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on hygiene and food safety as part of the product benefit. Benchmark analysis of
competitive products and manufacturers suggests that Crazy Foods is meeting customers
product benefit requirements more effectively than the competition, except in distribution
where other companies perform better. Detailed research on the specific product benefit/
customer requirements also shows that the company has achieved competitive advantage.
Information system
The company via the audit of the information system has created the following information
management system.
Control: Sales by product type, by customer type, by region. Profitability, return on capital
employed, cash flow, progress of new product development, credit records. Forecasting
systems based on time series analysis and use of project management software.
Intermittent: Stock levels, production efficiency, competitive market shares, competitive
pricing, product returns, advertising expenditure, product quality analysis, sales
productivity, personnel turnover, personnel skills levels, physical distribution efficiency,
warehouse efficiency, credit levels, order processing efficiency,
Planning: Changes in laws on packaging, hygiene regulations, taxation on food,
disposable income, unemployment, exchange rates and raw materials, changes in
population age structure, attitudes to food products, changes in manufacturing technology.
Competitive product evaluation, advertising, product substitutes, entrants. Premises costs,
labour costs, pay and conditions.
This information is sourced from a range of internal and external data, most of which is
secondary. The company carries out primary research on a regular basis to ensure that
the segment/product benefit interaction is still maintained. The information is collated on a
central company database, is available to all marketing staff, and is reviewed at regular
monthly marketing meetings. A budget had been allocated for the entire information
system requirements of £12,000 per annum.
Product support
Packaging needs to meet product, production, distribution and promotion criteria.
* Plastic material with sealed foil lid meets hygiene requirements and can be produced on
high speed line.
* Distribution channels require product to be packed in units of four, and to be available, in
tray, for immediate transfer to chill cabinet, plus bar coding.
* Promotion requirements suggest that packaging should be colour co-ordinated with
contents and have detailed instructions on maximising luminosity.
* Name and logo are designed to emphasise product benefit - entertaining to eat.
* Guarantee requirement printed on label.
* Crazy Foods trademark registered.
Distribution channels
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