this new product. Within the plan, the company needs to forecast revenues, identify the size of the market and define top competitors. It is important to identify the consumer trends and develop a strategy to satisfy unmet consumer needs. This plan needs to be creative and different than the existing product strategies. Once these concerns have been met, it will be necessary to evaluate the plan. Pending the approval of the plan, Farmers Choice should establish a strategic alliance with an existing frozen vegetable manufacturer. Currently, the company only has the capacity to produce frozen meats because the procurement of vegetable processing technology would be expensive. It is recommended that the company utilize a strategic alliance reducing the time required to penetrate the market and also acquire skills and technologies to drive the company forward. The Republic of Guyana is seen as a viable location for this type of investment, in this way the company can increase its profits without a significant amount of risk. A quality marketing strategy will be evaluated throughout the new product development process. Farmers Choice should examine a segment; women aged 24 to 45 to target. With the new vegetable product, Farmers Choice would then make a decision whether or not to stay with the current target market or to enter into a new one. It is recommended that staying with the current target market will be advantageous; however, market research will still be required. Vegetables can be positioned as a healthy addition to the consumers meal; an advertising campaign will

need to be developed to support this concept to build brand awareness and personality associated with the new product line. Once the product is fully developed, Farmers Choice should test it to measure buyer response and further evaluate and develop its positioning strategy. The use of conventional test marketing would result in placing the product, in actual market conditions, in test locations on the island. Product sampling will also be required; it should be conducted in retail stores or other locations, based on consumer demographics and concentration. The test markets need to be a representative sample of the target market. In order to launch this new product line, Farmers Choice will use intense distribution. Multiple channels of distribution will guarantee wide spread availability of the new line; all marketing activities will be coordinated. The campaign will also require a distribution of coupons and in store sampling to create consumer desire to test the new product. After implementation, a thorough evaluation will be conducted to determine the project success. If the vegetable product line is a success in Barbados, it too will be able to penetrate the U.S. and U.K. markets. The environment in which purchases are made are constantly changing, it is therefore important to examine the new features of the purchasing climate as the features may pose threats or create opportunities for the company. The companys environment includes cultural, social, situational, technological, and economic environments as well as the natural environment which encompasses demographics, heredity and home environment, family life and life-changing events. Clow and Baack states there are many demographic variables such as age, gender, income level, race, and geographical area that distinguish buyer types, and that companies create products to meet the need of individual demographic segments. For instance men and women purchase differently, that is they may buy similar products for different reasons or with alternate features. Women in this market may make more frequent purchases than men, and may make up the majority of the market, as they buy breakfast items while doing the general shopping for their families. However the products appeal may be more suited to children as they are the primary users of the products, therefore the ideal market for the product mix would be women with children.

Cultural factors also bring to bear extensive and profound influence on consumer behavior hence the way in which the buyers culture, subculture and social class affects the consumers buyer behavior must be understood. If the organization fails to adjust to the differences or changes in buyer behavior it can result in mistakes and ineffective marketing. Buying decisions can be impacted by the different cultures and sub-cultures, as such, the influx of the different nationalities in the Barbados society must be taken into consideration and their consumption habits should be determined. The societys basic values have also changed moving towards a healthy life style, hence persons are tending to eat healthier, and see their bodies as a product of what they eat. They are turning more and more towards soya based products, meats low in fat and foods which will be low in calories. Hence the product for Hanschell Inniss must evolve, providing the target audience with healthier foods, with leaner cuts. According to Kotler and Armstrong business buyers are influenced heavily by factors in the current and expected economic environment, as the imbalance in the economy rises buyers will cut back on the amount of product they buy thereby reducing their inventories, hence reducing the revenue that would otherwise be available. It can be argued that persons still have to eat so the market should be able to hold its own, however the market is saturated with a number of complimentary as well as substitute goods that can be viewed by the wholesaler, retailer and the household as more affordable. These are products such as Gran-burger which is also competing in the market and is a healthy choice solution. The technological environment also can influence the business buyers as well as the consumer buyers and can also prove to be a threat or an opportunity to the company, companies use of the internet and other technological advancements can bring the product into the international arena, Hence Hanschell Inniss use of the internet and H Jason Jones website highlights the product mix of the companies, they are interactive and introduces the customer to the variety of products they have to offer.

