Situation Analysis for Nature Valley

This marketing report analyzes the internal and external business environment of Nature Valley to recommend effective marketing strategies for their Muesli Bars. Includes market analysis, macro and micro environment analysis, company analysis, and recommendations.

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SituationAnalysis for
XXXXX
Author XXXXXXXXXXXXXXXXX
SID XXXXXXXXXXXXXX
1003MKT – Introduction to Marketing
Tutor:
Trimester, Year
Word Count: (should be 2000+/- 10%)
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Table of Contents
Table of Contents.................................................................................................................. 3
Introduction and Company Background....................................................................................4
Introduction....................................................................................................................... 4
Company Background........................................................................................................ 4
Situation Analysis.................................................................................................................. 5
Market Analysis................................................................................................................. 5
Macro Environment Analysis................................................................................................ 5
Political Analysis............................................................................................................. 5
Economic Analysis.......................................................................................................... 6
Social Analysis............................................................................................................... 6
Technological Analysis.................................................................................................... 6
Legal Analysis................................................................................................................ 6
Environmental Analysis.................................................................................................... 7
Micro Environment Analysis................................................................................................. 7
Company Analysis.......................................................................................................... 7
Competitor Analysis........................................................................................................ 8
Competitive market Summary........................................................................................... 8
Consumer Analysis....................................................................................................... 11
SWOT Analysis............................................................................................................ 11
Recommendations/conclusion............................................................................................... 12
Reference List.................................................................................................................... 12
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Introduction and Company Background
Introduction
The aim of this marketing report is recommend effective marketing strategies to the firm
Nature Valley for their Muesli Bars by analysing the internal and external business environment. This
is being done as to enhance the sale of the concerned product offered by the firm Nature Valley in the
highly competitive contemporary business world. The marketing issue that the researcher is trying to
solve in this report is to find the manner in which the concerned firm can enhance the sale of its
Muesli Bars in the face of the high competition which it is facing from its competitors.
Company Background
Nature Valley is a US firm which specialises in organic food products like Muesli Bars,
Granola Bars and others and the major business operations of the concerned firm are based in the
nation of USA (Naturevalley.com, 2019). More importantly, one of the most important aspects of the
concerned firm is the fact that the food products offered by the concerned firm are completely
manufactured from organic ingredients and no artificial ingredients are being used to enhance the
taste or the appearance of the products offered by the firm (Naturevalley.com, 2019). Furthermore,
the firm was established in the year 1975b bin USA and the first product that the concerned firm
offered to the customers was the granola bar (Naturevalley.com, 2019). In this regard, it needs to be
said that some of the most important bars which the firm had been offering the customers over the
years are “Oats and Honey”, “Peanut”, “Fruit and Nut” and others (Naturevalley.com, 2019). However,
in the recent times it is seen that the firm had significantly modified its product portfolio and presently
offers the bars offered by the firm include attributes like crush, chewy, clusters, yogurt, protein and
others. Moreover, the firm over the years had been taking the help of the slogan “The Energy Bar
Nature Intended” for the promotion as well as marketing of the bars offered by it to the customers
(Naturevalley.com, 2019).
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Situation Analysis
Market Analysis
The Confectionery industry had emerged as one of the most important industries of the nation
of Australia not only because of the revenue that the concerned industry contributes towards the
national economy of Australia but also on the score of the plethora of food products offered by it to the
customers. In this regard, it needs to be said that the gross revenue generated by the concerned
industry in the year 2019 was $6bn which accounts for 6.7% of the GDP of the nation
(Ibisworld.com.au, 2019). In addition to this, the growth rate of the concerned industry is 0.7% and
offers employment to more than 11,225 different individuals (Ibisworld.com.au, 2019). Some of the
most important firms of Australia related to the confectionary industry are Mondelēz, Nestle Lindt,
Mars, Ferrero and others and together they hold more than 80% of the market share of the concerned
industry in Australia (Ibisworld.com.au, 2019). However, one of the most important factors which is
presently affecting the business prospects of these firms is the fact that these firms take the help of
artificial ingredients and also different kinds of taste enhancers whereas the contemporary customers
have shown high propensity towards organic products (Nuttavuthisit & Thøgersen, 2017). This can be
explained on the basis of the fact that the Australians in the present times are facing various kinds of
health issues which can be related to their unhealthy eating habits (Lee & Yun, 2015). It is precisely
here that the firm Nature Valley and the organic bars offered by them since they are not only
manufactured from organic ingredients but also better in taste as well in comparison to the bars
offered by the other firms.
