MKT600 | Marketing | Environmental Analysis On The Small Business
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Introduction
In the 21st century, marketing has drastically evolved and it is considered as the critical component of the business administration. The aim of the assessment is to apply the knowledge for developing the effective marketing strategies in which the analyses related to the market trends will be done which are must for the marketing strategy. The purpose of the report is to conduct a marketing environmental analysis on the small business. The small business that has been selected for this task Just Bliss which is a chocolate company. The small business is looking to expand their business operations in the international market which include New Zealand.
Overview of the company
Just Bliss chocolates is a boutique chocolatier offering that offers the gourmet chocolate truffles, chocolate gift with the personalised chocolates to their customers. The company is located in Adelaide in Rundle Mall. Just Bliss is specialised in hand-made chocolate truffles using the hand painted cocoa butter with the decorative chocolate transfers (Just Bliss Chocolates, 2018). The company is operating the business through online mode within Australia only. The company came into existence in the year 2008 and since the time they are offering a wide range of chocolate bars, tiles, spoons and others (Just Bliss Chocolates, 2018). The company is increasing due to which it has decided to expand their business operations with the aim to have an international presence. The place that has been selected for the expansion in New Zealand as the country is near to Australia. In New Zealand, place has been selected by the company for opening their physical stores is Auckland with 1.6 million population.
Buyer Behaviour
The customer buying behaviour includes the consumer’s attitudes, preferences, and intentions, decisions that can influence the purchasing of a product or availing the service in the market (Kotler, 2015). In marketing, it is must to understand the decision-making process of customers by the company in the market of New Zealand. There is a set process which is followed by the customer for selecting the Just Bliss chocolates in the market. This process includes: -
- Problem recognition: - In the market, the needs of the customers are changing rapidly due to which it has become important to determine what exactly the customer is willing to buy (Bhasin, 2018). In chocolates, there are different options available which include chocolate candies, homemade chocolate, personalized chocolate and many others.
- Information Search: - After analysing the needs, the customer search for the details related to the product which include the taste, value for money, availability and many other. In chocolate, the customer also checks for the brands who are offering the same products that can meet the needs in the market of New Zealand.
- Evaluation of alternatives: - The customers then evaluate the alternatives which have been selected by them for meeting their needs. In chocolates, the customers evaluate the taste, price, quality and others which helps them to select one brand or alternative from the different options that are available. Just bliss chocolates offer the wide range of different products at the store and through online which helps them in attracting the customers towards the brand (Just Bliss Chocolates, 2018).
- Purchase: - The next step is to make the purchase of the product which is selected by the customers. In the case of chocolate, the customers make the final product when they select the product that can meet the needs. The purchase of the chocolate depends on the value, attitude and lifestyle of the customers.
- Post-purchase: - The post-purchase is the final step in which the customer check and evaluate the product after the consumption (Wilson and Gilligan, 2012). Just Bliss Company ensures that they offer good taste and quality in their products that can meet the needs of the customers. This help in creating good customer experience and relationship which makes the customer visit again. This has been done by the company because if the customers get dissatisfied then they will never make the purchase of a product from the same brand.
Microenvironment Analysis
Microenvironment includes the factors or elements that directly affect the immediate operations of the company which include the performance and their decision making (Chernev, 2018). It is essential for Just Bliss Company to analyse the microenvironment factors that can affect the business in the New Zealand market.
Suppliers
Suppliers are one of the major elements that can influence the working of the company. Just Bliss Chocolates is specialised in the hand-made chocolates which means that they manufacture the chocolates and then sell it into the market. In the New Zealand market, they need to coordinate with the suppliers who offered them raw material which is required to them for conducting the operations. This has been found that there is the presence of a large number of suppliers in the market of New Zealand. This reflects that there is a low threat of the suppliers in the market (Wilson and Gilligan, 2012). Though, this has been found that for the different raw materials that are used by the Just Bliss in manufacturing the chocolate might affect the business because there are very few suppliers who can meet the needs of the company. This will enhance their bargaining power over the company. Hence, this can be said that the suppliers keep the moderate bargaining power on the company in the New Zealand market.
