Hubbard Foods Ltd. Strategy Report

This report provides a comprehensive analysis of Hubbard Foods Ltd., a New Zealand-based breakfast cereal company established in 1990. It traces the company's evolution since its inception, detailing its product range and market presence in Australia. A PESTLE analysis is conducted to assess the external environmental factors influencing Hubbard Foods, including political, economic, social, technological, legal, and environmental aspects. The report concludes with strategic recommendations for the company's future growth, focusing on market expansion, product diversification, enhanced marketing strategies, and product innovation to cater to evolving consumer preferences and market trends. These recommendations aim to increase market share and profitability by targeting diverse customer segments and leveraging opportunities within the competitive breakfast cereal market.

Running head: STRATEGY MANAGEMENT
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Executive summary
The following report focuses on Hubbard foods Ltd. The company was established in the year
1990. It is based in New Zealand. Since 1990 it has been providing breakfast cereals for the
customers of Australia. The following report discusses how the company has evolved since its
establishment in the first section. In the second section, the external environmental analysis has
been done for which PESTLE analysis has been taken as the tool. In the third section strategic
recommendations are given for the growth of the organization.

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Growth of Hubbard’s since establishment
Hubbard foods Ltd is New Zealand based country that was established in the year 1990, it
makes breakfast cereals. Previously the company was known as Winner foods. They offer a
variety of food products and their range includes Muesli, Bran, fruit and oats. Hubbard’s food is
a section under the brand name Hubbard’s. The company sold a variety of cereals like Fruitful
breakfast, fruitful lite, Berry Berry Nice, clever clusters. The food products of Hubbard’s are sold
throughout Australia. The company has evolved in years and has been offering various food
products according to the taste and preference of the customers. They have a food line of Oven
Baked Goodness that offers oven baked food products so that people who prefer oven baked
food can consume it. They have many other products in another line called Sugar is gone where
cereals and food products for diabetic patients are made. The company is catering the needs of
all the kinds of customers and the different preferences of their customers (Hubbards.co.nz.
(2017).
External environmental analysis of Hubbard’s
Political environment
The political environment of consists of the political factors that affect the firm
Hubbard’s food. The instability in the government is not good for the market in general because
with the change in the Government the policies will also change. Some policies and regulations
might in favor of the company and some might not be favorable for the companies. Food
industry is one such industry that faces too much obligations from food safety and security. New
Zealand is a country where people of mixed culture are living, the taste of the people changes

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from country to country so there might be people that will not choose to eat cereals as breakfast.
A wide range of food options are available in the country so there are chances that people keep
exploring other food options.
Economic factors
The high-income group in New Zealand is opting for readymade food and cereals
products. The range of readymade breakfast that are of lesser price are opted by people with low-
income group and the cereals that are of higher prices are offered. The high-income group is
increasing and people are searching for other better products irrespective of the price that are
offered to the customers (Harris and Gibb 2016).
Social factors
People are becoming more health conscious regarding the food products they choose to
eat. This particular fact is working in favor the brand because it is selling healthy fibrous
breakfast cereals. The trend towards picking eating options is changing, as people are preferring
to consume meals that take very less time for preparation, this is also one reason that the cereals
like Oats and Muesli are mostly preferred by the customers. The young generations mostly like
to eat fast foods and hence they do not prefer to eat cereals in breakfast. Many people do not
prefer to eat cereals, they like to eat bacons, eggs and fishes in breakfast, there are chances that
those people will not opt for consuming cereals (Armstrong et al. 2015).
Technological factors
The manufacturing techniques used by the firm for processing of the cereals are very
important for the customers for their health safety. The people mostly choose online portals that

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provide readymade food and home delivery. Home delivery apps that deliver readymade food
affects the food business industry in general especially the raw food materials because then the
sales of raw food is not demanded (Oziomek and Hubbard 2016).
Legal factors
The regulations by food safety organizations are putting too much pressure for the firms to
manufacture and process quality food products. There are many ingredients that are prohibited
and their inclusions are restricted, for this purpose there is too much scrutiny from the quality
standards because the nutrient contents have to be adhered as most of the companies do not fail
to adhere to the nutrient contents (Rich 2016).
Environmental factors
The use of pesticides in the crops, these pesticides contains harmful chemicals that affect
these also have health hazards (Rich 2016).
Recommendations
In order to take up the diversification the company needs to take up strategies :
They need to expand their business in other countries as well, so that the business can
grow. They can partner with the big supermarkets where they can offer their food products and
increase their customer base. They should collaborate with Woolworths and Coles. They can
bring diversity in their food product ranges by adding more cereals and other breakfast options.
They can make healthy and tasty breakfast options so that the children and the young people start
consuming the breakfast cereals of the company. Marketing strategies are very important for the
company; they have to communicate their value for their customers so that all people can get

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awareness about the benefits of eating healthy food products like. They can give interesting
advertisements in newspapers and televisions especially in the channels that are seen by the
children so that they get attracted towards the products of Hubbard’s food. They should promote
their breakfast options by going to the schools and selling their breakfast to children. Product
innovation is the most important thing that the brand needs to do now. They should include
ingredients that are liked by children the most because they can be the potential customers the
brand successfully creates a position in their minds, for that chocolate, banana and other flavors
that are liked by children should be used more. They should not restrict to cereals rather they
should diversify their product ranges and include healthy drinks and juices. They should offer
discounts and offers for their customers and toys as well for the children so that they will become
the consumers of the company (Mowat 2014).

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References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Harris, C. and Gibb, J., 2016. Strategies to Prepare and Plan for Market Shocks: A Study from
New Zealand Businesses. Journal of Asia Entrepreneurship and Sustainability, 12(1), p.77.
Hubbards.co.nz. 2017. Hubbards. [online] Available at: http://www.hubbards.co.nz/ [Accessed
25 Aug. 2017].
Mowat, A.D., 2014, August. Market oriented assessment of the environmental impact of the
New Zealand kiwifruit value chain. In XXIX International Horticultural Congress on
Horticulture: Sustaining Lives, Livelihoods and Landscapes (IHC2014): 1112 (pp. 439-446).
Oziomek, T. and Hubbard, M., Perdue Foods Llc, 2016. Food product packaging with a handle
and methods for making the same. U.S. Patent 9,242,765.
Rich, K., 2016. Comment on:'Ultra-processed foods have the worst nutrient profile, yet they are
the most available packaged products in a sample of New Zealand supermarkets' by Luiten et
al. Public health nutrition, 19(3), p.564.