Macro Environment Analysis
Political Analysis
 The nation of Australia has a very stable political system with very few political struggles or
turmoils which is especially important from the perspective of the business firms because of
the fact one of the key requirements of the different firms is a stable political environment
wherein they would be able to conduct their business activities in an effective manner
(Ibisworld.com.au, 2019).
 The national government of Australia takes various kinds of initiatives for the promotion of
trade and commerce. In this regard, it needs to be said that the nation not offers different
kinds of business loans to the firms and also the interest rate charged is very nominal
(Ibisworld.com.au, 2019).
 Australia has active association with the different Commonwealth nations which means that
the business firms of the concerned nation not only have the opportunity to conduct trade in
these nations but also take the help of the resources of these nations for growth and
development (Gray, Harymawan & Nowland, 2016).
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 These will actually act as an opportunity for the firm Nature Valley and the Muesli Bars offered
by it since it can utilise the stable political environment of the nation for the effective conduct
of their business operations.
Economic Analysis
 The nation boasts of a large mixed-market economy and the gross income of the nation for
the year 2017 was A$1.69 trillion (Australia.gov.au, 2019).
 The nation has the 2nd highest per capital income just after the nation o Switzerland and this
clearly indicates the individual wealth that the different individuals of the nation hold
(Australia.gov.au, 2019)
 The business firms have to pay very nominal amount of tax money, tariff charges, subsidies
and others and this has fostered a positive business environment within the concerned nation
(Gray, Harymawan & Nowland, 2016)
 The stable economy of the nation and also the high per capita income of the individuals
means that the people would have the required amount of capital to purchase the Muesli Bars
offered by the firm and thus it serves as an opportunity for the concerned firm.
Social Analysis
 The people of Australia in the recent times have shown a high propensity towards the organic
food because of the large number of diseases that they are facing (Lee & Yun, 2015)
 People are extremely fond of different kinds of granola bars, Muesli Bars and others and they
are being consumed as instant sources of energy (Ibisworld.com.au, 2019)
 The liberal society of the nation means that the people like to try out new kinds of food
products and this greatly supports the business of the firm under discussion here
 It is likely that the high propensity shown by the people towards organic food products will
greatly support the sale of the organic Muesli Bars offered by Nature Valley
Technological Analysis
 Australia in the recent times had emerged as one of the most technologically advanced
nations of the world
 The technological advancement of the concerned nation greatly supports the business
activities of the different firms of the nation not only in terms of the products or services that
they offer but also in terms of the business models used by them as well as the operations
management processes (Gray, Harymawan & Nowland, 2016).
 The active association that the nation of Australia has with the different Commonwealth
nations means that the business firms of the concerned nation have the opportunity to utilise
the technological resources of these nations as well for the purpose of their business
activities.
 Nature Valley had the opportunity to further improve the quality as well as the taste of the
Muesli Bars offered by it to the customers through the effective usage of the technological
resources of the nation of Australia
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Legal Analysis
 The nation of Australia has very stringent corporate or business laws so as to encourage fair
competition and also the usage of ethical business activities on the part of the business firms
 The firms are not only required to abide by different employment laws like Fair Work Policy
and others but also different business market laws as well (Australia.gov.au, 2019)
 The firms also need to undergo various kinds of quality and regulatory checks so as to ensure
that the products or services are on par with the standards given by the national government
and not harmful for the customers (Gray, Harymawan & Nowland, 2016).
 Nature Valley would have to take into account these stipulations and also ensure that the
Muesli Bars offered by it passes the different quality and other checks of the national
government of Australia so as to be viable in the Australian market
Environmental Analysis
 Australia is a signatory member of the Paris Agreement (2016) through the business firms of
the nation are required to reduce the amount of harmful pollutants released by them into the
environment by more than 2.1% (Australia.gov.au, 2019). Thus, Nature Valley would have to
ensure that it reduces the amount of pollutants released by it so as to be eligible to conduct its
business in the concerned nation.
