Escape to victory

Very different strategies might all be successful in the market of frozen products – this is the conclusion I came to after analysing the answers I got from market players. This came as no surprise to me, since the market itself is very diverse.
FINDUS is a company which has seen fast development – 50 per cent in terms of quantity and 44 per cent in terms of revenues, during the last year. This is a fine achievement in a market where 46 per cent of the total quantity sold belongs to private labels.
FINDUS innovation strategy – the secret behind their success – is based on focusing innovation and product introduction in fields, where they are already strong, and also on creating entirely new categories, like WOK products used to be. Retailers welcome products which represent added value and this encourages innovation.
Private labels appeared in categories with the biggest turnover, like basic foods, and often belong to companies which do not have sufficient financing or a strong enough brand to develop. Focusing solely on price can be risky however, since a new PL with an even lower price can always appear.
Iglo, a premium brand produced and distributed by Globus in Hungary represents the highest quality and enjoys top brand awareness. This, however is no longer enough, as the market is moving towards convenience products which can be prepared in the shortest time. Innovation is the answer to this challenge, with many new products coming out in 2007. Captain Iglo will be re-activated for the communication of the new product introductions.
A&B StarVit Kft. is a distributor of over 1500 premium frozen products. It can respond rapidly and flexibly to market changes as the importer of prestigious European companies. The shorter period of time available for cooking is not only a consideration in households, but also in gastronomy, as well. More stringent food safety regulations also favour ready to serve or partially prepared foods, since big companies assume responsibility for the quality of food.
Manufacturers’ labels are in an even more difficult position in the market of frozen potatoes than in that of frozen vegetables. Today, less than 20 per cent of the total quantity in the market belongs to the three major, surviving brands. “B” brands have a larger market share, while more than half of the market belongs to private labels. Aviko is a brand that offers reliability, a major consideration, when buying frozen products. Most of their products can be prepared without using oil, and they also sell flavoured products. They are contemplating development in the direction of becoming an umbrella brand.
The new product family of MIRELITE Csepel Kft. offers added value in traditional Hungarian flavours. Rolling Food products can be served within a few minutes and can be portioned. They also place special emphasis on using healthy ingredients.
Frozen products are not as popular in Hungary as in foreign countries. Joint promotional efforts by competitors might not be a bad idea to encourage consumption. Another idea – first used by FINDUS for their WOK-corners – is to change the boring white look of refrigerators.
A new idea in gastronomy, used by A&B StarVit. is organising “foodshows” for restaurant owners, where they can sample products as if they were the guests.