Collins Foods Group: Introduction And SWOT Analysis

Marketing Research

Descri about the Collins Foods Group for Introduce Services or Products.

Managers are required to get all information in order to introduce services or products that create their value in customer’s mind. The perception is a subjective value and customers rapidly change their set of mind. So for getting the right information, data is collected from the market and analyzed. Main goal of marketing research is to collect the facts and direction to managers for making good decisions and strategy planning. Marketing research is the application of many activities involves market research etc. It is a systematic process that helps in every marketing problem. It is a process of collecting all the market information systematically and impartially, and then analysis and evaluation of collected data and use relevant data for organization beneficiary (Smith And Albaum, 2005).

SWOT Analysis:  Swot analysis stands for Strength, weakness, opportunity and threat. It is very simple and useful framework for analysing an Organization’s Internal and external situation. SWOT helps managers to get the full awareness of the situation which helps managers in strategic planning and decision making. Once a company identify its SWOT factors, it becomes easier for managers to take decisions like the projected goal are worth pursuing or not, what are the factors a company require to achieve goals etc. (Ferrell and Hartline, 2010)

Purpose of SWOT Analysis: An organization examines its environment (internal and external) for matching their capabilities and resources to their competitive environment. Strength and weakness describes the internal environment and Opportunity and threat describes the external environment of a business. It also helps in ascertaining factors that Influence Company’s functioning by providing useful information in planning process of strategy. SWOT analysis helps an organization into decision making, strategy planning, achievement of goals etc (Bensoussan and Fleisher, 2012).

Value of a SWOT analysis: SWOT helps a new firm or existing firm into making an honest assessment of internal strength and weakness and external opportunity and threat. SWOT explains that what obstacles a company may face, what barriers to growth exist now or in future and what obstacle an organization may face. It provides an analytical framework to mangers for evaluating the business from all angles.  Organization’s strength and weakness could involve cash flow, trademark, locations, Company culture, distribution network etc. And opportunities and threats can relate to market trends, regulations, technology issue, demographics etc (Mard, Dunne, Osborne and Rigby, 2005).

Strength	Weakness
Opportunity	Threat

SWOT Analysis

Introduction to Collins Foods Limited:  It is an Australian company. Its revenue sources are management, administration and operations of restaurants including KFC and Sizzler in Australia. It is administered by its head office located at Newmarket, Queensland. In 1968 Jim Collins acquired KFC’s sole franchise in Queensland. Company registered itself on the Australian Securities Exchange in 2011 under the code CKF. Currently company is operating 171 KFC franchise restaurant, 26 Sizzler restaurants in New South Wales, Queensland, Western Australia and Northern territory. 60 sizzler franchise Operations in Japan, China and Thailand. Company acquired one of the largest franchisees of KFC restaurant, Competitive Foods Pty Ltd for $55.6 million in Western Australia. (Collins Foods Limited, 2016)

SWOT Analysis of Collins Foods Group: The SWOT analysis of COLLINS FOODS GROUP describes a company’s business and organization. It provides a competitive advantage to company.  This SWOT analysis describes about all the internal and external environment of company. Strength and weakness are internal aspects like patent, location, reputation; company can change it anytime by doing some work. Opportunities and Threats are external aspects like suppliers, prices, government regulations, technology, competitor etc (Sadler, 2003). Company can’t change it. SWOT analysis of Collins Foods group is as follows:

Strength Domestic Market Barriers of market entry High profitability and revenue Skilled workforce Monetary assistance provided Existing sales and distribution network	Weakness Future productivity Future market size
Opportunity New acquisitions New market New products New services	Threat Financial capacity Price changes Technological problem Government regulation.

Findings:  The objective of this SWOT analysis is to identify the strength, weakness, opportunity and threat of Company and analyze company’s market. SWOT analysis helps a company to solve many problems. It helps mangers into making decisions, strategy planning, achieving the goals, bit the competition, grab the market etc. This SWOT analysis describes that what are the factors which provides strength to this company, what are the loose points of the company, what problems company may face in market and what is the opportunities for the company in the market.

Strength: Collins foods group is in American market. It has totally grabbed the American market by providing its services to many franchises of KFC, Sizzler etc. Collins foods acquired competitive food limited to hike their share in the market. Now Collins is one of the biggest companies in the domestic market. Collins understands the domestic market well, so there are more chances for it to be the top company. As this industry don’t welcome each and every company easily so it’s a benefit for CFG because there will be less competitor in the market. And it can charge any price according to company’s wish. Company’s earnings are $29115 for the financial year 2015-2016. Company is earning high revenue. Company is having approximately 8,570 employees and all employees are enough skilled to do their job. Company provides financial helps to many franchises and companies in food industry to expand its share in the market. Company is having a well structured sales and distribution network which helps a company to satisfy its clients. Company’s Strengths shows company’s internal power that how strong a company is and how it satisfy its clients.

Introduction to Collins Foods Limited

Weakness: Collins Foods Group is only in domestic market and for becoming more competitive a company must have to diversify itself into a new market. But there are always an issue of funds whenever a company think for an expansion. Company never know that what will be its future productivity and future market size. What if suddenly a company grab all the market or some government regulation destroy everything?

Opportunity: Collins foods group is the biggest company in industry in Australia. Company has so many opportunities in front of it. Company can do acquisitions of other companies to expand the market or grabbing more market share. It can launch itself in different companies also. Expanding market into different location will help a company into becoming a big brand. Company can launch its new products or services in the market for diversifying the market. Collins foods group is a big brand in Australian market, now company must expand its business in different markets.

