Table of Contents
- Current Products Desirability Relative to the Market
- Identify Market Opportunities
- Identify and Critique New Supporting Product Technologies
- Product Objective for 2020
- Identify the Required Improvements in Product Knowledge and Capabilities
- How the Company Will Assure Employee Support for the Proposed Changes
- Specification of Essential and Desirable Credentials of a Manager
Established in the year 1957, BiscoMisr was registered as Egyptian Company for Foods, with the prime motive of supplying quick energy providing snacks to the army of the nation and the national schools at that period. BiscoMisr also served as the main confectionary provider for the local market during the period. In the year 2005, the company was handed over from the public sector to the private sector as a part of the privatisation program and was named BiscoMisr (The Egyptian Company for Foods (BiscoMisr), n.d.). With the growing competitors in the business world, it has become vital for every business to implement steps that would help them in maintaining their competitive position and also facilitate them in attracting more customers towards the business practicing effective product development (Johnson & Kirchain, n.d.). The main objective of this paper is to provide a detailed analysis of the company that would help in improving their ethical standing and approach to environmental sustainability through product development of the biscuits category of product of the company.
Current Products Desirability Relative to the Market
Egyptian Company for Foods, commonly acknowledged as BiscoMisr, is determined to be one of the well-known local manufactures of biscuits along with confectionary products. The company’s products are also sold under various brand names that mainly comprise cakes, uncoated wafer, chewing gums and cocoa products (Diaspora Interactive Media, Corp., 2009). It has been recognised that the company has conquered nearly 41% of the biscuit market in Egypt. It has been further viewed that the retail volume growth of biscuit market has slowed down in the nation. It is measured that the growth rate that was 7% in the year 2010 slid down to only 4% in the year 2011 and continued over the first half of the year 2012. The vital reason which has been identified as the key constituent for the slow growth in the biscuits’ market has been the fact that a substantial proportion of customers have started to prefer consuming homemade snacks as they believe it to be healthier (Euromonitor International, 2012). In this regard, it can be stated that the desirability of the product from the part of the consumers is derived upon having a healthy product within affordable cost.
Identify Market Opportunities
North Africa is recognised to be one of the most preferred destinations amid the other emerging markets globally (Bloomberg L.P., 2013). Within the Fast-Moving Consumer Goods (FMCG) industry, every organisation is establishing strategies and programmes that would help them to get acclaimed in one of the largest and fastest-growing populations in the world, i.e. North Africa, resulting in increasing the consumers demand for new goods. Considering the aspect of bakery industry within the nation of Egypt, it has been ascertained that in recent years, the growth of biscuit sale has dropped considerably as people have started to prefer consuming homemade biscuits and cookies as they find it expensive to buy it from the market.
Table 1: Egyptian Confectionery Sales by Retail Channel (Bryant Christie Inc., 2009)
Such a trend has primarily resulted from the slowdown of the currency value of the nation, increasing the cost of importing raw materials and forcing companies to lift their retail prices. However, it is worth mentioning that according to an estimation done by Oxford Business Group (2013), 70 to 80 present of the sales in the confectionary market come from products that are priced at US$0.08.
Table 2: New Grain-based Product Releases in Egypt According to Category (International Markets Bureau, 2011)
However, in the recent times, it has been measured that the increasing price of raw materials has forced BiscoMisr to price their products at US$0.16, which has decreased the sale of biscuits within the nation to a certain extent. Nevertheless, it can be stated that the market opportunities for bakery based products in Egypt are plenty if the products are developed considering the interests of the consumers (Oxford Business Group, 2013). Therefore, in relation to the concept of Ansoff Matrix, the business would primarily focused on product development. The business would also concentrate on developing products that would attract customers of all levels in the nation (Monash University, 2013).
Identify and Critique New Supporting Product Technologies
Considering the above stated discussion, it can be viewed that the main reason behind the drop in the sales of biscuits in Egypt is the increasing cost of the product. In this context, it is very essential that adequate steps are taken by the company to develop a set of products that would help in making the entire production much cost-effective and would also facilitate in attracting more customers to buy the products. The aspect of technology can be adapted in this scenario to bring down the production cost of the biscuit product of BiscoMisr. Adoption of modern biscuit moulds and cutters that provide a wide range of biscuit designs to choose from would help in expanding the range of biscuit products of the company. Furthermore, the business can also implement modern manufacturing units/ rollers with interchangeable rings. This would decrease the task of manually changing the rings. Contextually, it has been determined that the company does not have any biscuit products that are especially made targeting the kids section. With this concern, BiscoMisr can also introduce new biscuit manufacturing units that would help it in producing products for the children, thereby introducing a new segment in the company’s product range (ERREBI Technology, 2013).
