Company strategy of Arctic Food Service Ltd

Arctic Food Service Ltd refers to a privately owned frozen food company which was established in the year 1988. This organization provides its customers with wide range of chilled as well as frozen products. These products came into existence after a fair response from its customers. Such type of products is amongst the high selling products based upon the requirements of its target audience.Arctic Food Service Ltd its customers with temperature controlled products. This organization also provides its customers the liberty to buy from Arctic collect cash & carry facility where all the products are readily available & at a desired temperature.

Our Mission:

The main mission of Arctic Food Service Ltd is to provide its customers with superior quality of products without compromising upon its taste & the quality of the same. This has helped in order to maintain cordial relationships with its customers & maintain long term relationships with the same. It also aimed at providing its partners with true as well as honest communications which would help to provide convenience as well as excellence at service.

Our Products:

Some of the products & services offered by the same have been discussed in this section of the report. They are as under:

Þ    Frozen foods: At Arctic Foods, the customers are delighted with the wide range of frozen foods. The range of frozen food has been adding into the menu card of Arctic Frozen Food Ltd. Arctic Frozen Foods have been known for its tasty as well as standard frozen foods. The specialty of this frozen food organization was to provide wide range of sausages with beef burgers (Sorec, 2002).

Þ    Chilled foods: For the past 12 months, Arctic Foods Ltd have increased their chilled food section by adding different variants such as sandwiches, specialty cheese, baked meat, etc.

Þ    Ambient products: The ambient products offered at Arctic Food Ltd refers to the different types of beverages such as soft drinks, sauces, packed Tea, Coffee, Hot chocolate, dried ingredients (Murphy & Patrick, 2008).

Þ    Recently, Arctic Food Ltd introduced products of New Mexican range such as Tortilla Chips, Puffed Pork & Beef, Jalapeno Peppers, Wraps (veg/ no-veg), Tacos, Salsa, Cheese Sauce & sour cream. All the items mentioned above are regularly demanded by the customers. At Arctic Food ltd, the customers have been treated as one of the most crucial aspects, therefore Arctic Food Ltd. has added this section which has helped in order to measure the increased levels of revenues.

Our Services:The following services offered by Arctic Food Ltd. have been described as under. They are as follows:

Þ    Customer Service: The customer service team has been referred to as one of the essential resource which has helped to satisfy the needs of the customers. This enthusiastic resource would help in order to act as a central point of contact for the customers to resolve the different types of issues & provide appropriate advice for the same. The service team would be able to deal with the different types of issues such as to place the order, newly added product in the menu, deliveries & make sure that the business would continue to run in a much efficient , effective manner.

Þ    Cash & Carry: The second service refers to the cash and carry service which would help the customers to collect as well as order products, facility to its customers in a much hostile manner (Murphy & Patrick, 2008).

Þ    Order Reminder: Based upon the request, the team would be able to call you & make the people chose a particular product as a part of the order.

Þ    Delivery Service: The last type of service refers to the delivery service which would make the company to attain high levels of heights within the service industry. Regular delivery of the products would be done to wide range of the target group with the help of own fleet temperature controlled vehicles.

1. Country Identification:

While identifying an appropriate market in order to expand the Arctic Food Ltd., a structured format shall be kept in mind. This would help in order to understand the various company factors which might be achieved while spreading its wings in the other parts of the globe.

While identifying the country, the company factors would be divided into three basic heads i.e. risk associated with the company, company’s goals & resources of the company. The first factor i.e. risk associated refers to one of the most important aspect which shall be kept in mind in order to see how the various types of risks would be able to perceive risk. The second aspect which shall be kept in mind refers to the goals to be achieved by the organization. This would help in order to influence the market selection along with the segmentation of the country & to choose the appropriate country in order to expand the Arctic Food Ltd (Murphy & Patrick, 2008).Lastly, the resources along with the finances of the company would be able to influence the entire market process. With the financial stability of an organization, the company would be able to take up any entry mode.

