In-depth Analysis of the Bestway Food Wholesale Sector Report

This report provides a detailed analysis of the Bestway Group, a UK-based multinational wholesale market and the second-largest wholesaler in the UK food sector. It utilizes Porter's Five Forces to assess the competitive landscape, examining rivalry, supplier and buyer power, the threat of substitution, and new entrants. The report highlights key challenges such as changing consumer preferences for healthier and organic products, and the importance of e-commerce integration. Section 2 delves into Bestway's strategies, including supply chain management, pricing policies, brand value, marketing approaches, and human resource practices. The analysis emphasizes the significance of efficient supply chains, competitive pricing, and strong brand equity in the food industry. The report also discusses Bestway's differential factors and adaptations to industry changes, concluding with recommendations for continued success in the dynamic food wholesale market.

FOOD WHOLESALE
SECTOR IN BESTWAY

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
SECTION 2......................................................................................................................................2
1. supply chain management:.................................................................................................2
2. Pricing policy:....................................................................................................................3
3. Brand value:........................................................................................................................3
4. Marketing strategy:.............................................................................................................4
5. Human resource department: .............................................................................................4
6. Differential factors:............................................................................................................5
7. Changed positions:.............................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Food sector in UK deals with the food related offerings made by different ventures in
respect of fulfilling the demands of the population of the concerned country. The cited food
supplier in this report is Bestway Group. It is UK based multinational wholesale market dealing
with the food supply. It is ranked as the second largest wholesaler in UK.
SECTION 1
The cited venture can analyse the prescribed five forces in the Porters model in order to
generate perfect knowledge about the competencies of the firm in the market and make a well
structured plan (Jones and Hillier, 2017). These forces in relation to the mentioned company are
explained in detail under: Rivalry: A detail analysis of the competitors existing in the food sector can ensure the
cited wholesale store to gain an advantage over the same. Power of the suppliers: The suppliers are the key essentials for the firms engaged in food
sector. They are the medium or suppliers of the offerings made by the mentioned
organisation to its customers. Power of the buyers: The ventures in this industry operates to serve the customers. Thus,
they are the most important factor to be considered by the present brand and accordingly,
a detailed analysis of the same can generate high yielding results. Threat of substitution: Determination of the availability of substitutes of the cited firm
in the market, would generate a detail idea about the competitors and frame policies
accordingly (Hosni and Baourakis, 2017).
 New entrants threat: This analysis assists the mentioned company to investigate about
the new firms as well as their offerings. Accordingly, the firm can adopt changes in its
products or services provided.
All these analysis of different forces will assist the mentioned venture to gain major
competitive advantage in the industry. The cited firm, i.e. Bestway, a UK based wholesaler,
enjoys a good market share in then industry and enjoys the second largest position in the same.
The nature of the food industry is highly consumer oriented as the offerings made by them are
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directly consumed by the households. There are major key issues that are faced by the firms
operating in this sector (.Fristoe, 2018). Some of the challenges are explained in detail here:
 The consumers, now a days, have become more diet addicted, due to this, they prefer
only diet-friendly goods. This may be an area of concern for the cited venture as it needs
to ensue that the offerings are healthy.
 Also, the customers have started preferring more natural as well as organic products
(Champion and Hepworth, 2018). Accordingly, the firm need to avail the same for its
customers.
 The stores operating in the food sector needs to connect themselves to the e-commerce
and provide the online facilities to its targeted audience.
 Consumers demand as well as preferences keeps on changing with the growing
environment (Foley, 2018). As the cited firm is involved in food industry and it is highly
consumer oriented, this requires the firm to bring timely inventions or changes in its
offerings.
All these factors generate a kind of challenges or issues in the workings of the mentioned
store.
SECTION 2
1. supply chain management:
An efficient food chain management is of crucial importance for the firms operating in
the food industry. A good supply chain will ensure smooth penetrating of the providing of the
organisation in the market(Bremer, 2017). In order to generate high yielding results, the products
should reach the desired or targeted customers. A proper management of food supply chain
ensures the same by managing the delivery of the products to the customers. All these is possible
with the use of new technical advances that have been taken place in the market related to
supplying of food products (Supply chain management, 2017).
