EXECUTIVE SUMMARY
The report is based on the Mainland Cheese brand and Company. Given that it is a consumer company greatly impacting on the lives of numerous individuals, it serves as a very basic example. Other related companies especially in the consumer sector can adopt similar trends. The report has analyzed the basic setting of the Mainland Cheese. The business environment, both internal and external, regarding the company has also been analyzed. The Mainland Cheese brand company is successful in numerous aspects. It mainly deals with cheese and other milk related products in the market. The analysis of the business environment of the company reveals the aspect of competition, product improvement, diversification of market, employee compensation, advertisement and price adjustments as vital factors that relate to the company. The company needs to urgently address the factors mentioned above. The marketing factors regarding the specified entities are highlighted. Each entity mentioned above and the way it impacts on the company has been discussed in depth. Further, the necessary amendments and possible steps regarding the business affecting entities have been discussed. If the company altered their actions regarding the specified business and marketing components, there would be a higher chance of even better success than it is currently. Mainland Cheese brand and company should seriously consider taking positive steps regarding the components that affect them. This is because they would impact positively on the general processes and undertakings of the firm in not only the short run but also the long run. Implementation of various marketing strategies would guarantee the further success of the business (Quaddus & Siddique, 2009, p. 89). The concerned individuals should therefore ensure that they implement the specified marketing strategies and recommendation for the larger success of the Mainland Cheese.
INTRODUCTION
Mainland cheese is a brand of the commonly known cheese. The brand is currently owned by one company. The Fonterra Co-operative Group is the rightful owner of the brand Mainland Cheese. The Mainland Cheese is sold throughout Australia and other parts of the world, including some big portion of the United States. The company began as a common family owned and run business. The setting implied is the South Island located in New Zealand, commonly and rather jocularly referred to as the “mainland” of New Zealand owing to the fact that it is bigger in size than the North Island.
Peter McConnon was the founder of Mainland Products almost six decades ago. This was roughly at the start of the year 1954. From my personal perspective, I think the growth of the company was largely unexpected. It rather came as a surprise to the owner that the company had potential to grow to extraordinary levels. The growth of the company was in plain terms, rapid. It mainly encompassed and involved fresh and processed milk. Cheese was also involved, and is even the name that the company is mostly associated with today. Other products on the list included, ice cream, processed meats also known as Kiwi Huttons, and other common consumer foods.
Kiwi Co-operative Dairies led by Craig Norgate lawfully acquired 83 percent of the business in the early 1990’s. The rest of the shareholding was acquired by Fonterra. This formed a merger which also included Kiwi Co-op also led by Craig Norgate in 2001 and 2002 respectively. There was a lot of speculation that surrounded the quoted NZ $ 600 million price tag paid by Kiwi Co-op and Fonterra to the McConnon family regarding the Mainland Products. There was even more speculation when Norgate arose as the business partner of the McConnon family in the RPI (Rural Portfolio Investment). Rumors had it that Norgate had not injected any significant capital into RPI and other associated companies. It also implied that the initial capital was fully funded by the McConnon family’s investment arm. The argument between the McConnon’s and Norgate included the fact that a NZ $ 500,000 per year management fee, plus other expenses for five years, and another golden parachute clause that was worth several million dollars if the business venture failed and Norgate was forced offshore.
In 2005, Fonterra decided to sell of most of the business that was formerly part of the Mainland to the Graeme Hart’s Rank Group Limited. However, he was to retain all of the cheese assets in the company as part of the agreement. The Mainland Cheese now falls under the Fonterra Brands whereas the balance of the former Mainland Company is currently part of the Goodman Fielder.
The following report has focused on the current undertakings of the Mainland Cheese. Several marketing factors and dynamics affecting the company will be analyzed. The SWOT analysis of the firm has also been discussed. The main theme of the report is related with the aspect of development of new working marketing strategies in regard to the issue of business environment (Mercer, 1996, p. 66). This includes both the internal and external environmental factors of the concerned business. The input of thoughtful and creative marketing tools and ideas into the business and their expected impact on the revenue of the company has been analyzed in the body.