 The firms are also required to comply by the different food wastage, hygiene and other
parameters of the national government for the process of their business activities.
Micro Environment Analysis
Company Analysis
The three positive aspects of Nature Valley and the Muesli Bars offered by them are listed below-
 Use of organic ingredients for the manufacture of the concerned bars which not take into
effective consideration the health but also the taste needs of the customers
(Naturevalley.com, 2019)
 Muesli Bars can be used as instant sources of energy and thereby is no adverse effect of the
health of the consumers
 Nature Valley over the years had developed a positive brand image because of the high
quality of the organic bars that they offer
The three negative aspects of Nature Valley and the Muesli Bars offered by them are listed
below-
 The lack of product diversity of the concerned firm is one negative aspect of the firm and this
in turn had significantly limited the scope of its business
 Nature Valley is presently operational in very few nations like Australia, USA and others and
this is another negative aspect of the firm
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 The over-reliance of the concerned firm on organic ingredients had not only significant
reduced the product portfolio of the concerned firm but at the same time had placed it at a
competitive disadvantage in comparison to its rivals
Nature Valley is a firm which seeks to offer organic food products to the customers which are not
only superior in taste but also health friendly as well.
Competitor Analysis
The confectionary industry of Australia is a highly competitive one and some of the most
important firms in this regard are Mondelēz, Nestle, Lindt, Mars, Ferrero and others (Ibisworld.com.au,
2019). More importantly, it is seen that these firms along with Nature Valley hold more than 80% of
the market share of the concerned industry in the nation of Australia (Ibisworld.com.au, 2019).
Furthermore, it is seen that the majority of these firms are taking the help of different kinds of
strategies like cost leadership, product differentiation and others so as to gain competitive advantage
within the concerned industry (Chernev, 2018). Moreover, another important common aspect among
these firms is the fact that they are increasingly taking the help of the concept of product adaptation
and thereby modifying the products offered by them as per the target customer base on which they
focus on. This is important from the perspective of the nation of Australia since it is seen that the
people are very specific about the kind of food products that they consume. In this regard, it needs to
be said that the firm Nestle certainly seems to have the edge over the other firms because of the
plethora of food products that it offers to the customers which are not only in synchronicity with their
demands but also available for people from all ages (Gummesson, 2017). However, the major point of
difference between these firms and Nature Valley is the fact that whereas these firms take the help of
different kinds of artificial ingredients and also taste enhancers, the firm Nature Valley primarily
depends on organic ingredients for the bars that it offers to the customers.
Competitive market Summary
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Competit
or
Target Market Product Price Promotion Distribution Strength/Weakness
Nestle The primary target market
of the concerned firm is
the confectionary industry
and particularly the
teenager customer base
although in the recent
times it is seen that the
firm is making food
products for adults as
well
Chocolate
bars, baby
food, medical
food, bottled
water,
cereals , dairy
products and
others
The firm takes the
help of the cost
leadership
strategy to offer
the best quality
products and that
too at a
comparatively
lower price
The firm takes the
help of different
kinds of digital
marketing strategies
like content
marketing, social
media marketing
and others
The firm had
developed effective
relation with different
distributors and third
party retailers for the
distribution of its
products
The major strength points of the
firm are its product diversity,
international presence, positive
brand image, use of cost
leadership strategy and others.
The major weakness of the firm is
that it takes the help of artificial
ingredients and also taste
enhancers for the manufacture of
its products
Mondelēz The primary market of
Confectionary, food and
beverage, grocery and
other industries and the
products offered by the
firm are intended for
people related to all age
groups however special
focus is being placed on
the teenagers and
adolescents
Chocolate,
cookies, gum,
confectionary,
gums,
beverages
and others
The firm takes the
help of the
premium pricing
policy and thereby
tries to offer the
best quality
products to the
customers
Uses social media
marketing, SEO,
content marketing
and others
Has developed its
own supply chain
system so as to
ensure effective
distribution of the
products offered by it
Major strength points include
product diversified, active
association with some of the
leading brands of the world,
international presence and others.
