The Bucharest Academy of Economic Studies

Business Administration (in Foreign Languages)

Boromir Industries
(www.boromir.ro)
Teacher: Lector Univ. Dr. Anca Mandruleanu

Student: Medianu Iris Group: 123 E-mail: iris.medianu@yahoo.com

Bucharest, 2011

I. BUSINESS DESCRIPTION
1.1 COMPANY OUTLINE The Boromir Group, the second biggest player on the market of milling and bakery products, was established in 1994, with an eye for tradition, but with a modern perspective over such an old and yet scarcely exploited domain in our country, Romania, under the name of Boromir Ind Commercial Society, developping and diversifying its activity by offering both traditional products and new ones, which the Romanian market needs. From the tiny grain mill built in 1994 in Ramnicu Valcea, whose production capacity did not exceed 24 tons a day, over the course of only 10 years, Boromir developped at a dynamic pace, managing to currently control approximately 10% of the milling and bakery activity throughout the entire country, by acquiring three mills located in different places in the country: Sibiu, Buzau, Deva, these locations having the advantage of discovering new outlets and attracting new clients. Boromirs production capacity reaches the number of 1300 tons a day as we speak. The Boromir Group holds bakery plants in Buzau, Valcea, Sibiu and Deva. The group also possesses the Cibin mill in Sibiu, two units of Comcereal, Amylon Sibiu and Extrasib Sibiu type, while the Boromir gas stations and the Hardwood lumber plant are held by five natural persons Romanian shareholders. The Group also detains 27 own small-sized stores in the cities where it has the bakery plants. Out of the bakery, pastry and confectionery group, the society creates a wide array of products, the main balance being held by white bread with reduced grams, specifically over 70% of the total bakery products. The milling products group comprises the entire flour range. Half the quantity produced is destined to usage among the group. From the total of Boromir businesses, the milling division has a 55% balance, followed by sweets and cookies which hold 20%, the bakery division had a 15% balance, while the rest of the activities represented by stores, distribution and gas stations covers 10% of the business. Thus, in 2009, SC Boromir Ind SRL established a turnover rate of 180 million lei (43 million euros), decreasing by approximately 20 million lei (4.7 million euros) in relation to its 2008 level. And the total incomes of SC Boromir SRL have decreased in 2009 with another 20 million lei, reaching 202 million lei, while the profit was a million lei.

Graphic of the turnover rate evolution

Fig.1 Boromir Ind SRL has had an increasing turnover rate from 1999 up to 2008, with the exception of year 2005, when it had a value of 96.634.875,00 RON. From 1999 to 2008, the turnover increased with 191.710.144,00 RON, meaning 2.246,13 %. The highest turnover value arose in 2008 value: 200.245.283,00 RON, whereas its lowest value was in 1999 value: 8.535.139,00 RON.

Graphic of income evolution

Fig.2 The incomes of Boromir Ind SRL are in constant expansion starting with year 1999. From then until 2008, the incomes rose by 213.631.543,00 RON, meaning 1.981,54 %. The highest incomes were obtained in 2008 value: 224.412.626,00 RON, whereas the lowest ones were in 1999 value: 10.781.083,00 RON.

Graphic of the income/expense evolution

Fig.3 Having 840 employees, SC Boromir Ind SRL had, on the 31st of December 2010, a social capital of 710.000 lei and total liabilities of 80 million lei. Boromir Ind SRLs shareholder structure is the following: : Constantin Boromiz - 36%, Mircea Ureche - 34%, George Frntu - 16%, Gheorghe Boromiz 11%, Mariana Boromiz - 3%. In 2008, Boromir Group registered a turnover of over 165 million euros, increasing by 25% in relation to last year. In 2007, the first three bakery producers turnovers increased with over 50% in relation to the previous year, and, by the end of 2007, Boromir was recording a business advance of 70% in comparison to the 2006 runway. Moreover, Boromir Groups profit was affected in 2008 bu the differences in the exchange rate. From the total Boromir businesses, the milling division has a 55% balance, followed by sweets and cookies, which own 20%, the bakery division with 15% balance, and the rest of the activities, represented by stores, distribution and gas stations, cover 10% of the business. The internal milling and bakery market values approximately 2 billion euros. 1.2 THE MISSION AND VISION OF BOROMIR IND The mission of Boromir Ind assumes reaching the leader position on the national market of milling and bakery, so that it would promptly respond to the most diverse customer demands, whether its about the quality of the products or their diversity. In order to promote the companys and its products vision, the main factor used is emotion: Pentru promovarea viziunii companiei i a produselor se apeleaz n special la emoie: Credo: Boromir places full client satisfaction in the center of its concerns, aiming for clients that come back everytime for quality products, which are conceived and offered in a professional manner, so that it answers to all their requests and aspirations. Boromir Groups slogans remind of tradition and aim to highlight the fact that its products are made the same way a housewife would make them in the comfort of her own home: Your familys bakery or A mountain of snowhite flour. 1.3. 2010 FINANCIAL SITUATION