The Bestway Group enjoys various advantages over its competitors. The global network
power of the cited venture is remarkable compared to its competitors. It also provides
accountability as well as credibility of its offerings made to the customers. This has generated
customer loyalty for the firm (Vargas-Hernández and González-González, 2017). It also pays
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great attention towards the preferences as well as buying patterns of the customers and
accordingly provide the goods and services. It has always been updated to the technological
changes as well as inculcated the same in its supply chain.
2. Pricing policy:
The pricing strategy that is adopted by the current venture is to charge affordable as well
as reasonable. The pricing strategy or policy adopted by a venture highly defines its success as
well as future possibilities or opportunities available for its offerings. The main objective of the
cited organisation is to capture a large market area in the field of food supply. Adopting the low
pricing strategy will assist the firm in achieving the same (El Mokrini and Berrado, 2018). It is a
well known fact that customers are more attracted towards low cost products and with this
strategy the mentioned venture will be able to serve more people. Serving more people in return
indicates high sales of the organisation and higher sales defines higher results.
Providing low cost products or services does not mean that the customers will ignore or
adjust the quality related matters. Quality standards is also an important aspect to be considered
by the brands operating in the food sector, as it deals with the health and safety measures of the
customers. The cited venture, along with providing low cost goods, focuses on generating more
qualified and healthy food related offerings for their customers. This has helped the firm to
generate more customer retention as well as loyalty factor amongst them. Also, the firm has
increased its number of customers overtime (SIMS and ERICKSON, 2017). This pricing
strategy of providing good quality products at reasonable and affordable prices has ensured
benefits for the venture over its competitors. This can even generate more future related
beneficial results for the venture.
3. Brand value:
Overtime, from its origin, Bestway has gained a reputed position of its brand in the
market. It holds a good image in the minds of customers as well as in the market. This is due to
the pricing policy adopted as well as the standard goods that are provided by the mentioned food
store. Both these policies has created a long lasting impact on the customers. As brand equity is
generated by the perceptions as well as preferences of the customers over other brands, Bestway
has also succeeded in increasing its brand value (Donia and Sgroi, 2017). People in UK as well
as other countries prefer food products of the cited food store over the other stores.
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4. Marketing strategy:
The marketing strategies adopted by Bestway has generated the existing beneficial results
to the organisation. In order to adopt proper marketing strategies, an organisation should first
undertake a detailed analysis of its offerings and the targeted customers. In respect of identifying
a product, the venture should analyse the differentiation that it is providing to its customers. The
key differentiation as well as its knowledge to the customers makes the product more attractive
(Estes, 2018). Gaining the perfect knowledge about the substitutes available and their demand in
the market, may assist the cited venture in its market related activities.
The nature of the product should also be analysed by the venture. The nature includes,
whether the product is perishable or non perishable. Along with nature, the audience to which
the product is offered must be determined by the firm in order to effectively direct the marketing
activities to the concerned customers. Even the pricing strategy will assist the firm in its market
related strategies. The low pricing strategy that is adopted by the cited organisation here has
helped the firm in its marketing strategies and gain beneficial results.
Marketing techniques are mostly undertaken in order to compel the customers to buy the
products of the concerned brands. The marketing activities carried should create a good image of
the firm as well as its offerings in the minds of its targeted customers. The ads generated must be
attractive, the ads carrying some social or environmental issues prevailing in the concerned
country may create a positive impact of the organisation and its offerings in the market. All these
measures undertaken can assist the venture to develop a well reputed market for the firm.
5. Human resource department:
Being a store dealing in the wholesale market, the mentioned company and their
personnels are in direct contact with the customers. Thus, there is a need to generate a well
organised human resource in the venture. The analysis report of the HR department of the firm
has shown that, the human resource appointed in the organisation are well mannered as well as
efficient (Belt and Hellin, 2017). They treat the customer and the visitors with great respect and
honour. They are efficient in providing the customers with exactly what they need. These has
ensured the firm to maintain good relations with the consumers.
As the human resource department has the direct impact on the concerned venture, it can
also undertake certain training programmes for developing skills as well as expertise in the
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individuals working in the organisation. An effective as well as efficient HR department ensures
competitive growth and development to the venture. The human resource manager should
undertake recruitment of only eligible personnels with intent skills. For the cited venture the
required skills may be regarding good communicational skills as well as effective sales related
qualities. This will generate beneficial results for the mentioned wholesale market.