Weaknesses include disregard of
environmental regulations, use of
artificial ingredients for the
manufacture of products and
others
Lindt The target market of the
concerned firm is
adolescents belonging to
the working class
background who like to
try out different varieties
of chocolates
Chocolate
truffles,
chocolate bars
and other
kinds of sweet
food products
Takes the help of
premium pricing
policy
Digital marketing
strategies
Third party vendors
and distributors
Strength- different varieties of
chocolates that it offers to the
customers, international
presence, positive brand image
and others.
Weaknesses- The firm over-relies
on chocolate products and apart
from this there are few other
versions of sweet bars or
products that the firm offers, use
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of artificial ingredients
Mars The target market of the
concerned firm are both
the teenagers and the
adults
Candy, mint ,
gum,
chocolate
bars, pet food
and others
Takes the help of
cost leadership
strategy
Digital marketing
strategies
Third party vendors Strengths- The firm has extensive
interest in different industry and
this significantly reduces the
business risk faced by it,
international presence and others.
Weaknesses- Lack of product
diversity, use of artificial
ingredients for the manufacture of
food products and others
Ferrero Focus on individuals from
all age groups although
the special focus on the
firm is on the teenagers
Branded
chocolate,
chocolate
candies, bars
and other
confectionary
products
Uses cost
leadership
strategy
Digital marketing
strategies
Had developed its
own supply chain
system
Strength- positive brand image,
2nd largest chocolate
manufacturer of the world,
international presence and others.
Weakness- Over-reliance on
chocolate products, use of
artificial taste enhancers and
others
Source: Nestle.com, 2019; Ferrero.com, 2019; Mars.com, 2019; Chocolate.lindt.com, 2019, Mondelezinternational.com, 2019
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Consumer Analysis
The primary customers of the Muesli Bars offered by the firm Nature Valley are the individuals
related to the age bracket of 25-54 years of age. The firm focuses on this particular section of the
Australian population for the sale of the Muesli Bars offered by it to the customers because of the fact
that in the recent times they have shown a higher propensity towards healthy as well as organic food
products (Lee & Yun, 2015). It is seen that in the different retail outlets and also the supermarkets of
Australia wherein the Muesli Bars of Nature Valley are being sold, the sale of the concerned bars get
increased during the weekends because of the fact that it is during this time the people generally go
out for shopping especially the working class individuals. In addition to this, it is seen that during
festivities or holiday seasons the sale of the concerned bars get increased. Furthermore, the
customers have the option to buy the Muesli Bars from the retail outlets or order them from the official
website and also the app of Nature Valley. More importantly, it is seen that the majority of the
customers rather than opting for one or two bars generally take the entire box because of cost
effectiveness. In this regard, it needs to be said that there are various factors which influence the
customers to opt for these Muesli Bars like the unique taste of the bars, the fact that it is completely
organic and manufactured taking into account the health requirements of the customers, cost
effectiveness, there are very few other firms which offer organic confectionary products and others
(Naturevalley.com, 2019).
SWOT Analysis
Strength  The primary strength point of the firm is the organic bars which it offers to
the customers because of the fact that the customers in the recent times
have shown a higher propensity towards the organic food products and
there are no many firms in Australia which the same
 The price charged by the firm for the organic bars is comparatively lesser
than that of the bars offered by other firms which are manufactured taking
the help of artificial ingredients
Weakness  The firm over the years had developed a very limited range of products
because of the difficulty in making different kinds of bars from organic
ingredients and this in turn had significantly limited the scope of the firm. On
the other hand, it is seen that Nestle, Mars and others are taking the help of
product differentiation strategy to capture the confectionary market in an
effective manner.
 The firm is operational in very few nations like Australia, USA and others
which in turn had significantly reduced the business scope of the concerned
firm whereas it is seen that the other firms are actively taking the help of the
process of international expansion to earn a higher amount of revenue.