Balance Sheet of BOROMIR SRL

2010

Total fixed assets

N/A

Total current assets

93,181

Inventory

22

Cash and deposits

697

Total receivables

92,462

Total capital

89,025

Paid-in capital

25,000

Loss provisions

N/A

Total debt

4,156

(www.mfinante.ro)

3.1 THE STRATEGIC OBJECTIVES OF BOROMIR IND

The companys advertising is made mainly through its website. This offers information regatding the history and experience of the company, the sectors it activates in and the array of products it produces. The brands communication strategy also includes PR related activities: sponsorship (The National

Museum of Agriculture in Ialomita county - 2007, the Simeria Olympics football team, Ramnics Cultural Forum, the Buzau Informatics Olympics, etc.), the press releases, the activity report.

3.1.1 THE PRODUCT STRATEGY OBJECTIVES

The companys product policies refer equally to the following aspects: Innovation: stimulation of the production process and product improvement by means of research activities and investing in new technologies Research: analysis and constant scanning of the market, products and their positioning across the market Brand/image: analysis of the products and companys image among the consumers The product strategy objectives adopted by Boromir in relation to the companys position on the market cand be concretized in: Reaching the leader position on the bakery and pastry market The best possible positioning on the bakery market The increase of the market quota by attracting new consumers The differentiation from the similar products offered by its competitors, given the fact that on this market competition is very strong (unlike Vel Pitar, Boromir holds a strong sector in the sugary, milling, pasta and mustard market); The product strategies applied by Boromir Ind are: Sortimental diversification (for example, launching a range of croissants, doughnuts and sweet breads) Sortimental maintainace (milling products, pasta) Sortimental renewal (launching the Kraffen products) Qualitative stability 3.1.2 THE PRICE STRATEGY OBJECTIVES The price strategy objectives are settled both long-term and short-term. Thus, the long-term objectives regard client expansion, consolidating and expanding the competitive position on the market. Short-term speaking, the company settles objectives related to sales, more specifically, their quantitative maximization. The price settling techniques applied by Boromir are ones based on costs, by addition (in the case of bakery products, their price is greatly influenced by price evolution of raw materials) and methods based on competition comparisons, according to the market price. Usually, the prices are determined so that they cover production, distribution and sales expenses. Given the groups activity domain, the market segments regarded, the nature and type of the commercialized products, Boromir adopts similar price strategies which are however differentiated according to each type of product: higher prices for newly arrived products on the low prices in order to attract clients a) THE HIGH PRICE STRATEGY The high price strategy is used especially for newly arrived products on the market, in case the competition is not threatening. Moreover, this strategy is used for the overly advertised products, in order to cover the publicity and advertising expenses of these products. The high price strategy was applied to the newest products launched by the specific company, which are: Kraffen Boromir and Croissante Boromir. It is important to mention the fact that this price strategy is in good correlation with the product and advertising strategy. b) THE LOW PRICE STRATEGY The low price strategy is the most applied one by Boromir Ind for bread, pasta and milling products. The companys choice for this strategy is justified due to the demand elasticity in relation to