SITUATION ANALYSIS
The business environment of any organization is very important. Discussing the composition of both the internal and external environmental issues impacting on the undertakings of the Mainland Cheese would be in order. The internal business environment of the firm includes the employees. The employees are very important assets of any given firm. They are an important part of production that influences to a large extend the undertakings of the business. The Mainland Cheese Company has quite a large number of employees in basic terms. The current number of direct and indirect employees of the firm would translate into a magnitude not easily handled if they were in a setting of a smaller kind of business. However, in terms of the number of customers the company serves not only on daily but yearly basis, the number of current workers is not overly large
The main of the Mainland Cheese Company lies in their customer base. The company has been involved with production of essential consumer commodities. As a result, the number of customers with preferences to the company has dramatically improved over the years. This factor forms a very powerful connector to the general operations of the company. It is indeed a very viable strength possessed to a large extend. The other strength possessed by the company is its large capital base (Bohm, 2009, p. 45). This aspect enables the company to undertake various works efficiently. Further, it gives other related companies and competitors at that, at bay. The most important thing regarding this aspect is that the company can access financial services and loans to serve cases of short term financing from banks easily. This forms a very basic strength avenue.
The opportunities of the company include the expansion prospect. Considering the large number of cheese lovers across the world, the company can easily expand to ready and lucrative markets across the world. Clearly, there are numerous countries that do not have such extraordinary companies (Goggans & DiFranco, 2004, p. 234). The involvement of the company in these areas presents an outstanding opportunity. There are however, weaknesses too related to the company. The company does not have a wide range of commodities it produces. This is a weakness to some extend considering that it gives other competitors chances of being superior. This aspect introduces the factor of threats. The company is therefore threatened by this situation. Other companies still have a chance of setting up base and successfully competing with the firm.
The Mainland Cheese Company is responsible in a big way specifically to the customers. The cheese brand lovers owe their satisfaction to the cheese company. Therefore, the company to a large extend does the bigger task. They have to ensure that the cheese lovers are availed with their preferred commodities. The company also has the responsibility of ensuring that they are producing the best quality commodities for sale. This is a factor that widely affects the state of the revenue realization. However, the customers are also doing something positive to the company. They are overly engaging in the purchase of the products being manufactured by the company. This is a very vital input considering that it serves in ensuring that the Mainland Cheese Company survives in the market. The organization can influence the behavior of the customers regarding their commodity in a positive way.
IDENTIFICATION OF THE MARKET OPPORTUNITY
The above analysis has provided an insight in the operations of the Mainland Cheese brand company. One of the opportunities identified is the issue of expansion. The company has not overly diversified its consumer products. The fact that the company deals with consumer products means that it has the possibility of expanding further. The expansion done can be both locally and vitally international. There are numerous countries in the world that do not have any cheese company. Some countries especially in the low income nations depend on importation of such products to cater the needs of the demanding population. This means that the prices of the company’s commodities are hiked due to the presence of middlemen and the extensive supply chain involved. Taxation also comes into play here. The consumers of the goods therefore find them very expensive. This factor only serves in reducing the number of potential customers due to the prices. If the company had set base in the given countries, this would not be the case. For instance, all the extensive chains of supply would be cut down. The taxation would also be reduced by the respective government. Further, the advertising of their products in these countries would enable many individuals to purchase.
