Products quality, the assortment structure analysis and the commercialization the milk, on the Cahul town market, RM

TODOS IRINA
STATE UNIVERSITY B.P.HASDEU FROM CAHUL, RM E-MAIL ADDRESS: todosirina@gmail.com
Abstract: The modern market economy is based on the conservation of the principle of free competition among those who pursue the same activity, have the same aim or a similar motive. Competition is regarded as a condition and a guarantee of the progress. In their capacity of consumers, people acquire through the medium of the market, the goods and services necessary to satisfy their needs. Owning to the fact that they are in the possession of a limited income, the consumers constantly confront with the problem of choice, being in the situation of renouncing to some goods in favour of some other ones. The consumer choice is determined by factors such as: the economic utility of goods, their price and the quality which is offered on the market, the available income.

Key words: products quality, assortment, commercialization, packaging

COD JEL: M19

At the present moment the changes that have taken place in the modern society tend to place the economic activities from the sphere of quantitative phenomena in the one of qualitative phenomena. The point is about a re-orientation of economic activities towards the superior products from a qualitative point of view, a re-orientation which represents not only a necessary modality in the competitive struggle, in the acquiring of new markets, but not in the last range, contributes to the increase of economic achievements, to the improvement of the financial standing of any economic agent. The global experience and the orientation of the economies of the states towards globalization proves the intensive increase of the interest for quality thus for the modern society the continuous increase of the products quality constitutes a basic condition for the economic growth. At national level, this perspective is influenced not only by the internal/domestic competition which is getting harsher, but also by the perspective of expansion of international economic relations, by the integration of Moldovan economy in the European Union structures. However, the quality of the products shouldnt be regarded as an aim in itself, but as a consequence of the quality of the whole activity of an enterprise, the quality of the employed staff, the quality of the organization and administration system, the quality of relations with business partners, thus as a consequence of the quality management adopted by the enterprise. So, the quality of the delivered products or supplied services must be a permanent concern, a basic objective of all the enterprises engaged in the struggle for maintaining the competitiveness, for acquiring the market share, to which it is addressed. In real life, the consumer choice is influenced by a large range of factors, such as the producers decisions regarding the quality, the assortment and the quality of goods that the market supplies. The quality represents the starting point in achieving success, this is a complex, dynamic notion and whose content has evolved through time. The notion of quality has a wide circulation and is used in all the spheres of the social life, its meaning differs in accordance with the field in which it is used: philosophy the quality represents the propriety which determines the nature of an object [6, p.43]; in logic we are talking about the quality of a sentence, having in view its affirmative and negative character [7, p.43]; in social life we understand by quality a certain position in a hierarchy, a social situation or a title [11, p.3]; but the widest use of this notion is in the economic-technical domain, where the degree of detaliation differs in accordance with the concrete domain of reference. In the specialized literature, because of its complex character, a single definition cannot be identified, so that, in what follows we are going to present several of them:

Complying with the clients needs, the availability of the product, a systematic application towards excellence, conformity to specifications, adequate for utilization [14, p.35-36]. Complying with a necessity, conformity with specifications, the degree of gratification of the consumer, conformity with the book of requirements/tasks, a low price for a given utilization, the capacity to fulfill a need, the conformity with a given model, the totality of means for the realization of a viable product [15, p.23-24]. The degree of utilization, the capacity of utilization, the gratification of the client, correspondence to requirements. Table 1. Classical Definitions of the Notion of Quality Author The Definition of the Notion of Quality Juran J. fitness for use corresponding, adequate for usage [10]. Deming E. price has not sense without quality, and quality is in its turn is meaningless if it doesnt reflect the consumer needs [5]. Ishikawa K. the priority which really meets the consumer needs [9]. Feigenbaum the totality of characteristics on the market, engineering, A. manufacturing and maintenance of a product or a service, by means of which the used product and service would comply with the consumers expectations. [5]. Crosby P. Alleges that a product is of quality, if it is meets needs [5]. Drucker P. the quality represents what the client is willing to pay in accordance with what obtains and capitalizes [5]. Source: elaborated by the author From the above definitions, we can notice that these entities are a component part of aspects of quality. Another side of this notion is treated by the most renowned qualitologists, and namely, the quality from the consumer point of view. In what follows we propose several classical definitions of quality (table 1). Table 2. Modern Definitions of the Notion of Quality Author The Definition of the Notion of Quality Ghiorghiu A. the measure, the degree to which a product by the totality of technical, economic, social and operation characteristics complies with the needs for which it was created [8, p.9]. Baron T. the expression of the degree of social utility of the product, the measure in which by the totality of its technical-functional, psychosensorial characteristics and economic parameters complies with the need for which it was created and observes the restrictions imposed by the general interests of the society regarding the social-economic efficiency, the protection of natural and social environment [1, p.45]. Maxim E. and the ability of a product to dispose of a totality of technical, social, Jica P. economic and environment protection characteristics, which bestows on it the possibility to comply to a certain level with some specific or implicit necessities [11, p.20]. Soare I. and the degree of utility of the offered economic asset, the degree to Colceru A. which by the totality of its technical and economic characteristics complies with the need for which it was created without affecting the health, security of peoples lives and without affecting the environment[18, p.10]. Baily P. etc. the entire set of traits and characteristics of a product or service, which are relevant for complying with certain requirements[2, p.103]. Source: elaborated by the author According to the quality mentor Joseph Juran, the quality shouldnt be approached as a homogeneous entity, the same product must meet different needs. From his view, within the enterprise the quality should be on the first place; it must meet clients requirements; it must introduce a process of quality improvement; systemic deficiencies must be eliminated; it must be developed the evaluation of systems fiber.