price and due to the fact that it helps reach one of its previously mentioned price policy objectives, or more precisely put, the position consolidation on the market. Even if Boromir adopts the low price strategy, the company cannot align with the growth tendencies of the bread and grain price. Thus, we cannot become oblivious of the price evolution of this largely consumed product over the past few years. The bread price is the most sensible one, because bread is usually an indispensible food in Romanian folks daily meals. The breads price increase over the last years was the result of many factors. A first one would be the recent years droughts, as a consequence of global warming, which caused great damages and whose effects were also felt in the grain crops, which determined bread and bakery producers, including Boromir, the leader of this segment, to turn to grain imports. This brought on an increase of production expenses, resulting in bread price increase. Another factor that determined the increase of food costs, including bread, is the evolution of oil price, which determined the increase in price of electricity, gas-oil, etc, thus determining higher costs for producers. Other important factors that determine the price increase are the black market of bread, as well as investments the companies must make for new technologies and hygiene norms imposed by the European Union. c) PROMOTIONAL PRICES FOR CLIENTS EN DETAIL AND EN GROSS The promotional prices are practised especially for products sold to clients en detail and en gross. The en detail clients are represented by supermarkets, restaurants, and the en gross clients are those who, in their turn, make the distribution through sale agents or fixed point sale. These client categories are offered variable discounts, along 5 and 10% of the price in case of Boromir class products. Moreover, the company practices preferential prices for clients who buy from the societys headquarters, with immediate payment, as they benefit from a 5% price discount. 3.1.3 DISTRIBUTION STRATEGIES OF BOROMIR IND Distribution policy from the Boromir perspective refers to the activity generating distribution channels towards the client and the models of communication with the clients. The distribution policy objectives of the company can be defined as follows: The largest possible market coverage Sale maximization from the volume point of view

Guaranteeing Boromir products availability for a higher number of consumers Recognizing of the Boromir brand by a higher number of consumers Support of the intermediaries Sprijinirea intermediarilor A higher control over the distributors in order to ensure that products reach the final consumer, while also keeping the same

quality standards. Fig.5 In terms of distribution strategies applied by Boromir, the company chose using both direct channels (producer-consumer) and indirect channels (producer-distributor-consumer). The Boromir Group picked the selective distribution strategy by opening its own stores only in the cities which hold production units, but also the intensive distribution strategy by ensuring a large distribution of Boromir products among the market.

Today, the Boromir Group operates a network of 48 owned stores, displayed in 5 counties (graphically illustrated in the above map). The products are delivered directly to the Boromir sale points, using a rolling stock of 460 vehicles. 3.1.4 ADVERTISING STRATEGIES The range diversification, the product branding and its displaying in attractive packages have brought on the necessity of companies of adopting more complex advertising strategies. In 2007, for example, Boromit allocated to advertising only 500 thousand euros. The advertising/communication strategirl of Boromir can be concretized only in: The increase of the recognizing level of the company and its products The differentiation from the competition The Boromir Group did not allocate substantial budgets to the advertising campaigns. The company imposed itself on the market through its products presence in almost all national commercial units, choosing preponderantly the strategy of pushing to products into all distribution channels. At the same time, although not of great amplitude, Boromir turned to the strategy of attracting clients through various advertising means, including publicity related ones. These strategies are concretized through various actions meant to generate the expected results, more specifically reaching the proposed objectives.
A)

PUBLICITY

From this perspective, Boromir is a little low on the TV and radio publicity advertising categories, elements which could generate an even easier recognizing and awareness of the brand among the public. b) FAIRS AND EXPOSITIONS In addition to sampling campaigns, games, contests and promotions, another marketing strategy used by Boromir Ind is the participation in fairs and exhibitions, the most important in this respect is IndAgra, an international exhibition of equipment and products for agriculture, livestock and food. Since 2002, the company was present at each Trade Fair Exhibition, in the Exhibition Complex Romexpo Bucharest, having always an attractive stand located in the pavilion of bakers and distributors of bakery equipment and ingredients and breeders distributors. Thus, every year, the newest products launched by the company, as well as representative fresh products are exposed at Boromir stand. c) THE WEBSITE OF THE COMPANY Any self-respecting company should not lose sight of the importance of website to promote its image and products and to enable consumers to quickly access information about a company.From this perspective, the Boromir company's website is quite complex, complete, useful in terms of the information about the company, products, promotions, locations. d) PERSONAL SELLING As we noted, Boromir does not focus very much on consumers, but on its distributors; in other words, on its business partners. An example of this is the prize raffle held during the10th of May the 10th of July 2007 within a campaign entitled "A Mountain of Snow-white Flour." The single selection criterion was the achievement of a daily sales volume of at least 40 kg (small shops, grocery stores) and 100 kg (supermarkets) of Boromir products participating in the promotion, by the economic agents. This campaign was aimed at the economic agents and offered prizes worth 6,000 RON, the grand prize being a stay for two in Greece, and the remaining prizes being appliances. This campaign has