Relevant public
The public over here is the group who has interest and potential to affect the working and objective of the company (Chand, 2018). This includes the environmentalist, consumer protection groups and media. Just Bliss Chocolates believes in offering the quality product with the wide availability which is one of the ways through which the company can create the good image in front of the public. Along with this, Just Bliss believes that CSR activities in the market which include protecting the interest of the general public and caring for the employees will help the brand in creating the good value in the market. Though, the company need to meet all the standards related to the food safety which helps them in making a good imprint in front of the general public.
Marketing Intermediaries
Market intermediaries are either the business house or individual who come to aid the company in selling, promoting and distributing the products to their customers. In simple words, this element includes the middlemen (such as wholesalers, retailers and agents), market service agencies, distribution agencies and financial institutions (Chernev, 2018). Just Bliss Company will open the stores in the market from which they can offer the services to their customers. Along with this, they make their products available through the online mode also for which they hire the distributors. The agencies who distribute the products are available in the market of New Zealand and due to which they can easily get the distributors. Though, the company deals in chocolate for which they need the experts who can make the products carefully available because it gets melt soon which is a threat to the company.
Competitors
The competitors of the company which are present in the New Zealand market include Kako chocolate, Whittaker’s, Devonport, Bohemein Fresh Chocolate and many others. All these companies are present in the market New Zealand and performing their business operations. The major competitor of the company is handmade products, premium chocolate in different flavours and in different forms which include mini slabs, artisan, destinations, chunks and others (Whittaker’s, 2018). This chocolate is served mainly to the children with the age group of 5-15 years as they consume more of chocolate. Along with this, the chocolate is available for customers of different age groups and others.
Macro Environment Analysis
The macro environment is the uncontrollable factors that can affect the decisions of organisation and affect the performance and strategies (David, 2011). In the New Zealand market, it is must for the Just Bliss to analyse the factors that can affect their operations. The analysis related to these factors is given below: -
(Source: Ahmed, 2014)
Society- cultural
The social and cultural element is important to be considered by companies while operating their business. This element includes living styles, heritage, religion and many others which can affect the working of business (Ahmed, 2014). Just Bliss Chocolates might get affected due to the social shift in the preference and choices of the customers in their lifestyle. This has been found that with the rise in the education level the people are becoming more conscious of their health due to which they don't consume things that increase their weight and affect their diet. Chocolate can be of different types but the sales of the company for which are sweet can reduce in the market because it contains sugar which leads to the problem of obesity in the people. This might make the consumer stricter for their children towards the chocolate. Though the sales of the dark chocolate might increase though most of the targeted people don't like the taste of same. This is the leading threat for the company in the market. Along with this, the people in the country are loyal towards the other brands which might affect the sales of Just Bliss.
Political
The political factors majorly include the influence of the rules and regulations on the business (Armstrong, Adam, Denize and Kotler, 2014). Just Bliss Company is entering into the market as a physical store in the market which reflects that there is a need for the permission of the government for operating the business. The analysis reflects that terms of Australia and New Zealand government are good enough due to which they can easily get permission. The mode of entry needs to be selected by the company for entering into the market as according to that they will take the permission from the government. This has been found that Licensing will be an effective option for the company for which they need to take permission. Though they need to pay the huge amount in the same and along with this, they need to meet the legal obligation. The change in the rules and regulations might affect the company and their operations.
Technological
The technology is evolving rapidly in the changing environment which affects the business operations (Dawson, 2014). The technology is not bringing the changes in the infrastructure but it is also making the changes in the manufacturing of the products. The adoption of the technology by the competitors will directly affect the sales of the Just Bliss in New Zealand which is one of the biggest threats for the company.