A new stage in the evolution of the concept of quality is the modern period, the period in which the notion of quality finds another approach (table 2). These definitions are based on the fact that the products do have technical, economic, social characteristics, as they have concrete material content, but services do not have material content, and the characteristics, which quality bestows on them, differs from that of the material goods. An important role in the evolution and creation of the concept of quality unanimously accepted, had the International Organization for Standardization, by the creation of the ISO 8402 standard, through which an international consensus is being reached in what concerns the terms, definitions and concepts applicable to quality. According to this standard, the quality represents: the totality of proprieties and characteristics of an entity, which confers to it the ability to comply with the explicit and implicit necessities [19, p.7]. The appearance of the standards from the ISO 9000 family leads to the creation of a new view regarding the quality, thus, according to the ISO 9000:2000 quality represents the measure in which a totality of intrinsic characteristics fulfill the requirements [19, p.15]. From this definition we can deduce: -The quality isnt expressed by a single characteristic but by a totality of characteristics. -Quality isnt independent, it exists only in rapport with the requirements. In our opinion the quality represents the technical, economic, social, environment protection, psycho-sensorial characteristic of a product, which meets consumers needs and complies with the necessities for which it was created. For the measurement and characterization of the products quality a system of indices may be used among which: partial indices of products quality (the percent of fat, the degree of acidity, weight on horsepower, the maximum power, humidity), the indices which express the share of superior quality from the total of products of the same type, the indices of rejects, the indices of consumers complaints. Further on we will analyze the next susceptible zone the assortment of products. The traders concerns are directed towards forming an optimal assortment which would allow reaching the objectives and complying with the market requirements. In the economic theory and practice, up to present, a consensus regarding the definition of an assortment hasnt been reached. In the specialized literature, there are in these respects, several options, but the majority of specialists agree that the assortment represents a totality of products of the same category, but of different forms, qualities. In certain specialized works the notion of array/range of products in the manufacturing sphere and assortmental range in the distribution sphere are considered more adequate. The number and differentiation of the range of products reflects the degree of diversification. The structure of the array should be balanced must include products harmoniously distributed, in different phases of the commercial life cycle of a trademark. Each array is composed of a variable number of ranges of related products (for example, consumer milk, cheese, ice-cream), composed in their turn, from one or more individual articles, starting from a basic product, very attractive (appeal product) or of a high technology (a prestige product). These ones may have more variants or models (different packing, forms, dimensions, weights, system of colours, design etc). The choice of goods represents a modality of reflecting and quantifying different family of products supplied by the enterprise to the consumer. The appreciation of goods offered for selling supposes the knowledge of the assortment of goods. Among the indices which allow the comparative judgment of the utility of presence of articles in assortment range as follows: the proportion, on article or product, between the (value) share in marketing and the share of the same articles number from the total number of articles existing in stock; the circulation speed (calculated on article as a rapport between the average stock and the average daily marketing of the product), indicates the level of request for the product by the consumers and the frequency of selling; - the gross profitability of a product indicates the net benefit achieved by the selling of the product after having cut the afferent costs. [13] The mode of delimitation of the assortment is orientating because the structure of the assortment differs from enterprise to enterprise. In accordance with the chosen assortment structure, an enterprise may offer a wide or limited assortment, a restricted or profound assortment. [20]