confirmed the Boromir company's tradition to reward loyalty , and to appreciate and respect their partners. 4.1 THE PRODUCTS OFFERED BY BOROMIR IND The main activities undertaken by Boromir Ind are grinding grain, manufacturing and marketing of grain mill products and bakery, pastry, confectionery and commerce, offering a wide range of products adapted to market needs, as follows: Bakery: Boromir bread is obtained from various types of Boromir flour, including a wide variety of products: home-made bread, French baguettes, cinnamon bread, Graham rolls multicereale bread, rye bread, fibrovit, bread and black - (loaf white bread, ryebread, graham bread toast, fibrovit, simple wand, stick with sesame, braided bread, flower bread , cinnamon bread, Mexican cake pita, hot dogs bread , buns 50g, 70g, 150g and pretzels with rosemary) ; Pastry: this includes Boromir pastry , cornuletele, cake tops and cremnit - (Antonia pastry, cheese pastry, pastry pretzels, pastry seeds, sugar pastry, cornulee, Sprite glazed, top of cake); Cakes: Boromir cake is a symbol of festive days and of the sweetest occasions - (Panettone with chocolate, vanilla cakes 400 g, cocoa cakes 400 g or 600 g , Turkish paste cakes 400 g or 600 g , Turkish paste cake with cocoa 400 g or 600 g, 400 g raisins cakes, 400 g or 600 g walnuts cakes, walnuts and raisins cakes 400 g or 600 g, chocolate chips and raisins cakes 600 g, raisins and dried fruits cakes 600 g, walnuts cream cakes 600 g , cake with chocolate box, cake with nuts and raisins box, cake with nuts cream - box); Croissant - made with natural leavening, it has a special quality that is found in the soft and flavored core and : chocolate, champagne and apricot - (Croissant with chocolate, croissant with sparkling wine, croissant with apricot); Kraffen: a product produced by natural rising , which gives it the guarantee of great quality. The small golden ball with soft and fluffy core filled with a delicious filling: chocolate, champagne and apricot, invites you to taste it every day at any time - (Kraffen with champagne, chocolate Kraffen, Kraffen with apricots) ; Biscuits: Boromir biscuits are tender, flavored and available in dozens of varieties, unique for each client - (Pltini biscuits); Rusks: Boromir Savoiardi rusks quality is 100% guaranteed by the natural and fresh ingredients. The product is offered either in modern packets of 200g, 400g, and 500g or 2,5 kg boxes, making it ideal for the hotels and restaurants chains and for catering. Pasta and mustard: pasta is produced under the Giani brand, short and long pasta, made from a mixture of wheat and durum wheat, and - under Boromir brand - fully durum wheat pasta which does not allow sediment to a boil, do not stick, keeping the golden yellow color and the glassy appearance, and the Extrasib brand completes the range with home egg noodles - ( Extra Mustard); Milling: Boromir mills use immense quantities of wheat and produce flour with different textures, specially designed for each particular product that comes from the baker's hand. Therefore, choosing Boromir flour is a real inspiration, and the baker can say "I work hand in hand with Boromir miller and I respect him as I respect my father." Confectionery: Amylon Sibiu provides glucose tablets, intended for direct consumption. For food industry- liquid and solid crystallized glucose and as an addition to enrich the feed corn gluten and corn germ,valuable supplements due to soluble nutrients (sugars, minerals, protein); II. CONTEXTUAL ANALYSIS 2.1 DATA ON INDUSTRY AND MARKET To meet the growing and diverse requests necessary to modern feed , in our country bakery makes a variety of types, which can be grouped as follows: bread, half white bread , white

