Introduction
Farming Organic Grain Growers Association is a food processing organization situated in Balranald Australia and gluten free preservative free ‘Healthy Muesli’ breakfast cereal is the item for consumption introduced by the organization for this marketplace and it is determined on nourishment and consumers vigorous life choices. This analysis will show in today’s competitive market environment it is necessary to have a deep understanding about the market structure and environment before launching any new product or even to retain the existing product line in today’s highly vigorous market place. In analysing the market this will explain the significance to understanding the 6 major forces of the macro-environment factors as these factors can create a major impact on the company’s performance and they can also help increase the competition in the market as well. In today’s rapidly growing business environment and with other factors like technology, the socio-economic issues and demographics impacts are continuously compelling the business world to adapt them and Farming Organic Grain Growers Association will need to adapt in order to cope with all the changes that are taking place in their macro environment.
Demographics
The preliminary investigation was determined on six confined macro environment factors that could potentially influence the sales of the product. The factors in support of the promotion of the manufactured goods gluten free preservative free ‘Healthy Muesli’ on the Australian marketplace resides in a growing number of gluten intolerance fatalities and associated medical conditions primary in the older and younger generations which has helped contributed to the older inhabitants obesity trends, convincing the organization to centre their attention on nourishment as a resource to slow down the health care cost (Bennett, Magnus, & Gibson, 2004), and also an upsetting larger rate of younger aged obesity. Between 1995 and 2007 the younger obesity grew approximately 50% in both the male and female population (Commonwealth Scientific Industrial Research Organisation , 2009). Also, along with a large diversified culture from a variety of backgrounds due to the access of University education and work opportunities, this migration of people as well as the fatalities, medical conditions and obesity trends has created a huge differentiation in the Australian market place for breakfast cereals.
We are introducing a new gluten free preservative free breakfast cereal in to the Australian market and need to take into consideration the demographic environment that will be the main market for our sales. “Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics” (Kotler, Brown, Burton, Deans, & Armstrong, 2010, p. 137) and the main demographics that we are focusing on is age and health. Since the Australian market has a very strong purchasing power and people are very well educated and determined about their health, fitness problems and other medical issues, they are very eager to buy organic and natural products that can keep them fit and healthy, and should also save them from all kinds of health problems and hazards in later years. The factors in support of the promotion of the manufactured goods ‘Healthy Muesli’ on the Australian market resides in a growing number of older inhabitants obesity trends, convincing the administration to centre their attention on nourishment as a resource to help slow down the health care cost (Bennett, Magnus, & Gibson, 2004) and also would be a factor in helping to decrease the “prevalence of overweight and obesity in Australian preschoolers” (Commonwealth Scientific Industrial Research Organisation , 2009).
Age is a significant demographic for ‘Healthy Muesli’ in that the segregation of the marketing mix can be classified into the customer wants and needs of the older and younger generation and the marketers need to aim products and advertising to incorporate these requirements (Kotler et al, 2010). The strong mealtime cereal product will have a focal point more on children - 3 to 12 years old and older adults – above 65 years old. The broad section is selected due to the parents’ greater than before anxiety concerning child obesity in Australia, while the older section is selected due to the government’s augmented apprehension for decreasing health care cost produced by an era of older inhabitants. The improvement in the nation’s health will give them better quality of life without the government having to invest high costs in the healthcare system (Landstrom, Koivisto Hurst, Becker, & Magnusson, 2007).
Economic Environment
The trade and industry atmosphere has an effect on customer spending patterns and these issues will compromise on profits, levels of employment, price rises, worth of the Australian dollar and a lot of others of which we need to be aware of. These surroundings are a main force of the macro environment as customers must be competent to have the buying power to purchase what they want. The market for ‘Healthy Muesli’ will rely on household disposable income and consumers spending patterns and these spending patterns will depend upon the trade & industry environment in Australia along with any Global Crisis that could occur. As the limit of disposable income increases, consumers are more affluent and command superior quality products and a better efficient service, whilst being expected to pay for a far and above the ground excellence for their product. As noted nearly a century ago by Ernst Engel the spending patterns of consumers alters with their increase in deposable income (Kotler et al., 2010). The median wage for Australians has gone up by 4% for males and 4.5% for females in the 12 months prior to February 2011 (Australian Bureau of Statistics, 2011), this rise in median income has been a positive sign for the improvement in customer purchasing power and it will also induce more customers to spend more on consumer good and that will directly contribute towards the industry growth and thereby the development of ‘Healthy Muesli’ sales (Peachey, 2005).
