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Pest Analysis On Del Monte Foods

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Pest Analysis On Del Monte Foods - December 3rd, 2010

Pest Analysis On Del Monte Foods : Del Monte Foods (NYSE: DLM) is an American food production and distribution company headquartered in San Francisco, California. Del Monte Foods is one of the country's largest producers, distributors and marketers of branded food and pet products for the U.S. retail market, generating approximately $3.6 billion in net sales in fiscal 2009. Its portfolio of brands includes Del Monte, S&W, Contadina, College Inn, Meow Mix, Kibbles 'n Bits, 9Lives, Milk-Bone, Pup-Peroni, Meaty Bone, Snausages and Pounce, and Del Monte products are found in eight out of ten U.S. households.[citation needed] The Company also produces, distributes and markets private label food and pet products.

In the 1870s and 1880s, California became a major producer of fruits and vegetables. In 1886, the Del Monte name premiered, originally used in the 1880s by an Oakland, California, foods distributor to designate a premium blend of coffee prepared for the Hotel Del Monte on the Monterey peninsula. By 1892, the Del Monte brand was introduced when the firm expanded its business and selected Del Monte as the brand name for its new line of canned peaches. In 1898, the California Fruit Canners Association (CFCA) formed when 18 West Coast canning companies merged.[1] The Del Monte brand was one of several brands marketed by the new company. In 1909 the Del Monte Shield was introduced.[2]

Under the impetus of George Newell Armsby, in 1916 CFCA added two more canners and a food brokerage house, incorporated itself as California Packing Corporation, or Calpak, and began marketing its products under the Del Monte brand. The new company grew to operate more than 60 canneries, some in Washington, Oregon, Idaho, Utah and Alaska. In 1917 it acquired pineapple lands and a cannery in Hawaii and, in the 1920s, added canneries in Florida and the Midwest, as well as in the Philippines. After WWII more facilities were constructed or purchased overseas.[3] These multinational operations made the name California Packing Corporation obsolete, and in June 1967 the name Del Monte Corporation was adopted.

There are a number of opportunities for GAP to grow and these are the apparel industry in Asia industry, GAP must give more emphasis on this sector because consumers buy apparel products that have low prices and is closer to home wherein GAP has the characteristics.

The weaknesses of the target company include the fact that the organization has not yet expanded to rural areas in the Asian continent. In addition, the size of the stores of GAP is lower compare to other retail companies in the Asia. Lastly, the image of the company which is a retail store that caters to apparel hinders the ability to obtain market share in other aspects of the retail business.

Emergence of new knowledge resulted from a publicly financed, scientific problem solving. Eventually, the generation of this new knowledge is not primarily for application purposes or for any guided interest. However, such there are new knowledge which usually carries some commercial business potential. Evidently, national capabilities in exploiting these opportunities of new knowledge differ from each other.

Moreover, as what is really the fact, Chinese nationals tend to rely heavily on personal relationships as what they call as guanxi in business dealings (1994). In China's new, fast-paced business environment, guanxi has become extremely important. It has in large part filled the vacuum and is more entrenched than ever, heavily influencing Chinese social behavior and business practices (1990). Guanxi provides the lubricant for the Chinese to get through life. It is a form of social investment. No company in the Chinese business world can succeed unless it benefits from an extensive guanxi.

In addition, guanxi binds literally millions of Chinese firms into a social and business web. Sales force marketing, an activity heavily dependent on guanxi, has become an increasingly popular and effective marketing means. In addition to marketing personnel dispatched by head office, companies in China often set up regional sales offices in major target areas.

Furthermore, China is a planned economy that adds to the difficulty of marketing in the country. All China's purchasing activities are guided by a planned economy, the annual economic plan. If a need is found for a product not envisaged by the planners, the product will be subjected to a long examination process.

Finally, there are Chinese cultural biases which involve negative associations between product promotions and the perceived value of that product. The Chinese think that aggressive promotions cheapen a product and that cheap products are never good. Chinese consumers do want to buy American made products that are associated tastefully with events and people, particularly celebrities, in the United States.

In order for a business to survive in China (Hong Kong), it is significant to know the cultural practices of the country. In a transition to a market focus business, marketing is very important. These would include knowing the target market, knowing the customer needs, defining value proposition, then winning over the customer and lastly having a continued communication to the customers to be able to be updated with the ever changing customers’ needs and preferences.

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