bread, loaf products, dietary products and bretzels products . In production structure black bread is 28%, bread milled is 30%, white bread is 31%and loaf products and other types are 11%. The last ten years have brought a decrease of ten kilograms of bread consumption following a change in the preferences of the Romanians. Every year on this very fragmented market changes occur, and the segment is very dynamic. Thus, the daily bread is not bought but two or three times a week, packed and sliced bread is preferred at the expense of fresh and newer, and it is not bought at neighborhood stores any longer, but in supermarkets and hypermarkets, the share of sales in modern trade formats increasing by 30%. Meanwhile, specialized shops selling bakery products have a share of only 6% of sales. Bread market recorded a turnover of over one billion euros annually and produces about 2.5 million tons of bread, say experts in the field. In 2008 the Romanian market of milling and bakery products was estimated at about 2 million tons in volume and about 2.3 billion worth, up 15% over 2007, Pambac officials said, one of the leading manufacturers on the market, which expects for the current year a decrease in volume of no more than 2%. The economic crisis could affect investment in bakery industry, estimated at 100 million euros for 2009, as accessing credits becomes more and more difficult. Romanian market value of milling products, bread and pasta products will increase by about three percent in 2009 ,compared to the estimated value for 2008, approximately two billion euros, according to data provided by ROMPAN. "For 2009, an increase of 2-3% quantity of the products is expected, due to increasing population consuming by the return of thousands of Romanian workers," said the president of ROMPAN industry employers, quoted byAgerpres. The investments made in 2008 in the milling bread amounts to about 180 million euros, of which most have started in the secondary processing of cereals (bread, pasta, biscuits, confectionery, breakfast cereals) due to the access to EU funding available for 2008. Regarding the black market, said that the president of ROMPAN bakery sector, it recorded the highest in the EU, about 40 percent,and this is due to the extremely high taxes and especially VAT, which amounts to 24 percent, compared with the European average of only 5-7 percent. In Romania around 5,500 operators are authorized to work in bakery and pasta products and about 3300 in milling . Of these companies, 280 are part of ROMPAN, with a market share of almost 50% percent to bread, 60% in milling, 80% to 70% to pasta and biscuits. The main companies operating currently in the market and who are also members ROMPAN are Vel Pitar, Seven Ears, Boromir, Dobrogea, Panbac, Pan Group, Baneasa, Harmopan, Spicul Bucharest, San Mills Satu Mare, Titan, Pajura, Galmopan, Abomill. 2.2 ANALYSIS OF COMPETITION IN THE INDUSTRY USING PORTER'S MODEL On the bakery and pastry market, competition becomes aggressive, achieved by all possible means: advertising, offers, discounts, etc.. In this market five major players currently operates , and rankings changed in 2007 when Vel Pitar became leader. a) DEFINING THE MARKET Market definition involves identifying relevant product market and relevant geographic market. We consider the product market as manufacturing services, marketing and distribution of bakery products, pastry, confectionery and milling of cereals. The geographic size of bakery and milling market in the given situation can be considered the national milling and bakery products market, as the Boromir products are distributed in all the areas of the country. Boromir Ind acts on two markets: market entry andmarket exit. On the first type of market, the society appears as a buyer and establishes ties especially with suppliers of goods, labor and services and services doers. On the output market, Boromir has the quality of seller and exploits the achieved products and the services by establishing links mainly with the customers. b) COMPETITION IN THE SECTOR There is a widespread territorial bakery enterprises in Romania. In all areas there are large bakery complexes, but in addition there are numerous smaller companies that have as their object of activity only grist or only production of bakery products.

