Potential Market for Veal Production in UK

95250-74930000Potential Market for Veal Production in UK Your Name Course Tutor Date Contents TOC \o "1-3" \h \z \u 1.0 Executive Summary PAGEREF _Toc10232775 \h 22.0Opportunity Identification Perspectives PAGEREF _Toc10232776 \h 22.1 Opportunity as a Creation PAGEREF _Toc10232777 \h 22.2 Neo Classical Perspective PAGEREF _Toc10232778 \h 43.0 Analysis of Potential Market for Veal Production in UK PAGEREF _Toc10232779 \h 43.1Welfare for the Rearing of the Calves PAGEREF _Toc10232780 \h 74.0 Basic Marketing Intelligence PAGEREF _Toc10232781 \h 75.0Qualitative and Quantitative Market Research PAGEREF _Toc10232782 \h 85.1Advantages of Using Qualitative Research PAGEREF _Toc10232783 \h 85.2 Disadvantages of Qualitative Data Analysis PAGEREF _Toc10232784 \h 85.3 Advantages of Quantitative Data PAGEREF _Toc10232785 \h 95.4 Disadvantages PAGEREF _Toc10232786 \h 96.0 Research Method to Be Used PAGEREF _Toc10232787 \h 97.0 Future Research PAGEREF _Toc10232788 \h 10 1.0 Executive Summary McLennan Traditional Foods Ltd is a company located in the UK that majors in the production of traditional foods. The company specializes in the production of the traditional foods which is later distributed to different restaurants in UK. Veal is one of the common meals produced by the company. In most countries such as the UK, the production of veal is closely associated with the dairy industry. Most of the male dairy calves are used in the production of veal since they are considered unsuitable for the production of beef. The veal industry has been affected by legislation due to welfare of the animals. However, there is still a demand for veal meal in the UK. Before 1997, there were over 400,000 calves exported to UK for the production of veal. However, due to the enactment of legislation to support animal welfare, BSE was enacted which led to a lower demand for the veal products. The purpose of this report is to carry out a market evaluation to evaluate the possibility of expanding veal production in the UK. The report will identify the appropriate academic models that were used in the identification of the market opportunity and the different reasons why we do believe that there is still a market opportunity for veal production in UK. 2.0Opportunity Identification Perspectives 2.1Opportunity as a Creation This perspective was well explained by Shackle (1961) who said that through imagination, one can create a market opportunity that never existed before. The opportunity is in the mind of an individual and the individual needs to put the idea about the opportunity into action. Creativity is also recognized as an important factor in the identification of these opportunities. Creativity involves forming a combination of different resources that are already existing in the environment to form a superior product that is then presented to the marketCITATION Det04 \l 1033 (Detienne & Chandler, 2004). The entrepreneur will not only introduce the new product or service in the market but they will also be required to change the market conditions surrounding the production of the product CITATION Sha61 \l 1033 (Shackle, 1961). In relation to veal production, this perspective requires us to have a deep look at the veal market in UK and identify the existing opportunities. In 2015, the value of the beef and veal exports from UK was recorded at £324 million. This was the lowest figure since 2010. It is also approximated that UK imports around 35% of the veal and the beef that is consumed in the country. Most of the exports come from Ireland as shown in the graph below. Gra Graph Showing the Import of Veal and Beef in Europe Source: /statistics/644758/beef-imports-by-origin-united-kingdom-uk/ This means that there is a greater market opportunity for the production of veal in UK. Production of veal should be more focused on the export market since its consumption in the local market is often lower. 2.2 Neo Classical Perspective The neo classical perspective holds that a market opportunity can be identified through an active search. The proponents of the perspective argue that the markets are always acting in an equilibrium and it is upon the entrepreneur to identify the shifts that are happening on the equilibrium and utilize them CITATION Sti52 \l 1033 (Stigler, 1952). In this perspective, the market opportunities can only be identified through an active search. In this model, many factors play a great role in the identification of the opportunity. The entrepreneur can choose to work with people with great skills to know the opportunity. Common factors taken into consideration when identifying this opportunity include the competitive analysis, strategic planning, setting up your business goals and many other factors CITATION Her14 \l 1033 (Herath, 2014). The perspective also