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Individual Assignment (1) SWOT Analysis, BCG Matrix and Intensive Growth Strategies for Sabroso

Prepared by Student name ID

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19th Sep, 2020

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Sabroso About the Brand Sabroso is a brand of frozen products initiated by Sabir’s group. Sabir’s group is one of the largest integrated poultry option in the country and has a cold supply chain operation. They have decades of experience in the poultry industry. The brand is vertically integrated and that is why they promise to provide the best quality product. As of now, they have an edge in this as their competitors are not vertically integrated except for one.

Competitor The second largest and even further growing industry in every country is the processed food and drinks’ industry. There are many players in the market and Sabroso is one of them. Sabroso was started by the end of 2017 and hence faces a major competition. Sabroso has following competitors: 1. K&N’s 2. Big Bird 3. Menu 4. Sufi 5. Dawn Foods K&N’s is the biggest competitor of Sabroso of all other competitors as K&N’s is the current market leader in the processed and frozen food industry and it has the highest market share as well. The portfolio, advertisements, market strategies as well as the supply chain processes of Sabroso and K&N’s are very similar. K&Ns was enjoying the market alone as it had a clear advantage over its competitors for years by being the only one having a vertically integrated system. But now Sabroso has jumped into the market with similar vertically integrated strategy.

SWOT Analysis Strengths 1. Sabroso has its own processing plant.

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2. It has a complete vertically integrated infrastructure which promises and generates high quality products.

3. Unlike other leading brands, Sabroso is focusing on extending its sales and penetration of their products to second-tier cities.

4. As it is a new brand launched only in 2017, it is focusing on expanding its availability everywhere.

5. In the remote areas, the brand is keeping the prices of its products at the lowest possible rate.

6. It places more emphasis on R&D to develop unique products. For example: “Chicken Donuts” is a unique product introduced by them.

7. Sabroso is also considering setting up large cold storage facilities in remote areas.

Weaknesses 1. Sabroso’s outlets are very limited.

2. Sabroso does not have a wide product categories as of yet.

3. People are much more satisfied by purchasing fresh poultry so this changing customer perception is one of the weaknesses.

4. Overall, the refrigerator facilities are scarce in the shops and supermarkets. But this is an issue for the entire frozen product category.

5. In countries where independent grocers are dominating food segment through low investment and small neighborhood stores, Sabroso will face a challenge.

6. It can be seen from their advertisements that they only target working women.

Opportunities 1. The brand will extend their operation by exporting its products in all over the world.

2. The emerging female professionals in the market will make ready to eat products more wanted. As working women have less time cooking food so they prefer ready to eat products or meals 3. Through the trade of foodstuffs, Sabroso can also get benefit in economic power.

4. By further improving the pricing strategies and looking after the distribution channel they can make their brand name stronger.

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Threats 1. There is a big threat from competitors like Menu, Sufi, Dawn food etc as they have been established on a bigger scale as well.

2. Today the big threat for this company is different diseases spreading among the chickens like bird flu and influenza etc.

3. The sudden breakdowns of electricity can also threaten them as this will lead to an increase in their expenses and having their own electricity with generators can affect their whole cost structure as well.

4. Also the increase in inflation rate poses a major threat.

5. The growing prices of equipments will affect the prices of their products.

BCG Matrix The Boston Consulting Group (BCG) growth-share matrix is a tool that helps the company analyze which products or services they should keep, sell or invest more in. 

Dogs A few of the Sabroso's products (Chunky bites, Chicken drumsticks, and chicken aqua

buddies) fall in the dogs category in the BCG Matrix. They are in the lower right quadrant of the grid or matrix. The products that lie in this category have low market share and is also at low rate of growth. Sabroso should increase the awareness of these products through advertisements by focusing on their benefits. 

Stars A few of the Sabroso's products (Chicken samosa, chicken pakora, chicken burger patty,

chicken nuggets, Seekh Kabab) fall in the stars category in the BCG Matrix. They are in the upper left quadrant of the grid. They should invest in them more for growth as they generate high income. 

Cash Cows Sabrosos’s chicken samosa and chicken burger patty fall in this category. They are in the

lower left quadrant of the grid. Products in this category should be taken advantage of as they generate returns which are higher than market’s growth rate. 

Question Marks Chicken Donut falls in this category as it’s the unique and new product. They are in the

upper right portion of the grid. As it is a new product it consumes large company resources.

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Ansoff Matrix The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool that helps the company analyze and plan their strategies for growth.

Market Penetration The growth strategy implemented by Sabroso is Market Penetration. It lies in the first quadrant in the Ansoff matrix. Marketing penetration is a strategy which is adopted by a brand when it wants to sells its existing products in the existing market. In other words, by employing this strategy Sabroso can increase its market share. Sabroso can execute market penetration strategy by increasing promotion and distribution efforts. Sabroso is focusing on expanding its number of outlets and its availability all over the world.

Recommended Growth Strategy Following are the recommendations for Sabroso’s growth or expansion strategy: 1. Sabroso should focus more on its digital marketing just like its major competitor K&Ns who has a separate Facebook page which is dedicated solely to their marketing programs.

The pandemic era has evidently proved that online services will never be negatively affected so the brand should have strong digital presence. As in the pandemic people were quarantined at home and people had plenty of time to spend on social media so if a brand a strong presence in these channels, it will increase their brand awareness and eventually sales.

2. Sabroso should target its audience by employing a different approach as Sabroso and K&N’s have same target audience which is housewives and students.

3. Most importantly, Sabroso should increase its line extension to expand as its competitor K&Ns has ten line extensions while Sabroso itself has only two line extensions.

4. In terms of awareness and brand attachment, Sabroso is significantly different from K&Ns. In order to improve in these areas, Sabroso should approach different schools to engage students in fun activities.

5. Other than that Sabroso should also collaborate with different kets-plans to prepare meals for keto diet.

6. Lastly, just it introduced chicken donut; it should also introduce more value added products.

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References Ansoff Matrix. Corporate Finance Institute. (2020, July 6). https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/.

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Ansoff Matrix. Corporate Finance Institute. (2020, July 6). https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/.

Awan, S. M. Marketing Strategy of K&N's. Scribd. https://www.scribd.com/doc/73731025/Marketing-Strategy-of-K-N-s.

Hayes, A. (2020, August 28). Reading the BCG Growth-Share Matrix. Investopedia. https://www.investopedia.com/terms/b/bcg.asp.

Majid, M. (2012, November 16). K&ns 2. SlideShare. https://www.slideshare.net/majid83/kns-2.

SABROSO. Course Hero. https://www.coursehero.com/file/42765843/SABROSOdocx/.

Value Added Tax (VAT) - Overview. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/knowledge/accounting/value-added-taxvat/.

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