Nomu Case Study

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Background:

NoMu developed approximately 12 years ago by Tracy Foulkes and Paul Raphaely, Foulkes being a caterer by profession and Raphealy in the advertising industry and product management, had no experience in the commercial food product industry or knowledge about it. Since then the passion that Tracy has for spices and stylish foods has made NoMu quickly becoming one of the most spoken about food and lifestyle brand with all there products such as rubs, pesto etc. winning the innovation award for their Fonds product line surprising competitors like UNILEVER, Nestle’ and Tiger Brands also gave evidence to NoMu as a serious competitor in the market. What started out as a little experiment in her house in Cape Town has now grown to a full-time business opportunity with many top qualified and skilled personal doing voluntary work with the NoMu company and associating themselves with this unique South African story.

Analyses: S.W.O.T

Strengths:
The product is already placed in stores in 27 countries giving it global recognition. High end shopping stores such as Harrods have approached NoMu themselves to ask if their products can be stocked within their stores. Raphaely coming from the advertising industry has a useful and good background. He experience on how to advertise use low expenses and target the advertising at the correct market. Products like the Fonds and Rubs are new and innovative within the food industry. They make larger packs for hotels and restaurants called the “Chef package”. They do online shopping and the person that developed the website for NoMu Suzie Allderman has already achieved many accomplishments within the design industry and worked with top companies. All photography is sponsored by Lisa Clark and ad campaigns that they are running is mostly online so costs are relatively low, also pairing with Mike Joubert a Branding and networking Guru as stated by Tracy Foulkes. The recipe mailer is also a good initiative used here as well as the charity organisation they associated themselves with. Emphasis on product quality, good packaging and tasty products The quality and lifestyle positioning of the products worked and become noticed internationally. They have competitions when you subscribe getting consumers more involved with the website and the brand name. Blogs are also allowed on the website giving consumers personal interaction with each other. Paul Raphaely continuously updates twitter account of NoMu with the latest competitions and recipes. Facebook also contributes to the awareness campaign with photos, recipes updates and one on one interaction with the market. Weaknesses:

Limited financial resources are available to make big changes or create a larger supply chain. Competitors have been in the industry for much longer and have many more resources at hand. The company is owned by a “family” which consists of the two personal who started it five years ago. Products are still in the introduction stage and growth stage which equals limited profits. Profits are mainly very low or very minimum so saving or gaining stronger capital is almost impossible. Minimum amount of staff to do specific tasks set out for them or to take upon challenges and or opportunities. Not much training can be done to provide in-store sales personal with the correct or efficient product knowledge. Distribution is not that efficient as yet. The owners spend a lot of money on training themselves with knowledge for the industry, this they called the ‘school fees’ which took a lot of capital and money out of the business.

Threats & Challenges
Competition might create or reposition their products similar to that of NoMu, and have the option of creating their own line. Due to economic constraints it may become more difficult to push the products out to stores. The owners of the company have a little knowledge about the laws of the food industry. Some consumers in the market may find difficulty moving away from...
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