Going for growth by investing in people, products and plant
A Hazlewood Sandwiches case study

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Page 2: The sandwich market

A market comprises all the buyers and sellers of a particular product such as sandwiches or pizzas. Firms need to know the size of the market in which they compete. Market size is measured in two ways:

1. by value - e.g. total sales annually of £100 million for Product A

2. by volume - e.g. 1 million units of Product A sold each year.

Currently the UK sandwich market is worth £3 billion - representing 1.8 billion sandwiches - and is growing at around 6each year. Hazlewood Sandwiches is the world's largest producer of sandwiches.

The pie chart shows the major sectors (retail suppliers) of the purchased sandwich market. For Hazlewood Sandwiches the major multiples (e.g. Asda, Safeway) provide an important and growing sector of that market.

The market continues to grow because:

  • People's lives are becoming busier, leaving them less time to prepare food. More women go out to work (about 50% of the labour force), and many of them have more than one job.
  • People are taking shorter lunch breaks, leaving them less time for a midday meal.
  • Many busy working people can now afford to pay others to make sandwiches for them - they are said to be 'cash rich, time poor'.
  • Sandwich quality has greatly improved, with interesting recipes designed to meet individual customer requirements.
  • More people look for new types of sandwiches with ingredients that reflect what they have eaten when travelling abroad.

Hazlewood Sandwiches | Going for growth by investing in people, products and plant