Demographic
The demographic factors refer to as studying the human population in terms of the location, age, size, occupation and many others. The population of the New Zealand country is estimated as 4,510,327. Talking about the age structure of the country, the people with the age of 0-14 years are 19.69% of the population and people with 15-24 years are 13.35% of the population and the highest proportion of the population is at the age of 25-54 years that is equal to 39.82% (CIA World Factbook, 2018). This demographic age structure can affect the working of the company as the people with the age of 25-54 years consume the chocolate very rarely. In addition, the children who consume the chocolate are only 19.69% of the population. This reflects that the sales of the company will reduce because the demographic data shows that there are very few people who can consume the products. Though, there is an opportunity that the company can target the other market.
Natural
Natural factors include the natural resources that are considered as vital inputs by the marketers (Hollensen, 2015). In chocolate manufacturing, there is a need of the different products that are grown on trees and on the ground. The manufacturing of the chocolate includes the use of the natural resources which might affect the environment. Along with this, in the production process, there can be wastage of the products which is must to be reduced by the company. In New Zealand, Just Bliss company need to follow the regulations related to environmental sustainability and protection.
Economic
The economic factors that can affect the operations of the business include the purchasing power of the customers. Just Bliss Company will get the benefit of the economic factors because GDP of the country is improving. GDP which was registered was 40 546 US $ per capita and the growth which is projected in the year 2018 is 3% (OECD, 2018). This reflects that there will be a rise in the purchasing power of the customers which is a benefit for the company because they will be able to earn the revenue in the market of New Zealand.
Conclusion
In the end, it can be concluded that the report aim is fulfilled which was to analyse the marketing environment of the business. The analyses have been done with the help of the microenvironment and macro environment which is considered as the key that helps in understanding the positive impact of national or international factors and external with local factors on small business. These factors tend to be the external factors of business which brings the changes in the decision making of the company and affect the marketing strategies of the business. The analysis reflects numerous threats and opportunities that might be faced by Just Bliss in the New Zealand market. Further, the buying behaviour of the customers is explained that might work as a huddle for the company. The external factor also includes the analysis of the competitors that can lead to the issues for the company which are discussed.
References
Ahmed, G. (2014). How Marketing Macro Environmental Factors Affect Business Strategy. Retrieved from: https://www.studylecturenotes.com/mba-marketing/how-marketing-macro-environmental-factors-affect-business-strategy
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014) Principles of marketing. 6th edition. Welbourne: Pearson Australia.
Bhasin, H. (2018). 5 steps in consumer buying behavior. Retrieved from: https://www.marketing91.com/5-steps-consumer-buying-behavior/
Chand, S. (2018). Micro Environment of Business: 6 Factors of Micro Environment of Business. Retrieved from: https://www.yourarticlelibrary.com/business/micro-environment-of-business-6-factors-of-micro-environment-of-business/23370
Chernev, A. (2018) Strategic marketing management. Chicago: Cerebellum Press.
CIA World Factbook. (2018). New Zealand Demographics Profile 2018. Retrieved from: https://www.indexmundi.com/new_zealand/demographics_profile.html
David, F.R. (2011) Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
Dawson, J.A. (2014) The Marketing Environment (RLE Marketing). New York: Routledge.
Hollensen, S. (2015) Marketing management: A relationship approach. India: Pearson Education Limited.
Just Bliss Chocolates. (2018). About Us. Retrieved from: https://www.justbliss.com.au/pages/about-us
Just Bliss Chocolates. (2018). Contact Us. Retrieved from: https://www.justbliss.com.au/pages/contact-us
Just Bliss Chocolates. (2018). Shop Online. Retrieved from: https://www.justbliss.com.au/collections/shop-online
Kotler, P. (2015) Framework for marketing management. India: Pearson Education.
OECD. (2018). New Zealand. Retrieved from: https://data.oecd.org/new-zealand.htm
Whittaker’s. (2018). Products. Retrieved from: https://www.whittakers.co.nz/en_WW/products/
Wilson, R.M. and Gilligan, C. (2012) Strategic marketing management. New York: Routledge.
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