Beerenberg Pyt Ltd – Market Strategy and Plan

This report analyzes the market strategy and plan of Beerenberg Pyt Ltd, an Australian producer of jams, condiments, sauces, and dressings. It includes a PESTLE analysis, competitor analysis, and SWOT analysis to propose a strategic plan for the company. The report also discusses the impact of political, economic, socio-cultural, technological, legal, and environmental factors on the business.

Running Head: BEERENBERG PYT LTD 1
Beerenberg Pyt Ltd – Market Strategy and Plan
Student Details

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Contents
Introduction......................................................................................................................................3
PESTLE Analysis............................................................................................................................3
Political Factor.............................................................................................................................3
Economic Factor..........................................................................................................................3
Socio-cultural Factor....................................................................................................................4
Technological factor....................................................................................................................4
Legal Factor.................................................................................................................................4
Environmental Factor...................................................................................................................4
Competitor Analysis........................................................................................................................5
SWOT Analysis...............................................................................................................................6
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................7

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Introduction
Marketing Strategy of any organization can influence the growth of the organization to
execute a good marketing strategy it is important to understand the internal as well as external
factors which can impact the segmentation as well as positioning of the company.
Beerenberg Farm is an Australian producer of jams, condiments, sauces, and dressings,
located in Hahndorf in the Adelaide Hills of South Australia (Beerenberg, 2019). Beerenberg Pyt
ltd. has won various business and food awards including South Australian Premier’s food award
for introducing new technology in food and grocery industry The company is expanding with
introduction 50 new diversified products. The company has also provided employment to 85
South Australians.
The objective of this report to propose a strategic plan by analyzing internal and external
factors which impact the business. To conduct Situational analysis; PESTLE, Competitor
Analysis and SWOT analysis are considered in the report.
PESTLE Analysis
The major factors which describe the external environment of an organization are divided
into following factors:
Political Factor
In this factor, the political decisions laws and policies impact the organization in positive
or negative way. Beerenberg Farm is located in Adelaide Hills of South Australia. In this part of
Australia, the urbanization is rising rapidly and there are lot of complaints from neighborhood
about agricultural practices such as harvesting and spraying. However, some of the political
parties are supporting farms by stating the legislation which is “Right to Farm” (Hanifie, 2018).
Beerenberg farm and wine yards have a huge influence on tourists; and the Australian
government support tourist projects.
Economic Factor
The country economic condition impact the household consumption. Australia’s
economic growth has mixed performance from last three years. The growth has mostly slowed

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down in second half of 2018 (Scutt, 2019). Inflation has weakened and unemployment has also
risen in early 2019. This is directly affecting the consumer behavior towards the products like
wines.
Socio-cultural Factor
This factor explains how the consumer values, culture as well as perception can influence
the profitability of the company. Beerenberg Pty Ltd Company is founded by a German migrant
family. It has impacted the company sales. The company has to change its packaging to
influence Australians. The company produces jam and name as Australian strawberry jam
(Mitchell, 2017)
Technological factor
Innovation with technology is the one of the important factor to sustain business. Many
organization ceases as they are not upgraded with new technology. Beerenberg farm is the good
example of showing innovation through technology. In March 2009 the company launched new
style of labeling in its website. In this feature, the customers can trace the passage of their
product from start to end. The customer can even find the name of the cook just by entering the
barcode (Kuchel, 2018).
Legal Factor
The company has to follow all the laws and regulations to expand the business in long run.
For the industry like horticulture; the company has to have efficient techniques to manage
sustainable business. The Australian government has various code of conduct which needs to be
followed strictly (AgricultureGoverment, 2019). Some of them are
 Forestry Act 1950
 Horticulture code of conduct
 Forestry Regulations 2005
Environmental Factor
The major challenge faced by Australia is Water supply. The company has to save the
natural resources for increasing the efficiency as well as productivity of the business. Being a

