MARKETING PRINCIPLES AND BUSINESS PRACTICE

Marketing Principles and Business Practice

Vestey Food CompanyBueiness Plan

This paper is based on a case study that involves an edible food (meat) retailer firm called, Vestey Foods. The company's headquarters are located in London. The company has enjoyed a formidable position in the edible food (meat) sector, being the leader, and committed to provide top quality edible food (meat) to its customers.

Vision statement

Since its inception in 1897, the company has practiced its core values of providing standardised food to their customers not only locally but also on the global scale. This philosophy is particularly evident in the mission of the company, Standandised food for all. In this paper, company's marketing strategy is discussed focusing on the marketing strategy and persisting trends in the market, which has seen a tremendous growth in contemporary times due to presence of potential competitors, striving to make their mark in the ever-growing industry. This paper is divided into two parts. The first part covers the marketing strategy of the firm and the second part covers the impact of globalisation on the overall food industry and the company as well (Sforza 2007, 20-22).

Key business concept

The U.K. market is in dispute over the European market due to its label edible (without direct equivalence with the EU regulation on bioproducts, is booming and now accounts for nearly 35 percent of U.K. food market. According to a recent report published by the British Dietetic Association, entitled Eating Habits of British Citizens, 2010, three-quarters of U.K. consumers buy edible products. The unprecedented growth of the sector is creating real problems. It is estimated that edible food (meat) sales reached U.K. £15.7 billion in 2006. Although this sector is only 35 percent of total food sales, its growth rate is outrageous compared to an industry almost frozen. And continue to grow thanks to large retailers (Borch 2006, 1-6).

Specifics of business

Despite the confusion of the consumers and the economic downturn, health continues to influence food purchases by consumers in the U.K. However, taste is king for consumers regardless of the benefits of a health product. Food manufacturers can not compromise on taste when developing healthier versions of existing products or when they introduce new.

This scenario calls for more stringent and vibrant steps from the Vestey Foods Company to win back the trust of their valued customers. Competion in the edible food (meat) retail market is increasing. It was only after some big players in the food retail market, such as Brake Brothers, Perkins Foods, etc. who have targeted edible food (meat) market as part of their expansion strategy, that the players in this particular sector felt the necessity to go for mergers and acquisition. Following the trend, the Vestey Foods Company acquired, Oxo,and Liebig Extract of Meat Company a competitor, for a price of £700 million (Bluestein 2008, 35-36).

Porter's Five Forces on Edible Food Market

Bargaining power of suppliers

Suppliers of raw materials (laboratory specialising in edible food (meats) have a reduced because of industry concentration and the effect ...