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Client Success Story

Saudi Bakery | Business planning and strategy development

The problem

The client:

The client on this project was a large-scale bakery company predominantly operating in the Asir region of Saudi Arabia. In response to increased competition from local and national competitors and evolving retail trends, the client wished to develop a new strategic business plan to reposition the business for growth, capitalise on emerging market opportunities, increase market share, and become a leading supplier of high-quality locally baked products.

Background:

The Saudi bakery industry has grown significantly in recent years, driven by rising populations, rapid urbanisation, and a growing preference among consumers for convenience foods. This growth has created new opportunities but also increased competition. As a result, Saudi bakery companies are increasingly prioritising product quality, brand identity, and market positioning to stand out from competitors.

In this case, the client had identified ongoing issues with the quality of their bread-based products, and believed this was limiting their ability to compete effectively. The client sought to improve the quality of their products, expand their sales capacity, and create a brand identity that would resonate with their customers and lead to improved commercial performance. To achieve this, the client sought to restructure their production processes and develop a robust business plan to support market growth and improve their market position.

The solution

Farrelly Mitchell was commissioned to provide a comprehensive market review and develop a strategic business plan for the client. The project included several key phases designed to analyse the client’s existing operations and deliver actionable insights and practical recommendations for market positioning and commercial improvement.

Phase 1: Financial and company analysis

This initial phase involved a thorough financial and operational review, identifying issues and areas for improvement. Through an exhaustive examination of the company’s financial health, operational efficiency, and market standing, we establish a clear picture of their overall performance and competitiveness. This analysis set the foundation for developing targeted strategies designed to bolster the client’s capabilities and expand their market presence.

Phase 2: Saudi bakery market analysis

An extensive market analysis was conducted, focusing on market drivers, consumer trends, and key competitors. This clarified complex market dynamics and was instrumental in shaping the subsequent growth and investment plan. Following this, we drafted a new marketing strategy and brand identity for the client, creating a flagship brand with a new logo, packaging design, and corporate image. This was supported by market research, focus groups, internal workshops, and test marketing and was carefully designed to resonate with consumers.

Phase 3: Operational and product improvement

Based on previous findings, we issued a number of recommendations to the client to enhance the quality of their products, including plant redesign, equipment upgrades, and staff training. These measures would ensure more consistent production of high-quality products. As part of the plant redesign, our confectionery and bakery consultants oversaw and verified that refurbishments were compliant with new specifications and standards.

Next, we conducted a detailed review of existing sales processes, and developed a new sales and distribution framework that upgraded sales management systems, improved route planning and enhanced sales forecasting. In addition to this our team devised and implemented a sales incentive scheme that would further optimise sales operations and motivate the sales team. As part of this initiative sales managers would require the use of hand-held devices, and so we also conducted training programs to ensure staff readiness.

Phase 4:  Human resources and business process enhancement

To help create a strong foundation for growth we also sought to improve hiring practices and business processes. First, the team improved the recruitment process by creating detailed job descriptions, implementing a multi-stage interview system, assisting with contract negotiations, and handling visa arrangements for international hires. Second, we focused on strengthening business processes by setting up robust financial and information management systems and generally improving business procedures.

The results

As a result of our work, the client was able to make key improvements to product quality, operational efficiency, and market positioning. This has led to better financial health, more streamlined processes and a flagship brand that resonates with consumers. They have also garnered more market share and strengthened their ability to attract and retain top talent. All of these improvements provide the client with a solid foundation for growth and enable them to better compete in the growing Saudi bakery market.

Forge ahead with Farrelly Mitchell:

Without a robust business plan and a deeper understanding of the market in which they operate, food and agribusiness run the risk of misallocating resources, failing to meet consumer demands, and jeopardising their long-term commercial success.

At Farrelly Mitchell, our agribusiness planning consultants offer strategic guidance to both nascent and mature food and agribusinesses as they look to capitalise on growth opportunities, enter new markets, and upscale their operations.

Our commercial and technical experts offer key supports in strategic planning, risk analysis & management, value creation & implementation, and much more. If you are seeking growth, recovery, or general improvement, contact our food and agribusiness specialists today.

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