In respect of gaining efficient and earning results from the human resource team, the
organisation should also provide motivational factors to the employees. Motivation may generate
a sense of responsibility on the part of the appointed personnels in the firm to work more
dedicatedly. Motivation can be in the form of salary appraisal or providing some extra incentives
or just an oral appreciation from the seniors may work in generating motivational spirit.
6. Differential factors:
The basic factor or quality of Bestway that provides differentiation in its offerings is its
pricing strategy. As discussed earlier, it provides standard quality goods that too at reasonable as
well as affordable prices. Also, the products provided are renovated or new inventions are
introduced in the offerings of the company. In other words,as customer's perceptions and
preferences keeps on changing as the time grows these innovations generate great impact on the
individual customers (Repetti and Roe, 2018). In other words, the goods provided are in
accordance with the changing tastes as well as preferences of the customers.
7. Changed positions:
There has been numerous changes in the workings of the Bestway wholesale store right
from its beginning. Some recent trends has shown its new offerings to the desired customers. To
earn more profits, the cited venture can undertake or adopt itself to the recent changes that are
taking place in the food sector. These changes includes providing online facilities to the
customers as now a days they find it more preferable due to its ease. It should also start
concerning more about the health related factors of its products. More diet friendly offerings will
attract more customers, and thus, generating high yielding results. More attractive packaging
with effective labelling, ads containing jingles, etc. can assist in market related activities.
CONCLUSION
The current report concludes the various changes that have been taken place in the food
sector as well as the challenges faced by different ventures in the industry with the help of a
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cited firm, i.e. Bestway, a London based wholesale store. It explains that the food industry is
customer oriented and more emphasis is needed to be made on them. It focuses on the pricing
strategy adopted by the cited venture as well as the strategy related to the market, in order to
achieve the objective of increasing its sales. The basic idea of low pricing strategy undertaken by
the cited firm is to attract a large group of low waged customers.
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REFERENCES
Books and Journals
Belt, J. and Hellin, J., 2017. Crossfire:‘Private sector engagement in smallholder value chains’.
Enterprise Development and Microfinance.28(1-2).pp.6-9.
Bremer, P., 2017. New Zealand association for food protection report. Food New
Zealand.17(5).p.37.
Champion, D. and Hepworth, M., 2018. End-user engagement in the design of communications
services: lessons from the rural Congo.
Donia, E. and Sgroi, F., 2017. Food Consumer Models: The Case of the Responsible Consumer.
Calitatea, 18(161).pp.145-148.
El Mokrini, A. and Berrado, A., 2018, February. Multi-criteria distribution network redesign-
case of the public sector pharmaceutical supply chain in Morocco. In Supply Chain
Forum: An International Journal (pp. 1-13). Taylor & Francis.
Estes, S., 2018. Allergen Management: Ensuring What Is in the Product Is on the Package. In
Food Allergens (pp. 103-116). Springer, Cham.
Foley, J., 2018. We really need to talk about owner-managers and financial awareness!. Small
Enterprise Research, pp.1-9.
Fristoe, C., 2018. Health, Sustainability, and the Political Economy of Food Labeling. Health.
Hosni, H. and Baourakis, G., 2017. Consumers Attitude Towards Healthy Food:“Organic and
Functional Foods”. International Journal of Food and Beverage Manufacturing and
Business Models (IJFBMBM).2(2).pp.85-99.
Jones, P and Hillier, D., 2017, European Food and Drink Wholesalers and Sustainability.
European Journal of Sustainability.1(1).pp.1-12.
Repetti, T. and Roe, S., 2018. Minimum wage change effects on restaurant pricing and
employment. International Journal of Contemporary Hospitality Management, (just-
accepted), pp.00-00.
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SIMS, R. R. and ERICKSON, J. P., 2017. 12 European Enterprise Information Portals and
Global Communications. The New Millennium: Challenges and Strategies for a
Globalizing World.
Vargas-Hernández, J. G. and González-González, G. S., 2017. ANALYSIS OF INDUSTRY
BASED ON RESOURCES AND INSTITUTIONS. NATIONAL DESAZOLVES
CASE. Challenges of the Knowledge Society, pp.713-717.
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