For a long term success in business it is needed to establish and permanently respect strategies and policies regarding the activity and development of the firm, provided the firm is ready to face the dynamics of the economic medium. [13, p. 28] The assortment policy, being a component of the product policy, refers to establishing the dimensions and products structure (sold on the market by a commercial firm, in rapport with the available potential and in rapport with the requirements of the covered market share). [12,p. 251] The multiplication and continuous renewal of the products assortment within the market, represents a reflection of profound changes which intervene in the consumption needs, in the mechanisms of their formation and gratification. Besides these the factors which should be added is the physical depreciation, the decrease of utility of a product is continuously amplified by the functional depreciation, especially by the appearance of new products. As a consequence, the process of diversification of goods supply takes two important aspects: the continuous increase of the assortment range through the appearance of new products, which are added to those existent and the change of the assortment structure by the substitution of some of them with new products - the differentiation and individualization of the supply in the competition process. The assortment policy insures, on one hand, the connecting tool of the structure of the fund of goods to the evolution of the demand, on the other hand, allows the collection of extremely diverse information conveyed on the market. It regards the structuring of the assortment of goods both at the commercial enterprise level, and the store. The main criterion in the latter situation constitutes the realization of a most accelerated rotation of stocks with the higher possible amount of sales and a minimum level of circulation costs. [21] As a consequence, the assortment policy manifests on the following activities: a) the creation of a managerial tool in marketing to connect the fund of products with the evolution of demand; b) the collection and interpretation of information specific for the market; c) the optimal structuring of the assortment of products, thus the increase of economic efficiency, manifested by the increase of rotation speed of stocks, the increase of the amount of sales, the reduction of the level of circulation costs. [12,p.251] In a market oriented organization, the production begins with the client and the market. [4.p.281] The sale of goods represents the act through which the capitalization of production results is insured; it is a moment of the activity of marketing which finishes all the actions that the manufacturing enterprise undertakes, the commercial agent so as the own product is required and accepted by the clients. Through this act, in fact, the aim of the one who produces and/or sells is being achieved, respectively the one of recovering the expenses effected with the manufacturing and preparation of the product for sale and the obtaining at the same time a profit. [3,p.359] In order to attract and maintain loyal customers, the commercial firms promote several particular forms of sales, which are based upon: The reduction of selling price; - The allowance of payment facilities. [17,p.27] The selling is a complex activity, which in a market economy, takes a higher level of difficulty. To sell is nowadays an art. [3, p.27] The forms of sale in commerce have known a continuous progress, each innovation from this domain generating the appearance of new types of selling points (the souperette, the super and hypermarket, deposit cash and carry, the discount shop) but also the creation of certain forms of commerce, the so-called delocalized one (the teleshopping, the sales over the telephone, the sales at home). [17,p.27] The sales of goods is being done through several ways: On the basis of an previously signed contract at the customers demand; On the basis of a firm previous order, followed or not by its immediate settlement; - At the non-programmed but predictable demand, from the own shops and stocks or of the public commercial network. [22] The way through which products are sold is in accordance with the nature of the products, the utility sphere, the characteristics and buying potential of the solicitants, the ways of distribution utilized, the modalities exercises by the producer-deliverer for the marketing of its products. For the goods of productive utilization with a restricted sphere of utilization , which are produced in smaller quantities, it is prevailing the sales on the