There are three countries which have been shortlisted in order to expand its wings. The countries are China, Canada & Middle East Asia. The next step would be to analyze each & every country based upon the various criteria. The screening of the country has been described as under:

1. Country Screening:

3.1 Country 1 market: The first country chosen to expand the Arctic Food Ltd. is “Canada”. The first country i.e. Canada can be screened based upon its manufacturing capacity of the same. It has been estimated that, the Arctic Food Ltd. has been referred to as one of the highest frozen food manufacturing countries. It has been seen that Canada manufactures wide range of frozen food such as potato bites, chili potatoes, super wedges, French fries, Fish, Fish fries, Chicken Nuggets, Chicken Curry, Frozen Pizza, Frozen Pastas, Frozen waffles, frozen fruit juices, frozen fruits & vegetables (Murphy & Patrick, 2008). Though this country manufactures wide variety of frozen food but at the same time the number of frozen food retailers is quiet high in number. This leads to one of the biggest limitations for the Arctic Food Ltd to expand its operations in Canada. In order to start up the business in this country, various innovative product strategies shall be followed which would help to provide a competitive edge to the Arctic Food Ltd.

3.2 Country 2 market: The second country chosen to expand the Arctic Food Ltd. is “China”. The first country i.e. Canada can be screened based upon its advancements amongst the technology used as well as the consistency of the quality provided to its customers. The cost to start up its operations in China would require less amount as any of the four modes of entry could be adopted in order to establish its operations. Therefore, the target country decided to expand the operations as well as the growth of the Arctic Food Ltd. is “China”.When the firm i.e. Arctic Food Ltd. has recognized the target country where it wants to expand its operations & grow, then, the acquiring company should use certain entry as well as expansion strategies in order to establish the organizational structure & the management policy which would best suit the country in order to have a competitive edge as well as capitalize on its value creation (Sorec, 2002). The relationship amongst the host country, company as well as the industry would evaluate the various entry norms which would help the Arctic Food Ltd. in order to promote its products & services in the most efficient manner (Sorec, 2002).

There are various ways through which the company could enter into a particular region or a country. Some of the entry modes are listed as under:

Þ    Franchising (various modes of franchising are master franchising, area development, multi-unit franchising, etc.),

Þ    Direct ownership,

Þ     Management Contracts, and

Þ    Combinations of the above mentioned basic modes.

3.3 Country 3 market: The third country chosen to expand the Arctic Food Ltd. is “Middle East Asia”. The last country i.e. Middle East Asia can be screened based upon the likeness of the frozen food market. Based upon a survey, it has been estimated that the frozen food market in Middle East Asia is worth USD80 billion in a year (Marketing-in-China, 2011). With arise in the overall growth of the Muslim population the Middle East Asian region has led to a constant rise within the frozen food market. Therefore, Middle East Asian region would be referred to as an apt country to launch the Arctic Food Ltd. The demand of the frozen food ltd. within the Middle East Region has been estimated to be approximately 1.5 billion across the frozen food lovers. The various countries included within Middle East Asia contributing towards the frozen food market are Saudi Arabia, Thailand, Turkey, Iraq, UAE, Iran, etc (Foley & James, 2010).

     4. Country selection:

4.1 Objectives: While selecting an appropriate country to expand the wings of Frozen Food Ltd. some of the key features shall be taken into consideration. The main objective for any organization in order to grow as well as expand its operations all across the globe would be due to the acquisition of heavy finances, promote its products or offerings as well as have a separate entity within the different parts of the globe. The various features to be taken into consideration have been defined as follows:

4.2 Marketing: While taking into consideration the marketing aspect for Arctic Food Ltd. the cultural, political as well as economic analysis of the target country i.e. China shall be taken into consideration. This would help in order to determine the market availability as well as the requirements of the products offered by the Arctic Food Ltd. Different types of questions such as the size, levels of growth, stability, and potential along with the levels of uncertainty attached to market selection process shall be done (China Daily, 2010). Taking into consideration the various companies requirements linked with the product requirements of Arctic Food Ltd. shall be done in order to formulate the marketing strategies. The emphasis for Arctic Food Ltd. shall be upon the various types of variable would help to provide an outcome i.e. better growth & achieve the goals in a much efficient manner.

