Macro-Environmental Analysis for Marketing
The “Vital Foods” Yoghurt Company was established in 1995 by two farmers who wanted to create wholesome, natural, organic and nutritiously delicious yoghurt for the active and time poor. Founded on the dairy plains of Victoria, “Vital Foods” is fast becoming one the premier yoghurt manufacturers and have asked that their new product be marketed correctly.
As each type of product has its own target market, we must ensure that this market is properly researched, analysed and have an appropriate strategy to implement. A market by definition and be surmised at being “the set of all actual and potential buyers of a product” (Kotler, 1998). The yoghurt market consists of all the actual and potential buyers of yoghurt products.
The macro-environment consists of six types of forces economic, demographic, cultural, natural, technological and political. “Vital Foods” must ensure that they take into account the trends, changes and alterations in these environments which can both pose threats and reveal opportunities.
Economic Environment
The economic environment is best described as having the “factors that affect consumer buying power and spending patterns" (Kotler et al 1998). These factors include income, levels of employment, inflation, value of the Australian dollar, monetary policy and many others.
This environment is a major aspect of the macro-environment as any consumer who wishes to act on their desires must be able to have the purchasing power to initiate the transaction.
The level of disposable income of Australians is another key point. As the level of disposable income increases, consumers are more likely to purchase a high quality product than more of the same. This does work inversely as well; as income drops the consumer is more likely to purchase lower quality products.
In today economic environment, the median wage for Australians has risen by 2.9% per year over 2006-2007 (ABS 2007). However, this rise in median income has been
As each type of product has its own target market, we must ensure that this market is properly researched, analysed and have an appropriate strategy to implement. A market by definition and be surmised at being “the set of all actual and potential buyers of a product” (Kotler, 1998). The yoghurt market consists of all the actual and potential buyers of yoghurt products.
The macro-environment consists of six types of forces economic, demographic, cultural, natural, technological and political. “Vital Foods” must ensure that they take into account the trends, changes and alterations in these environments which can both pose threats and reveal opportunities.
Economic Environment
The economic environment is best described as having the “factors that affect consumer buying power and spending patterns" (Kotler et al 1998). These factors include income, levels of employment, inflation, value of the Australian dollar, monetary policy and many others.
This environment is a major aspect of the macro-environment as any consumer who wishes to act on their desires must be able to have the purchasing power to initiate the transaction.
The level of disposable income of Australians is another key point. As the level of disposable income increases, consumers are more likely to purchase a high quality product than more of the same. This does work inversely as well; as income drops the consumer is more likely to purchase lower quality products.
In today economic environment, the median wage for Australians has risen by 2.9% per year over 2006-2007 (ABS 2007). However, this rise in median income has been
References: Cannon, T. (1998), Marketing: principles and practice (5th Ed), Cassell Publishers Ltd, London. Kotler, Armstrong, Brown and Adam (1998), Marketing (4th Ed), Prentice Hall of Australia, Sydney.