A. Zorbas and Sons ltd - company SWAT analysis

The SWOT Analysis:

The SWOT analysis for the new launched products of the Company is the following:

Strengths:

• Products: The product is something new at the market. There is no other product like this available at the market. No other at the past tried to launch a product of the same concept. The only available products that can be considered that are of the same concept are the “whole wheat” products and the “happy hour” one. These mainly are products that are rich in fibers and they have the ability to help persons that they face digestive problems.
• Pricing: The fully automated production line and the freezing facilities that the new factory of the Company is equipped for, enable the production of the products with the minimum possible production. The price of the products is not higher than the price of the “whole wheat” bread.
• Promotion: Before the launching of the products, and during the final development of them, the marketing department offered to the customers at each shop samples of the new products. By asking the opinion of the customers regarding the taste and the shape of the product it was easy for the developing team to establish the best possible result. With correct promotion, which came out through promotional leaflets, and with the slogans of “always healthy” and “feel better by eating bread” all the advantages of the products were raised to the customers? It is emphasized also that the new products is not going to be more expensive.
• Place: The new products were launched at the same day all over Cyprus. The excellent distribution system, enables the Company to sell the new products everywhere without this affecting their freshness’ and their quality. At each shop the new products are positioned at the right places in order to attract the customers’ attention.

Weakness:            

• Product: The production process must be followed strictly in order to achieve the necessary quality. No mistakes are allowed during the production procedure. The personnel must follow the production process correctly from A-Z.
• Promotion: The promotion strategy that it was used until now was not so strong. The relative messages came to the attention of the existing customers of the Company only. The rest of the people are not informed yet about this new product category. The marketing department insists that the best way of promoting a new product, is through the existing “well satisfied customers”.

Opportunities:  

• Price: Due to the implementation of the latest available technology at the production process the production cost can be reduced more. This is achieved with the establishment of the “semi-baked” production technique.
• Products: Under the continuous research that is carried out by the Research and Development Department in association with the raw material supplier, new products of the same purpose are going to be launched quite soon. By this, the variety of the available products is going to become larger. The quality of the final product can be increased because of the implementation of the already mentioned production technique. The product is delivered to the customers freshly baked and warm because is baked in Just-in-Time.
• Promotion: The products must be promoted through other channels also in order to reach new customers. The “mouth to mouth” way is not enough and is not fast. The good “news” must come to the ears of the people as soon as possible. The advantages of the products have to be raised to persons that they are dealing with Health, like for example doctors and personal trainers. This is going to be an excellent promotion channel.  
• Place: The products can be located at new places also. At the small shops that all the gyms and sport clubs are equipped with, for example or at shops with healthy food.

Threads:

• Product: By the moment that the competitors will realize the success of the new products (the daily sales already reached the amount of 2000 loafs), they will try to penetrate the market with related products. They will get in contact with International suppliers in order to supply them with “ready mixes”. Serious thread also can be the issue of that the raw materials used for the production of the products are suspicious. For example, that the soy beans are Genetically Motivated. This will cause a serious problem to the reputation of the product. The marketing team, through correct advertisements, has to make it clear to everybody that there is no thread like that.  
• Promotion: The promotion strategy of the product has to be redesigned in order to ensure that the correct messages will reach the possible customers. It has to become well-known that the products are not dangerous at all (because all the raw materials used are natural). The advantages of the products have to be raised in order to ensure the success of the product and in order to eliminate the possible thread that may rise by the “noisy” messages-signals of the competitors regarding the above issue.  

Conclusions:

The Products under consideration are products that if they promoted with the right way, their success is quarantined. The Marketing team through its strategy has to raise take advantage of all the strengths that the product has and to eliminate to zero all the weakness.

The opportunities that the new products give to the Company have to be studied well by the Managing team. By taking those under serious consideration, is the only way that will ensure the success of the new launched product. This success has to be the example of future projects like that.

All the serious threads and noises must be extinguished by correct promotion which will establish that only the correct messages will taken under consideration from the people.

References:

1. Mr. Michalis Kkanios, Sales Development Manager of Zorbas Bakeries Ltd. The Interview was taken on Wednesday 23rd of November, 2004 at the headquarters of Zorbas Bakeries at Nicosia.
2. Mr. Koulapis Andreas, Production Manager of the Industrial Unit of Zorbas Bakeries Ltd. The Interview was taken on Monday 22nd of November, 2004 at the new factory premises of Zorbas Bakeries at Larnaka.

Appendices:

1. Promotional leaflets of the three launched products