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landowner the organization has commitment to protect soil resources and prevent land
degradation. The managing director of Beerenberg Pty. Ltd is member of Australian and food
council which focuses on the health and lifestyle of stakeholders and caution for the environment
(Australian Food and Grocery Council, 2018).
Competitor Analysis
The company’s major competitors are local producers of jams. Beerenberg Pty. Ltd
supplies its products in supermarkets such as Coles and Woolworths. The company also sells its
small-size products in Australian as well as International Airlines and Hotels (The lead, 2018).
Hence the company has wide range of indirect competitors as varieties of jam, chutney, and
sauces are available in market.
Direct Competitors: Fiaje and Cottee's which have same line of product and same
targeted customers.
Indirect Competitors: Nestle, Golden circle and many more who are producers of jams
but have different target customers.
Direct Competitors Analysis
4P’s of Marketing
Mix
Beerenberg Pty Ltd Fiaje
Product Diversified and innovative products with no
artificial added preservatives
Artisan small batch of jams made
naturally and gluten-free
Promotion Customer interaction like Visit to Onsite
jam kitchen and Farm shop
Positive publicity through innovative
labeling techniques
Technique is old which is word
of mouth
Price High as manufacturer and producer are same
Target customers are high salaried
Low as the company is new and
trying to gain customers
Place Sold in supermarkets like Woolsworth,
Australian airlines as well as International
Sold directly to consumers
mostly through online portals

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Airlines, Hotels and through online portal
The products are available worldwide.
The products are available only
in Australia.
SWOT Analysis
The SWOT analysis is the tool to discuss both internal as well as external factors of an
organization. The acronym of SWOT is divided as follows:
Internal factors:
 Strengths are factors which are boosting the profitability and market position of the
organization.
 Weakness are the internal drawbacks which need to be worked for the welfare of the
organization
External factors:
 Opportunities are external prospects which can help in increasing the profit of the
organization
 Threats are external factors which can negatively impact the working of the organization

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Conclusion
It can be concluded from the report that the company has to provide proper balance of
both internal as well as external factors. In PESTLE analysis all the external factors are discussed
and in SWOT company‘s strength and weakness are analyzed.
Beerenberg Pyt. Ltd. has given tough competition to many giant leaders in grocery
industry by providing quality products. The company’s innovative labeling feature and tourist
attraction are some of the factors which are contributing to the productivity and growth of the
company.
Strengths
Innovative technology to attract customers
Quality products
Supplier to international airlines
Satisfied Customer
Opportunities
Expanding Product lines
Introduction of New Airlines
Increase of Tourism Investments
Weakness
Easily Substituted by Branded products
Old marketing techniques
Seasonal Productions
Threats
High Competition
Threat of New Entrants
Changing Customers need
SWOT

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Reference list
The lead. (2018, June 5). Retrieved July 3, 2019, from Beerenberg opens new headquarters and
expanded production line:
http://theleadsouthaustralia.com.au/industries/manufacturing/beerenberg-opens-new-
headquarters-expanded-production-line/
AgricultureGoverment. (2019, June 3). Horticulture. Retrieved July 5, 2019, from
http://www.agriculture.gov.au/ag-farm-food/hort-policy
Australian Food and Grocery Council. (2018). Annual report. Retrieved July 3, 2019, from
https://www.afgc.org.au/wp-content/uploads/2018-AFGC-ANNUAL-REPORT_web.pdf
Beerenberg. (2019). Our story. Retrieved July 5, 2019, from https://www.beerenberg.com.au/70/Our-
story
Hanifie, T. N. (2018, March 13). abc.net. Retrieved July 5, 2019, from Land clash: Farmers battle urban
creep with 'right to farm' legislation: https://www.abc.net.au/news/rural/2018-03-13/sa-
growers-push-for-right-to-farm-legislation-amid-urbanisation/9543306
Kuchel, A. (2018, June 11). Stock Journal. Retrieved July 3, 2019, from Beerenberg opens doors to
expansion completion: https://www.stockjournal.com.au/story/5451570/beerenberg-opens-
doors-to-expansion-completion/
Mitchell, S. (2017, April 12). Finanacial Review. Retrieved July 3, 2019, from Meet the small supermarket
suppliers beating the global consumer giants:
https://www.afr.com/business/retail/fmcg/afr12easterfoodstory--20170404-gvd0ar
Scutt, D. (2019, May 29). Business Insider Australia. Retrieved July 3, 2019, from Australia's next
economic growth update is likely to be disappointing if this indicator is any guide:
https://www.businessinsider.com.au/australia-economic-growth-gdp-2019-5

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