corrections

I) Recommendation

Hormel Food Company faces the challenge of ensuring customer satisfaction while at the same time maintaining an acceptable level of financial income. In order to balance these challenges, certain measures have to be put in place correctly. The business strategy the company implements should be based on maintaining or improving on the levels of revenue collected by the company while ensuring that its customers’ needs, especially the affordability of the products, are met.

In order to tackle marketing issues effectively, the company could change its product packaging. Moreover, the company could exploit marketing platforms provided by technological advances. And finally, in order to ensure that the markets’ demand is met, the company should make sure that its supply of raw materials meets their demands. Each one of these recommendations are further explained as follows.

A. Change product packaging

By changing packaging of their products, the company stands to increase the amount of sales made. It is evident that the cans currently being used create a negative attitude on the consumers, e.g. frozen food cans in supermarkets are too cold to hold, and the same cans become too hot to grab after warming food, in say a microwave. Using plastic cans instead of the traditional metallic ones will positively change the consumers’ decision to purchase their products. This is because they will be picked from retail stores more easily and they will also be open able. In the long run, the company will experience increases in sales.

Changes made to these packaging cans will also reduce their environmental impact. They can be made in such a way that they are easily recycled by the users or by the company itself. Bio-degradable cans could also be used so that they have less impact to the environment in case consumers choose to throw them away after use.

As suggested by Viction workshop Ltd in their book Appetite for design, product packaging is key in determining sales. Hormel Food Cooperation could use this advice and increase their own sales while keeping consumers happy.

B. Use the internet

The company should also exploit the technological platform to create awareness, get feedback and market their products. Today, the internet is accessed by millions of people at any given time. This provides a marketing platform that allows the company to reach these potential customers within a very short of time by integrating their products into the most commonly used applications such as Facebook, Instagram, and twitter. Pictures and videos of their delicious products can be posted online. This way, the company can get first hand feedback and criticisms concerning their products. After all, interactive marketing provides the most reliable feedback. (Forrest & Mizerski, 1996)

C. Ensure constant supply of raw materials

On the other hand, to counter their greatest threats, the company has to find well established supply chains for their raw materials. This is achieved by engaging the biggest suppliers who currently supply the company with raw materials so that their capability to keep on supplying is assessed to guarantee continuous supply or raw materials. The company may choose to be directly involved in their operations so that a stronger bond is created with them. Making prompt payments for delivered goods will also encourage their suppliers to provide more. The company can constantly follow market trends developments as provided by Rockville, MD: Packaged Facts.

I. Implementations

Based on the above recommendations, the company will be in a position to

a) Conduct international field studies to learn about the tastes, preferences and cultures for various nations so that they can supply the correct type of food that can be sold. This can be achieved by introducing custom made products that live to the expectations of a specific group of customers in a specific country. It is assumed that Chinese foods are the most common delicacy in Asia. However, some countries in Asia have their own customized foods that are preferred as opposed to Chinese food. India, for instance, is known for having different kinds of spices that they include in their foods. Through these studies, the company will be able to understand these differences in tastes and preferences and provide the appropriate food to respective countries.

b) Change its can packaging so that the cans can be opened easily. Most consumers choose to pick alternative options available on a retail store shelf simply because of can packaging. By changing this, the company stands to increase the chances of consumers choosing to use Hormel’s products and consequently increase their sales.

c) Partner with leading food producers in countries where the company cannot physically transfer its products. This is achieved by establishing with leading food producing companies in these remote countries and making partnership deals with them. This increases the company’s market, reduces competition and helps cut down on transport costs and also reduce the costs incurred when perishable goods spoil. In the long run, the company will earn more.

d) Take defensive measures to ensure that the supply of raw materials remains constant in the long run. Hormel food cooperation depends on meat and wheat for its raw materials. Given the continuous rise in demand for their products, there is the risk of failing to have enough supply as time goes by. The Company will therefore have to find deep supply roots that will guarantee their constant supply.

e) Reinforce product lines such as Dan’s Price, Inc., Hormel Natural Choice etc. that are as a result of field studies conducted to ensure that all customer needs are incorporated. Customers are well aware of health issues related to food. As a result, they keep on changing their eating habits. The Hormel Natural Choice is a good example of what the company can do to cater for such changes ion preferences. This will further ensure that the company’s revenue increases.

f) Conduct a thorough competitor analysis to establish the way their closest rivals behave. Companies like Smithfield Foods, Inc., being a giant pork producer and processor, pose the greatest competition to Hormel. The company should therefore identify the exact marketing strategies that can be implemented to help them stand out and compete against such companies. Changing their manufacturing strategies will also make similar products taste differently; in this case they should taste better. This will not only earn them customer loyalty but will also allow them create new ones.

g) Engage in Corporate Social Responsibility activities. This includes ensuring that the company reduces the impact of its operations to the environment as well as to animals, since they form a large part of their raw materials. Moreover, they should participate in philanthropy by giving back to the society. This will send a message to customers that money generated from them is useful and that the company is not just taking advantage of the profits generated.

h) Corporate social responsibility activities will also have a great impact in countries where cases of poverty and hunger are felt, especially in Africa. The company should focus on supporting such local communities. This will further provide the company with the possibility of venturing into the potential African market.

i) Establish more joint ventures such as MegaMex Foods; a joint venture of Hormel foods and Herdez del Fuerte that focuses on selling Mexican foods. Mexican food is largely demanded by most Americans from both continents. This has so far been a very successful venture. By striking more such deals, the company stands to increase its market, satisfy its customers more and increase revenue earned. Moreover, increasing global preferences ensures that Hormel becomes a brand and consumers will always think of the company first whenever they want products for family consumption.

j) Provide leadership opportunities to in a bid to build the company’ tradition. This will ensure that the company builds on its heritage. The company should therefore prioritize setting up mentorship and graduate trainee programs that will ensure that young talent is captured and retained. This will ensure that the company does not fall short of leadership options in future. It will also provide a where platform people aspire to work and build on their long term careers.

References

Appetite for design: Eat Me: Product. Packaging. Art. Branding. Interior (2011).

Hong Kong:Victionary

Forrest, E., & Mizerski, R. (1996). Interactive marketing: The future present.

Lincolnwood, IL: NTC Business Books.