PEST and Competitive Analysis Faced by Confectionery Organizations
This report defines the PEST and competitive analysis facing by
confectionery organisations. The international organisation’s Cadbury
and Nestle are the organisations where the leaders of confectionery
food. This report will discuss the strategy using by these two
companies and their mission, what are their objectives and how can
they achieve their goal?
Introduction
The UK confectionery market forms part of the food industry and was
valued at £5.54bn 2001. Sales have increased over a number of years.
Although not an essential purchase, confectionery is bought by the
majority of the population. Changing eating habits have led to
increased levels of snacking and grazing and, as a highly accessible
and desirable food, confectionery has been able to capitalise on this
trend. There are two main sectors in the market — chocolate
confectionery and sugar confectionery.
The UK market is relatively mature. As a consequence, there is little
scope for market growth. The predominant trend among the leading
companies is to expand through brand extensions rather than new
product offers. Confectionery is an impulse market, which means that
strong brand identities are of key importance. Creating new products
by extending established brands carries lower risks than launching new
ones, because the products have a head start in the market. Limited
editions, where items are offered in new variants for short periods of
time, are also favoured. Although this type of activity can maintain
interest in the market, the actual growth potential is limited.
Sectors that have expanded s...
... middle of paper ...
...performance. The Company's priority
will be to bring the best and most relevant products to people,
wherever they are, whatever their needs, throughout their lives.
References
Books
Hawkins, Del I, at. A1, (1998) London:
Consumer Behaviour, building Business Strategy, Ed 7th McGraw-Hill
Schiffman, et.al, (2000): London: Consumer Behaviour, Ed 7th
Prentice-Hall
G A Cole (1996): Management Theory and Practice, Ed 5th
Edexcel HND Business Course Book (2000): Business Strategy
Journal
Arnould, Eric J, and Scott Linda M,
“Consumer Resistance to, and Acceptance of, Innovative”, Advances in
Consumer Research, 1999, Volume 26.p.218-223
Internet
Http://www.nestle.com
Http://www.yahoo.com
Http://www.cadbury.com
Http://zerlina.emeraldinsight.com
Http://www.google.com
In my research, I was asked to find out why it is best for large organizations to use both PEST and Porter analysis in understanding their particular external environment. I discovered that these tools identify external environmental factors that are subject to change in the marketplace or particular business sector. As the landscape of business changes opportunities or threats emerge and the PEST and Porter analysis tools help exploit, the changes will allow companies to either recognize and adapt or lose to competitors. The outcome of PEST and Porter analysis is decisions based off these models thru recognizance of the overall picture surrounding the company and establishes a gamplan.
The rate of a Big Mac compare at a local McDonald’s is that the Big Mac index was created by The Economist in 2009 as a light-hearted direct to whether money are at their “accurate” level. It is related on the hypothesis of “purchasing-power parity”, the idea that in the long run swaps rates must move in the way of the speed that would match the prices of an equal basket of commodities and services in any two countries. The average rate of a Big Mac in united state in July 2009 was 4.79 dollar.
In result of other companies wanting to play it safe because of the recession, Cote Baking won’t have a large amount of rivalry to compete with. However, the few competitors they do have has already established a relationship with its customers and are already one step ahead of it. Cote Baking may be look to brand themselves for the first time but they have already exposed themselves, have grown a customer base, and have a great possibility of this step becoming a success. Competing companies will see Cote Baking as a threat and will most likely attempt to compete but Cote Baking’s affordable prices and quality food will make them stand
A boy, adopted by middle class parents, who dropped out of college after six months, decided to begin his own business, and he stated his business on 1 April; April Fool’s Day (Dernback, n.d.). Society would presume that a company with such a colorful beginning would most likely not survive its infancy stage, but that is not the case for this story. In 1976, this company began with three men and one thousand dollars, but it started a movement that would revolutionize the world, Apple Computer was born. By the time Steve Jobs was twenty-five years of age, he was worth over a hundred million dollars (Dernback, n.d.). Jobs not only had an idea, he had a plan that would lead to the success of Apple. Jobs understood that “Marketing is much more
According to Aaker (1990), two-thirds of the food product found on store shelves, are brand extension, which suggest the competitiveness of the business. It becomes imperative that marketers stay abreast of the shifts: who purchase the products; focus on the ideal target or segments; involve band loyalties on planning,
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
Although United Cereal’s products are diversified into many different types of foods and beverages, its main source of revenue remains the breakfast cereals market. The real challenge of this market is clearly seen in the European market, where the national tastes and breakfast traditions vary between countries. As a result, its approach in Europe is more complex than in the United States, which causes higher costs and slower processes.
