This analysis was commissioned to analyze why Knight Food Company's sales volume has decreased dramatically in the two years since its high in 2014, and to offer measures to increase sales. The study focuses on the fact that Knight had a 54% market share in 2014. Great competitors, such as Kris and Felicity, had shares of 20% and 26%, respectively. Knight had a sizable market for approximately $40 million US dollars. Despite Knight's considerable market share, the volume of sales has declined dramatically in recent years. Further analysis shows that the drop in sales was affiliated with consumers who found tomatoes and cooking oil used in the food preparation less nutritive. Moreover, from the beginning of 2014, customers were characterized by malnutrition in the market of Knight Food Company's goods and product. Health rivals started appearing in the market with the aim of giving the consumer food rich in alternative nutrients thus decreasing the sales of Knight Food Company. The fruit company providing alternative food to customers was ranked top in processing industries. This report analyses the decrease in sales and concludes that inclusion of the missing nutrients in food processing as an ideal way of satisfying consumer demands hence increasing the market.
It is recommended that Knight Company takes immediate measures to incorporate the missing nutrients during food preparation. Knight should adopt a fresh and healthy image in the market. While trying to add nutrition value to the food they process, incorporation of wholesome ingredients should be consulted from a renowned healthy expert. Moreover, Knight can process both modern and traditional foods that required no cooking oil in order to increase its market.
Table of Contents
Chapter 1: Introduction …………………………………………………… 4
Chapter 2: Findings ……………………………………………………….. 4
Senior management shifts
A drop in the marketing team
Unrealistic Forecasting
Hiring wrong workers
Chapter 3: Discussion of findings ………………………………………. 5
Chapter 3: Methods used in research ……………………………………. 6
Chapter 4: Conclusion ………………………………………………....... 7
Chapter 4: Recommendation ……………………………………………. 7
Chapter 5: Works Cited …………………………………………………. 9
Chapter 6: Appendix …………………………………………………….. 10
Size of market shares
Amount of sales
Introduction
Knight Food Company is a local company best known for preparation and supply of quality food. The food company started the business long ago and has been in the business for over twenty-five years. As a result of turning down the States' market, they launched another food farm whose share in the market hit the peak in the year 2014. They effectively produce food services and goods. However, over two years, their extensive experience has faded due to the many reasons as highlighted in this paper. The purpose of this report is to produce a marketing report that analyses the markets the company manages, problems the food company has been through and proposed recommendations to the issue that lowers the sales of Knight Company. On the other hand, many corporations and industries are use integrated marketing technologies and communications because they need a more effective and an efficient way to communicate with their customers. It is believed that IMC helps them to create openness, build customer’s relationship and therefore create successful brands.
Findings
The Company's annual drop in the volumes of sale was estimated at 20% since 2014. By the end of 2017, the volumes would have averagely decreased by 30%. Research finds that there was a shift in the senior management of Knight Company. The marketing team at Knight was holding a limited number of qualified sales. It reduced the number of sales made at Knight. Moreover, Knight company managers did not use their historical data to extrapolate its sales quarterly. They made the unrealistic forecast. Research came upsetting that Knight had hired unskilled and unqualified workers. Due to lack of knowledge, they mixed ingredients leaving out those with the most nutritive value hence lowering its market. Moreover, Knight ignored competitors while at peak.
Not all sales representatives understand the objectives of the company or misunderstood them and did not work to their level best to achieve this aims. Workers and the managerial team at Knight were never trained on sales and production. Sales reduced due to poor management and poor performance by the untrained workforce. The management did not log in daily activities taking place at the company. Lack of tracking the activities in Knight's kitchen led to unmonitored productions of inferior quality products that dissatisfied consumers. During peak, Knight Company released new products in the market. However, sales representatives and workers were uncomfortable selling it because of the big confusion the new products brought. Knight did not align marketing sales hence its sales numbers were never reflected. Lack of alignment with sales causes clashes in marketing (McPhillips 16).
Discussion of Findings
Changes in the senior management led to long-term confusion among workers that led to a reduction in sales during the period. The management was to investigate changing gears in marketing and campaign and advertise their goods and services. Unrealistic forecasting on the market sales made them not focus on their aims hence increasing the probability of dropping in sales unknowingly. Processing food while leaving out some ingredients made Knight products lose demand. In the long run, Knight's products lose market thus decreasing the number of sales they make over time. Hiring illegal workers or management team reduces production which lowers sales because the workers have less morale to work smart and satisfy consumer needs. Nonetheless, Knight Food Company was not aware of its competitors in the market during its peak. A look into competition would have made them investigate their competitor's sales, realize the problem they are facing and come up with strategies of handling the issues.