basis of signed commercial contracts or firm orders launched previously by the clients. The manufacturing with the aim of selling of such products, without the guarantee of credit-worthiness of the demand by the means of the mentioned documents, presents a higher level of risk. [3,p.360] The factors which play a considerable role in the process of selling from the competition point of view are: the price, the assortment, the localization of the selling point, the post-selling service, the brand, trademark, the packing. The milk processing industry is one of the basic sectors of the RM economy, which confronts with multiple problems specific for the transition period: the considerable reduction of the volume of raw material, and as result, the reduction of the quantity of industrially processed milk, but also of the degree of utilization of production capacities, the reduction of the volume of finished products, the loss of distribution markets. The milk processing industry holds a small share from the total production volume of the food and drinks industry of the RM, representing only 8% from its total, proportion which can fluctuate from year to year. However it is of a vital importance due to the production of goods necessary for the daily consumption of population. The milk processing industry is represented by a number of more than 20 milk processing enterprises, among the largest are Joint Stock Company Incomlac, Joint Stock Company Lapte, Joint Stock Company Cupcini, Lapmol LTD, Lactalis-Alba Moldova LTD, and on the district Cahul market the Joint Stock Company Dairy Products from Cahul is in operation. Joint Stock Company Dairy Products from Cahul was established in 1940, having the profile milk collecting and processing. Currently it has become an important producer of dairy products in the south of Moldova, a renown and appreciated trademark by clients, partners and consumers as well as by authorized forums which have granted numerous distinctions to it. The technical production norm is of 1500 packets /h, thus: the capacity in one day is 1500pac/h x7h=10.5 tons/shift; the annual capacity: butter -29 tons, cheese 54 tons, integral milk production 1005 tons; the utilized capacity: - for milk 223.4 x 370/100 = 60.4%, - for sour milk 174.7x 580/100= 30.12%. We can mention that the maximum production capacity of the enterprise is being utilized only for 50-51%, that is a half of its total capacity, because of the insufficiency of raw material, which doesnt allow to obtain the corresponding share of profit for the integral utilization of production capacity. Table 3. The Turnover Index for Dairy Products from Cahul No The Index 2007 2008 2009 Relative Relative Deviation Deviation 2007-2008 2008-2009 1. Turnover 14201 13535 14156 -4.92% 4.38% (thousand lei) The source; elaborated by the author on the basis of statistical data N.1 for the years 2007, 2008, 2009. The Turnover index of the Joint Stock Company Dairy Products from Cahul increased by 4,38 % in 2009, as compared with the previous year, comparatively with the same period, reaching to 14153 in 2009 from 13535 lei in 2008. The enterprise that has the aim to maximize the advantage on long term must adapt its supply of goods to the customers always new needs. This process of adaptation through the development of new products, the renewal of existent products or the reorientation of the production programme in the case of enterprises that produce goods is being achieved through the product policy/ the assortment. For a consumer the value of a dairy product refers both to the nutritional properties and to the quality and security in which it was produced. As a consequence of milk processing, the analyzed firms offer products rich in nutrients, ideal for a healthy diet, products that certainly bear a quality trademark, searched for by any of us. At the present moment Dairy Products from Cahul supplies on the market a wide range of dairy products, and namely: milk 2.5% fat (plastic packet, weighted) one liter; sour milk 2.5% and 1% fat (plastic packet) for 0.5 kg; cream 20%, 15%, 10% fat (weighted, polyester glass) for 0.2kg, 04kg; fresh cow cheese 5%, 9%, 2% fat (weighted, paper laminated packet) for 0.25kg; Moldavskii cheese; cheese cake with rennet Astonskii; cheese cake with rennet Tezaur; butter Cresteanscoie; melted butter.

