Arnott's Biscuits Market Analysis

The report analyzes the market economy of Arnott's Biscuits in Australia, highlighting both opportunities and threats. Despite strong competition from international companies, the company has maintained steady growth through slow adoption of methods and marketing strategies. The report concludes with a positive inclination towards the company's well-being and health focus, suggesting it will sustain its business and promote its brand name in other countries.

Running head: EXTERNAL MARKET ANALYSIS OF ARNOTT’S BISCUITS
External Market Analysis of Arnott’s Biscuits
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1EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
Executive Summary:
The aim of the report is to make an external environmental analysis of a biscuit company,
namely Arnott’s Biscuits in the present Australian market scenario. The report shows the market
situation of the company by showing the various environmental situations that has been affecting
its market to a significant extent. Political situation, social and cultural aspects, political and
legal rules are the driving forces of any company to establish itself in an economy. The report
briefly identifies the situations and connotes the various opportunities that the company has to
promote better marketing and incur profit from the market. It also highlights the threats that the
company has or can have in its business proceedings that help to determine the market of the
biscuit company as a whole. The report identifies that the external market situation in Australia is
accelerating for emerging as well as the prevalent companies and the laws and regulations help
to accelerate the business beyond boundaries among nations. Thus the company can proceed
with its business operations in an effective way that it has been doing since its establishment, and
retain the successful name it has acquired in the food industry of Australia.

2EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
About the Company.....................................................................................................................3
External marketing environment.................................................................................................4
Environmental Analysis of Arnott’s Biscuits..............................................................................4
Opportunities and Threats............................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

3EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
Introduction:
Campbell Soup Company is the parent company for Arnott’s Biscuits. The Arnott’s
Biscuits is the largest producer of biscuits in Australia, founded in the year 1865 by William
Arnott (Arnott's Australia, 2018). The company has it’s headquarter in 24 George Street, North
Strathfield, Sydney and is the second largest supplier of snack food (Arnott's Australia, 2018). It
was primarily focused in the production and sell of biscuits and pies. However, presently it has
added the production of many other snacks such as custard cream, breads, desserts, and such
other products as well. The company has about 2,400 employees and a good channel of
distributors that has enabled it to have a wide market all around the world. Arnott’s Biscuits is
chiefly known for the wide range of biscuits that it produces. The company is progressive but is
also threatened with some challenges that act as barriers for its marketing. The report will be
dealing with the external environment situation of the company, with the use of the PESTLE
analysis that would identify its present condition in the Australian market.
Discussion:
About the Company-
Arnott’s Biscuits is an emerging company that has a wide range of food products for the
customers. The company produces a variety of biscuits, starting from different flavored ones to
the nutritive biscuits as well. The specialty of Arnott’s is that it produces a wide range of
products varying in tastes and flavors that attract the customers ranging from the age of 4 to 60.
The company focuses on the nutritive value of the products that emphasizes its concern towards
the health conscious people (Friel, Barosh & Lawrence, 2014). The company ships its products

4EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
to more than 40 countries like USA, Japan, Canada UK and others worldwide that shows its
updated and progressive marketing nature as a whole (Arnott's Australia, 2018).
External marketing environment-
Various external influences help to identify the market situation of any company in a specific
marketing structure. These factors affect the operations, productions and sell of products in an
economy largely. Analysis of the various external environmental factors helps to figure out the
various threats and challenges that a company has in the market. It also identifies the various
opportunities that the companies can work upon to perform smoothly in the market and expand
it. The six major external environmental factors that identify the macro-environment of an
industry to determine its marketing environment are:
 Political
 Economic
 Socio-cultural
 Technological
 Legal
 Environmental
Environmental Analysis of Arnott’s Biscuits-
The Arnott’s Biscuits is a food company with 150 years of experience that has been able
to establish its place in the industry with many customers preferring its products (Arnott's
Australia, 2018). However, an external analysis of the company to assess its progressive notion
and analyze the threats from other established names that it has in the industry helps to identify

5EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
Arnott’s position in the Australian market. Six major environmental factors have been analyzed
in the table below to determine the factors that are influencing the market of the company.
External
Environmental force
Current Situation Analysis
Political factor  More than decades of
experience.
 Government support
 Stable political
situation
 Low trade restrictions
 Ships to more than 40
countries.
 Low barriers of
market entries (Kizil
et al., 2013)
The political situation of
Australia promotes food
industry (Booth &
Whelan, 2014). It does
not affect the business
proceedings that help in
smooth business. The
company also spreads its
business internationally
with no major political
obstructions. However,
newer emerging
companies due to lower
restrictions in entries can
threaten it.
Economic factor  Stable growth rates The economy has not
been on a suffering end
and the company has been
on a steady rise.
Socio-cultural factor  Huge workforce The social scenario
provides a sufficient labor

6EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
 Change in consumer
attitude
force that is beneficial for
the company. The
customers show a change
in their preferences and
shift from one brand to
other that is threatening
for the company.
Technological  Increase in
technology
 Increase in
developmental costs.
Arnott’s Biscuits invests a
huge labor cost, engaging
people in its process. The
company must try to
foster methods to
implement modern
technologies in its
production that not only
reduce the threat of labor
unavailability, but also
leads to greater
production.
Legal  FSANZ operating in
Australia has
developed various
standards for food
business in Australia,
which has been
Arnott’s Biscuits is free of
any legal obligations that
has rendered to its
effective business and
marketing since its year of
establishment.

7EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
followed by the
Arnott’s Biscuits.
 It also abides by the
regulations of New
Zealand Food Act
1981 that helps it to
operate freely in the
main cities of the
country (Sacks et al.,
2015).
Environmental  Climatic conditions The weather of the
country does not pose any
threat to the production of
the company (Gerber et
al., 2013). It has been
using moist reducing
technologies recently that
has made production
effective and weather
change effective
(Bigliardi, & Galati,
2013).
Opportunities and Threats:

8EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
An analysis of the various opportunities and threats that the company faces enable it to
work on its loopholes and establish the name is a more recognized way. The threats and
opportunities for the Arnott’s Biscuits Company have been discussed in the table below:
Opportunities Threats
 Imbibe beverages and breakfast
segments to increase its market.
 Distribute products to more number of
countries (Webster et al., 2014).
 Increase fortified products.
 Include greater use of modern
technologies and machines to fight the
challenge of deficit labors and its
incurring cost.
 Some of the products are expensive;
other less expensive products can
replace that.
 Strong competition from renowned
companies like Griffins Foods Ltd,
Goodman Fielder Ltd and Kraft Foods
Ltd.
 Entry of international companies in the
Australian market, serve as a major
threat.
Conclusion:
The entire report concludes that in spite of having established and emerging international
companies that threaten the market economy of Arnott’s Biscuits, it has been able to sustain a
steady growth in the Australian market. With slow and gradual adoption of methods and
marketing strategies, Arnott’s Biscuits has achieved a recommendable brand name in many

9EXTERNAL MARKETING ANALYSIS OF ARNOTT’S BISCUITS
countries. The various flavored biscuits with an outstanding quality that it offers have been
highly appreciated by people of all ages. The positive inclination of the company with its
primary focus on the well being and health of consumers shows that Arnott’s Biscuits would
definitely be able to sustain its business, promoting the brand name in several other countries in
the near future.