Hovis, a dominant firm for brown bread sector and also taken synonymous to brown bread understanding the market needsstarted producing white crusty loaf and even took leadership through extensive research and new product development strategies. Despite fiercely competitive bread market in UK, Hovis had been successful to outperform its competitors and always take the lead in the industry. The successful strategy incorporates evaluation of market condition, participation, target market needs, competitors’ tactics and products. These were used as a basic framework to formulate the strategy for developing a new product that adequately filled gap left by the rival firms and fulfilled the needs of the customers, hence, achieving tremendous success and sustainable long – term competitive advantage.
Rationale for Hovis Crusty Loaf Concept:
Hovis, a leading brand in brown bread segment entered white bread segment with the launch of Hovis Premium White Loaf, which was a success, but tough competition from Allied bakeries Kingsmill outperformed Hovis. Hence the performance objective of the new product Hovis Crusty Loaf concept was to develop a product that would give sustainable long-term competitive advantage in the bread market. This would help them dominate both the white and brown bread market by providing quality product at cheaper price as well as maintain its deep rooted image of market leader in the UK bread market.Hovis aimed to gain competitive advantage in product design, with a specification and production techniques that couldn’t be copied easily by competitors. This would avoid having to compete on price and help them maintain retail price and margins and differentiating offering by competing on true product advantages.
RHM had a drawback in its performance objective and failure of Hovis Farmhouse demonstrates it. Hovis aimed to outcast the drawbacks of existing RHM white breads. The performance objective of Hovis Crusty Loaf Concept differs from...