In the assortment policy Dairy Products from Cahul chooses the structural maintenance of the assortment, because there are some equilibrium points, limits, beyond which the expansion of assortment makes the prices rise too much without a corresponding increase of the income. Let us analyze the offer of Lactalis-Alba Moldova LTD- this one proposes a rich assortment of dairy products of diverse categories, varied packing and quantities starting from pasteurized milk of (3 types), sour milk (5kinds), cream (over 6 kinds), butter, cheese (5 types), yogurt desert (6 kinds), bio sour milk (4 kinds), biofresh, bifilact, and not in the least the President range of products, over 16 deserts that have as basis cheese). [23] After the above said we notice that the number of products from the assortment Lactalis-Alba Moldova LTD is much more varied than the one of JSDairy Products from Cahul , with the view to comply with the customers needs, and meet their requirements, the firm Lactalis-Alba Moldova LTD, makes consolidated efforts to permanently improve the technological process and to be competitive with the modern technologies; which fact JSDairy Products from Cahul doesnt take into account. Its actions, currently, are not customer-oriented, towards the best gratification of their needs and being competitive, it rather has the target to obtain a certain profit so that afterwards to be able to make some investments in the re-equipment, re-endowment of the enterprise. As we can see there are some products made by Lactalis-Alba Moldova LTD which dont even appear in the offer of JSDairy Products from Cahul, but the choice of the enterprise for a given assortment is being formed and modified through time in accordance with the demand of the population, the size and resources of the enterprise (equipment the number of employees), the territorial placement of retailing centers (the number of provided/serviced stores). The company Lactalis-Alba Moldova LTD regularly expands the list of assortments oriented towards different categories of population. The process of modernization installation of technological equipment is being continuously done, new technologies of milk processing are being implemented. The procedure of laboratory verification of the quality of the launched goods is being upgraded , which is due to the increase of the selffinancing rate, because any new product included in the assortment structure of the firm definitely supposes, additional costs and only with a certain probability, additional income. JS Dairy Products from Cahul doesnt have many chances to rapidly evolve in this direction, because it has an obsolete equipment, which dates from the day of its renovation (the 1960s, the usury/depreciation rate of the fixed means is of 64.4%), as well as the fact that many more stages of the production process is being done manually, this is when the new technologies, technical innovations are so accessible. The modification of the assortment of goods produced has the aim the increase of sales, the acquisition of new markets and clients, the relative reduction of expenses and the increase of the profit, of which fact other competitors on the market take advantage Lactalis-Alba Moldova LTD, Lapmol LTD. An important factor which stops the action of increasing the assortment of goods, in the case of JS Dairy Products from Cahul is the absence of the necessary quantity of raw material. The enterprise provides itself from the private sector and public, to the latter it appeals in the case when the private sector doesnt cover the necessary raw material. In order to remove this factor it is necessary to establish relations with new suppliers who have the capacity to ensure the necessary quantity of raw material, so as not to allow the interruption of the production process from this motive. Wishing to enlarge the assortment of its products Dairy Products from Cahul must adopt certain strategies (determining upon the assortment of dairy products). Competitive strategies are also decisive upon the assortment profile. One of the most important variables of the marketing medium, upon which the firm doesnt detain any control but which it tries to influence in the wished/expected way is the consumer. The customers behaviour covers all the actions involved in the choice, buying, utilization and getting rid of products and services. The commercialization of dairy products made by Dairy Products from Cahul, from the moment of its setting up, was done wholesaling , but during the last two years the enterprise practices also the retail selling, attracting the clients at its selling points, by more reduced prices (decreasing the intermediarys fringe benefits). The majority of activities that belong to the retail selling take place in stores, but there are certain exchanges which take place in the outside, externally through telephone

orders, catalogues for orders , by correspondence or via the Internet (Lactalis-Alba Moldova LTD, Lapmol LTD have created their web pages that contain general information about the enterprise, the offer and the contact means all of which are unavailable for Dairy Products from Cahul). Lapmol LTD, Lactalis-Alba Moldova LTD, are wholesale companies, performing this activity by supplying the grocery shops from the entire territory of the RM, ensuring shipments with dairy products with special vehicles which maintain their quality and freshness. JS Dairy Products from Cahul has a restricted market of distribution of its products, the fact which is due to multiple reasons, and namely: The existence of a considerable number of competitive companies on the domestic market; The absence of a quality management; In order to be able to export it is necessary that the products of the enterprise tally with certain standards of the target country, as for example ISO 9001, ISO 22000, ISO 14000; The absence of a marketing policy; A low level of promotion. As a result the final products of the enterprise are sold in the southern zone of the republic, more exactly in the districts Cahul, Vulcanesti, Taraclia, as well as a small quantity in the capital of the country Chisinau. The stores supplied by the JS Dairy Products from Cahul are provided with the entire assortment of its products depending on their order. In the vast majority the shipment of dairy products from the enterprise to the stores supplied is being done by the own means of transport, having in their possession 4 special vehicles (endowed with refrigerating installations). In 2001, the company Lapmol LTD created the trademark Big Lapic. This one was a new product on the market of Moldova, which immediately became favoured by the consumers. Thus, as we have noticed the trademark is considered a key element in the commercialization process of the products, because it is this that makes the difference between the product of the competitors one, and fulfills basic criteria, adds the value of the product, complying also with the psychological needs of the consumers, determining their confidence regarding the quality level of the product. The packaging way of products, the materials from which the wrapping is made, the design etc, decisively influence the commercial success of the trademark, which is also called the dumb seller. Thus, at this point, all the companies above-mentioned use the same technologies and packaging materials, the difference consists only in the design of the package. The packaging of the Dairy Products from Cahul products, is elaborated with the aim to supply information about the product, to capture the consumers attention and interest to buy it. Thus the packaging places emphases on the product in rapport with other competitive firms attracting the consumer. The text on the package is often followed by bar cods , that can be read with an electronic equipment of encashment, by security marks to prevent the product forging. The packaging fulfills the product security, it protects the product, the consumer and the environment. Undoubtedly, the product trademark and packing are the basic elements inherent of the product, but there are other ones that are not to be neglected either, such as the services, the guarantee, the label, the technical performance and features, the weight, the volume, the colour, the style etc. In this context, the firms, in order to boost the turnover rate, legalize the commercialization processes of dairy products on the basis of the selling contract. For Dairy Products from Cahul company, the clients orders, the contracts and the orders to supply the stocks from stores and warehouses represent the basic information regarding the products and afferent quantities which should be available for distribution. The shipment is being made from the stocks of finite products or from the products supplied up to the moment when it should be organized, and shipment performed in accordance with the order. The data regarding the sales are flowcharted in the form of programmes, and in what follows we are going to examine certain indices of the production (table 4): Table 4. Economic Indices No Indices Unit of 2007 2008 2009 Relative Relative measure Deviation Deviatio 2007-2008 n 2008-

