Expert Opinion on Exclusive Feature

S.A.M. Zakaria Hossain

General Manager, Sales

Marketing and Brand Communication, Kazi Food Industries Limited
Interviewed by Raiyan Rabbani, Team MBR

 

Mr. S.A.M. Zakaria Hossain is currently working at Kazi Food Industries Limited as General Manager, Sales, Marketing and Brand Communication. He has played an important role in establishing the brands, Bellissimo, Za ‘n Zee, and Kazi Farms Kitchen, in the market with a distinctive image and brand affinity with positive brand equity. He has more than sixteen years of professional experience in the field of marketing, sales, brand management, media planning and buying, events and activation, public relations, and digital marketing. Team MBR was in a conversation with Mr. S.A.M. Zakaria Hossain and was fortunate enough to receive his take on the food processing industry in Bangladesh.

Raiyan Rabbani: The food habits of consumers have changed a lot in recent years due to changes in their lifestyle. What other factors, besides this one, do you think have led to an increased preference for readymade food?


S.A.M. Zakaria Hossain: There are several factors contributing to this behavioural shift towards readymade food. One of the key factors is the increasing number of working women leaving for work while having less time to cook meals for the family. This also extends to providing tiffin for both parents and children at work and school. Ready-made foods are also becoming more available in the sub-urban markets, and the consumers in this segment have started moving towards ready-made foods. It is a quick solution for afternoon snacks or entertaining guests. The rise of online food delivery channels has also increased the demand for such readymade foods.

Raiyan Rabbani: In recent times, consumers are highly concerned about the ingredients of the feeds used to raise chickens on farms. How can industry participants gain the trust of consumers in this regard?


S.A.M. Zakaria Hossain: It is true that consumers are concerned about the ingredients of the feeds used to raise chickens. Conveying the messages of good quality ingredients or safe feeds used to raise chickens on farms using different marketing channels and regularly communicating them are important. For example, Kazi Farms Kitchen strictly maintains four health promises: all Kazi Farms Kitchen products are prepared with chickens that are vegetable-fed, completely free of harmful preservatives, antibiotic residues, and tasting salts.

Raiyan Rabbani: The recent hike in fuel prices has skyrocketed production costs around the world. Will you kindly share how it has affected the food processing industry?

 

S.A.M. Zakaria Hossain: The recent hike in fuel costs has also heavily affected our food processing industry. Prices of most of the necessary raw materials have gone up significantly. The logistical costs have also gone up due to the increased fuel costs. As a result, we were forced to increase the prices of our products, and so did the most of the industry players. We also have to keep in mind that the increasing price also has an impact on the purchasing ability of the customers, and the increasing costs also affect the manufacturers as well as the suppliers related to the industry.

Raiyan Rabbani: Processed foods like dried fish are expensive compared to the ones sold without processing. What are the main reasons why consumers prefer processed foods despite the higher prices?


S.A.M. Zakaria Hossain: The main reason for consumers to prefer processed foods is convenience. The promise of quality is another contributing factor to this increased preference. Due to the busy lifestyle, especially in urban areas, processed foods allow consumers to quickly prepare food, and it provides a solution for afternoon snacks, guest entertainment, tiffin, and so on. Also, brand values have played a role in increasing customer preferences.

Raiyan Rabbani: The food processing industry in Bangladesh is facing acute problems due to low capacity utilisation, technological obsolescence, and marketing shortfalls. How can the industry respond to these challenges?


S.A.M. Zakaria Hossain: By practising GMP (Good Manufacturing Practice), increasing productivity, enhancing manpower utilisation, increasing machine efficiency, and effective co-ordination with different stakeholders, we may overcome these challenges. Including automation in the process lines, on-thejob training and development of the employees, and recruiting people with technical know-how and subject matter expertise are also important. Effective coordination among marketing, sales, R&D, supply chain management, production, and operations departments can prevent dysfunctional decision-making and reduce marketing shortfalls.

Raiyan Rabbani: The products that the food processing industry produces are quite homogeneous. What are the scopes for product differentiation and R&D in this sector?

S.A.M. Zakaria Hossain: As the market is growing rapidly and not in an infant stage, new customers are joining regularly. So, there is scope for product differentiation and R&D. To get the competitive edge as well as to create a new customer base, product innovation and differentiation are needed. The market has the appetite to accept new innovations, and the scope ranges from product variety to food taste.

Raiyan Rabbani: Our government is prioritising the food processing industry in order to boost the exports from this sector and meet the growing domestic demand. What is the policy support the industry requires to flourish?


S.A.M. Zakaria Hossain: With government support already prioritising this industry, further policy support can be provided in some aspects. Farmers need to get a timely supply of seeds, fertilizers, and other necessary tools. Ensuring the right prices and eliminating middlemen will make them interested in producing more crops. We need to take the necessary initiatives to ensure proper utilisation of uncultivated lands. We also need to take the steps needed to make sure that other countries will accept our different compliance certifications.

Raiyan Rabbani: Bangladesh faces increased competition while exporting its products to foreign markets. What would your suggestions be to maintain competitiveness in the export market?

S.A.M. Zakaria Hossain: The government may intervene to bring more stability to the currency conversion rate. Subsidized utility support on exports can help gain a competitive edge in international markets. Also, it is needed to reduce the time it takes on the customs processing side. Reduction of transit time is required for efficient port operations. The government needs to take the necessary steps for easier regulations to enter into the international markets.