Opportunity  The firm would gain in a significant manner if takes the help of the strategy
of product diversification and thereby offers a wide range of bars to the
customers which would not be limited just to organic bars but include
chocolate and others. This is important because of the fact that people from
all age brackets like to consume chocolate on a regular basis and this is one
of the major reasons for the extensive success gained by the other
confectionary firms like Nestle, Ferrero and others.
 International expansion is another opportunity that the firm can take the help
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and this is not only likely to widen the customer base of the firm but at the
same will help it to earn a higher amount of revenue as well. This becomes
especially important because of the fact that all the major competitors of the
firm under discussion here are actively taking the help of this process.
Threat  Intense competition is one of the major threats that the concerned firm faces
because of the fact that the confectionary industry of Australia is a highly
competitive one and the different firms of Nestle, Mars and others are have
already monopolised the market through the usage of effective strategies.
 The limited customer base of the firm is another major threat for it because
of the fact that there are very few people are conscious about their health
and like to consume solely organic food whereas for the majority of the
people taste is the major factor. For example, one of the major reasons for
the unprecedented success by Nestle can be ascribed to the fact that it
focuses on customers related to all age brackets and have different
products to suit their needs. However, this is not the case with Nature Valley
and the products offered by it to the customers.
Source: Naturevalley.com, 2019
Recommendations/conclusion
Two of the most important recommendations and also the two important opportunities that Nature
Valley can use are listed below-
 Product Diversification: One of the major factors which had enabled the competitors of
Nature Valley to gain success within the confectionary industry of Australia is the effective
usage of the product diversification strategy. Thus, it is likely that if the concerned firm taking
the help of this strategy significantly increases its product portfolio then it would be able to
compete on par with its rivals.
 International Expansion: The effective usage of this process is another factor which had
enabled the rivals of Nature Valley to gain success and its is seen that firms like Nestle,
Ferrero, Mars and others are operational in almost all the major nations of the world. Thus, it
is likely that the firm would be able to gain in a significant manner through the effective usage
of this process.
Reference List
Australia.gov.au, (2019). Australian Government Home Page. (2019). Retrieved from
https://www.australia.gov.au/
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Chocolate.lindt.com, (2019). Lindt Chocolate World. Retrieved from https://www.chocolate.lindt.com/
Ferrero.com, (2019). Ferrero Group Corporate Website. Retrieved from https://www.ferrero.com/
Gray, S., Harymawan, I., & Nowland, J. (2016). Political and government connections on corporate
boards in Australia: Good for business?. Australian Journal of Management, 41(1), 3-26.
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Gummesson, E. (2017). From relationship marketing to total relationship marketing and
beyond. Journal of Services Marketing, 31(1), 16-19.
Ibisworld.com.au, (2019). Chocolate and Confectionery Manufacturing – Australia Industry Report |
IBISWorld. Retrieved from https://www.ibisworld.com.au/industry-trends/market-research-
reports/manufacturing/food-product/chocolate-confectionery-manufacturing.html
Ingenbleek, P. T., Meulenberg, M. T., & Van Trijp, H. C. (2015). Buyer social responsibility: A general
concept and its implications for marketing management. Journal of Marketing
Management, 31(13-14), 1428-1448.
Lee, H. J., & Yun, Z. S. (2015). Consumers’ perceptions of organic food attributes and cognitive and
affective attitudes as determinants of their purchase intentions toward organic food. Food
quality and preference, 39, 259-267.
Mars.com, (2019). Global Petcare, Food, Confectionery and Edge Brands | Mars, Incorporated.
Retrieved from https://www.mars.com/
Mondelezinternational.com, (2019). Mondelēz International, Inc. - Home. Retrieved from
https://www.mondelezinternational.com/
Naturevalley.com, (2019). Nature Valley - Granola Bars, Snacks, Nut Bars, Granola, and Protein
Bars. Retrieved from https://www.naturevalley.com/our-food-philosophy/
Nestle.com, (2019). Nestle Home. (2019). Retrieved from https://www.nestle.com/
Nuttavuthisit, K., & Thøgersen, J. (2017). The importance of consumer trust for the emergence of a
market for green products: The case of organic food. Journal of Business Ethics, 140(2), 323-
337.
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