Product Objective for 2020
Business objective plays a vital role for every organisation as it helps in providing a guideline to the employees on what are the aspects that need to be adhered while fulfilling a task (Dobbins, 2010). Considering the aspect of product development in BiscoMisr, the objective of the new product would be to conquer a major share of the biscuit market segment in Egypt by 2020. The product development strategy would also help in attracting multinational retailers to import the offered products of the company to major countries globally.
Identify the Required Improvements in Product Knowledge and Capabilities
Manufacturing biscuits is considered to be one of the most complicated processes as mixing of the right quantity of ingredients is very essential. Considering the biscuit segment of BiscoMisr, it can be viewed that the company mainly focuses on manufacturing British style biscuits that are hard and dry and can be stored for a longer time. However, if Egypt is selected as the core market for the product, it has been viewed that the Egyptians mainly prefer confectionery biscuits which are often cooked after the preparation of bread and are cheap than the British cookies. Additionally, these biscuits tend to provide much supplementary benefit as compared to a normal British biscuit. In this context, the employees of the company must be trained to mix the right proportion of ingredients that would help in developing the product by fulfilling the needs of the customers. Correspondingly, the employees can also be given demonstration classes on how to operate any new manufacturing unit that has been installed in the factory. It has also been ascertained that the biscuit product of the company mainly emphasises flavours and types that are available in the market locally and internationally (Mondelēz International, 2013; Larne Borough Council, n.d.). The below illustrated technique shall be deemed beneficial in this context.
Table 2: Monitoring of Raw Materials and Chemicals (Ministry of State for Environmental Affairs, n.d.)
How the Company Will Assure Employee Support for the Proposed Changes
Employees play a vital role for every organisation as the employees are regarded as the key factor that helps in executing the daily activities of a business. Therefore, in order to properly execute the product development initiative, employees should also be assigned to conduct certain surveys that would help in understanding the current demands of the customers in the home nation. Special meetings can be conducted with employees as well to study the liking of the children as they are considered to be a major part of any bakery industry based company in today’s business world. Emphasis should be given to introduce designs and flavours of the biscuits that are to be made for children. It is worth mentioning that the product should also be made considering the daily dietary supplements required by a child. Employee involvement in such strategic decision making would not only motivate them but would also provide them a feeling that they are considered to be a vital part of the organisation. Furthermore, the top-level management of the organisation can implement certain policies such as incentives, holidays and day-outs for the group of employees who contribute the most to meet the necessities of the proposed changes. The employees in the three factories can be divided into various groups with a leader who would be accountable for their performances. This would help in developing the performance of the employees along with motivating them to work better (Robinson, 2013; The Pennsylvania State University, 2013).
Specification of Essential and Desirable Credentials of a Manager
With the emergence of globalisation and the rapid technological advancement, it has been recognised that business entities in the bakery industry are adapting modern technological equipment as a part of their business development policy (Campden BRI, n.d.). According to a report submitted by the Global Industry Analysts, it has been estimated that the global bakery product market would reach a whopping amount of US$447 billion by 2017. This growth is likely to materialise from a change in consumer preferences to easy-to-consume bakery goods. And, another major reason is the growing importance of healthy eating habit for food items that have huge fibre quantity (Cantor, 2013). In this context, it is essential for any bakery business to recruit personnel who are capable of implementing strategies and policies by studying the current demands of the customers. Consequently, in terms of qualification of the manager who would be recruited to lead the development within the business, he/she should hold a certificate from any reputed baking institute with a minimum credit score of 60 or above. Additionally, the manager should also have a good stock inventory managing skills and interpersonal skills to manage the product development team in an authoritative manner. The manager should also excel and have good leadership skills that would help him/her in maintaining a coordinated relation amid the workers within the industry. Furthermore, it is worth mentioning that the manager should be a graduate in Bakery Technology & Management and should be able to apply knowledge of different ingredients as well as should be creative in developing a new range of products that would help the business to attract more customers (New Zealand Qualifications Authority, 2012). The selected manager should also take the initiative on a regular basis to conduct surveys that would facilitate in studying the current evolving requirements of the customers along with implementing it in the business.
Product development is determined to be a vital part for every business in this rapidly changing business world. With regard to the above debate, it can be seen that BiscoMisr, an Egypt-based medium-sized firm, has been in the industry for decades. However, on close analysis, it is viewed that the business only provided a limited number of biscuit options under its product assortment for its customers. In this regard, different approaches have been recommended to develop the product segment, and a qualified manager is also to be recruited who can take forward this endeavour. Considering the above stated suggestions, it can be concluded that if the recruited manager keeps track of the technological advancements, the production cost of the business would be decreased by a considerable extent which would in turn facilitate to maintain a coordinated and motivated relation amid the employees of the company. This would finally help in meeting the set objectives by 2020 and would facilitate the business to attain a leading position amid its competitors in the market.
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