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Food Marketing

Food Marketing /

Introduction

A shellfish “Scallop” is a sea food that is underperforming in the Australian sea food industry. The scientific name of the scallop is Pectenidae, and the common name of the scallop is scollop or escallop. There are more than 30 species of scallop that are cultivated commercially. It is a shellfish having two valves, shells like fan-shaped and a familiar ribbed. The scallop has one upper valve that is reddish and almost flat, and the lower valve is almost white and convex. The commercial size of the scallop is considered as 100 mm upwards. But scallop grows to 15 mm almost in diameter. The scallop is an animal which is having organs of male and female in one animal. The scallop commonly found on the British coast. The scallop’s flesh is a desirable food and is consumed cooked or raw by a variety of societies and cultures, but cooked scallop is more desirable because it is safe for health.

In 2014-2015, scallop contributed $11 million that was 1% less than the previous year, and its share was 6% of all wild-caught mollusk species. During the same time, the volume of caught scallop was 4322 tons that were 2% less than the previous year and shared 37% of all wild-caught mollusk species.

Existing Supply Chain

The supply chain is a mechanism of producing goods and services and delivering them to the end users. It involves storage and movement of raw materials, works in process inventory and finished product from origin point to the point of consumption. Supply chain plays an important role in making well available at the time of order to be successful and gain profit.

The existing supply chain that is being followed is traditional. Here is the map of the current supply chain.

Supply Chain map

Catching

Catching of scallop is the first step in the supply chain. In this step, the scallop is caught from the sea or ocean as a raw material. The key stakeholder in this step is the fisherman who catches scallop from the sea or ocean.

Gutting

Gutting is the process of taking out meat from the raw scallop. This is the next step in the supply chain. The stakeholder at this point is responsible for separating the meat from the raw scallop.

Washing

The 3rd step of the supply chain is washing the meat taken out from the scallop. The key stakeholder is responsible for cleaning up of the flesh and making it available at the next step.

Chilling or freezing

At the next step, the key stakeholder is responsible for preventing the flesh to be rotten, for this purpose they keep that in a freezer.

Processing and handling

Here, the chilled meat of scallop is processed to make it ready to cook and handle that to distributors.

Distributing

The stakeholders or the distributors distribute the processed meat to the wholesaler to make it available for the retailers or end users.

Selling to the end users

Many users do not buy meat from the wholesaler that is why it is the key responsibility of wholesaler to make it available at retail shops, so that end users can easily get it.

Evaluation of supply chain

The current supply chain is traditional and taking more time to deliver the product to the end users. It also requires proper storage facilities to keep it safe to eat, and it leads to the increase in cost. One important point is that now customers often order for the fresh scallop and avoid freezes one. In that case, the traditional supply chain is not effective.

Three flow of supply chain

1)Material flow: - It is unidirectional flow. Goods and services flow from seller to the end users. It is time taking in the current supply chain because current supply chain takes more time from acquiring raw materials to delivering final goods.

2)Information flow: - This is bidirectional flow. Information flows from seller to customers and then from customers to sellers. Information flows slowly because integrated supply chain management is not being used.

3)Financial flow: - This is again unidirectional flow in which transaction of money takes place. Customers pay money to buy goods and services from sellers. Financial flow is also slow because of the current supply chain.

SWOT Analysis

Strengths / Weaknesses
  • Strong sea food market
  • Land and water resources
  • Advanced technology
  • Science and engineering base
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  • Fragmented markets
  • Low investment
  • Lack of knowledge of animal husbandry
  • Lack of skills related to scallop health and disease

Opportunities / Threats
  • Luxury sea food demand
  • Increasing market size
  • Increasing awareness of the benefits of sea food
  • National planning
  • Setting of strategic research and development direction
/
  • Pollution issues
  • New entrant in the industry
  • Increasing foreign competition
  • Water and land resources could be used for other purposes like coastal development, marine parks, and fishing

Recommendations to improve supply chain and gain competitive advantage based on SWOT analysis.

  • Establish enterprise resource planning (ERP). It is software which monitors the inventory level, human resource, and other resources. It is programmed to place order automatically with vendors when inventory level goes below the certain level.
  • Standardize the process of the supply chain. It will increase the efficiency of the supply chain.
  • Ensure accurate and timely information and data. It helps in the decision-making process.
  • Just in Time (JIT) is a mechanism to ensure optimal level of inventory and reduce warehouse cost.
  • Monitoring the performance of vendor and raising awareness regarding cost is also helpful in improving supply chain

Relevant theory of supply chain

Integrated supply chain management

Definition: - It can be defined as coordination and alignment within supply chain which is a network of suppliers of raw materials, factories, warehouse, different distribution centers, and retailers which help in acquiring raw materials, transforming them and delivering them to the end users.

Through integrated supply chain management all the elements of supply chain integration with each other and make proper coordination to deliver valuable products to end users. It helps in reducing total time taken in acquiring raw materials and deliver final goods. It increases the efficiency and effectiveness of supply chain which ultimately reduces overall production cost. Through integrated supply chain management, marketing performance could also be improved. It helps in communicating and sharing right information at all levels. Therefore, it helps in segmenting and targeting the potential market.

References

(2017). Retrieved 13 September 2017, from

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