Tyson Foods Company Issues - Example

Marketing Name Course Lecturer Date Executive summary The trends of globalization have opened up opportunities for advancing of business and companies’ strategies to across borders. Those who have successfully leveraged the existing markets have done so through the effective use of technology and awareness of marketing strategies. Despite the ensuing completion at global level, companies still survive by interacting with their customers through the traditional and new media so that they can engage them. Most strategies such as advertising, sales promotion and direct marketing have increased customer awareness of company’s growth, trends and novel developments on the brands. The way a company perceives itself consequently affect consumer perception and this affect the outcomes of sales and expansion into different markets. The effective of available media tools have promoted the objectives of companies and strategically responded to productivity and profitability. The existing as well as the emerging companies across the globe must realize the strategic marketing approaches to actively contribute to their foreseen outcomes. The decisions have to be effective enough and responsive to the market. In precise terms, marketing in the current business world is a holistic idea which is integrated, planned, initiated then implemented and evaluated to promote specific and measurable goals of the company. Different actors at different levels must then be identified to uphold and align with company corporate culture through collaboration to support global advances. The market segments ultimately demand continuous management and conscious direction to avoid the dire outcomes that springs from lack of utilizing the available opportunities than dealing with negative impacts. The capacities of a company to develop approaches for its brand makes its relevant to consumer and bring them to contribute to the success of such products through buying, participating in its improvements and extending the consumers’ networks. Table of Contents Marketing 1 Name 1 Course 1 Lecturer 1 Date 1 Executive summary 2 4 Table of Contents 5 1.0 Industry background 6 2.0 Company background 7 2.1 Tyson Foods Company 7 2.2 Tree House Foods 7 3.0 Product overview 8 4.0 Strategic marketing 8 5.0 Macro environmental forces 9 6.0 Micro environmental forces 10 7.0 SWOT analysis 11 8.0 Market segmentation 12 8.1 Target markets 13 8.1 Targeting strategy 14 8.2 Positioning strategy 15 9.0 Recommendations 15 1.0 Industry background Marketing strategies are significant and are critical for popularizing a product which subsequently promotes the reputation of the company. There are various approaches that are assumed in different industries to support the strategic marketing objectives and goals. This paper discusses the food and beverages industry in general and two companies, Tyson Food Company and Tree House Foods that produce meet products and powdered mixers products respectively and sell them in the key world markets. The penetration of these two companies in the world most competitive region is vital for analyzing how various modes of production, operation, management as well as expansion strategies can facilitate the core objectives of a brand. The outcomes that these companies see is strategically decided and worked on and thus structures exist that ensure that goals are delivered in continuous manners and that they measure what they were intended for further considerations. The discussion will analyze the various forces that shape the industry and the specific approaches applied by the company to support its goals. Primarily, the market and the way each company applies different aspects in different ways will critically lead to an understanding of the processes, activities and designs that endear a global or regional brands. 2.0 Company background 2.1 Tyson Foods Company Tyson Foods Company has operated since 1935 and is headquartered in Springdale, Arkansas. As a multinational corporation, it is the second largest food company in the world that specializes with various proteins based ready food products and is a main processor and marketer of beef, pork and chicken with customers in U.S.A and other 90 countries in the world (Linked in, 2013). It has the largest beef export from U.S. to other parts of the world and supply its products to other major outlets like KFC and MacDonald’s. It sells fresh and Case-ready pork and beef, fully cooked and frozen chicken, meat toppings, ground beef, club Store chicken, nuggets and tenders. 2.2 Tree House Foods It was integrated in 2005 as a food manufacturer mainly operating with food services channels and retail grocery. It operates mainly by the production of widely used spices and instant drink mixes powders. It has the largest consumer based in Canada and United States. Its salad, powdered drink mixes and hot cereals sales volume is the highest for both United States and Canada. The main products they deal with includes non-dairy powder creamer, refrigerated salads, canned soup, sauces and dressings and many other powdered drinks and mixes. 3.0 Product overview The first product involved with Tyson is meat products including chicken, beef and pork. Beef is world most consumed of the three due to its cost and consumer choices around the globe. Chicken has gained popularity and is the most demanded product in fast food restaurants as most cultures also consider it as one of the best and healthy meal. Pork is also variously consumed and its price makes it favorable in some circumstances than the other. The three products demand is very high and in most places where climate is not effective for animal husbandly and this determines the demand As Sweet, et al. (2010) observes, the Tree House products, the salads and powdered mixers are daily consumed products in major hotels, transportation services and in homes. There is less competition as most of the consumers remain loyal to their trusted brands for long and the limited choices in the industry. These products are based on tastes that promote their endurance in the market and effective penetration to other critical markets. Once the customers have identified and accept the brand, it remains for long in consumption as both drinking and intake of salads is habitual to most consumers. However, as the products are in most cases additives, the company remains strong in the marketing and sales promotion to sustain the growth. 