Macro-environmental Analysis of Australian Confectionary Industry

Marketing and management 0
Marketing and management
Student’s Name
9/19/2019

Marketing and management 1
Contents
Introduction................................................................................................................................2
Macro-environmental Analysis..................................................................................................2
Market segmentation and targeting............................................................................................5
Recommendations & Conclusion...............................................................................................7
References..................................................................................................................................9
Appendices...............................................................................................................................11

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Introduction
Australian confectionary industry provides the retail sale of chocolate, gum and sugar
confectionery products. It is analysed that Australia has the huge potential for the growth in
the confectionary market and has observed the growth in market value by 3.7% in the year
2018 (Refer to figure 1). In the Australian confectionary market chocolate holds the largest
segment with the 70.4% of the market value (MarketLine, 2019). Mondelez International Inc.
holds the leading position in the Australian confectionary market. It is analysed that the
leading brands in Australia uses the aggressive strategies to develop the brand loyalty and
provide premiumization. The confectionary industries focus on diversifying the business by
making sugar free innovations and extensions in the product lines (MarketLine, 2019).
The additional paragraphs of the report will cover the macro-environmental analysis and will
also highlight the market segmentation and targeting done by Australian confectionary
industry. It will cover the recommendations to entice the customers and expand the growth of
confectionary industry.
Macro-environmental Analysis
Macro-environmental analysis is the strategic tool that helps in analysing the opportunities
and threats in the external environment. It includes the factors that are not in control of the
business and majorly affects the functioning of the business.
Political Factor
The political factors directly influence the long term profitability of business through
imposition of various trade laws and regulations. It is analysed that the political situation in

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Australia is stable and the government imposes laws that restricts the involvement of unfair
trade practices and reduces the unhealthy competition. It turns the country into preferable
investment opportunity and allows the confectionary industry to grow its business. It allows
reducing the manufacturing prices and providing the products at reasonable prices. The
government also designs the policies to address the economic challenges (Davies and
Kitchen, 2015).
Economic Factor
The economic factors help in determining the aggregate demand and investment in the
particular industry. It includes the changes in the exchange rate, interest rate, savings rate and
growth in gross domestic product of particular country. The stability in the economy of
Australia affects the revenues and the expenses of the confectionary industry. It is analysed
that Australia records 5.4 % growth in GPD and the size of population has reached 24 million
in the year 2018. It allows to create stable investment opportunities and the government has
reduces the tax rate to 27.5% in the year 2017 to support the growth of the confectionary
industry. In contrast to the above, the inflation rate has increased to 2.5% and also observed
the fluctuations in exchange rate. This creates the threat for the industry and directly impacts
the performance of the confectionary industry (Djekic et al, 2016).
Socio-Cultural Factor
Australia is well-recognised for its multiculturalism. It consists of population who have
different cultures and beliefs. This factor helps in analysis of the social factors on the
multicultural population and understanding the changing trends of customers. It is analysed
that the population in Australia is divided under three segments which incudes upper, middle
and working class and the illiteracy rate is lower is Australia. Higher literacy levels makes the
consumers shift towards the healthy lifestyle and in turn increases the demand for health