MKG501B Assessment 1 MUHAMMAD JUNAID JAMAL FYTOSAL ltd. - Company profile Fytosal ltd. is a trading company with an international participation of partners, operating in the field of healthy nutrition across Slovakia and other European countries since 2003. It has been established with the aim to support health protection by producing and distributing of prebiotic products made from TOPINAMBUR at the domestic as well as foreign market. Topinambur is unique plant hiding strong and healing energy from the nature.
It contains substances that favorably affect human organism and helps to prevent and heal several illnesses. Its exceptionality lays also in the fact that it is resistant against heavy metals. It consists of very precious component – inulin that helps in the treatment of various illnesses indeed diabetes mellitus. The supplier of the raw material – topinambur tuber is the company itself, since it grows topinambur on 5ha in Slovakia. Company is a sole distributor, having no competition in Slovakia. It distributes the following products through the stores of healthy nutrition and bakeries to the final consumer.
At present there are about 60 healthy nutrition stores selling the following topinambur products: * Top-inulin tablets * Top-inulin powder * Syrup * Jams * Sweets SWOT analysis Strengths * company’s know-how about the trading and growing of topinmabur * it is a company with international attendance * it is fully financed from partners contributions * has access to Hungarian market, since one partner lives and acts on behalf of company in Hungary * intellectual potential of human resources * company’s strategy focused on innovation process of production * own experiences and own trade-mark
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Weaknesses * size of an enterprise, it is a small company * lack of employees knowledge about topinambur at the beginning of work * absence of technological equipment for producing of products * necessity of intensive addressing of people * higher prices in comparison with foodstuffs, people are used to Opportunities * increasing interest in offered healthy nutrition products made from topinambur in Slovakia and other European and non-European countries * support of the employment in the region * potential for supporting of health protection no competition for the products made from topinambur Threats * lack of people’s knowledge about the favourable effects of healthy nutrition food stuffs and topinambur itself * general distrust of people * world economic recession * labour force emigration * payment discipline of purchasers * possible market conditions change * legislative changes * stagnation of economic growth * insufficient quality labour force Competition In Slovakia, Fytosal ltd. has no competition, in sense that there is no other company offering the same products as Fytosal does.
The only company that deals with topinambur growing is Fytosal that is a trading company as well. These are ideal conditions for the further company development. Regarding European levels, France is a European leader. Topinambur was introduced there for the first time in 1600. Germany is considered to be one of the leading countries as well, mainly in assortment of products made from topinambur and took this position also thanks to deep and sophisticated analysis of topinambur composition. Third country is Hungary, because of its intellectual potential.
Customers Fytosal ltd. is, within the company’s strategy, focused on active people on the domestic as well as European market. The target group is all the groups interested in healthy lifestyle. There are three different groups * stores of healthy nutrition * larger trading chains * bakeries or confectioners. There are 62 stores offering these products. Larger purchasers like Tesco or Hypernova are interested in final products like jams, syrups and candies. But these are considered to be just potential customers, since Fytosal ltd. as not made any agreement confirming the cooperation between them. Bakeries consider buying of semi-finished product topinambur powder. Main factors that influence customers when buying products of healthy nutrition are price, quality, income as well as illnesses or willingness to live healthier life. Price is approximately twice as higher as in comparison with common jams and syrups. That is why mainly higher income society could afford them and become not only single-shot customers.
Considering the preferences of people, they are mostly interested in syrups, jams and candies for their children. Demand for tablets is not so high and the main reason is that people do not trust tablets since there are plenty of various drugs promising guaranteed results, which is not always true. The other reason why customers usually prefer “sweet” form of topinambur is the fact that such products have the same curative effects as tablets have. It is also important to mention people’s unawareness of topinambur that negatively influences its marketability.
Company tries to inform population via various presentations, seminars and exhibitions like Dia day and other. Advertising / Promotion It is inevitable for the company management to care about the communication policy properly, because of people’s unawareness about this new and old plant and its curative effects. Since the company is classified as a microenterprise, it does not dispose of large amount of extra financial resources to be used for products promotion. The largest emphasis is therefore devoted to the following activities. the creation of website in three languages - Slovak, English and German language is necessary as this form of communication and knowledge acquiring is the most popular. * Presentations, seminars and exhibitions could also improve people’s awareness of this nearly forgotten herb. * Word of mouth, positive references and recommendations will probably not increase the demand in the large extent, but may increase company image in the region. * The other form could be sending of e-mails including promoting materials and brochures to address potential customers.
The most popular form of promoting products of Fytosal ltd. has been writing of various articles in different magazines. Company representatives suppose that magazine articles would be the most successful way of products promotion. Formulating a strategy I. Company mission: „ TOPINAMBUR FOR THE HEALTH OF EVERY CELL“ II. Company’s strategic goal: „TO BECOME A LEADER IN THE EUROPEAN MARKET “ Market Development Company determined the aim to become a European leader. To reach this aim, company has to formulate a strategy as well to define possible problems and their solutions.
The main focus is on competitors. This means to analyze competitors, their competencies, strengths and weaknesses in order to take comparative advantage and so to increase competitiveness. Since the company does not have any current competitors in Slovakia and its aim is to penetrate to European market, it focuses on foreign competitors. As we have already mentioned before, Germany, France and Hungary are considered to be European leading countries. To take an example Topina ltd. is the largest German producer of products from Topinambur.
Their products differ from those that company offers. It is very important to be innovative in production and to know how to attract customers. Market research of neighboring countries as Poland, Czech Republic and Hungary should be made. The basic marketing aim is to gain new customers. To fulfill this aim, several subsidiary aims assist. The original 62 stores of healthy nutrition obtained by Fytosal ltd. should spread wide to minimum of 100 stores. Company should address at least ten more bakeries to supply topinambur powder to be added by pastry production.
Besides, larger chains like Tesco and Hypernova should be addressed to devote a corner for Topinambur products. New business opportunity Since the fact that this plant is so unique and offers a lot of opportunities for utilization, company may take advantage of it and broaden its product portfolio. Except of healthy nutrition and food supplements, company can start brand new project- cosmetic products made from Topinambur. Cosmetic products portfolio will comprise four products: shampoo, hair balm, hair-tonic and body milk.
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