MKT1MDP Marketing Report: Australian Biscuits Manufacturing Analysis

This report provides a comprehensive analysis of the Australian biscuits manufacturing industry, focusing on marketing strategies and environmental factors. The executive summary highlights key findings, including a PESTLE analysis, which examines political, economic, socio-cultural, technol...Read More

Running head: MARKETING STAND AND DELIVER
Marketing stand and deliver
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Executive Summary
From the assessment of the study, it was found that Australian biscuits manufacturing
industry was analysed by assessing the different macro environmental factors to ensure
successful management and delivery of products and services to the clients. The political
factors included the trade rules and regulations, Government policies, rate of return on
investments influenced the business functioning whereas the consideration of cultural factors,
such as the shared values and beliefs along with the management of skilled workforce and
employment opportunities created further contributed to the business performance positively.
The market segmentation was done by targeting the different market segments and focused
on the health conscious clients and the individuals aged between 6 to 15 years. Both these
segments have been primary targets, which have been provided with healthy biscuits and
different flavoured biscuits respectively. The major area of focus and requiring investments
could be the sustainable packaging of environment friendly packaging of the biscuits. Lastly,
recommendations were done to ensure that the shareholders invest on these two major
segments of market to increase sales generation and profit level too.

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Table of Contents
Introduction................................................................................................................................4
Macro-environmental Analysis..................................................................................................4
Political factors.......................................................................................................................4
Economic factors....................................................................................................................4
Socio-cultural factors..............................................................................................................4
Technological factors.............................................................................................................5
Legal factors...........................................................................................................................5
Environmental factors............................................................................................................5
Market Segmentation and Targeting..........................................................................................5
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................6

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Introduction
The report is prepared to discuss about the various concepts of marketing and how it
can allow the specific industry chosen here, i.e., the Australian biscuits manufacturing
industry to deliver good business outcomes. The topic will also illustrate about the major
variables in the environmental factors analysed with the help of PESTLE framework and also
about how the companies within the industry can segment market (Lovelock and Patterson
2015). By analysing the macro environmental factors and marketing segmentation and
targeting aspects, it will create convenience for the companies within the concerned industry
to ensure delivering the right products and services properly. The report will also prioritise on
the specific segment of the market where the company can invest in as well.
Macro-environmental Analysis
The macro environmental analysis is done for the purpose of analysing the political,
economic, socio-cultural, technological, legal and environmental factors that have influenced
the Australian biscuits manufacturing industry as well as the business organisations confined
within the specific industry (Hall 2016).
Political factors
Often it is found that the revenue generation capability of the businesses within the
Australian biscuits manufacturing industry has been influenced by the Government
legislations, policies and regulatory frameworks, which also affects the economic growth,
buying behaviours of the consumers and the international trade rules and regulations.
According to Jenkins and Williamson (2016), with the shift towards e-commerce business,
huge amount of data and information are being breached, which has resulted in antitrust
issues among the Government and regulatory bodies too. The political stability in Australia
has also made many of the foreign shareholders influenced to make investments and

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facilitated the trading activities furthermore. The lower rate of return on investments can also
create chances of risks and thus affect the functioning of businesses within the Australian
biscuits manufacturing industry too (Jenkins and Williamson 2016). The corruption level also
influences the level of rules and regulations within the Australian biscuits manufacturing
industry along with the industrial safety regulations that shape the consumer buying
behaviours and ensures maintenance of product quality and safety during consumption.
Economic factors
The economic factors consist of major variables such as growth rate of the industry,
rate of inflation, etc., which can impact the financial performance of the industry and also the
companies within the sector. As stated by Sonntag et al. (2015), these are the various aspects
that can affect the business performance and make it unable to achieve the desired sales
generation and lack of profit too. The economic factors include rate of unemployment and
financial recessions that also affect the sales, thus, leading to financial disruption too. The
Australian biscuits manufacturing industry has maintained good financial stability to ensure
consistency in the growth and development of market too (Sonntag et al. 2015). The
disposable income of households have increased budgets, which has also influenced higher
purchases of biscuits based on the increased demands. The expensive biscuits are introduced
in the market, which has created opportunities for the companies to growth within the
Australian biscuits manufacturing industry (Huang 2015).
Socio-cultural factors
The culture of the society plays an important role in influencing the social conditions,
especially, the management of shared values, beliefs and attitudes among the consumers,
which also created convenience in understanding their buying behaviours. Based on the
analysis of consumer buying behaviours, the companies have deigned the marketing