7.0 Appendix

Survey Questions
S.B.I Distributions Sampling Information Farmers Choice Sampling Information H Jason Jones Sampling Information

H Jason Jones Price List SBI Distributors Inc. Price List

Survey Questions Are you aware of the refrigerated _____________ brand? Yes No Have you purchased the refrigerated ____________ brand? Yes No Is the PERFORMANCE of the brand? (7) Very Good (6) (5) (4) (3) (2) (1) Very Poor Is the RELIABILITY of the brand? (7) Very Good (6) (5) (4) (3) (2) (1) Very Poor

Is the CONFORMANCE of the brand? (7) Very Good (6) (5) (4) (3) (2) (1) Very Poor Is the SAFETY of the brand? (7) Very Good (6) (5) (4) (3) (2) (1) Very Poor Is the AESTHETICS of the brand? (7) Very Good (6) (5) (4) (3) (2) (1) Very Poor

S.B.I Distributions Sampling Information Person 1

2 3 2 5 7 19 3.8

Person 2
5 5 5 6 6 27 5.4

Person 3
5 5 6 6 5 27 5.4

Person 4
4 4 4 5 5 22 4.4

Person 5
6 6 7 7 7 33 6.6

Total Average

Total Average


Table 1 Brand Awareness is equal to total Average divided by total number of persons polled therefore Brand Awareness is 2.56
Age Range 10-19 20-29 30-49 40-49 50+ Male xx xx x x Female x x x x

Table 2

Farmers Choice Sampling Information Total Person Person Person Person Person Average 5 6 7 8 9 4 6 6 5 5 4 6 5 5 4 5 7 6 6 6 6 6 6 6 5 6 6 6 6 5 Total 25 31 29 28 25 Average 50.8 5 6.2 5.8 5.6 5 Table 3 Brand Awareness is equal to total Average divided by total number of persons polled therefore Brand Awareness is 5.0 Person 1 4 5 6 7 9 31 6.2 Person 2 6 6 7 7 7 33 6.6 Person 3 5 5 6 4 5 25 5 Person 4 5 5 5 6 6 27 5.4
Age Range 10-19 20-49 30-49 40-49 50+ Male X XX X Female X X XX XX X

Table 4

H Jason Jones Sampling Information Person 1 3 4 3 6 4 20 4 Person 2 4 4 5 3 5 21 4.4 Person 3 5 5 4 4 4 22 4.2 Person 4 3 5 3 3 5 19 3.8 Person 5 4 4 5 3 4 20 4 Person 6 3 4 3 5 5 20 4 Total Average

Total Average


Brand Awareness is equal to total Average divided by total number of persons polled therefore Brand Awareness is 2.4
Age Range 10-19 20-49 30-49 40-49 50+ Male X X X X X Female X X X X X

Table 4

Market Share Analysis

Company Carlton A1 Supermarket Jordan's Supermarket Trimart Supermarket SuperCentre Warrens Supermarket Total Market Share

Freezer Farmer's Space HOME Choice Jason Jones 113400 10800 37800 2700 172800 14400 43200 3600 405000 40500 243000 20250 729000 1420200 81000 146700 10% Table 5 243000 567000 40% 27000 53550 4%

The hypothesis is to equate market share to a premium constant being freezer space. Hold the market constant and isolate market share to the four supermarkets shown. Total freezer space is then calculated and the percentage of each competing brand, the result being equated to market share.

8.0 Bibliography

Philip Kotler, Gary Armstrong (2004). Principles of marketing, Pearson: Prentice Hall. Tony Yeshin (1998). Integrated marketing communications, Butterworth Heinemann. Ian Swift (200). Marketing An analytical and evaluative approach to business studies, Hodder & Stoughton.










Communications, Pearson: Prentice Hall.