A characteristic of bakery industry is the large number of companies and the complementarity of medium and average societies. The intensity of competition is even greater as there is a lower level of concentration. Grain mill products market - bakery market is off-center, there are no major producers to own shares in the market, so competition is strong. Competition is greater if the growth of demand is low or constant. The main competitors in the bakery and milling market of Boromir Ind are: direct competitors: Vel Pitar for the Constanta Dobrogea Grup,Loulis, Ravoca Com Agro Pan and Pan Group Craiova Vaslui,Transag ape, Harmopan, Titan plus hundreds of small local producers in the counties where Boromir holds production capacity. indirect competition: general retail stores - hypermarkets and cash & carry stores in recent years developed to provide small bakeries and pastry bakery products (cakes, rolls, cakes,homemade cakes). d) POTENTIAL NEW COMPETITORS New-entrants into an industry can raise the level of competition, thereby reducing the attractiveness of the industry. The threat of potential new competitors depends largely on the barriers to entry. Great entry barriers exist in some industries, such as studied in this project, namely that of Boromir Ind linked,manufacturer in bakery industry in Romania. In the bakery industry, there are economies of scale that could be obtained by producers, such as the company considered, Boromir Ind, and these economies of scale is an important entry barrier. Another barrier is also represented by capital and investment requirements needed to become a competitor with other large manufacturers in this industry, Vel Pitar for the Constanta Dobrogea Grup, Panalim,Trans Agape, etc. Companies with well-established brand can use the brand and can introduce their new products on the market. Currently,even supermarkets and hypermarkets that have developed modern bakery stands, with extremely high offers can be considered potential competitors. In this category bakery distributors, both legal persons and natural persons can be included. b) CUSTOMERS Analyzing trade relations of S.C. Boromir Ind with customers and suppliers, we can say that the company has made a few constant business partners . Boromir sells its products on the markets where it has factories of bread, that in Valcea county accounting for 60% of the sales company with 13 stores here, in the county of Hunedoara has a network of six stores, in Sibiu County has five stores, in Buzau County 18 stores (considered the second largest market for the Boromir products ), and in Iasi has a network of six stores. In addition to its own sales network company whose target is consumers in their capacity as individuals, Boromir Ind takes into account market business customers, both composed of small merchants and large retailers. In conclusion, the clientele is heterogeneous society, the contribution to turnover is differentiated into three stages: strong, medium, small customers. e) SUPPLIERS Because of long and good cooperation with suppliers, supply of raw materials is done constantly, with no risks for the continuity of the production technologic process of Boromir Ind. group. The providers are generally companies that Boromir has traditional relations with and that did not create problems . However, collaboration with suppliers are based primarily on the mutual advantage, but if the prices and quantities do not correspond with the companys, this ceases and discontinues business supplier orders. Boromir Ind main suppliers are: Wheat: Comcereal Virginia, Comcereal Giurgiu, Galati-Comcereal, individual agricultural producers Eggs: Avicola Impex SRL Packaging: Intermeridian SRL Vinegar: Arges Topoloveni Yeast: Romate Bucharest Sugar: Sugar Buzau Margarine: Orkla Foods Science Oil: Argus SA Glucose: Tandarei, Calafat

 essence terpenes SA Baia Mare Bucharest Romate Cocoa: Sterochen Bucharest, Bucharest Rolin c)SUBSTITUTES In the baking and milling sector, substitute products are available in a wide range and are manufactured by competitors or even byindividuals. Thus, substitutable or complementary products can be listed as follows: Confectionery products: cookies, meringues, funny cakes, salt sticks, cheese pie, apple pie, croissants, Polish bagels, cheese cakes, cakes etc. Bread: white bread, semi-white bread vikorn bread , graham bread, potato bread, Dobrogea bread , black bread, toast bread, bagels, pizza tops, rolls; Pastry: gingerbread, chocolate cake, chocolate etc, muffins, biscuits etc. 2.3 FRAGMENTATION OF THE INDUSTRY Bakery market is an extremely fragmented market in our country so that the top five producers of bread hold a market share of about 30%. Competitors are not only small producers, bakeries in the city markets or village, but even supermarkets and hypermarkets that have developed modern bakery stands, offering extremely high: white bread, black seed, potato , round, etc.. In addition, bread shops and hypermarkets offers additional services, such as the ability to slice bread on the spot. Driven by these additional services, the share of modern retail formats sales increased by 30%, market players believe. Most manufacturers of bakery shops cover distribution by their own specialized,shops and offer other complementary products such as yogurt, milk, coffee and juices, beverages that fit well with croissants, pastries, such as Belforno Fresh, Vel Pitar networks etc.