Natural Environment
The Natural environment will play a role in the breakfast cereal products due to the climate being a factor on the production of the grains and also that people are encouraged to change their breakfast with respect to the seasons. Farming Organic Grain Growers will need to be aware of the grain shortage and damaged grain due to the drought and flood problems that have been occurring in Australia over the last 12 months and be aware that these natural disasters will incur large cost increases and could “find it difficult to pass these costs on to the consumer” (Kotler et al., 2010). Also, in the summer season people are encouraged by advertising campaigns to have an intake of a light breakfast like ‘Healthy Muesli’ and this would be in high demand among the public and people would prefer to buy this item to maintain their health and fitness, whereas in the colder climate people prefer more heavier and warmer foodstuff like porridge.
Technological Environment
In this contemporary world we all know that technology plays a very important role and every business is highly dependent on the technological factors that are assisting the entire business and manufacturing world (Klimas, Brethour, & Bucknell, 2008). While keeping focused on the current and emerging needs of the technological settings it is necessary for Farming Organic Grain Growers Association to adapt itself and acquire new and modern techniques to prepare the gluten free preservative free muesli for the Australian market. Since this market is very much advanced and there is already huge competition going on in the market place, Farming Organic Grain Growers Association will have to concern itself with the industry leaders so that they can design such strategies that can bring a positive change in the organization sales so that it can also influence new customers to buy this organization’s healthy diet meal for their regular usage.
The Farming Organic Grain Growers Association scientists are at present working on the implementation of two new technologies concerning the packaging and bar coding systems which will help revolutionise the processes of production and brand loyalty. The innovative and unique style of packaging in its usage will keep the foodstuff fresh and healthy so that consumers will not find any complaint in the quality of the ‘Healthy Muesli’. The bar code system on this packaging will ensure proper quality and avoid any type of imitation. These technologies will help the organization to build a strong brand name loyalty and it will also help the company win the consumers trust in terms of quality and excellence (Tapsell et al., 2005).
Political Environment Most of the world’s marketing choices have been affected by the events and developments of the political arena and pressure groups. The political environment entails “laws, government agencies and pressure groups that influence and limit various organisations and individuals” (Kotler et al., 2010, p.154). Australia is a politically stable environment as we know; this is because it has enough reserves to run its economy and to support the local industry players for the well being of the state (Kotler et al, 2010). In case of the breakfast cereal industry there are some strict rules and regulations that Farming Organic Grain Growers Association will have to follow before bringing its gluten free preservative free muesli into the market. Since there is strong consumer protection laws and regulations, the organization will have to ensure all the aspects of the public safety and it will have to establish that their product is very healthy and safe, after providing all this it will be able to survive in the market otherwise its presence would be difficult to retain (Tapsell, Williams, Droulez, Southee, Patch, & Lethbridge, 2005). The organization will need to take proper initiatives to enhance understanding with the community and make them realize that this product ‘Healthy Muesli’ would be healthy to kick start their day.
Cultural Environment
The cultural environment is pieced together of “institutions and other forces that affect society’s basic values, perceptions, preferences and behaviours” (Kotler et al., 2010) and Australia has a very diverse domestic, trade and industry, sporting and cultural settings. It is important for the organization to develop a strong and beneficial relationship with its trade and industry employees because in today’s contemporary world all technology and techniques can be imitated but human resources are the only difference amongst the competitors and market place. People are living here with different cultural settings and ethics but one factor that is very common to all is their sense of physical fitness and health well being. Australia is a sporting nation and it gives high priority to their health and food selection. In the case of ‘Healthy Muesli’ breakfast cereal the people need to consume some healthy foods that can keep them strong and fit and they will then be able to easily spend their entire day without facing fatigue and tiredness (Tapsell et al., 2005).
Conclusion
Farming Organic Grain Growers Association is focusing on producing gluten free preservative free muesli in order to cater to the breakfast cereal market of Australia. In order to launch this gluten free preservative free product the organization has analysed the macro environment trends that will impact on the target market and have taken into account the 6 major forces which are Demographic, Economic, Natural, Technological, Political and Cultural. Although these forces are changing due to the rapid advancement in technology and business environment, these forces will give us a deep insight into the potential market and it will also help us to screen out the major negative forces that could be detrimental to sales of the gluten free preservative free ‘Healthy Muesli’.
The Australian trade and industry marketplace for gluten free preservative free breakfast foods is exploding as a consequence of the manifold triggers of gluten intolerance. From the consumer’s perspective, command has been rising exponentially as augmented fatalities of a broad medical diversity of problems have approached, and the rising trend of a sports culture for consumers to consider a gluten free diet. The nation’s technical expansion will allow for highly developed advertising; and the increase in the apprehension for 21st century nourishment trends will give the organization assistance in the market.