In order to study the marketing aspect for the Arctic Food Ltd., the marketing mix consisting of the 4P’s shall be studied. The 4P’s are as under:

4.3 Marketing Mix:Þ    Product: The product which would be offered by the Arctic Food Ltd. in the target country i.e. China would be as under

• Frozen foods: At Arctic Foods China, the customers are delighted with the wide range of frozen foods. The range of frozen food has been adding into the menu card of Arctic Frozen Food Ltd. Arctic Frozen Foods have been known for its tasty as well as standard frozen foods. The specialty of this frozen food organization was to provide wide range of sausages with beef burgers.
• Chilled foods: Arctic Foods China would include in their menu a section of Chilled foods. Some of the variants added in this group would be sandwiches, specialty cheese, baked meat, etc (China Daily, 2010).
• Ambient products: The ambient products offered at Arctic Food China refers to the different types of beverages such as soft drinks, sauces, packed Tea, Coffee, Hot chocolate, dried ingredients. These varieties of products would act as an appetizer for the Chinese population.

Þ    Price: The prices charged by the Arctic Food Ltd shall be kept lesser as compared to the two market leaders in the frozen food segment in China. The three market leaders are Henan Shuanghui Group, Shineway Group Co. Ltd & Beijing Huadu Meat Chicken Co. Ltd. The pricing which shall be adopted by the Arctic Food Ltd shall be competitive in nature. Such type of pricing would help in order to attract many people & the organization would be able to have a good cliental base for the future. The creative strategy would help in the fixation of the prices which the customers would be willing to pay as compared to the existing Chinese frozen food manufacture (Arnold, 2000).

Þ    Promotion: In order to attract more number of people towards the Arctic Food China, it shall take into consideration various integrated marketing communication strategies (IMC) to carry out the task of promoting the products & services to its users. Some of the promotion strategies which shall be adopted by the Arctic Food Ltd. have been defined as under. They are as follows: Unlimited sausages, hot chocolates (free of cost)

• Loyalty cards for more discounts to the target audience
• Time based special offers
• Signs & promotion boards outside the big malls
• Accessories such as mugs, t-shirts, caps, etc to the target audience
• Pay for half & eat full strategies

Þ    Place/Distribution: The distribution strategies which would be adopted by the Arctic Food China in order to increase its availability would be through the following:

Þ    Intensive distribution: Arctic Food China would be recommended to use this distribution strategy in order to distribute the low priced food, merchandise, beverages, etc. Some of the examples would be the French fries, hot chocolate, etc (Arnold, 2000).

Þ    Exclusive distribution: Arctic Food China would be recommended to sell the highly priced food, merchandise, gift products at single outlet. The outlet or the place which must be chosen for the same would be one of the growing localities of China (Berry, et al 2007).

Þ    Selective Distribution: The regular food items, merchandise as well as the beverages sold would be distributed through this type of distribution channel. Under such type of strategy, various small outlets would be chosen which would help in order to dispense the product (Kotler, Gregor & Rodgers, 2010).

5. Market entry method:

When the firm i.e. Arctic Food Ltd. has recognized the target country where it wants to expand its operations & grow, then, the acquiring company should use certain entry as well as expansion strategies in order to establish the organizational structure & the management policy which would best suit the country in order to have a competitive edge as well as capitalize on its value creation (Sorec, 2002). The relationship amongst the host country, company as well as the industry would evaluate the various entry norms which would help the Arctic Food Ltd. in order to promote its products & services in the most efficient manner (Sorec, 2002).

There are various ways through which the company could enter into a particular region or a country. Some of the entry modes are listed as under:

Þ    Franchising (various modes of franchising are master franchising, area development, multi-unit franchising, etc.),

Þ    Direct ownership,

Þ     Management Contracts, and

Þ    Combinations of the above mentioned basic modes.

Some of the entry modes which are particularly used in order to enter into the foreign market & would have significant result in order to promote the Arctic Food Ltd. are as listed below (Sorec, 2002). Expansion in the Chinese market would occur by using any of the four ways:

Þ    Licensing

Þ    Exporting

Þ    Direct Investment

Þ    Joint Venture (JV)

Licensing:

One of the major ways through which Arctic Food Ltd. could establish itself in the Chinese Market would be through fair licensing. Under this entry mode, licensing gives a green signal to target the products which are being used by the licensor (Sorec, 2002).

