Macro environments and breakfast cereals
Company A’s cereals are manufacturers of healthy and nutritional breakfast cereals and ready to go breakfast bars. While their main manufacturing plant is located in Brisbane, their products are distributed in major supermarkets Australia wide. Knowing that breakfast is considered by consumers as the most important meal of the day the company’s focus is on offering a multiple product range to various target groups with the added benefits of additional fiber and cholesterol lowering properties. Only by complying with strict guidelines within governmental regulations, this company is able to promote the health benefits of consuming their products and endorsements noted on their packaging clearly shows consumers that they are able to stand by their claims. A recent change in their products packaging has also resulted in the company’s conscious efforts to save the planets resources and approval has been observed from environmental groups. There are six major forces this company considers when marketing products and these are demographic, natural, economic, cultural, technology and political (Kotler, Brown, Burton, Deans, & Armstrong, 2010). This paper will briefly outline each in relation to Company A’s cereals. 2.
Of major interests to marketers is the demographic environment as it involves the study of people, population density, age, sex, race and occupation. These are just some of the areas it covers and by studying these areas companies are able to determine strategic plans to market their products at the right targets (Kotler, et al., 2010, p. 137). One area that has changed significantly is the aging population, with decreased fertility and increases in life expectancy attributed to advancements in medical care and more focus on health and nutrition, people are living longer than 20 years ago. Over the last two decades from 30 June 1990 to 30 June 2010, the median age of the population has increased by 4.8 years from 32.1 up to 36.9 years. With this information, company A’s cereals can look at targeting their cereals around this median age group. Age remained steady between 30 June 09 to 30 June 2010 and is predicted that over the next several decades that the aging population will have a significant impact in Australia for health, housing and labor demands in the workforce ("Australian Bureau of Statistics," 2010). This changes areas of marketing for some organisations, for as people age their requirements change or are different. What consumers wanted or needed are no longer the same requirements today (Lindberg, 1950). b.
The Natural environment affects “natural resources that are needed as inputs by marketers or which are affected by marketing activities” (Kotler, et al., 2010, p. 151). The society today is more aware of the implications large manufacturers have on the planet. Conservation movement groups have an enormous impact in consumer’s awareness and opinion. These movement groups can create negative exposure to company’s products, which may result in consumers boycotting them altogether ("Consumer group complains to FTC about Quaker Oats' cereal ads," 1988). To overcome issues associated with environmental groups, organisations today are linking up with eco groups in a bid to win approval and continued business from consumers (Carey & Arndt, 2007). The natural environment is an area of concern for marketers. These areas are important for the cereal industry as the main component or raw products utilise the natural environment for harvesting of their products like oat, rye and grains (Behling, 2005). Another factor for consideration is the shortages of raw products or resources. Perry Pascarella the executive editor of Industry Week magazine predicted decades ago that companies will face this problem and also suggested that recycling would become an economic...
Please join StudyMode to read the full document