Threats: Collins Foods Group also has some threat from the market like other companies. Company is earning a good amount but still for expanding the market or diversify the market, company will require more funds. So it is a big threat for company to raise the fund and meet company’s goals. As market rapidly change itself so with the market, price also changes. Company never know that at what time price will be up or low. So company must always prepare itself about these situations. Technology is a big threat for everyone because a company having good and advanced technology always beats the other companies so company must up-to-date itself. Govt Regulation can change at any time and it impacts a company badly (Martin, CBE and Burke, 2012)

Recommendations: Collins Foods group is doing very well in Australian market as its revenues are increasing day by day. Services provided by it at KFC and Sizzlers restaurants are attracting more consumers. Collins foods group is a well known brand at Australian market but now company must also think for diversify the market into a new market that will help company to be more competitive and to earn more profit.

Target Market: Target market is a part of segmented market group (divide market into many groups on the basis of Demographic, lifestyle and Psychographics, Geographic, Behavioralistic etc) of customers at which  a service or product is aimed. Collins foods group can be segment into its market basis as it is serving into Australian market only, Lifestyle basis as it is serving to the big brand restaurants whose customers are enough wealthy etc (Dibb and Simkin, 1996).Collins food group must target on Australian market so that it can be on the top in Australian market. Company is a well known brand for managing, operating and administrating restaurants over there. Company is providing its services especially to KFC, Sizzlers etc. Company is performing very well as company’s earning is increasing constantly every year. Company is acquiring its competitor companies to get their market share also (Lamb, Hair And McDaniel, 2008).

New service marketing is a process of providing and promoting a new service to clients. It focuses on Service type, customer type, customer needs and geographic area. It is a series of design, concept, marketing and development of services. The objective of new service development is to maintain, cultivate and increase market share of a company by satisfying consumer’s demand. Not every market will appeal to every client, so defining a target market for a service is a critical component. Collins Foods Group is providing its services to KFC & Sizzlers in Australian market (KFC,2016). Now company must expand its business by diversifying its market into other companies. So that company can achieve more growth. New service or product helps a company to be more competitive (Barros and Daniel, 2012).

SWOT Analysis of Collins Foods Group

Customer Value proposition: It is a marketing statement that specifies why a client should avail the services or buy a product of specified company. It is the most important tool in marketing. A customer value proposition provides a convincing reason to company about their clients like why a customer should buy a product and also differentiate company’s product from its competitors. It helps a company to differentiate its brands from competitor’s brand (Barnes, Blake and Pinder, 2009).  A business needs to focus, follow and discuss on Customer value proposition to gain and achieve success. It is a complicated principle; it is mainly a theory of existence and survival of an organization. Collins foods group is providing finest services on both KFC and Sizzlers outlets. Collins foods group must focus on its services at other company and their clients to make them satisfy. Collins can provide them many facilities like Gift cards, vouchers, catering facility, varieties etc (Osterwalder, Pigneur, Bernarda and smith, 2015)

Justification of the choice: Collins foods group must go for an expansion at other country’s market. Company should do it for improving profits, for short and long term securities, for exclusivity, for economies of sales, increase innovation, government incentive, competitive strike etc. when a company launches itself into a new market company becomes more competitive, company can take advantages of many opportunities, company can also take advantages of new business. This is a diversification growth strategy where company diversify its market either by launching a new product in existing market or launching an existing product into new market (Hitt, Ireland and Hoskisson, 2012). Here Collins foods group is also going to launch its existing product into new market.  Diversify marketing strategy helps an organization to be more competitive, earn more profit etc whereas it has some loose points too like the benefits could take some time to start showing, it could also impact on company’s strategy (Kenny, 2009).

Conclusion:

We all are aware about the term SWOT as it is used by every business, human being etc. However, marketing research takes a step further. It focuses on every strength, weakness, opportunity and threat of a business for making decisions and strategy planning. The SWOT analysis helps a company to look that what are the strength, weakness, opportunity and threat of a company and helps manager to make a planning according to that. Thus I can conclude by saying that SWOT is important for an organization to expand, grow up, maximising the profit etc.

References:

Smith S. And Albaum G. (2005). Fundamental Of Marketing Research. SAGE.

Ferrell And Hartline (2010). Marketing Strategy. Cengage Learning.

Bensoussan B. And Fleisher C. (2012). Analysis Without Paralysis. FT Press.

Collins Foods Limited (2016). Home. Retrieved 25 Nov 2016 from https://www.collinsfg.com.au/.

Sadler P. (2003). Strategic Management. Kogan Page Ltd.

Hitt M., Ireland R. And  Hoskisson R. (2012). Strategic Management: Concepts: Competitiveness and Globalization. Cengage learning.

Kenny G. (2009). Diversification Strategy: How to grow a business by Diversifying successfully. Kogan Page Publishers.

Osterwalder A., Pignuer Y., Bernarda G. And Smith A. (2015). Value Proposition Design: How to Create Products and Services Customers Want. John Wiley & Sons.

Barnes C., Blake H. and Pinder D. (2009). Creating and delivering your value Proposition: managing customer experience for profit. Kogan Page Publisher.

Lamcb C., Hair J. and McDaniel C. (2008). Essentials of Marketing. Cengage Learning.

Dibb S and Simkin L. (1996). The Market Segmentation workbook. Cengage Learning.

Barros A. and Oberle D. (2012). Handbook of service description: USDL and its method. Springer science & business media.

KFC (2016). About Us. Retrieved: 25 Nov 2016 from https://www.kfcqld.com.au/collins_food_limited

Martin G., CBE C. and Burke R. (2012). Corporate Reputation: managing opportunity and threats. Gower Publishing ltd.