Fig.6

Fig.7

Fig. 8 One possibility to overcome the fragmentation of this sector may be the changing of trading the bakery products and of consumers behavior as follows: bread can be bought only from specialized stores or specially designated districts, which will reduce the number of bread traders ,

up to 15-20%, at present, not only in Bucharest, being over 80 000. Also specialized companies in this sector should develop complex distribution channels to cover the entire national market and retail network, acquire manufacturing plants with a greater capacity than the consumer's mind and create a brand image and brand building. Within this sector, in my opinion, it ought to be a smaller number of producers so that they each have major market shares of national bakery and milling. 2.4 SWOT ANALYSIS AND BCG MATRIX OF THE BOROMIR IND 2.4.1 SWOT ANALYSIS Strengths The second largest producer of bakery and confectionery in the country It has a highly developed distribution network, expanded nationwide Involves mainly milling market, but has a wide range of products the organization based on three directions: manufacturing, retail and distribution Provide promotions, discounts and other promotional benefits for Clients Control of milling activity across the country, with Dobrogea SA Launching a new marketing concept, Boromir Pan Cafe Ability to practice lower prices because it also produces most of the flour needed for production potential range of products; Weaknesses underdeveloped own network of stores small shops weak recognition of Boromir brand because of promoting and trading its products under different names lack of a complex site in terms of relevant information to customers regardless of their nature Opportunities increasing demand for healthier bakery products expansion into international markets able to obtain European funding to increase production capacity or to improve the company's technology participation in fairs and exhibitions in the field bid for various government programs such as, for example, the "Corn and milk" Threats alternating drought and wet years with effect on wheat yields. changes in consumer preferences decrease in consumption of bread in Romania decreased purchasing power of population continued growth of competition that can come from many directions direct competitors and department stores that have developed their own bakeries 2.5 THE MANAGEMENT OF THE COMPANY BOROMIR PROD SA Board of Directors consists of: 1. Constantin Sava president of AC, 43 years, TCM graduate engineer in 1990, president and general manager of CA in February 2000. Constantin Boromiz Member AC; 43 years old, engineer, graduated TCM 1990, General manager of Boromir Ind Rm, member of the CA in March 2000. George Frintu member AC, 44, General Manager of Boromir Ind . Deva, a member of

the CA in April 2000. Raileanu Basil, member of AC, 55 years, prof. PhD in the Department of Accounting and Management Control Audit ASE Bucharest, member of the CA in May 2007. Viorel Dinu Philo-member CA. 47 years old, graduate engineer TCM 1986, General Manager, Slobozia, member in CA in 2007, Constantin Sava is a shareholder of the company and has a total of 1,061,858 shares. Constantin is the representative of SCBOROMIR Boromiz IND SRL Rm.Vilcea that reference on 24.03.2008 held a total of 76,070,704 shares. George is the representative of SCBOROMIR Frintu IND SRL Deva branch.PhiloViorel Dinu is the branch manager of Slobozia , Ialomita. In terms of sales structure, Boromir group is organized in 3 divisions based on products distributed and a fourth called the Key Accounts division, all having the same hierarchical structure: National Sales Director, Division Manager, Regional Manager -RM Managers Regional Sales - ASM Sal es Agents - SASMerchandizeri and Key Accounts - KAM. General Council of Associates