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messages and information for influencing the clients regarding purchase behaviours and
choices. The consciousness about health has enabled Australian biscuits manufacturing
industry to sell biscuits that are less in fat, sugar and have gluten free ingredients that are
fresh and are of good qualities, which also encouraged people to gain interest on the biscuit
manufacturing brands and associated food products (Becherer and Helms 2016). The health
consciousness among people and awareness about sugar content have also made the biscuit
manufacturing companies to fulfil the demands of clients by maintaining a balanced content
of sugar, carbohydrate and sodium. The growing demands for low fat diets has also been
considered by the biscuit manufacturing companies to ensure production of gluten free
biscuits.
Technological factors
The advancement of technologies has opened new scopes for the industry to manage
e-commerce business and manage selling of biscuits online to make an extended reach to
both local and global customers (Simkin and Dibb 2013). The value chain and cost structures
have been impacted with the latest technologies implemented by the organisation to ensure
showcasing the products and services online, furthermore, reach out to wider group of
audiences and improve the sales generation capability and profit level too.
Legal factors
The legal frameworks and rules may vary from country to country, though it needs to
be robust enough for protecting the intellectual rights and ensure ethical business practices
while entering into new markets for the Australian biscuits manufacturing companies in
Australia. The Discrimination law and health and safety laws prioritised on preventing
discrimination within the workplace, while at the same time, focused on maintaining good

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quality biscuits. The Data protection laws are important to ensure storage and retrieval of
consumer data and information, furthermore maintain confidentiality (Mazzucato 2016).
Environmental factors
The companies within the Australian biscuits manufacturing industry also focused on
implementing laws to prevent environmental pollution and managed recycling of biscuits’
packets too. The management of wastes and prioritisation on gluten free, less sugar and
carbohydrate contents present in the biscuits and green products furthermore influenced the
consumer buying behaviours and encouraged them to make healthier food choices too
(Oraman 2014).
Market Segmentation and Targeting
Segmentation
The market segmentation allows the Australian biscuits manufacturing industry to
divide the market into different segments with different demographic features, socio-
economic characteristics and features of products and services too. Dibb and Simkin (2013)
stated that the market segments comprising of the customers are based on the gender of
customers, educational levels possessed by them and different demands and expectations.
The biscuit manufacturing industry in Australia has been segmented into product,
source, distribution channels, packaging and flavour type. The Australian biscuit
manufacturing industry can also be segmented into wheat, oats, millets, etc., which are the
sources of the biscuits production and the majority of revenue share comes from the wheat
segment whereas the packaging type also has been segmented into jars, pouches, boxes, etc.
The packaging segment constitute a large portion of the market share for the biscuit
manufacturing industry in Australia, which has also helped in managing effective channels of
distribution. This has further facilitated the segmentation of Australian biscuit manufacturing

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industry into online retail, specialty stores, convenience stores and few other distribution
channels as well. The biscuit manufacturing companies’ products are segregated according to
the different age groups, which can also facilitate the implementation of organisational
policies required to mitigate the overstocking issues and inventory management problems
too. The segmentation into online retail has also experienced greater growth rate while
managing the period of forecasting. The entire market or industry has thus been segmented
according to the different kinds of flavours and ingredients used in the biscuits such as
chocolate biscuits, vanilla biscuits, cheese biscuits, fruit and nuts, etc.
Target markets
The target market, especially the homecare segment has been developed according to
the level of preferences of the clients belonging from the different age groups and genders too
(Dibb and Simkin 2013). The target market is basically the market segment that comprises
of individuals who are health conscious and are aware of healthy food options, which
makes them inclined towards healthier food options, especially the biscuits that are gluten
free and have lesser content of fat, sugar and carbohydrate.
Another major market segment is the market segment consisting of the young
individuals aged between 6 to 15 years of age. The market segmentation also facilitated the
division of markets into multiple segments where the products and service are delivered by
the companies according to the education level and income level possessed by them
(Camilleri 2018). With the different kinds of biscuits available in different tastes and flavours
for the different market segments within the biscuits manufacturing industry, the purchasing
power of customers has not only enabled the companies to extend the product range, but also
has resulted in consistent growth rate for the product or service too.

