Food & Beverage Management: Analyzing Challenges & Marketing Strategy

This report provides an analysis of the food and beverage sector in Australia, focusing on the key trends, challenges, and opportunities within the industry. It highlights the impact of foreign investments, the decline in popularity of organic food products, and the increasing demands for productivity improvement, cost reduction, and innovation. The report also identifies Australia's strengths, such as high-quality raw materials, skilled labor, and stringent food safety standards. Furthermore, it proposes a marketing strategy for food products like noodles and pasta, emphasizing market research, customer analysis, product positioning, and effective branding to enhance market presence and meet evolving consumer preferences. The report concludes by advocating for a contextual view of the food industry to adapt to future uncertainties and capitalize on global opportunities. Desklib offers more resources for students studying similar topics.

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Food and Beverage Management
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Food and Beverage Management
Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Analyzing challenges and opportunities for food sector in Australia..........................................3
Task 2...............................................................................................................................................5
Development of food marketing strategy.....................................................................................5
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Food and Beverage Management
Introduction
Marketing is a process through which the business entity stimulates the buying behavior and
perception of a customer towards a product and tends them to buy that product (Asghar, Abbasi
& Zafarullah, 2015). Developing a marketing strategy proves beneficial for the business entity
on various grounds. The below presented report is developed for analyzing challenges and
opportunities and also developing the marketing strategy
Task 1
Analyzing challenges and opportunities for food sector in Australia
In this article, the main focus would be on the key trends and predictions for Australia, the
various challenges and opportunities for its food industry. It will analyze the future of the
industry with a contextual view. The food industry of Australia has proved to be the major sector
which contributes to the economy and provides employment to people. But these days it is facing
various challenges (Australia 2018). The food industry is undergoing transition and it has to
manage various uncertainties. It can be seen that the supermarkets in Australia heavily rely on
the private labels, thus this negatively affects the growth of Australian food industry. The
increased reliance on these private labels hampers the margin also. In the past year there have
been a tremendous rise in the private labels in Australia, the growth is estimated to be 10%.
Various trends like healthy food or ethnic foods, has captured the attention of manufactures and
processors. This has put them on alarm. It must be ensured that is a continuous flow in the
supermarkets. The supermarkets are focusing to increase this to 40%.
Challenges
Rise in foreign investments:
Various foreign co-operations are aiming to buy assets of foods and beverages in the Australian
food industry. The Australian market is witnessing a continuous rise in this. In fact these co-
operations are mainly aiming on land holdings, even to commodities such as rice and wheat. The
main investment can be seen in industries of beef, beer and sugar mainly. These are some of the
few. The foreign and overseas co-operations are keenly interested for buying assets in the

Food and Beverage Management
Australian food market (austrade.gov 2018). It will increases the margin and will lead to various
merges. There will be a tremendous expansion in manufacturing lines as these food and beverage
companies are investing high amounts into this. Global financial crises have also enhanced the
process. These companies are aimed at the expansion of various facilities; they are building new
plants for this purpose. The financing for this would be internal. There is a crisis over availability
of capital for this sector as the companies may express lack of confidence over the flow of
capital. Companies have gone to saving mode.
Organic food products “less fashionable”
The financial crises have greatly affected the selling of organic products mainly. People are
mainly interested in paying for those products whose benefit can be easily communicated (Baker,
2014). Like in the case of premium products, the benefit can be easily communicated. People pay
more for the products which give health benefits, the attention is mainly on healthier products;
during all this the organic products have gone out of fashion. For the sale of organic products,
they have to be priced well, else there sale would go down because people are not much
interested in buying them. There is still growth in this sector but the main problem is that people
are confused about actually what are organic products, what, makes them organic. This thing
needs to be communicated clearly to people.
Due to this the main issues which the food industry is facing are:
 Productivity improvement and operating-cost reductions: the cost of commodities is
rising at faster pace. The customers are not ready to buy product at such higher prices,
they demand for the prices to go down. In this case, the industry needs to focus on
improvement in the production of these products and have to put a check on the cost
control; in order to make growth (Blakeman, 2018).
 Mergers, acquisitions and divestitures: the food companies, they are looking for ways to
grow through acquisitions.
 Regulatory compliance: the rules and regulations around the globe are becoming more
complex in the recent years. Food and beverage companies are suffering due to these
complex rules. Along with this, they have to emerge through the sustainability standards
also.

