Macro-Environmental Analysis for Marketing Essay Example

and a surge in consumer price index. As a result of these circumstances, numerous Australians have opted for reduced-priced or lower-grade alternatives compared to their usual purchases.

To effectively tap into the current market trends, "Vital Foods" could target price-conscious consumers who frequent discount supermarkets. Additionally, "Vital Foods" could incorporate bulk purchasing options with cost savings incentives to attract potential customers. The significance of the demographic environment, as defined by Kotler et al, lies in its potential impact on the Australian yoghurt market through variables such as size, density, location, age, sex, race, occupations and other statistics. It is crucial to note that all demand for products or services is ultimately derived from people, making the demographic environment an essential consideration in this market sector (Cannon 1998).

According to recent demographic trends, Australia's population is becoming better-educated and seeing a rise in the number of individuals in white-collar professions. Kotler et al note that this has transformed the Australian marketplace into more fragmented micro-markets, with differentiation based on factors such as age, sex, geography, lifestyle, ethnic background, and education. This shift has implications for "Vital Foods" as they must adjust their product and marketing strategies to suit their desired audience. Given that each variable has the potential to impact the yoghurt product on offer in Australia, there is a particular area of focus that "Vital Foods" must center on.

Australian obesity rates have reached 26% of the population (Australian, 2008), highlighting a potential market for "Vital Foods" in the diet industry. The cultural environment, as defined by Kotler et al. (1998), influences society's values, perceptions and behaviors through institutions and forces. Changes in Australian culture including sub-cultures

and demographics are affecting how yogurt is marketed. Australians are increasingly aware of their personal health due to recent trends showing a growing concern for well-being. As the world's most overweight country (Australian, 2008), diets are having a substantial impact on Australians.

Targeting health-conscious consumers can be achieved by advertising products as "fat-free", "low calorie", or "low sugar". A study reported by WebMD in 2005 revealed that obese individuals who consumed three servings of fat-free yogurt per day while on a reduced-calorie diet lost 22% more weight and 61% more body fat than those who only cut their caloric intake. This information allows "Vital Foods" to establish itself within the diet industry. Additionally, various subcultures have emerged in the Australian market.

Kotler et al (1998) defines subculture as a group of individuals who share common value systems based on similar life experiences or situations. Currently, subcultures are primarily based on nationalities, resulting in an increased demand for diverse products. To expand their new product range, Vital Foods can incorporate mixed fruit and traditional flavors to appeal to the various subcultures. Furthermore, using the "Australian owned" brand will particularly affect those with strong patriotism. According to Kotler et al (1998), natural environment refers to the natural resources required as inputs or affected by marketing activities. Nowadays, planet preservation is becoming increasingly popular and at the forefront of people's minds.

As consumers become more aware of industrial manufacturing practices, companies like "Vital Foods" can use this awareness as a significant aspect of their marketing strategy. Today's consumers are well-informed and conscious of how products are manufactured, which empowers them to boycott items that do not meet their standards. For instance,

the CSR sugar boycott in Werribee, Victoria (Banner 1998) exemplifies how consumer choices heavily influence industries. Concerning yoghurt manufacturing, factors such as dairy cow treatment, chemical/hormone usage, soil nutrient depletion impact and water usage all affect consumer decision-making processes. To appeal to informed customers who prioritize ethical production methods and eco-friendliness, "Vital Foods" could position themselves as hormone and genetically modified-free producers with free-range cows and an operation powered by renewable resources.

By incorporating branding that emphasizes animal welfare, the potential long term effects of genetically modified foods, and the carbon footprint of production, "Vital Foods" can attract consumers who prioritize such concerns. This new product stands out above the competition in these regards. The technological environment plays a key role in the evolution of yoghurt production. While the product itself is not novel, advancements in processing and manufacturing techniques have improved its quality. The use of refined cultures has improved both the digestive qualities and overall taste of yoghurt. Furthermore, recent innovations such as microwaveable DIY kits allow consumers to make their own yoghurt at home.

Not only does it encourage consumers to create their own yoghurt cultures, but it also creates more competition for “Vital Foods”. The internet, with 64% of all Australian households connected (ASB 2008), plays a significant role in the market by allowing consumers to research and purchase products online, possibly from foreign retailers. This poses yet another threat to “Vital Foods” and its market share. Additionally, the political environment comprises laws, government agencies, and pressure groups that influence and constrain organizations and individuals in society. Regulations and rules apply to virtually all aspects of the business, including food health and

safety, advertising and labelling requirements, pollution emissions, and livestock conditions.

The production of "Vital Foods" is not significantly affected by the political environment. However, it is important to consider the possibility of pressure groups concerned with topics such as genetic engineering, the environment, and industry regulation or deregulation emerging in the future. The Australian yoghurt market is influenced by demographic, economic, political, cultural, natural, and technological factors present in its macro-environment. Each of these forces has the potential to modify the marketing environment, creating opportunities or threats for the market and its stakeholders.

Monitoring the environment is vital for companies to adjust their marketing mix accordingly. For "Vital Foods", their strategy should include a bulk purchase product targeting those who combat obesity by controlling their diets. The product should be made from hormone and genetically engineering-free yoghurt, produced by free-range cows in a low carbon manufacturing plant, proudly Australian owned. "Vital Foods" should offer the product in several flavors of the world. References include Cannon, T. (1998), Marketing: principles and practice (5th Ed), Cassell Publishers Ltd, London, and Kotler, Armstrong, Brown, and Adam (1998), Marketing (4th Ed), Prentice Hall of Australia, Sydney.

The website for the Australian Bureau of Statistics can be found at http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/1383.The URL http://www. is associated with the document named "Main Features52008 (Edition 1)" which has the summary "1383." The opendocument code for this document is "0.55.001=2008 (Edition 1)."The Australian Newspaper has provided a link to the ABS website chapter 10002008, which can be found at abs.gov.au/AUSSTATS/[email protected]/Lookup/4102.0.

Visit the National Centre for Home Food Preservation at http://www.uga.edu to learn more about this topic. This information was originally posted on theaustralian.news.com.au/story/0,25197,23890071-12377,00.html

The text contains several website links, including

edu/nchfp/publications/nchfp/factsheets/yogurt.html, WebMD (http://www.webmd.com/food-recipes/news/20050317/yogurt-may-help-burn-fat-promote-weight-loss), and Werribee Banner (http://werribee.yourguide.com). These links appear within HTML paragraph tags.The link

au/news/local/news/general/on-this-cold-may-night-werribee-came-of-age/1275197.aspx

refers to an article about Werribee's coming of age on a cold night in May.