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The other primary target market segments include the low income groups and higher
income groups and also the groups consisting of bigger family sizes. The product offered to
the targeted market segments, i.e., to the health conscious customers are the gluten free
biscuits consisting of lesser fat and sugar while the biscuits available in different flavours
such as fruit and nut biscuits, strawberry flavoured biscuits, chocolate biscuits have been
targeted at the segments consisting of individuals aged between 6 to 15 years. The
companies in Australia have sustainably sourced the ingredients to ensure that the quality of
biscuits remain consistent and can cater to the needs of people bearing in mind their
consciousness about their health and availability of biscuits in different flavours and tastes
(Weinstein 2013). Therefore, the focus on health consciousness and production of biscuits for
meeting the demands of more or less every market segments have been the major causes of
market dominance for the Australian biscuits manufacturing industry, which also contributed
to the growth in economy of the nation as well (Mazzucato 2016).
Recommendations
From the analysis of various factors and segmentation techniques, it should be effective
for the Australian biscuits manufacturing industry to invest on the packaging, i.e., green
packaging, which can create lesser impact on the environment and at the same time, facilitate
preservation of biscuits in a confined manner without any damage or even deteriorating the
quality. The Australian biscuits manufacturing strategy is based on the three major principles
including the targeting of different market segments, innovation to meet customers’ needs
and value creation as well.
 It is recommended to invest in the area of packaging to make sure that environmental
friendly or sustainable packaging is done for keeping the biscuits safe and healthy

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 The Australian biscuits manufacturing industry is recommended to attract more
shareholders or investors to make investments on this various market segments to
ensure that they acquire good rate of return on investments too
 It is also recommended for Australian biscuits manufacturing industry to set the right
prices for the biscuits, and implement the cost leadership strategy to target the market
segments properly, furthermore, ensure influencing the consumers’ buying behaviours
 The right prices should be set though without making any compromise to the quality
of the biscuits produced within the concerned industry in Australia
 It is also recommended to conduct research and development activities, which can be
possible with the help of investments by shareholders, which shall result in expanding
the range of biscuits of different flavours and tastes targeted at the multiple market
segments
 There is recommendation for the industry to focus on the production of environment
friendly biscuits, which can be done through sustainable sourcing of ingredients used
for the production of good quality biscuits
Conclusion
The report was prepared to conduct the macro environmental analysis with the
consideration of various factors including the political, economic, socio-cultural,
technological, legal and environmental factors associated with the business functioning
within the Australian biscuits manufacturing industry. Based on the analysis, it was found
that the industry maintained a strong position by targeting the right market segments,
especially health conscious customers and individuals aged between 6 to 15 years. The two
segments of market were provided with gluten free biscuits that have less sugar and
carbohydrate and the other segment was provided with biscuits available in different flavours.

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Based on the analysis, it could be understood that research and innovation could facilitate the
industry functioning and ensure investing in the area of sustainable biscuits packaging to
influence buyers’ behaviours largely.
References
Becherer, R.C. and Helms, M.M., 2016. The role of entrepreneurial marketing in improving
market share for small businesses facing external environmental or resource
challenges. Journal of Business and Entrepreneurship, 27(2), pp.119-147.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Dibb, S. and Simkin, L., 2013. Market segmentation success: Making it happen!. Routledge.
Hall, R., 2016. Brilliant Marketing: How to plan and deliver winning marketing strategies-
regardless of the size of your budget. Pearson UK.
Huang, M.H., 2015. The influence of relationship marketing investments on customer
gratitude in retailing. Journal of Business Research, 68(6), pp.1318-1323.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis.
Routledge.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Mazzucato, M., 2016. From market fixing to market-creating: a new framework for
innovation policy. Industry and Innovation, 23(2), pp.140-156.
Oraman, Y., 2014. An Analytic Study of Organic Food Industry as Part of Healthy Eating
Habit in Turkey: Market Growth, Challenges and Prospects. Procedia-Social and Behavioral
Sciences, 150, pp.1030-1039.

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Simkin, L. and Dibb, S., 2013. Social media's impact on market segmentation and CRM.
Sonntag, D., Schneider, S., Mdege, N., Ali, S. and Schmidt, B., 2015. Beyond food
promotion: a systematic review on the influence of the food industry on obesity-related
dietary behaviour among children. Nutrients, 7(10), pp.8565-8576.
Weinstein, A., 2013. Handbook of market segmentation: Strategic targeting for business and
technology firms. Routledge.