makes an assumption that human creativity is not involved in the entire process of market identification. One will be required to scan through the available market scenarios to realize the most appropriate. In relation to the identification of veal market opportunities in UK, this perspective emphasizes a thorough research for us to identify the opportunity. Some common factors to take into consideration are the different producers of veal in UK and the level of their competition. It is also important for us to identify how these companies produce their veal products. It is also important to know their target market so that we can see the untapped market opportunities and make use of them to drive McLennan Traditional Foods Ltd forward. 3.0 Analysis of Potential Market for Veal Production in UK There is still a potential market for the expansion on the production of veal in UK. In 1990, the UK made a legislation which led to the ban of the veal crates in 1990 and the entire Europe in 2006. The legislations were put in place due to the bad reputation associated with the production of veal especially the cruel practices. After the legislations were put in place, there was a reduction on the production of veal in UK. Currently, there is a greater market opportunity for the production of veal in UK market. It is important for one to put in place the appropriate measures and identify their target market before venturing into veal production. According to the Creation Theory put in place by Alvarez and Barney (2007), the entrepreneurs are supposed to create knowledge about the previously non-existent opportunities by acting on these opportunities and observing the response of the market CITATION Alv07 \l 1033 (Alvarez & Barney, 2007). This process often involves experimenting on the business opportunities that have been identified by the entrepreneur. On the other side, the Discovery Theory highlights that entrepreneurs should have the ability to identify an opportunity by combining the previous knowledge and the existing knowledge about a particular field and exploiting these opportunities. In the production of veal, it is important to note that there has still been a good veal market in existence but it was later disrupted due to the bad reputation associated with veal production. Animal welfare bodies argue that the slaughter of the calves was not ethical. The process for the production of veal would begin with the identification of the customers. The customers in this case refers to the restaurants serving veal and the individual customers who consume veal. Identification of the potential market is very important since the demand for veal in UK is limited. Veal can be imported to other countries where the demand for veal is high. The production of veal is estimated to be at 600,000 tones in each year and it is concentrated on a few countries such as Germany, France and Italy. Of all the member states, Netherlands is observed to be a great exporter of veal beef as illustrated in the table below. Apart from importing the veal produced, the food service sector still remains a market opportunity that is untapped. There are so many restaurants in UK that serve traditional food such as veal. Most of this restaurants do not serve the veal in recent times since there are less producers of the meal. McLennan Traditional Foods Ltd will liaise with these restaurants and inform them that the company has the ability to supply them with the veal at a relatively lower cost. In addition, the restaurant industry in UK is experiencing tremendous growth. The consumer expenditure in the restaurants and the cafes was approximated to be at 88 billion British pounds. As of 2016, the number of the restaurants in UK is steadily increasing and it contributes about 17.9 British pounds to the finance sector CITATION San09 \l 1033 (Sans & Fontguyon, 2009). Figure Showing the Overview of the Restaurant Industry in UK. Source: /topics/3131/restaurant-industry-in-the-united-kingdom-uk/ McLennan Traditional Foods Ltd intends to grab this opportunity of the increasing number of restaurants. Most of the restaurants as indicated previously do not serve the meal due to different reasons. Introducing the veal to these restaurants is likely to increase the demand and thus leading to the success of the company. Figure 1: Table Showing the Concentration of Veal Market in a Few Countries Source: https://ec.europa.eu/agriculture/sites/agriculture/files/evaluation/market-and-income-reports/2014/veal-marketing-standards/chap2_en.pdf The production of veal in UK makes up 0.14% of the beef production carried out in UK. It is also estimated that about 3,000 tons of beef are consumed annually in the UK and it is only 1,300 tons that are produced in UK CITATION Eur14 \l 1033 (Eurostat, 2014). This reveals that indeed there is a grea...