Diamon Foods Memo Essay Sample

The history of Diamond Foods dates back to 1912 when a group of walnut husbandmans joined together to make a co-op with a committedness to the Diamond trade name. All members were involved with processing. distributing. and selling of their nuts and bite nutrients. Diamond nutrients since so has grown and maintained laterality in the industry of nuts and bite nutrients. Diamonds NAICS codifications are 311 and 911. President and CEO Michael Mendes of Diamond Foods. has an attack that is focused on long term growing and presenting quality merchandises while accommodating to new market chances. Diamond Foods expansive scheme is focused on long term growing with concentrated variegation and horizontal integrating. They are continuously making out to new clients with new advanced merchandise lines within the industry. The company started with culinary nuts and has expanded into the bite nut market. With the enlargement into the bite nut market. Diamond nutrients created a new label known as Emerald Nuts. By 2005. Emerald Nuts was the figure two bite nut trade name in the U. S. When Diamond nutrients purchased Harmony Foods. they crossed into a homocentric variegation scheme ; they moved into a closely related industry. This is the first clip popcorn meats were introduced to the Diamond Foods trade name.

Diamonds purchase of Harmony nutrients proved to be good because they expanded their merchandise line while still remaining in the bite nutrient industry and incorporate new clients with differentiated merchandises. Diamond nutrients plans to sharply turn distribution and spread out the Emerald and Pop Secret trade name. Looking for growing and development with new merchandises and go on to turn in the snacking industry. The schemes are being used to make and spread out their specific mark market. Diamond Foods Differentiation schemes include spread outing from a narrow to a wide mark market and presenting alone constructs to raise the saloon for other rivals in the nut industry. Diamond has substituted focused low cost for low cost leading and distinction. This new way started with replacing long clip nutrient industry president of Diamond nutrients with 33-year old Michael Mendes. who was Vice President of international gross revenues and selling. Over the past decennary. Mendes has proven that a younger president pulling a younger crowd wasn’t excessively “nutty” of an thought after all. The Diamond Foods’ primary concern program focuses on low cost schemes in a wide mark market.

While originally aiming a much more narrow market of simple walnut salad toppings. Diamond Foods has expanded to new demographics such as younger kids and on-the-go bite consumers. By get downing the new line of Emerald Nuts in 2000. the company was able to open multiple runing divisions ; therefore fulfilling the increasing demands of a broader mark market. By broadening the mark market. tendencies began to develop which gave manner to a new packaging construct. Diamond designed a typical plastic case shot with an ergonomic form that easy fit in a person’s manus and could be carried around in a back pack or tantrum in a vehicle’s cup holder. This illustration of uniqueness became a cost effectual tendency compositor that stood out on the shelves. This construct forced corporations like “Mr. Peanut” to spread out or decease along with the older shoppers who used to buy nuts in glass jars and composition board tins. To distinguish themselves from the competition they focused on their strengths. New advanced packaging designs went chief watercourse.

With strong and relevant selling runs they became widely known and with the added benefits of going a publically traded corporation new merchandise lines were added. This eventually gave the proprietors of the corporation a manner to monetise the increased value of the endeavor. Though Diamond Foods’ besides has their failings for illustration some people still believe that Diamond Foods’ corporation is nil more than a distributer of baking goods. Besides nuts are a high-value trade good. and it accounts for 70 % of cost of goods sold. Diamond Foods’ has invested money in the research of walnuts and the function they play in cut downing bosom disease. This can potentially open new markets that non merely look for a bite but a bite that is healthy. particularly amongst senior and people at hazard of bosom disease. With the add-on of new merchandises like “Harmony” and “Pop Secret” Diamond Foods’ has the chance to take a big portion of the bite market portion.

Though there’s a batch of competition including Frito-Lay. Kraft. and ConAgra that can potentially go menaces. Besides fring nut crop due to natural catastrophes would dent the supply of quality nuts. So what’s following for Diamond Food’s should they spread out and get new trade names that other corporations can non pull off decently. Should they decelerate down and concentrate on their nucleus merchandises. It is still unknown whether Diamond Food’s can successfully pull off all of those trade names at the same time. Will the cost of running the new trade names outweigh the benefits? Will people alter their gustatory sensation in bite nutrients. and what can the house do besides presenting new merchandise lines? Do they still hold the advanced accomplishments that brought them to the topographic point visible radiation? In a topographic point where hereafters are unsure it is of import to inquire whether it will be smart of them to spread out during a recession. Future programs need to be set and both need to turn to how the company will pull off with economic downswing. that will surely hold an consequence on how people behave when they go grocery shopping.