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... ion and processing high quality materials to the market. In the past Birds Eye financial analysis has been questionable. Birds Eye net profit margin in 1977 was - 32 %. Within these years the company tremendously hit an all time low in their profit margin. However, in 1979, profit margins increased and were very successful.
Also in 1970, Birds Eye bounced back from a tax loss. On the other hand, sales have been good year after year. Strategic Implications: The company needs to be knowledgeable in producing products efficiently, and process high quality materials to the marketplace. Year 1972 1973 1974 1975 1976 1977 1978 1979 Sales Growth 24 % 16 % 18 % 19 % 13 % 7 % 18 % Profit Growth 20 % 0 % 31 % - 87 % - 373 % 261 % 645 % Net Profit Margin 1. 33 % 1. 29 % 1. 11 % 1. 23 % 0. 13 % 0. 32 % 0. 48 % 3. 06 % Market share The company should have targeted supermarkets. They would have defiantly benefited from it short term and long. The marketplace is growing rapidly and Birds Eye should have overlooked everything because the more supermarkets increase the more the company decreases.
If they would have kept forgoing, Birds Eye could hit a rock bottom and eventually close down. The key to success is to be able to lead and dominate. This is a strong skill within the organization and should not be taken for granted. Retail channels are demonstrating this powerful skill and being very successful.
Advertising Birds Eye needs to advertise products that are appealing to the consumer. They need to restructure their strategy and recapture their gain in market shares. By having a great distribution process gives them the upper hand. With this in mind, Birds Eye should look into advertising nationally.
Also, making sure products are satisfying customers need and wants. Fulfilling customer demands should be one of the most important goals within this organization. With all these new and innovative products in the frozen food industry the right advertising should be used to target their market segment. Strategic Implications: The market is rapidly changing; Birds Eye must implement a strategy to its core competencies and give them the competitive advantage they need. Product Strategy Birds Eye needs to know what products they should put out on the market. Making sure this products are what customers are looking for and what they are willing to pay.
By doing this, Birds Eye must evaluate and predict customer's satisfaction before the product is ready to be put on the market. Actually, they should evaluate and forecast the outcome of the product before the product hits the markets. Pros Con Sales Increase Expensive research Customer satisfaction Unattractive products Future predictions Evaluating poorly Brand name / recognition /loyalty Not just having a strong name but being able to maintain successfully for a long period of time. Being on top and staying on top because of the company strong brand name is what kept them alive. By fulfilling all these requirements Birds Eye must advertise their main products to the consumers. They should give sample products along with rebates or even money saving coupons.
This will attract customers and increase sales which will develop their name and recognition. This will also increase the loyalty of the customer, company and products. By satisfying the consumer's needs and desires will drive the customer back for future purchases and build customer loyalty. Clients will not just come back but recommend Birds Eye products other shoppers.
This procedure is beneficial to both the consumer and Birds Eye. Pros Cons Increase brand name Not satisfying consumer demand Increased sales and revenues Unattractive advertising Inexpensive advertising Not building relationship Strategic Implications: Birds Eye must continue to produce high quality, profitable goods and services that are differentiated and satisfy consumer demands. Theirs no way that Birds Eye cannot achieve these implementations. Making sure these strategies are implemented within the corporate is crucial. These issues must be set and achieved regularly and in a timely matter. It's no just the products that make the buyers happy and coming back for more but it's the service that's provided.
These forecasts must be done accurately and efficiently. Being able to build a strong brand name should be creative, productive and fun. Marketing and advertising has a huge impact on helping the product grow and mature. Making sure customers are happy and satisfied at all times. This will be costly but it will help Birds Eye in the long run. Also, they need to launch the products according to the taste and trends of the market.
Therefore, Birds Eye must provide the products at the right time and right price and they will see an increase in sales and revenue in no time. Nevertheless, expertise must properly research the company internally and externally. The question come down to who has the necessary skills to lead this frozen food industry? With this company, every one should take part and help establish the company. Top-managers and middle mangers must be knowledgeable and posses strong leadership skills. Furthermore, managers at all levels should be able to plan, manage, motivate, delegate and execute at all times.
These are key requirements that all managers within Birds Eye should demonstrate effectively. They need to be able to get the job done, right. Managers must put together teams to implement a strategy to get information, paperwork and any other data to their staff. The company needs to be aware of what's happening internally and externally. Everyone within the company must use the resources they have properly. Another key factor is being able to change in all aspects, especially managers.
Everything around us changes such as technology, environment, people and being able to adapt to new changes will give Birds Eye the competitive advantage. In addition, the marketing specialists should evaluate and survey consistently. The marketing group should analysis and monitor information received and innovate creative ideas for new and existing products to the customer. Marketing experts should know what products to produce and when to produce them. Therefore, they need to know the demands of products from both new and existing customers.
The human resources department should hire managers and employees who have experience, knowledgeable and posse's leadership and motivational skills. The finance / accounting team should analysis the company periodically. They need to evaluate and record sales growth, profit margin, budget and expenses. Strategic Implications: Making sure this products are what customers are looking for and what they are willing to pay. By doing this, Birds Eye must evaluate and predict customer's satisfaction before the product is ready to be put on the market. Birds Eye needs to maintain their market shares and profit margins.
This will help them achieve their goals and overcome any obstacles. Being able to implement strategy is beneficial but expensive and very time consuming. Becoming a leader in the marketplace does not mean producing top end products but being able to keep producing high and better quality products. In addition, Birds Eye must continue providing exceptional customer service to their clients. Providing the best quality products should come with the best quality service. Having a strong brand name and recognition should also result in strong customer loyalty.
Clients and employee satisfaction is the ultimate goal to Birds Eye. The employees at Birds Eye need to plan, monitor and evaluate at all time. This process should be done periodically and by any employees with the company. Customers come first; implementing a strategy where consumers are receiving the right product at the right time and at the right price will have a great impact to the company. As well as making sure the employees are treated right and working in an environment that they enjoy. Strategic Implications: Strategic Implications: Managers at all levels need to posse's strong communication, leadership and motivational skills at Birds Eye.
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Research essay sample on Net Profit Margin Profit Margins
