There was an historical backdrop of Birds Eye and the United Kingdom frozen food industry, beginning with its foundation amid World War II, and proceeding through the mid-1980s. Birds Eye, which spearheaded the business, started as a vertically integrated producer and rapidly prevailed in the market. Birds Eye, which was once the dominant force of the frozen foods industry was declining in share on a monthly basis as different brands persistently marked down their items and drove value out of the class. …show more content…
With respect to home freezer centers the company’s share was around 8% in 1974, in the catering sector their market share was about 10% in 1973. The widened product range and increased range of market sector posed major difficult for Birds Eye’s marketing strategy and the allocation of its advertising budget.
In the face of rising competition posed by the likes of King Harry Foods in 1970, White House Foods Ltd, and Fife Growers Ltd in 1971, and Wold Growers Ltd in 1974, Birds Eye maintained its advertising budget during the mid-1970s while cutting prices on some major-selling products.
Birds Eye's vertical strategy started to separate when industry improvement enabled aggressive markets to rise at each phase of the creation and conveyance chains. At the point when this happened, Birds Eye's vertical integration system turned out to be an intensive weakness that brought about its rapid loss of the overall industry and profit. As at 1977 the company reported a net loss of