Factors influence on consumer behaviour6
List of reference12
Kraft Foods is the second largest food company in the world which generates revenues of $40.4 billion in 2009. They sell various packaged grocery products in more than 70 countries. In other words, Vegemite is one of their products.
In Australia, Vegemite is priced at a reasonable and comparable price to its competitors as it operates in a competitive market, in which many competitors exist in the market. Thus, there is no advantage to Vegemite and its competitor in terms of price. However, Vegemite continues to outsell its competitors as a healthy spread as it is presumed to be an Australian symbol.
We pursue four objectives in research and development:
• Product safety and quality
• Growth through new products
• Superior consumer satisfaction
• Reduced costs
The market in which Vegemite Australia operates in is the spread food as a whole and yeast spread in particularly. Spreads are added to bread, sandwiches, toast, crumpets and cracker biscuits to improve flavor for our breakfast meal. Vegemite can be classified as a consumer product, which is categorized as a convenience product, which has inexpensive price. Vegemite also can be concluded as a staple product, which is consumed regularly. The direct competitors of Vegemite are Marmite and Promite as they are producing yeast spread. In the other hand, we are also having indirect competitors which are brands producing dairy spreads, plant spreads and meat spreads.
According to POPAI website, My First Vegemite Floorstand has stated In the Australia last year, Vegemite has taken 40% of the whole spread market, and 91% of yeast spread market while the competitor only took 6% for Marmite and 2% Promite. Based on Vegemite site, there is about 70% houses have Vegemite.
Based on the census in Australia in June 2010, the total number of children under 15 years was 4.23 million, it seems to have increased dramatically as 208.100 (5.2%) since 2005. Along with the rapid progress of child population aged less than 15 years old, the market sales of healthy food, that contains vitamins and high-nutrition such as Vegemite was also skyrocketed. Due to the extremely high consumer demand for nutritious products of spreads like Vegemite, the market sales are expected to grow slowly in various circles.
This issue shows that the consumption of vegemite will remain continue in the future. As well as the economic levels of these products is believed to continue to grow and will always existed in Australia, although the ratio sales of Vegemite in other countries are considered to be least developed. However, in the domestic market competition Vegemite have a better reputation than its competitors, and evidently they even selling more lately.
The market that vegemite and its competitors stand is oligopoly, with two main competitors, Promite and Marmite. Three of them almost have the same tastes, that are unique, slightly bitter, salty, and malty and also they even provide the same nutrition. Furthermore, the price is...