1. 2.

Income from sales

The value of 12801 14641 11995 12.57 -18.01 the production 3. The value of 13957 13246 11991 -5.37 -10.5 sold production 4. Processed milk 2509 2434 2237 -3.08 -8.8 5. Finite Products: Butter 19 23.4 29.4 18.8 20.4 Cheese 77 84.3 54.3 8.66 -55.25 Cheese cake 11 23 52.2 Products from Integral milk 1488 1134 1005 -31.2 -12.8 6. Stocks of finite cheese 1 23.7 19.1 95.7 -24.08 Products in butter 0.1 1.8 94.4 current prices The source; elaborated by the author on the basis of statistical data N.1 for the years 2007, 2008, 2009. As we can notice from the data in table 4, the income from sales for the year 2009 practically have reached the level of 2007, except that in 2008 a reduction by 4.92 % of this value has been established as compared with the preceding year. However the value of the production, as well the one in current prices, as the one sold for 2009, is decreasing as compared with the preceding years, respectively by 18.01% and 10.5%, fact which is due to the reduction of the quantity of processed milk by 8.8%. Table 5. The volume of goods delivered by JS Dairy Products from Cahul N Denomination 2007 2008 2009 Relative Deviation % . of 2007-2008 2008-2009 the product Q V Q V Q V Q V Q V 1. Pasteurized 31 161 32 188 302 161 2,48 14,1 -6,6 milk 2.5% fat 4 8 2 3 9 16,3 (tons) 2. Butter (tons) 19 892 23 132 27 159 17,4 32,4 14,8 17,0 0 2 8 3. Melted butter 2 38 2 41 0 7,31 (tons) 4. Cheese cake 98 464 62 369 58 302 -36,7 -6,9 with Rennet 9 5 2 25,8 22,3 (tons) 5. Fresh cow 11 344 23 664 52,2 48,2 cheese (tons) 6. Tvorog (tons) 72 165 52 151 57 143 -27,7 -9,6 8,8 -5,6 5 0 0 7. Cream (tons) 16 348 11 302 101 231 -28,7 -17,8 7 7 9 2 7 15,4 30,4 8. Sour milk 21 190 17 141 181 128 -21,6 5,52 -10,1 (tons) 8 2 1 4 4 34,5 The source; elaborated by the author on the basis of statistical data N.1 for the years 2007, 2008, 2009. Template; Q- Quantity in tons, V- Value in thousand lei According to the data from the table 5, the deliveries JS Dairy Products from Cahul during the years: 2007, 2008 and 2009 are in a continuous decrease, only the demand for butter and fresh cow cheese establishes increased deviations. Thus, for the year 2009 the relative deviation for butter has represented 17.08% (272 thousand lei) and for the fresh

Thousan d lei Thousan d lei Thousan d lei tons tons

14201

13535

14156

-4.92

2009 4.4

cow cheese represented 48.2% (320 thousand lei), fact which is due to the incomplete utilization of the production capacity, and the absence of any promotion of these products. Basing on the calculation of economic indices and the analysis of the current situation ofexpansion, creating so new the activity of JS Dairy Products from planning we have elaborated the SWOTline of Analysis: strategic Cahul, from the given
jobs business