Management Council

Commercial Compartment

Tehnnical Compartment

Economic Compartment Finances Office

Control and Synthesis Compartment

Marketin g Office

Mechanics Office

Quality Technical Control Office

Sale and Supply Office

Work Protection Service

Accounting Office

Strategies Office

Economic Analysis Office PSI Office Bursary Office

ResearchProduction Office

Biscuits Office

Pasta Office

Bakery Department

Milling Department

Fig.9 III. CONCLUSIONS Analyzing policies and marketing strategies of the companyBoromir Ind we see that it makes considerable efforts to find the most effective mix combinations in order to achieve their goals. If policies and strategies of product, it is noted that Boromir has massive investments in modern technologies and innovative products to provide customers with best quality. Innovative technologies such as food safety and K. Touch guarantees that the client is first to reach the final product. Another strength of product policies and strategies is the vast assortment diversity,both in terms of bread and bakery products and in the range of pastries, biscuits, wafers provided by the company. In the product strategies of Boromir is recommended: 1. Taking into account local specificities in terms of product diversity 2. Diversifying the range of semi-cooked products . I suggest this strategy because Romanian consumers prefer increasingly more cooked products due to economy of time which they give. The semi-cooked product range of the company is quite small, comprising just the cake tops , pre- baked buns, pizza and pastry rolls. Given that this range of products is in growth phase, I suggest a diversification of the range of semi-cooked dough by introducing a range of frozen dough. Changes in consumption habits confirm the need for this product on the Romanian market. In addition, frozen dough market is growing, most products of its kind in Romanian supermarkets are imported. 3.enlargement and diversification of packaged bakery of Boromircompany. Currently , Boromir holds in its portfolio only three kinds of packed bread : Fibrovit and Graham Toast bread . The last two years were marked by increasing by 30% the consumption of special packaged and sliced products , products made by rye flour, whole wheat, graham flour or with added bran, seeds, wheat germ, etc.. 4. inserting recipes for packaged products. These small details are very effective for consumers. For example, each pack may contain recipes of pasta sauce, pasta dough and the flour package might contain recipes for pizza or cake. If pricing strategies, we observed that Boromir Prod is trying to implement price policies as convenient for customers, be they end users or whole sale customers. In this respect, the company opted for lower prices for

bread, fresh bakery and milling products and higher prices for new entrants; the competitiveness is not large. The proposed pricing strategies adopted policy of low prices and market entry of new products to help increase their popularity from the beginning. These low prices make the product more attractive and accessible to more clients. If this product is preferred, customers will buy after the price would rise less. If distribution strategies, I noticed that Boromir group is an important partner of Romania's retail network, including super and hypermarketchains and more. For the proposed distribution strategies, I propose: 1.reducing the distribution costs through increased utilization of transmission capacity and storage capacity, optimization of distribution routes, evaluating suppliers and maintaining a relationship both with them and the distribution partners. 2. expansion into foreign markets. This strategy aims to buying bread factories with a production capacity of 50-60 tons /day. Target markets are the ones in Ukraine, Bulgaria, Moldova, Yugoslavia because they have features similar to those of the Romanian market, but also markets such as Italy or Spain where a large number of Romanians are concentrated. 3. launching new locations inspired by a European concept and namely Boromir Pan Cafe. This innovation is triggered by the need to keep up with recent developments in retail and consumers to meet the need to relax during meals or mealbreaks. The locations will be developed on the "coffee to go" principle and will provide a resting area, the snack and soft drinks and the atmosphere is friendly, the music is relaxing and communication is modern. 4.expanding in franchise. After testing the concept by opening Boromir Pan Cafe locations in Bucharest and also in areas where the group has outlets to extend its specialized stores could achieve in the franchised system. On strategies to promote I noticed that Boromir Prod wishes to stand the competition, to attract, to communicate by the package.The proposed promotion strategies: 1. allocation by the company Boromir of more substantial budgets for TV commercials, radio, magazines and even launching an extensive publicity campaign to create a corporate brand Boromir to help shape the distinct personality of the company and strengthen its image. 2. Boromir company involvement in social responsibility actions that would bring the group a notorious contribution.

Bibliography

www.boromir.ro www.mfinante.ro
http://www.scribd.com/doc/54959749/Boromir-Final http://www.tranzactiibursiere.ro/static/comunicate_analiza/spcu_ian_09.p df

Anghel, F., Filip, A., Caescu, S., Georgescu, B. (2010) Business to Business Marketing. EdituraASE Kotler, Ph. (2008). Managementul marketingului, editia a 5-a. Editura Teora
http://www.scritube.com/management/marketing/Analiza-comparativa-astrategi35126.php http://www.zf.ro/companii/boromir-al-doilea-producator-din-panificatiecare-tinteste-pragul-de-100-mil-euro-3079229/