MKTG7501: Paleo Hero Marketing Analysis - Internal & External Factors

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This report presents a marketing situational analysis of Paleo Hero, an Australian family-owned business specializing in paleo-friendly products. The analysis begins with an introduction outlining the company's mission and the scope of the report. It then delves into an internal analysis, examining the company's resources, capabilities, and the marketing mix (product, place, price, and promotion). The report further explores the external micro-environment, focusing on competitors, customers, and suppliers. Following this, a macro-environmental analysis is conducted, using the PESTLE framework to assess political, economic, social, technological, environmental, and legal factors influencing Paleo Hero. Finally, a SWOT analysis is performed to identify the company's strengths, weaknesses, opportunities, and threats, providing a comprehensive overview of its current market position and strategic direction.
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Running head: MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
Name of the Student
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1MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
Table of Contents
1. Introduction................................................................................................................2
2. Internal analysis.........................................................................................................2
Definition and importance of internal analysis..........................................................2
Elements of internal analysis.....................................................................................3
Current internal environment of Paleohero................................................................3
3. External Micro-environmental analysis.....................................................................4
Micro-environmental analysis and its importance.....................................................4
Main elements of micro-environment analysis..........................................................4
Competitor analysis of Paleo Hero............................................................................5
Targeting and positioning of Paleo Hero...................................................................5
4. External Macro-environmental analysis....................................................................6
Macro-environment analysis and its importance.......................................................6
Elements of macro-environmental analysis...............................................................6
PESTLE analysis of Paleo Hero................................................................................7
5. SWOT Analysis.........................................................................................................8
SWOT analysis and its importance............................................................................8
Elements of SWOT analysis......................................................................................8
SWOT analysis of Paleo Hero...................................................................................8
6. Conclusion..................................................................................................................9
7. Appendix..................................................................................................................10
8. References................................................................................................................11
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2MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
1. Introduction
Paleo Hero is an Australian family-owned business organization that has passion of
developing premium quality based products that are paleo-friendly in nature. The paleo-
friendly products are mainly those which contain different types of proteins like fish, eggs,
fruits, nuts, grains, processed foods, margarine, trans fats and vegetable oils. The company
aims at supporting the paleo lifestyle that is led by the individuals. The various requirements
of taste buds of the individuals are considered by the organization in order to offer various
products (Paleohero.com.au. 2019).
The company is able to offer products to the customers based on demands and
requirements of the customers and their lifestyle as well. The report will be created on the
analysis of the internal environment and external micro-environment as well. The SWOT
framework will be used in order to study the strengths and the weaknesses of Paleo Hero that
are helpful in the development of opportunities and threats that are developed as well
(Paleohero.com.au. 2019). The strategic direction that is currently being followed by Paleo
Hero will also be discussed in the report.
2. Internal analysis
Definition and importance of internal analysis
Internal study can be defined as the exploration of competency levels of an
organization, the levels of competitive viability and the cost position as well. The
development of an internal analysis mainly incorporates the measures that are able to provide
information that is useful to identify the strengths, weaknesses, opportunities and threats that
are faced in the industry (Meyer, Neck & Meeks, 2017). The proper formation of objectives
is supported by the internal analysis that is conducted by the organization. The levels of
competency of an organization and strengths are considered to be a major result of internal
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3MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
analysis. Updated technology systems are used by the organizations in order to achieve the
goals and objectives (Morschett, Schramm-Klein & Zentes, 2015).
Elements of internal analysis
The four major elements that are a part of internal analysis are,
The analysis of capabilities and resources of an organization.
Co-ordination and configuration of the organization.
The characteristics of organizational structure and culture.
Performance of the company based on the strength of products (Frynas &
Mellahi, 2015).
Current internal environment of Paleohero
The internal environment of Paleohero can be analysed with the help of marketing
mix that has been developed by the organization. The marketing mix based factors that are
able to impact the processes and profitability levels of Paleohero.
Product – Paleohero provides different types of products that are able to accomplish
the needs of consumers related to paleo-friendly lifestyle. The major products that are a part
of the product mix developed by Paleohero include Paleo Hero Primal Muesli, Paleo Hero
Primal Choc Granda, Paleo Hero Primal Bread Mix, Paleo Hero Primal Pancake Mic, Paleo
Hero Almond Porridge, Paleo Hero Pizza Base, Paleo Hero Primal Slice NUT CRUNCH,
Paleo Hero Primal Slice COCONUT BERRY and many more (Michael, Storey & Thomas,
2017).