Food and Beverage Management
 Innovation and quality: with time, the costumers also look for innovation; they want
improved quality of products, and demand for it at lower prices (Chatterjee, Adhikary,
Sen & Kar, 2018). The small companies, or even the larger companies, they are finding it
difficult to meet these demands of customers.
The food industry is a cost base industry. In order to attain higher profits, the only way is that
there are lesser imports and larger exports. It is becoming difficult for the industry to increase the
exports at the rate which is desirable, in fact to manage the imports, in order to defend itself, is
not an easy task.
In fact, in Australia the farming ways are still not new. They are still following the later ways.
The producers are seemed to be not so keen for changes. The farming ways are still too far
behind other countries. This is leading to decline in growth rate.
An example of China can be taken, twenty years ago; the production of potatoes in China was
much lesser than that of Australia. It was like, Australia was producing about 4000 tones, and on
the other hand in China it was only 900 tones. But as the time evolved they changes their way of
farming. They changed their transportation from three wheeler bikes to heavy trucks. And are far
ahead in the race (Armstrong, Kotler, Harker & Brennan, 2015). Thus there is need to take risks
and evolve with time, invest in bigger equipment’s.
Opportunities for Australia in the food sector
The food industry of Australia is strongly backed by three main factors which have proven to be
its major strengths.
High quality raw materials- The crops are available as raw materials. There is excellent
harvesting of crops, many advanced pesticides are available for it and many other additives helps
in getting good crops.
Skilled labor- another boon is that skilled labor; although these laborers demand for high wages.
There have a great experience in the food manufacturing process, these people help in delivery of
excellent crops. As the high quality labor are of no use, if there is not skilled labor to use those.
Labor is easily available and they deliver their promise on time.

Food and Beverage Management
High standards of food safety
In the manufacturing system of Australia, they lay a great emphasis on the high standards of food
safety. There are extremely vigilant regulators and excellent food safety systems available. These
are present at every level. In fact, the Australian supplies to Asia are mainly growing because
they ensure high level of safety standards for the same. Safety standards of Australian food
products act as major appeal (Vinayagamoorthy & Kannan, 2015). It is managed at every level,
they ensure safety for the outputs; there is great level of security at the producer end, then they
are packed and shifted with safety. This leads to satisfaction at the consumer end.
What must the industry do in the future?
There has to be a reduction in the non-value adding process, which is higher in Australian
products. Because it leads to difficulties in its regulation, which needs a high level of food safety,
heath safety (Abam, 2018). These regulations have been surpassed and they need to be taken out
of the system now.
The food industry needs to take a contextual view of the whole situation as the future might be
quite controversial. The farmers, manufacturers, technologists, every person in the system, needs
to adopt a better view at their end. There has to be a broad contextual setting. It has to be done in
context of more global industry.
Task 2
Development of food marketing strategy
Marketing strategy is the area of your marketable strategy that frameworks your general course
of action for discovering customers and clients for your business. At times advertising
methodology is mistaken for a showcasing plan, yet they are unique.
Promoting procedure centers around what you need to accomplish for your business and
advertising endeavors (Dutta 2018). Advertising plan points of interest how you'll accomplish
those objectives. A decent showcasing technique fuses what you think about how your business
fits into the market and the 5 Ps of advertising to build up the strategies and activities that will
accomplish your promoting destinations. Technique ought to be clear and basic so it very well

Food and Beverage Management
may be seen effectively (Arrawatia, 2018). For promoting of the items, for example, Noodles
and Pasta the business company can make utilization of the beneath said advertising procedure
which can be created well ordered:
Research
First the organization should think about size of the market. Regardless of whether client is
occupied with the item or not, the essence of client, purchasing propensities and examples, the
pay level and numerous all the more such viewpoints ought to be considered while building up
the item (Fill & Turnbull, 2016). Second, the business element ought to know about the rivals in
the market, for example, which are the other driving brands of Noodles and Pasta in the district
and their quality and shortcoming. Rivalry in regards to their deal, value, channels, item et
cetera.
Customers
Clients are the lord of the market and thus a point by point study and research is required over
them. Client examination involves the improvement of client portions based on the different
criteria, for example, statistic, psychographic, social and geographic (Kaushalya & Fern&o,
2015). Appropriate recognizable proof of clients will produce information which will help the
organization in offering Noodles and Pasta according to their prerequisites and requirements.
For example, if there should arise an occurrence of Noodles and Pasta the business substance
should focus on the client who inclines toward eating drive-thru food. What's more, for this the
business company should focus on the purchasers who lean toward eating outside, the people
who live alone not with the family, recently wedded couples.
Products
The items are the result of the endeavors of different divisions and tasks in a business
partnership. In the present situation Noodles and Pasta is the item for which the business
element is creating advertising procedure (Oliver, 2014). This item goes under the junk food
classification and as watched drive-thru food is under high prominence and henceforth it will be
particularly simple for the business association to build up the brand picture in the market
locales. The item ought to be designed to the point that it ought to be demonstrated gainful and

