by Group 3, Section A

Incorporated in 1938
Acquired by Unilever in 1943 for its value to its subsidiaries MacFisheries (Fish),Bachelors Peas (dried peas) & Poulton & Noel Ltd(Poultry) Frozen food business specially peas, beans, fish, meat, dessert, beefburgers 6o% of UK Frozen Food market share by tonnage Pretax return on capital employed(1974) = 15.9%

Long term contract with farmer

Strong Brand

Economics of Scale
Vertically integrated market Large distribution Channels Strong Brand

UK FROZEN INDUSTRY IN 1942 (EMERGING MARKET)

Threat of new entrant

UK FROZEN INDUSTRY IN 1975 (DEVELOPED MARKET)

Threat of new entrant

LOW

Capital intensive

High

Low cost with new technology

Bargaining Power of Suppliers LOW

Rivalry Moderate

Bargaining Power of Buyers LOW

Bargaining Power of Suppliers High

Rivalry Moderate

Bargaining Power of Buyers Moderate

Long term contract

Less choice
Threat of Substitute Products LOW

Too many player in buyer market

Threat of Substitute Products Moderate

Emergence of super market chain

Emergence of new product

Economics of Scale has been achieved with vertically integrated market Created high entry barrier by employing large capital and large distribution channels Differentiated product has been launched backed with high advertising budget

Undeveloped Infrastructure: Frozen Industry was in infancy stage with disorganized raw material suppliers, distributors and retail stores. To use economics of scale. To maintain high quality of product and securing raw material like peas, at right time

Create barrier for entry of new entrant

Industry Practice: other competitor were following same practice

Long term contract with farmer ensured proper supply and economics of scale Procurement of high quality of raw material and control over value chain ensured good product to customer Create barrier for entry of new entrant by large investment Specialized suppliers High profit due to accumulation at different level

Technology like Blast Freezer allowed freezing and packing to occur together enabling low cost small scale entry. Growth of Private labels promoted by retailer. Growth of Merchant market at each level of chain Growth of Home freezer centre Diseconomies of scale came into play with increase in production.

Reduction in cost of product.

More margin to the producer . Reducing the inefficiency of vertically integrated system by focusing on specialized supplier Monitoring cost and incentive intermediaries to remain in fold. to all

Focus on its Brand value. De-Integrate its business and try to use it potential at its core area i.e. quality production. Distribution chain need to be consolidated and inefficiency should be weeded out by use of IT . Reduce Product line and try to adopt high margin product. Focus on high margin user and frequent buyer by use of CRM technology.