Nowadays the global soft drink industry is far more complex than it was back then. The industry consists of thousands of soft drink manufacturers that are trying very hard to invent a marvellous product and market it properly to consumers so it could stun the world like the Coca-Cola once did. For a company that wants to extend the range and has no awareness or knowledge about the particular foreign test market, a detailed analysis of that market is must in order to succeed. This paper will give an in-depth review, analysis and forecast of an Irish soft drink market which will include vital elements like market value, volume, share, segmentation, and distribution. This paper will also provide valuable information on current trends and will include all five Michael Porter’s forces which will determine the competitive environment and indicate how it might affect the profitability. Based on the analysis specific recommendation concerning the ent...
Hershey Foods Corporation is engaged, with its subsidiaries, in the manufacture, distribution and sale of confectionery and grocery products. The Company's principal product groups include confectionery products sold in the form of bar goods, bagged items and boxed items, as well as grocery products in the form of baking ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages. Hershey Foods manufactures confectionery products in a variety of packaged forms and markets them under more than 50 brands. The different packaged forms include various arrangements of the same bar products, such as boxes, trays and bags, as well as a variety of different sizes and weights of the same bar products, such as snack
The World Cocoa Foundation in its report Economic Profile of the U.S. Chocolate Industry, declares that in the United States market, there are more than 400 companies that produce almost 90% of the chocolate and confectionery products in the country, while other 250 companies serve as raw material ‘suppliers to those manufacturers. Furthermore, this industry is concentrated in the northeast of the country (Pennsylvania, New Jersey, New York, Virginia), and it employs more than 68,000 people.
This report outlines and analyses the consumer decision process encountered when purchasing biscuits in relation to primary market research completed targeting one particular demographic of the possible market. The purpose of market research is to ensure that a businesses focus is on producing a product that meets the needs and wants of consumers, therefore it is essential to identify a potential target market and create a product that is able to be successful at all stages of the consumer decision cycle (Armstrong, Adam, Denize, Kotler, 2010, pp. 74-146). The report will explore the effects within the biscuit industry of various external factors influencing their products. Political and legal regulations, socio-cultural trends, economic shifts and the natural environment all impact a consumer’s decision making process and in turn the necessary actions of the businesses. Additionally, there are various demographic, geographic, behavioural and psychographic traits and trends of the target market that are inextricably linked to the circumstances within a marketplace and are analysed (Armstrong, Adam, Denize, Kotler, 2010, pp. 74-146).
The aim of this report is to present and critically estimate the market strategies of an international and a local chocolate manufacturer in Austria. The analysis is carried out in three stages – macro-environment (PEST analysis), micro-environment (Porter’s Five Forces Model) and company comparison (SWOT analysis). In the end, recommendations are given for the local brand Wiener Chocolate König. Zotter Chocolate Manufaktur GmbH was founded in 1987 as a family business by Joseph and Ulrike Zotter.
Executive summary I have chosen to use PESTLE as part of my investigation, I feel PESTLE is the best way to discuss the different factors affected both (positive\negative) of the hotel industry. Hotel industry is part of the hospitality business which according to www.bha.org.uk, United Kingdom has the highest Hospitality employment and recently contributed the sum of £57 billion to the United Kingdom (GDP) Gross Domestic Product.
What do the statistics reveal about the product? This reveals that the market for the two products is present, and combining them will result in a profitable business. This paper is a report on targeting and segmenting the new liquor-filled chocolates as a potential business. To begin with, it is crucial to appreciate the meaning of segmentation and targeting, because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product.
Similar to Peter’s, Merckens is a North American produced chocolate. Merckens product is above average quality and price. Merckens has a successful distribution network of sales representatives who annually make personal contact with their customers. This is far more extensive than the limited sales network utilized by Peter’s. Merckens competitive advantage is its loyalty of Canadian confectioners and for the time being, its sales staff. Merckens is faced with weaknesses of not producing constructive criticism to customers, and not being well versed in confectionery formulation.