Newly Weds Foods in Asia
Newly Weds Foods in Asia: Situation Summary
The Newly Weds Foods Company has a significant presence in the Asian continent. In particular, Newly Weds Foods are active in Australia, Thailand, and the Philippines. The entity has consolidated its market leadership in New Zealand and Australia as a provider of breeding systems and Japanese Style Breadcrumb. After dominating in the original market, Newly Weds Foods shifted its focus to some parts of South East Asia. The development of the company led to the establishment of Thai Food Coatings Limited in 1989 in the city of Bangkok and New Food Coatings Philippines in the capital of Manila in 2002. The company has further continued its dominance given that in 2008 it acquired the Heimann Foodmaker Group, in 2009 it took over Quality Ingredients and in 2010 it bought Witwood Food Products. With over twenty-five manufacturing plants globally, and a high number of customers spread across sixty-eight countries, the company experienced enormous growth.
Market needs in the food industry are largely undifferentiated, as customers are interested in satisfying what they deem as basic needs. The demand varies, depending on the food, income and restaurant brand. Income is a major factor influencing the demand for food. As Asian population becomes affluent owing to the rapid rate of development, tendencies towards urbanization also increases. Thus, a new class of people is emerging. Such group has limited time due to work commitments and other related engagements. With more obligations and more income, the demand for processed food increases. An expansion of duties of individuals denies them an adequate time to prepare food. Besides, development allows individuals to earn more money, what enhances their purchasing power. Such developments contribute to the rise in demand for processed food across the Asian continent. People from the middle class value aspects of identity, thus, they engage in conspicuous expenditures. In this regard, leading restaurants or sales’ joints that stock products considered to be of high quality attract many customers.
Across Asia, food utilization is a hotly debated topic. Large regions in the continent are affected by deficiencies such as iron, iodine and Vitamin A. India, comparing to other countries from Asia, mostly suffers from food deficiencies. The problem of iron deficiency, for instance, is severe, as it leads to decrease in productivity. Estimates have shown that India loses up to 1.3 % worth of GDP because of the issue. Additionally, better Vitamin A availability would save Asia approximately one million lives a year. To solve problems of this nature, the use of national food programs is advisable. However, the heavy presence of imported foods compounds the problem. Thus, the above-presented issues are the evidence that there is a need for healthy food products in many parts of Asia.
Asia is experiencing shifting patterns on a range of aspects. For instance, urbanization is increasing, incomes are rising, lifestyles are changing, and diversity expands. Developments of this nature have led to the segmentation of markets not only in the food industry, but also in beverage industry across the continent. In addition, the demand for imported processed food continues to rise significantly. Alongside the above changes, food safety, health and quality issues have increasingly improved, as customers from the Asian region have a wide variety of choice. As the development takes root in the region, the role of branding is gaining popularity in the market. The shift also requires advanced skills to stay competitive in the market.
Other notable developments include the emergence of modern retailing techniques and organization of distribution networks aimed at increasing the accessibility of the market. McKay also noted that multinational companies are playing a dominant role due to their high degree of penetration in the market. Besides, in the present times, the younger generation is exposed to spiced food at earlier ages. Globalization tendencies have played a role in shifting the dynamics, as more people are embracing the culture of consuming processed foods. Thus, the availability of different cuisines in different locations has allowed individuals to experiment, leading to the narrowed gap of preferences. Below there is a graph depicting price volatility across the continent. Based on the graph, food supply remains unstable across the Asian region.
Assessing market growth requires the comprehension of industrial and demographic patterns. Cities in Asia have undergone major transformation owing to the industrial progress registered in previous years. Primarily, development in the region has rested on industrialisation, targeting export market. With all major production activities taking place in cities, urban populations have been increasing and are projected to be approximately five-eighty million by 2020. Thus, over the next few years, the population of urban centres from the region will outreach the rural areas. This event will mark a major development in the history of the Asian nations. As an illustration, China’s urban population is projected to rise over three hundred million by 2020. Similar developments are expected to happen in the Philippines (population to increase by thirty-three million), Indonesia (an increase of seventy-seven million) and Vietnam (expansion by sixteen million). The shift in the habitation of the countries will herald new dimensions in the food industry both locally and internationally. Generally, incomes in urban areas are higher, what partly explains the difference in the consumption patterns. The increase in urban population is expected to put pressure on the demand for processed food and related services. Thus, companies such as Newly Weds Foods stand to gain from an increase in the demand for its products.
The issue of demographics also relates to age. Projections indicate that by 2020, countries such as South Korea and Japan will face the issue of ageing populations. In particular, the estimates show that median age is expected to rise from thirty to thirty-six. Similarly, life expectancy will rise from seventy-two to seventy-seven. In general, the intake of unhealthy food declines, as one advances in age. In particular, the consumption of fruits increases while the consumption of animal products falls. The projection demonstrates that the intake of meat will decline in Japan while the popularity of fruit will increase significantly. Although the latter shift is expected to contribute to a reduction in demand, increase in urbanisation is likely to supersede the changes. Overall, the demand will rise.
