Tipton Sweets Key Facts

• Family owned and run LTD with a long history• Export overseas 30%• Matthew aiming to make more up to date

– THIS MUST HAPPEN

• Sells own label (2nd biggest %) through chemists, health foods shops, garages: NICHE

• Steady sales relatively low profit –BUT NOT LOSSES

• New production line needed to produce new products and smaller tins

• There is NO OTHER OPTION for growth• May be a high risk strategy

– Unclear on demand– HR issues– Cost

• Targets Set– 12% ARR– 3 year payback

• Currently batch production – skilled• Rely SOLELY ON QUALITY• Planning more quality initiatives• Potential order from VERY LARGE group of

petrol stations – liked range and quality• CONCERN OVER QUANTITY AND PRICE• Aim to reduce average age• Izak aware of different segments tastes• Perception BOUGHT BY GRANDPARENTS

• Younger customers impulse buy– Need to be more in general retailers

• EARLY MARKET RESEARCH – higher profit margin possible – less price sensitive

• Imports growing market• Web sales only 1% but growing• MAIN MARKETS: exports, tipton sweets and

own label(83%)• INCREASINGLY ATTACKED BY LARGE

PRODUCERS USING PRICE AS A WEAPON

• Currently batch production – skilled• Rely SOLELY ON QUALITY• Planning more quality initiatives• Potential order from VERY LARGE group of

petrol stations – liked range and quality• BUT CONCERN OVER QUANTITY AND

PRICE• Aim to reduce average age of customers• Izak aware of different segments tastes and

need to target• Perception: BOUGHT BY GRANDPARENTS

• NO HR MANAGER• PATERNALISTIC/ CONSULTATIVE

MANAGEMENT STYLE• RECOGNISES NEED TO CHANGE STYLE• FALLING MOTIVATION – Matthew does

not want problems with staff• CONCERNS OVER SKILL• FOCUS ON PAY• Too few managers, lack of clear processes

and responsibilities