Challenges and Opportunities for Food Sector in Australia and Development of Food Marketing Strategy

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Food and Beverage Management
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Food and Beverage Management
Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Analyzing challenges and opportunities for food sector in Australia..........................................3
Task 2...............................................................................................................................................5
Development of food marketing strategy.....................................................................................5
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Food and Beverage Management
Introduction
Marketing is a process through which the business entity stimulates the buying behavior and
perception of a customer towards a product and tends them to buy that product (Asghar, Abbasi
& Zafarullah, 2015). Developing a marketing strategy proves beneficial for the business entity
on various grounds. The below presented report is developed for analyzing challenges and
opportunities and also developing the marketing strategy
Task 1
Analyzing challenges and opportunities for food sector in Australia
In this article, the main focus would be on the key trends and predictions for Australia, the
various challenges and opportunities for its food industry. It will analyze the future of the
industry with a contextual view. The food industry of Australia has proved to be the major sector
which contributes to the economy and provides employment to people. But these days it is facing
various challenges (Australia 2018). The food industry is undergoing transition and it has to
manage various uncertainties. It can be seen that the supermarkets in Australia heavily rely on
the private labels, thus this negatively affects the growth of Australian food industry. The
increased reliance on these private labels hampers the margin also. In the past year there have
been a tremendous rise in the private labels in Australia, the growth is estimated to be 10%.
Various trends like healthy food or ethnic foods, has captured the attention of manufactures and
processors. This has put them on alarm. It must be ensured that is a continuous flow in the
supermarkets. The supermarkets are focusing to increase this to 40%.
Challenges
Rise in foreign investments:
Various foreign co-operations are aiming to buy assets of foods and beverages in the Australian
food industry. The Australian market is witnessing a continuous rise in this. In fact these co-
operations are mainly aiming on land holdings, even to commodities such as rice and wheat. The
main investment can be seen in industries of beef, beer and sugar mainly. These are some of the
few. The foreign and overseas co-operations are keenly interested for buying assets in the

Food and Beverage Management
Australian food market (austrade.gov 2018). It will increases the margin and will lead to various
merges. There will be a tremendous expansion in manufacturing lines as these food and beverage
companies are investing high amounts into this. Global financial crises have also enhanced the
process. These companies are aimed at the expansion of various facilities; they are building new
plants for this purpose. The financing for this would be internal. There is a crisis over availability
of capital for this sector as the companies may express lack of confidence over the flow of
capital. Companies have gone to saving mode.
Organic food products “less fashionable”
The financial crises have greatly affected the selling of organic products mainly. People are
mainly interested in paying for those products whose benefit can be easily communicated (Baker,
2014). Like in the case of premium products, the benefit can be easily communicated. People pay
more for the products which give health benefits, the attention is mainly on healthier products;
during all this the organic products have gone out of fashion. For the sale of organic products,
they have to be priced well, else there sale would go down because people are not much
interested in buying them. There is still growth in this sector but the main problem is that people
are confused about actually what are organic products, what, makes them organic. This thing
needs to be communicated clearly to people.
Due to this the main issues which the food industry is facing are:
 Productivity improvement and operating-cost reductions: the cost of commodities is
rising at faster pace. The customers are not ready to buy product at such higher prices,
they demand for the prices to go down. In this case, the industry needs to focus on
improvement in the production of these products and have to put a check on the cost
control; in order to make growth (Blakeman, 2018).
 Mergers, acquisitions and divestitures: the food companies, they are looking for ways to
grow through acquisitions.
 Regulatory compliance: the rules and regulations around the globe are becoming more
complex in the recent years. Food and beverage companies are suffering due to these
complex rules. Along with this, they have to emerge through the sustainability standards
also.