Product expansion presents the other form of opportunity available for the Mainland Cheese Company. The company does not have many products for sale and available in the market. The fact that it only deals with milk related products further brings out the relevance of this point. Product diversification is a very important marketing tool for all companies. Considering that the company deals with consumer goods only helps to further increase their prospects in introduction of new products in the market. The world population is not only high currently, but is also rising. This is a positive input in regard to the operations of any consumer producing commodity firm in the world. The implication here is that there will be a larger customer base in both the short and the long run. This factor should be considered seriously by the concerned marketing authorities in the Mainland Cheese Company. With product diversification, the company would be aiming a larger profit realization by the end of each year. The fact that the company is established currently also gives it a head way and an advantage against all other possible competitors. The company has a broad and informed knowledge regarding the marketing trends and can therefore make accurate speculative intuitions regarding various activities. The company can also access easily loans and other financial services from the banks in case they are suffering a loss or shortage in their budgetary allocations. This ensures that the vital chain of production is not interfered with at any given time.
The company has a high reputation in not only the home country but also in other parts of the world. This factor is very important to the company. It implies that the best skilled individuals will want to work for the company. The end result is that there will be an employee base of only skilled and intelligent individuals. As a result, the overall operations of the given company will often have a basis that is not only effective, but also efficient. This factor will work well with the introduction of expansion methodologies in the long run.
Perhaps the best opportunity available for the company regards the aspect of being monopolistic. The company does not have viable or even largely impacting competitors. As a result it would be much advantaged in the case whereby it wanted to ensure that it is the only company dealing with cheese and other milk related companies especially in the home country. Being monopolistic enables a given company to work in the market with its own rules. Basically, the company would be the sole producer of essential consumer products. All factors regarding ethics should however be kept constant. The company would be in a position to offer their services with the assurance of the public that they will be wholly purchased. The chances of losses in such a case would be nearly zero. The company would be able to set its own market commodity prices without the effect of other uncontrollable market forces. Price competition by various related companies can be harmful to a given company (Porter, 2008, p. 34). This is so especially if one of the company is producing substandard commodities. However, with Mainland Cheese brand company in the market alone, efficiency of the activities would be enhanced and at a maximum. Further, the company would not be able to share the available market with any other companies. This would therefore mean more yearly revenues for them. Given that the company currently has all it takes to undertake this action, it would be a very wise consideration for the concerned authorities regarding this recommendation. It might be a step that might label the cheese company in the long run as a widely recognized market cheese giant in the world.
CONCLUSION
The Mainland Cheese is indeed a multinational company with a great potential. The current statistical standings related to the annual turnover and revenues serves to prove that the company is already established. However, the fact that the company is reaping bid does not mean that it can’t reap bigger. Considering the opportunities that are available regarding the growth of the company, it is vital that the concerned individuals in the firm took the necessary steps. The company has already established itself as a giant cheese manufacturer. With this in mind therefore, it would not be a hard task to further increase its respective dominance in not only New Zealand but also other parts of the world. Improvement of their products is one core issue. The company should also seriously consider the creation of new products in the market. Other cheese brands and related goods should be adopted by the company.
The company evidently has the requisite financial resources to carry out vital marketing undertakings. Advertisements especially through the media such as television would provide a very good leverage point for the company. This aspect would further sideline its competitors and therefore reduce the chances of being outdone in the market in the future. Further, the basic issue of revenue realization would also be relatively improved. Annual turnover would therefore increase.
The report has highlighted some specific issues regarding the dynamic business environment of the firm. The current gaps in the business propulsion of the firm have been highlighted. Considering this, the report has given possible solutions to dealing with such issues. The recommended steps would evidently go a long way in ensuring that the company gets better prospects.
REFERENCES
Quaddus, M. & Siddique, B. (2009). Handbook of Corporate Sustainability. London: Edward
Elgar Publishing.
Porter, M. (2008). On Competition. New York: Havard Business Press.
Bohm, A. (2009). The SWOT Analysis. Munich: GRIN Verlag.
Mercer, D. (1996). Marketing. Malden, MA: Wiley-Blackwell.
Goggans, J. & DiFranco, A. (2004). The Pacific region. Chicago: Greenwood Publishing Group.
APPENDIX (SWOT ANALYSIS TEEMPLATE)