Place – The distribution channels that are used by Paleo Hero for the purpose of
providing its products to the customers is based on the website of the organization. The
products of Paleo Hero can also be acquired by the customers from the Paleo Hero Stockists
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4MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
who are a part of the organization. The Stockists of Paleo Hero are present in different parts
of Australia and are able to provide the customers with their required products.
Price – The prices that are set by Paleo Hero for the products are quite moderate and
are targeted towards a large groups of customers. The health conscious customers of
Australia will be targeted by the products that have been developed by Paleohero (Aguinis,
Edwards & Bradley, 2017).
Promotion – The promotional tools that have been mainly used by Paleohero are
based on the website of the organization and various discount and coupon codes as well. The
discount based promotions are mainly implemented by Paleohero in order to maintain the
customer base and attract them towards the products as well (Hitt, Ireland & Hoskisson,
2016).
3. External Micro-environmental analysis
Micro-environmental analysis and its importance
Micro-environment in the marketing analysis mainly includes all the micro factors
that are able to influence business strategy, performance and decision making as well. The
micro-environment based factors are also able to support the company in order to understand
the customers, competitors, suppliers, media, employees and the shareholders. All the micro
factors do not impact the organizations in a similar manner. The major reason is that the size,
capacity, human resources, financial resources and the overall strategies are different for
various organizations (Hanson et al., 2016).
Main elements of micro-environment analysis
The five major component that are a part of the micro-environment of organizations
include,
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5MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
Competitors – The competition that is faced by organizations in various
industries has a major impact on the proper operations and profitability levels.
The strategies of the organizations are also influenced by the competitors and
the products that are offered by them as well (Jenkins & Williamson, 2015).
Customers – The customers have an impact on the revenues that are gained by
the organizations. The micro-environmental aspects are thereby related to the
behaviour and purchasing capacity of the customers.
Suppliers – The suppliers of organizations are able to impact the operations
and profitability and the revenues that are received by them as well (Meyer &
Xin, 2018).
Competitor analysis of Paleo Hero
The competitive environment that has been developed in the Australian healthy foods
based market is quite intense. The increase in demands of the healthy products has further led
to the development of products that can be offered to customers. The major competitors of
Paleo Hero in the industry are, Honeyville, Know Foods, Chomps, Real Good Foods and
many more. The organizations are also able to provide products that are quite similar to those
which are offered by Paleo Hero. The health conscious customers who are a part of the
industry are attracted towards the products of Paleo Hero (Johnsen, 2015).
Targeting and positioning of Paleo Hero
The target customers of Paleo Hero mainly include the health conscious customers
who are attracted towards the paleo-friendly products of the organization. People belonging
to an age group of 20 to 50 years are mainly targeted by Paleo Hero with the products
offerings (Adler, 2018).
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6MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
The market positioning approach that has been applied by Paleo Hero is mainly based
on the benefits that are provided by the products to customers. The customer benefits based
strategy is mainly related to the characteristics that are developed by the products that are
able to fulfil needs of the customers as well (Devin & Richards, 2018).
4. External Macro-environmental analysis
Macro-environment analysis and its importance
The uncontrollable and external factors that are able to influence the decision making
process, strategies and performances are an important part of the macro-environmental
factors. The macro environmental factors that have an influence on the organization mainly
include economic factors, legal factors, natural forces and the technological changes as well.
The social and the cultural factors are also analysed in detail with respect to the macro-
environment related aspects (Pagotto & Halog, 2016).
The major importance of macro-environment analysis is based on the ways by which
the organization can be analysed with respect to a broader context. The commercial
operations of the organizations are also analysed with the help of proper implementation of
macro-environment analysis models and tools (Preston, 2016).
Elements of macro-environmental analysis
The macro-environmental analysis of organizations is performed with the help of
proper discussion of six elements that include political aspects, economic condition, social
aspects, technological factors, environmental factors and the legal aspects as well. The
aspects are mainly analysed with respect to the ways by which they are able to influence the
operations and profitability levels of the organizations as well. The strategy based decisions
and product portfolio that will be offered in a new country are based on the macro-
environment factors (Jenkins & Williamson, 2015).