Food and Beverage Management
satisfies the need of the client. Significantly the business substance ought to think about the two
noteworthy criteria while breaking down the objective market for Noodles and Pasta which are
division and situating of the item (Babin & Zikmund, 2015).
The below presented are some of the marketing strategies that can be implemented by business
organization for an effective marketing of Noodles and Pasta products in Australia:
The pasta and noodles of Australia performed really well globally. It performed tremendously in
the year2017 earning a revenue of 739$ (austrade.gov 2018). The changing food habits of people
have increased the demand for instant foods like pasta and noodles. Increase in employment has
also act as a contributing factor (Ryan, 2016).
Brand positioning
To establish a good brand image, the prior focus should be that the costumers should identify
what the company is offering. In the case of noodles and pasta in Australia, these are quite
famous as they are instant foods (Scarborough, 2016). People in Australia love pasta and
noodles. For the good brand image, two things which should be prior focus are given below:
First thing is that people should be aware about the product, how delicious it is, and cost friendly
too. If the particular restaurant is the only one in that area, then it would score the advantage of it
(Todorova, 2015). Then there should be a firm idea that whether it will be a family place where
whole family can hang out or it will be a place just for teenagers.
Then the next thing is that there should be contact with the executives to pick up necessary
things. Also the writers nearby should be contacted to promote the product. The writers sitting
with their laptops can make the magic happen just with their writing. There should be clear idea
about the target audience (Baker & Saren, 2016). Then only the company can make its next
move. It is important for the company to know with whom they are going to deal.
Packaging your product
Here the old saying fits very well, ‘a book is judged by its cover”. Same is the case with Noodles
and Pasta. The costumers firstly focus on the cover of product. The packaging catches the
attention initially. Then they go for the product inside it (Caroline, Compte & Leite, 2018). The

Food and Beverage Management
main focus of the business entity should be on the packaging of their product. In our present
case of pasta and noodles in Australia, this does not involve actual packaging; rather the
costumers would get to know about it through the menu card. The marketing professionals
should focus on the designing of brand logo of the food product on the menu card. More focus
should e on how the food is presented on the table. The presentation has a strong impact on the
mind of the customers. The cutlery also adds up to it.
In case of pasta and noodles, the cutlery has a significant role to play. The logo on the cutleries
draws the attention of the customers. There the business entity can showcase its brand logo. The
logo of the company should be simple yet attractive at the same time. Professionals should be
hired for creating logos. Logo should be customized according to requirement. If the logo
appears on the stationary, then it will remind customers about the company every single time
they see it. Other advertising options like broachers, visiting cards also proves effective for
marketing.
Online marketing:
In the present age of technology, email marketing play an important role, there are various ways
like email marketing and social media marketing.
In the case of email marketing, all the company has to do is note the email address of the clients
who frequently visit the restaurant. Then keep them updating through email. In email marketing
program, one thing that should be taken care of is that the content of the emails should be
relevant. The content should not be much lengthy. People generally ignore long emails. The post
should be spaced out (Foxall, 2014). There should be a monthly schedule to send emails. Emails
are very to send. The process does not take much time. There should be a listing of the frequently
visiting customers. Keep updating the costumers about the new product launching, exciting
offers going on according to the seasons. After every visit, send them emails regarding the
discount coupons they have established. This helps in establishing a loyal customer base.
Social media marketing is at trend these days. Gone are the days when the products are
advertisements were done using posters and broachers. This is the age of social media handles.
These can be used by the companies as a powerful tool. In the present generation, everyone uses

Food and Beverage Management
social media; so various products can be advertised by using social media. They have a great
impact on the minds of customers.
Instagram is one of the trending social media handle these days, food items can be easily
promoted on instagram. In fact food can be ordered online if the company gives the option to do
so. In fact the costumers like clicking pictures of the food and then they post it online. Some
people even give the reviews. The company can make their online page and post the picture of
restaurant and Pasta and Noodles over there. This is a good medium for promotion.
Blogging
Online blogging is at trend these days. In fact the food blogging is at trend these days. People
love writing blogs for foods. And the food lovers frequently visit those blogs. The best thing for
the company to do is start writing its own blog. Create a new website; add the picture of food and
its description along with it. The company can also hire food bloggers to promote their products.
This can also be done if the frequently visiting customers are assigned this task. They can post
these pictures on their social media handles; this will attracts a large number of followers.
Company can do so over its own website. I fact the same website can be linked with all other
social media handles like face book, twitter and instagram. This will multiply the impact of the
post. This creates a very good impact and reduces the work. More promotion can be achieved by
doing the lesser work. His proves to be an effective marketing strategy. This is the best
communication channel and company can get a large number of followers by this. This way the
company ends up reaching to more people and has a strong presence on online platforms.
Conclusion
In the limelight of the above executed analysis it has been executed that marketing strategy is
one of the most empirical strategy that is required to be executed by a business corporation for
stimulating the customers so as to motivate them for buying the product. The above report is
focused on the marketing process of Noodles and Pasta in Pasta in Australia and for the same
the business entity has executed a detailed market research. The research is segmented in two

Food and Beverage Management
major sections from which first segment comprise of the analysis of challenges and opportunities
and the next is the development of marketing strategy for the product.

Food and Beverage Management
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