A medium

stable

economic

The manifestation of a stagnation state or regress at competing firms Risks

Strategies The opening of specialized shops on the territory of the republic

Strategies Orchestrated advertising, at the level of all the shops Orientation towards export

The entrance of new competitors on the market The raw material deficit The economic crisis

The interest rate

increasing

Entering in a economic recession period at the national level or international level Changes in the clients needs, tastes or clients preferences The competitors increased pressure

The negotiation with suppliers and distributors to establish more attractive prices Carrying out marketing research

The establishment of certain strategies to overcome the crisis The extension of the assortment of goods

The existence of distinctive competition

The light industry is an important part of the economy of our country, a factor of regional development, of social stability, representing one of the most dynamic sectors from the country.

In the situation of the current economic crisis of the Republic of Moldova, the activity of the economic agents becomes very difficult. They face problems of different order. The harshest ones being the instability of the factors from the economic medium of activity, the imperfect legislative and fiscal systems, the absence of financial means and limited access to the innovational technologies. In these conditions the autochthonous enterprises have the difficult task to survive in the harsh competition from the national market, but mostly on the global one. Irrespective of the field of activity the risks are inherent for any enterprise. On the basis of the effected analysis, we can say that JS Dairy Products from Cahul is an old enterprise, which during its long existence, hasnt undergone through many administrative, technical and technological changes. The new conditions on the market have generated such problems, which make the enterprise more independent from the external medium. It can be said that, in the current context of market economy, JS Dairy Products from Cahul, possesses the necessary resources for the renewal and diversification of its offer, so that it may become more and more competitive. Although the firms offer is well individualized, it can be diversified, especially in the conditions in which the globalization of business deals necessitates, requires the identification of a competitive advantage for all the firms, irrespective of the object of activity. The competitive advantage may be obtained by JS Dairy Products from Cahul by registering the products of their concept with an own trademark. The efficient long term functioning of the society may be ensured only by maintaining the quality level and the orientation towards the current requirements of the national market. The increase of the prestige of the society, the consolidation of its position on the market may be ensured by manufacturing products according to the clients requirements and expectations, respectively the functioning of an efficient quality management system, thats why it is important to give a special attention to the activities that lead to the improvement of the products quality and to the achieving of the set objectives. JS Dairy Products from Cahul must propose for itself to reach the following objectives; Complying with the clients requirements Fighting competition by producing quality goods, which would guarantee an efficient competitiveness. Improving the foodstuffs quality through the implementation and integrated functioning with the quality management system ISO 9001 Training the employees with the aim of improving the professional knowledge. Ensuring a long term profitable functioning of the organization Ensuring some decent, motivating and attractive work conditions for the employees. The implementation and maintenance of a quality management system in accordance with SR EN ISO 9001 and the permanent improvement of its efficiency. The improvement of the products quality is an objective for the producer, because it ensures a competitive advantage, but as a rule, a superior quality means also additional expenses which the consumer would perceive in the price. Thats why, the producer must take into account the consumers wishes and improve the quality only if the client wants it, and would accept the additional cost, after perceiving this aspect. An opportunity which lies in front of JS Dairy Products from Cahul is the market share on the territory of the republic that it can acquire by its offer, that is has the capacity to expand the distribution market if not internationally, at least on the national level. References:

1.

Baron T. Statistical Methods for the Quality Analysis and Control. Bucuresti; Didactic and Pedagogical Publishing House, 1979. 329 p. 2. Baily and others. Principles and Acquisitions Management. Chisinau; Publishing House ARC, 8th edition, 2004, 511p. 3. Basanu G., Pricop M. The Supply Management and Marketing,, 3 rd edition, Bucuresti: Economic Publishing House, 2004, 543 p. 4. Cole Gerald A., Management Theory and Practice, Chisinau; Stiinta, 2006, 443p. 5. Cupcea V. Increasing the Efficiency of the Activity of Ready-Made Clothes Enterprises through the Implementation of the Quality Management. Doctorate Research Paper. Chisinau. 2007, 156 p. 6. Didier J. Dictionary of Philosophy. Bucuresti. Encyclopedic Universe Publishing House, 1999, 98p. 7. Frunze A. The ISO Standard 9000 Seduces Modern Firms. In; Economic Observer, 1999, Nr 4, p.22.

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