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PESTLE analysis of Paleo Hero
Political factors – The external trends have an impact on the food industry of
Australia and the choice of consumers as well. The healthier options are considered to be
more important for the consumers who are a part of the Australian food industry. The
political environment and food policies of Australian government are able to impact the
processes of organizations in Paleo-friendly food industry (Hitt, Ireland & Hoskisson, 2016).
Economic factors – The economic condition of Australia has recently seen lot of
improvements in the last few years. The positive growth of the economy has been depicted in
the last ten years and potential of various industries have also grown. The GDP of Australia is
also expected to grow at the rate of 3.9% in next five years. The stability of Australian
economy has provided major support to the growth of an organization like Paleo Hero
(Jenkins & Williamson, 2015).
Social factors – The factors related to aging in the Australian society and the
increasing ratios of dependency have been able to influence Paleo Hero and the products that
are provided to the customers as well. Paleo Hero needs to considered the demands of
consumers belonging to various age groups in order to develop the products.
Technological factors – The use of technology is able to play a key part in the
methods by which competitive edge can be gained by an organization in the industry. The
proper packaging of food products is also considered to be an important aspect that has an
influence on the operations of Paleo Hero.
Environmental factors – The environmental issues that have occurred in the food
industry have been able to play a key part in the development of various movements and
green initiatives in Australia. The operations and manufacture process of Paleo Hero and the
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8MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
packaging are able to impact the carbon footprints that are developed by the firm (Meyer,
Neck & Meeks, 2017).
Legal factors – The legal environment of Australia plays the most significant role in
proper development of the products that are offered by Paleo Hero. The Standards of Food
administration have a major influence on the revenues that are gained by the organization
(Adhikari et al., 2018).
5. SWOT Analysis
SWOT analysis and its importance
SWOT analysis is considered to be a strategic planning based technique that is helpful
for the identification of the strengths, weaknesses, opportunities and threats related to
operations of the organization. The internal environment of an organization and its impact on
the strategies are analysed with the help of proper SWOT analysis.
Elements of SWOT analysis
The four key elements of SWOT analysis include strengths, weaknesses, opportunities
and threats as well. The internal factors that have an influence on the decision making and
strategies that are developed are an important part of SWOT analysis.
SWOT analysis of Paleo Hero
Strengths – The major strengths of Paleo Hero are related to the health based benefits
that are offered by the products. The dietary needs of consumers are taken into consideration
for proper development of products.
Weaknesses – The significant weakness of Paleo Hero is based on the lack of proper
promotions of the products and the lack of awareness based on the benefits of products
(Michael, Storey & Thomas, 2017).
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9MARKETING SITUATIONAL ANALYSIS OF PALEO HERO
Opportunities – Paleo Hero has the opportunity to improve the levels of awareness of
the products and increasing the presence of the company in different countries as well.
Threats – The threats that are faced by Paleo Hero are based on the upsurge in levels
of competition in the industry. The number of companies providing similar products has
increased in the last few years (Aguinis, Edwards & Bradley, 2017).
6. Conclusion
The report can be settled by asserting that the major marketing problem that is being
faced Paleo Hero is related to the lack of awareness of the products and low less promotions
as well. The strategic direction that needs to be taken into consideration for the future
operations of Paleo Hero is based on the increase in promotional activities with the help of its
werbsite.
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7. Appendix
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8. References
Adhikari, K., Bosse, J., Fish, A., & Sherman, B. (2018).Intellectual property and related
legal issues facing the Australian Native Food Industry (pp. 1-34). AgriFutures
Australia.
Adler, R. W. (2018). Strategic performance management: Accounting for organizational
control. Routledge.
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational
Research Methods,20(4), 665-685.
Devin, B., & Richards, C. (2018). Food waste, power, and corporate social responsibility in
the Australian food supply chain. Journal of Business Ethics, 150(1), 199-210.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016).Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis.
Routledge.
Johnsen, Å. (2015). Strategic management thinking and practice in the public sector: A
strategic planning for all seasons?. Financial Accountability & Management, 31(3),
243-268.
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