4.0 Strategic marketing According to Freeman, et al (2004), Tyson has strategic marketing approach that makes it to remain effective in established and new markets. Their products are sold by the emphasis of the need for proteins for body energy. First, Tyson conducts an extensive research and highlights the areas where the pork, chicken and beef are most desired and the effectiveness of retaining customer. One of its themes that have recently been used id in its campaigns is “Powered by Tyson” and since its acquisition of IBP and subsequent rise to world number one protein provider in 2001 the company has become consumer-focused and builds its marketing approach on its strong brand. Tyson strongly uses advertising, sales promotion and establishing direct marketing channels that promote consumers retention. Tree House Company has also remained strong in the significant media channels and has engaged its consumers on by emphasizing on its brands and quality. Tree House Company has remained through in the use of radio, television and print media to reach its consumers dispersed in different geographical regions. Apart from the use of the traditional media outlets, they have effectively popularized their brands through online marketing through websites and postings. Sales promotion has been core and such campaigns accelerate during winter and cold seasons for their powdered products. Tree House has established partnership with other manufacturers like the bread bakers to advance their strategic marketing (King, et al, 2011). 5.0 Macro environmental forces Food and beverages industry has been affected differently by ensuing macro-environmental factors. They have shaped the way planning, marketing; expansion and continuity outcomes are experienced. Food and beverages industry has been one of the most effective and highly competitive industries in the world. Due to this fact, one of the significant t macro environmental factors that have ensued is international market and expansion trends. Most companies with long-established reputation and development in the market have won the tastes of the consumer and continue to dominate in most major markets. International expansion has been limited to just a few Multinational Corporation such as MacDonald’s and Coca Cola. Technology has shaped the way every industry produces markets and communicates. The availability of efficient technology has affected the growth of newly established companies and favored the long time established ones. However, the recent trends of sustainable production and emphasis on green production have increased the demand in the use of available technology to communicate to consumers about the company’s progress to green production. The socioeconomic trends have shaped the way food and beverage industry continue in the markets. Most of industrial foods and beverages have favorably functioned well in those countries with an increased high and middle class and in major cities and towns. However, their penetration in the interior and remote areas remain a challenge due to the farming and local productions. 6.0 Micro environmental forces There are various micro-environmental forces that have continuously affected food and beverage industry. First, the company itself can contribute to challenge the growth of the industry. The role of managers, departmental coordination, resources allocation and management is very critical and shape the outcomes. The decision of the major players in the industry has led to a pattern in nearly all the markets and this has been very critical for food and beverage consumptions. Most companies follow after the multinational corporations and adopt their trend in production, marketing and development of their products. The consumer markets are variously engaged by different industry decisions. The suppliers and marketing channels are one single effective approach in the industry. Establishing such channels depends on the company international agenda as well as efficiency in management approach. Challenges exist in working across borders but the strategic approach of a company still hold sound for its establishment, sales and expansion. Food and beverages industry has one of the ever growing competitions. This is seen through the penetration of international and multinational companies which compete with the regional and local produces. Competition has determined the way market segments and profit are shared amongst the companies (Koplan & Brownell, 2010). 7.0 SWOT analysis As Moskowitz, Beckley & Resurreccion, (2012) observes, the aspects that make the industry stand and continue to grow is the constant demand for food and food products. In the recent trends of globalization and working schedules, most people are increasingly demanding fast foods and quality which makes it effective when there are established outlets all over for the demand. Preservation methods as well as reduced farmlands in most places of the world have promoted the trend of food and beverages industry to continually grow. The major weaknesses in the industry have been unethical production where genetically modified foods and food quality have in many cases been undermined. This has resulted to loss of key markets, decreased production and increases consumer dissatisfaction with fast food. The junk food has also been portrayed as the unhealthiest way of living one can adopt. This has reduced the demand due to parallel information that reduces the growth and market expansion. There are increased opportunities that are responding to the decreased traditional production and consumption through direct farming. Climatic change, natural disasters and decreased farmland in most countries have led to many people turning to fast food and beverages. Increased transportation as well as opening up urban residency in developing and emerging markets offers most spectacular opportunity for the industry. As Koplan & Brownell (2010) argues, the most threat that faces food and beverages is health criticism, unethical production as well as increasing fake brands that affect customer satisfaction and subsequent industry growth. 