Lack of goal awareness among Knight's sales representatives demotivated workers. Hence they never worked hard to meet the customers' demands. Weak sales in the company were attributed to minimal training on sales and performance that promoted failure or delays in production. Knight Company tolerated bad performance because the management found a difficulty in hiring another workforce because they believed it was time-consuming. The bad performers that were tolerated by the company influenced other workers thus lowering the level of production in the company. They produced low-quality services and products which were allocated low prices in the market. Overall, it reduced profits made by the company
Research Methods
The type of information and ideas they want to gather from their consumers, market or great competitors in the market influenced the research methods used in analyzing Knight Food Company. They used both primary and secondary sources in carrying out the research. Primary research methods gathered original information directly from the customers. Research was done by carrying out surveys in the market. Data obtained showed that in 2014, Knight Food Company had the largest share in the market. By observing directly, it was noted that the number of sales had reduced drastically in the past two years. They went ahead to carry out interviews on competitors and other focus groups in the market. Knight found out that they had started processing alternative foods rich in the nutrients the customer desired. They chose on the primary methods because it was time conserving and less costly.
However, they proceeded to gather information from other available sources such as the internet. They investigated other existing markets and examined data from their own stock flows and consumer database. They gathered information and ideas from other industry bodies and other companies through sampling. The information was meant to motivate them to work towards achieving their goals. Secondary research enabled Knight Company obtain the most of existing information about its market shares and the volumes of sales they were making yearly. Numerical data was obtained through carrying out surveys on customer return frequency and sampling figures of sales. Knight also examined online questionnaires to establish its trend in finances. The approach enabled them identify the size their market share in 2017, how it costs the business and what to do about it. They also established demographics in the market such as gender and age and their demands and product preferences.
Conclusion
The report analyses reduction of sales and shares in the market of Knight Food Company. After carrying out research, findings were examined to come up with a conclusion. They concluded that if Knight Food Company is to meet its challenge of reduced sales posed by poor management, ignorance and lack of training, they will have to substantially increase progress towards achieving their sustainable goals and objectives. They should be guided by the findings and work towards reducing tradeoffs and control risks associated with poor performers. Through extensive research, they achieved a better understanding of their consumers’ interests, needs and behavior. Moreover, they identified opportunities for growing and multiplying sales and enhancing customer service.
Recommendations
To begin with, Knight's management should make sure it is open to its workers and let them be aware of the expected changes in the sale strategy of the company. The administration should use data analytics which will improve reliability in forecasting so that they may not go astray of their set objectives. Knight should take diligently at the group of workers to find if they have hired the wrong members. If they have hired illegal workers, stakeholders of Knight should consider re-tooling the methods they used in hiring. Moreover, the management should come up with tricks in marketing and sales so as to win some part of the market share once more. They should to bring about its sales management team so as to motivate its team to reach ambitious objectives. The company should incorporate extensive training on products and sales that will create a strong workforce (McPhillips 4).
Work cited
McPhillips. A single Plan for Measuring the Marketting Effectiveness of Content. New York, 5 January 2015.
Shi, Huanhuan, et al. "Sales Representative Departures and Customer Reassignment Strategies in Business to Business Markets." Journal of Marketting (2017): 25-44.
Appendix
In 2014, Knight Food Company reached its peak by owning more than half of the market shares. However, the company's sales have dropped rapidly over the years. Factors against Knight Company's from the lost ground include increased material costs, lack of experienced workforce and lack of market and sales training and lack of market and sales training.
Amount of sales in three years
Amount of Sales
Name of Company
2014
2015
2016
Kris Healthy Fruits
1,230,450
8,896,434
17,873,231
Knight Food Company
23,456,221
18,353,021
5,876,932
Felicity Traditional Foods
18,331,213
21,456,000
32,879,456
It is important to select the proper quality of the business' products and services with the assumption that many consumers use nutritive value as an indicator of food quality. The final incorporation of nutrients must put the doctor's recommendations and the target group, as in this case Knight Food Company Limited is planning to increase volumes of sales over the past two years.