Licensing helps the target company in order to provide a wide scope of expansion as well as increased Rate of Investment. The disadvantage with this entry mode is that, when the licensee manufactures certain goods & services, promotes the products then the marketing activities are lost (Sorec, 2002).

Exporting:

Exporting is one of the simplest & traditional ways through which any company would enter the foreign markets. It is one of the direct method through which the deal of goods produced could be done into another country (Berry & Parasuraman, 1991).

It refers to one of the oldest ways which is there in practice from decades of now. Exporting is a traditional as well as an established technique for exploring the foreign markets. It would be one of the easiest ways through which Arctic Food Ltd. could establish in the well known & growing economy i.e. China. It would also act a cheap mode in order to enter in the Chinese economy (Berry & Parasuraman, 1991).

In this entry mode majorly four elements are involved. They are as under:Þ    Government

Þ    Exporter

Þ    Transport provider

Þ    Importer

Joint Venture (JV):

Another entry mode which would help the Arctic Food Ltd. market to establish in the target market (China) is through joint ventures.

There are certain basic motives of joint ventures. They are as under:

Þ    Easy entry in the target market,

Þ    Reduces the risks & shares the rewards,

Þ    Sharing of the technology,

Þ    Product development, &

Þ    Abiding by the rules lay down by the government authorities.

This type of entry mode would also help in the easy accessibility of the distribution channels, political benefits, etc (Berry, & Parasuraman, 1991).

Some of the potential problems which might arise due to the implementation of this entry mode would include the following:

Þ    Clash in the working cultures

Þ    In adequate support from the parent firm

Þ    Conflict over asymmetric new investments

Þ    Mistrust over proprietary knowledge

Þ    Performance ambiguity – how to split the pie

Þ    Ambiguous questions when to dispose of the relationship

Some of the reasons why the Joint ventures (JV’s) do not work in the Chinese Market & while promoting the Arctic Food Ltd. certain conflicting areas would pop up in order to compete in the well established market are as follows:

• In case of JV’s the partners tend to maximize their own share of interest rather than taking into consideration the shared profit maximization ratio. The companies are keener towards increasing their interest as well as to have a fair competitive edge in the education sector as a whole (Aliouche, 2001).
• In case of JV’s both the companies would like to protect their sole assets rather than looking in to the shared resources.
• If the Arctic Food Ltd. merges with any of the leading frozen foods centers as listed above in the report, then the joining would opt to have a fair control over the whole process of joint venture (Aliouche, 2001).

Foreign Direct InvestmentThe last & very popular method in order to enter into any foreign market is with the help of Foreign Direct Investment (FDI). It is one of the methods through which the Arctic Food Ltd. would have a direct possession of all the facilities available in the target country (China).

This method involves relocation of the resources from the host country to the target country which would include the following i.e. technology, capital, & personnel, etc. Direct foreign investment could be accomplished either by the acquisition of already surviving entity or through the formation of any new enterprise (Aliouche, 2001).

It would be suggested that the Arctic Food Ltd. should opt for his entry mode in order to sustain, survive in the already fierce competition prevailing in the Chinese market. This would help the Arctic Food Ltd. to have a fair level of commitment (Aliouche, 2001).

     6. Conclusion

Hence, it could be concluded that China has recognized the target country where it wants to expand its operations & grow, then, the acquiring company should use certain entry as well as expansion strategies in order to establish the organizational structure & the management policy which would best suit the country in order to have a competitive edge as well as capitalize on its value creation.

While taking into consideration the marketing aspect for Arctic Food Ltd. the cultural, political as well as economic analysis of the target country i.e. China shall be taken into consideration. This would help in order to determine the market availability as well as the requirements of the products offered by the Arctic Food Ltd. Different types of questions such as the size, levels of growth, stability, and potential along with the levels of uncertainty attached to market selection process shall be done.

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