8.0 Market segmentation Tyson and Tree House approach different market segments to advance the sales and satisfy the consumers with the brand and tastes. The most effective places where they have gained sales are through promoting household consumption and provision of the products in most outlets from the supermarkets, restaurants and food channels. The segment contains the most of the consumers who develop great tastes and identify with specific brand for long. In most marketing strategies, the companies strives to retain and increases the consumer base at household level which then influence how their products are further demanded in other market segments. Hotel industry and transport is another segment for ready foods and beverages. There is high consumption as the industries try to identify themselves with the world brands. Most of the hotels and accommodation industries serve the clients of international level and this endears quality as a significant consideration. To penetrate and expand the effectiveness of worldwide brands, companies have established and significantly emphasized the role of joint-ventures, partnership and national representatives to advance a food and beverages brand. Tyson on its hand was incorporated and worked through acquisition to become the world most significant brand. Tree House has expanded through the established suppliers and channels that are coordinated to advance the product sales. 8.1 Target markets The trend and growth of malls, supermarkets and opening of restaurants have effectively matched the goals of Tyson. As a world brand, its protein products are readily sold and increase in the market through the coordination and targeting the customers. It has remained strong in its promotional activities and this has led to a great deal of demand of protein products. Urban dwellers and fast food consumers needs are met through the development of various and alternative brands that match each consumer segment. In most cases, most consumers find their needs addressed by the diverse approach of the company for different targeted markets. Tree House has targeted the most beverage consuming countries like U.S and Canada. The trends of powdered mixers consumption are high in these two countries and particularly during winter season. The company has established different subsidiaries to effectively promote its continuity and expansion. The product is used in society that is ever fast, moving and that has much need for fast food. Its products are compatible with household and many places usage due to their efficient and effective storage system, consumption modes and portability (Sweet, et al. 2010). 8.1 Targeting strategy According to Moskowitz, Beckley & Resurreccion (2012) there are basic approach that can be seen with the two companies in the way they target their markets in general and the consumers in specific. Pricing is a strong points that increaser the relevance of the brands. Compared to other local brands, the two brands are established and work through shared cost by different subsidiaries and multiple functions. Their product pricing increases their competitive advantage. Apart from being world brands, most consumers are retained by their relatively inexpensive prices for their products. Quality has strongly been core for both companies where there has been continuous consumer satisfaction and less cases of unethical conduct in production, marketing and development. This is done through emphasis on the consumer needs and putting efforts towards achieving strategic goals and objectives. As food and beverages with great tastes, the quality has remained and through the control of the markets, these companies ensure incorporation of all the necessary inputs to assure continuous quality delivery. The locations of operations amongst the two companies can be seen as strategic. Tyson has supplied beef to most countries with less beef products and penetrated in U.S.A as its primary base. The utilization of fast growing and increased demand markets allows the development of its protein products and demands. Tree House has strongly emphasized on Canada and US for various reason. These countries have the most consumers such as the aged and other consumers demanding the fast soft drink mixers. 8.2 Positioning strategy Tyson positioning is highly emphasized through its campaigns that promote protein for energized bodies. They keep their messages simple and identifiable with the brands. Precisely, they engage different geographical locations with more similar messages as their brands are simply well understood. Tyson has also moved with consumers’ needs and demands to respond to their consideration for alternatives. This allows it to have choices for different consumers in different or similar markets. Varieties endear the company and also open the possibility for its effective time-to-time campaigns that further advances the brands. Tree House has been using quality to promote its powdered dairy and salad products throughout its operations. Their products are popularized along with other main products that engage customers through the assurance of quality and developing new products. They re-brand their products to create fervency in products demand as well as popularizing the company as the best manufacturer of beverages and salads. Their strategic product launch, campaigns and evaluation of its sales has effectively supported its cycle of positioning strategy (King, et al, 2011). 9.0 Recommendations Food and beverage industry should support critical contemporary issues such as sustainable production, incorporate corporate responsibility and company ethics to ensure effective marketing and sustained company reputation. Effective penetration into international market will require critical research through partnership with the experienced companies in the local or regional markets to promote market expansions. The stakeholders must work with the governments, international organizations and amongst themselves to support market openness and reduce the hindrance policies that limit the effectiveness of a brand. The companies need to integrate great technologies in the production and development to ensure that they remain sound in prices, quality and brand management. This should be communicated to their consumers and constantly improved (Moskowitz, Beckley & Resurreccion, 2012). References Freeman, K. W., et al. (2004). How CEOs manage growth agendas. Harvard business review, 82(7-8), 124. King, L., et al (2011). Industry self regulation of television food advertising: Responsible or responsive?. International journal of pediatric obesity, 6(2Part2), e390-e398. Koplan, J. P., & Brownell, K. D. (2010). Response of the food and beverage industry to the obesity threat. JAMA: The Journal of the American Medical Association, 304(13), 1487-1488. Moskowitz, H. R., Beckley, J. H., & Resurreccion, A. V. (2012). Sensory and consumer research in food product design and development. Wiley-Blackwell. Sweet, T., et al. (2010). Applying quality function deployment in food safety management. British Food Journal, 112(6), 624-639. Read More