Main Cereal Company is a relatively new company that was established in 2007. It is an Australian owned and operated company. The head office and factory are located in Sydney, New South Wales and it is manufactured and distributed from this location. Main Cereal Company offers organic cereals, which consists of Australian grown whole grains, fruits and nuts. Main Cereal Company has developed a new breakfast cereal range called Bran Flakes. The range offers ‘Bran Flakes Original’ (only flakes), ‘Bran Flakes Mixed Fruits’ and ‘Bran Flakes and Nut’. The purpose of this paper is to provide an analysis of the six forces that operate and within the macroenvironment, the six influences are: demographic, economic, natural, technological, cultural, and political (Kotler, Brown, Burton, Deans and Armstrong, 2010). All six forces play a significant role in marketing Main Cereal Company’s new range. Demographic As explained by Kotler, et al. (2010) demographic environment is “the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics” (p.137). Statistics indicate Australia has lower fertility rates and people are living for longer. This has increased Australia’s median age, evidently resulting in Australian have an ageing population (Australian Bureau of Statistics, 2011). In the year 2007 Australian’s population for people over the age of 60 was sitting at 18%, however by the year 2050 they predict over a quarter of Australian’s population will be over the age of 60 (Kotler et al., 2010, pp.140). With this is mind, nearly one fifth of the population at the moment is mainly consisting of people known as the ‘Baby Boomers’ - people born in between the years 1946 to 1964 (Kotler et al., 2010). Considering baby boomers are making up one fifth of the Australians population Main Cereal Company should aim Bran Flakes ranges to cater to the ‘Baby Boomers’ needs. The state of New South Wales has the highest population within Australia (Australian Bureau of Statistics, 2011). With this in mind and the fact that New South Wales has quite a high median age average, it makes Sydney the ideal area to base the factory. Sydney is also the most centralized city to the second and third largest populated states – Victoria and Queensland. From Sydney, Main Cereal Company can distribute more efficiently and effectively, minimising transportation times.
Economic Economic environment is an important aspect of macroenvironment. When consumers want to act on their needs making it a demand it depends on their buying power. As Kotler et al. (2010) explains “Buying power depends on current income, prices, savings, and credit” without these consumers can’t buy the marketers products (p.149). When the Global Financial Crisis hit, retail sales and bank profits went down. Australia did fare considerably well compared to other well-developed countries, however Australians were still reluctant to spend money on luxury items, with fears of job losses and income loss. Now post-crisis, the Reserve Bank of Australia (2011) has released figures indicating higher profit percentages for banks and employment and wage growth are on the rise. This, plus an increase in retails sales is a promising sign for Main Cereal Company, as it indicates consumers are not being as frugal as they once were (Gelber, 2011). Australia has had it fair share of natural disasters in the past few months. Fruits and whole grains have been damaged; causing produce to become limited, which evidentially affects prices, making the Bran Flakes range become higher in price. With this in mind if consumers are to pay a higher price, Main Cereal Company will need to maintain an excellent quality product. As Kotler et al. (2010) states consumers don’t mind spending more money on ‘luxury’ items providing the product is of a high standard. Natural The Natural macroenvironment as explained by Kotler et al. (2010) involves marketers using recyclable...
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