One of the strengths of the company is being a leader in a lucrative industry. The entity also offers a range of products and services. Newly Weds Inc. has formulated a variety of seasonings that accommodate forty-six cuisines globally. Besides, the company’s product lines are wide, including deli seasonings, sausage seasonings, sauces, binders, function mustards, stuffing crumbs, browning agents, and many others. Moreover, the organisation offers customers a wide array of value-added services such as packaging, sensory evaluation, as well as consultancy on product integration, changes to existing items and processing of customer operations. The FlavorTrak database is a marketing tool used by the company to keep track of market trends. Apart from helping to make marketing decisions, the tool is integral to research and development.
However, the weakness of the company is its premium pricing of products. It implies that the entity largely targets high-end markets. The company’s control of the market is also limited, since there are many other competitors in the market. Besides, it is easy to enter food industry. However, the presence of the company in affluent societies such as the US, the UK, Australia, the Philippines and the Netherlands presents an opportunity to increase sales. Changing demographics such as urbanisation also gives the entity an opportunity to expand. The company encounters threats in the form of competition from many companies such as value-oriented grocery stores as well as mass merchandisers. An increasing awareness about healthy lifestyle also threatens the company’s business, as consumers consider alternatives to processed foods.
Founded in 1932, the Newly Weds Foods, Inc. is an international entity that focuses on manufacturing food seasonings, coatings and ingredients for the food services, with a main market in the United States. Various products such as specialty batters, coating batters, adhesion batters, breadcrumbs, breadings, cracker meal, glazes, rubs, and custom formulated seasonings are the main products of the company. The company runs plants across North America besides having international centres in Thailand, the United Kingdom, Australia, the Philippines and the Netherlands. Based on the above, its competitors come from a wide area. However, the maintenance of eight regional labs across the US and eighteen distribution offices worldwide allows the company to respond to emerging customers’ needs on time. Thus, the family-owned enterprise has a global reach to counter competition.
Given that the company focuses on the food industry, the main competitors are the following, Avon Flavor from India in Asia, many entities such as Rocky Mountain Spice Company in the USA. Other main competitors are Blendex Company, LLC, Kerry Group Public limited company and McCormick & Company Incorporated.
Newly Weds Foods: Mission, Vision and Objectives
The company’s mission and vision reflect what it seeks to accomplish both now and in the future. The Newly Weds Foods Inc. believes that, as a food company, it has the responsibility to supply customers the highest quality food ingredients. The entity also believes that this mission should be pursued by the entire food industry. The statement implies that the company’s objective is to offer quality products and services to meet customers’ expectations and needs at all times. In addition, the company seeks to provide new tastes and diverse foods to meet changing consumer dynamics. The company remains committed to both quality and safety of products to attain its goals. The company’s logo depicts its vision. Newly Weds Foods intends to be a global leader in the food industry by setting trends in supplying world with quality products and services. Safety applies to both suppliers and customers. To ensure the objective is met, the company engages in supply chain management by monitoring activities of both domestic and international suppliers. Additionally, before any supplier is approved, the Newly Weds Foods carries out in-depth checks to assess quality and risks. The company also subjects its internal activities to thorough audits to ensure compliance with the set standards.
Newly Weds Foods Marketing Mix
The use of the four Ps of marketing helps to reach a positive balance among product, place, price and time. In this regard, marketers or businesses need to make specific decisions in order to succeed. Focusing on Newly Weds Foods, it is arguable that it has created products that interest a diverse group of people, are sold in various places, at specific prices, and appropriate time. This demonstrates the application of the 4Ps framework. The first P captures the aspect of product/service. An entity only succeeds by producing items that customers need. Companies have to design products based on customer preferences and create a sucessful brand. For the Newly Weds Foods, it is apparent that it identified a need in the food industry and responded by creating highly demanded items. With the projected growth of urban populations, the company’s products are likely to attract more consumers.
Place also matters given that buyers are found at given places. In this regard, a food company must identify places where customers who are interested in processed foods shop and supply them with products. The company works with many entities that have been acquired to reach more customers. The company might also consider online marketplaces and supermarkets. Alongside product and place, price is also critical. Kotler and Keller noted that customers are prepared to pay a certain price for a certain item. Thus, the company must align the value their products offer to the price that customers are willing to pay. Newly Weds Foods is able to charge premium prices owing to its target of affluent societies. When charging consumers, companies need to pay attention to the value of the products, and competitors’ prices. Promotion is also critical given that it determines where and when to pass marketing messages to the target markets. The Newly Weds Foods has relied on many platforms, including the Internet, as it runs an online site with details about its operations.