Marketing Opportunity Analysis: Arnotts Biscuits, MKT1003 Report

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This report presents a marketing opportunity analysis for Arnotts Biscuits, an Australian company in the biscuit and snack food industry. It begins with a company background, highlighting Arnotts's history and market position. The situational analysis includes macro and micro-environment analyses, focusing on political, economic, social, technological, environmental, and legal factors (PESTLE). It also examines the micro-environment through company, competitor, and customer analyses. The report provides a SWOT analysis, identifies marketing objectives, and defines the target market and positioning strategies for Arnotts Biscuits, concluding with key findings and recommendations. The analysis references relevant academic sources to support its claims and conclusions.
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Marketing
Opportunities Analyses
for Arnotts Biscuits
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Contents
INTRODUCTION...........................................................................................................................3
COMPANY BACKGROUND........................................................................................................3
SITUATIONAL ANALYSIS..........................................................................................................3
Macro Environment Analyses......................................................................................................4
Micro environment analyses........................................................................................................4
Competitive analyses...................................................................................................................5
Customer analyses........................................................................................................................5
SWOT analyses............................................................................................................................6
Marketing objectives....................................................................................................................6
Target market and positioning.....................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Every business makes the marketing plan about how they will try to educate their
targeted customers about the products which the company got to offer. Marketing serves various
advantages to the company like increasing the awareness among the targeted group, helps in
increase in sales, increase in market share and so on. Marketing planning is very much important
as it enables a company in forming the strategies about how the company would go to pursue for
their marketing activities. For reference purpose this report has taken an example of a company
Arnotts’s Biscuits. It is an Australian company which is engaged in selling the biscuits and snack
Food. The company is considering as a best and largest market for distributing their biscuits and
food snacks. Arnotts’s Biscuits was established in the year 1865 which was founded by William
Arnott.
This report discuses about the marketing analyses of the company in which Pestel, SWOT,
competitors analyses and so on are includes.
COMPANY BACKGROUND
Arnotts’ Biscuits is the Australian company which deals in producing and selling the
biscuits and food snacks all over the whole market of country. The company is largest producer
for the biscuits and also is the second largest supplier for the food snacks. The Arnott’s Biscuits
has its headquarters in the south of wales and the total employees who are working with this
organisation is around 4300+.
The company was first founded in the year 1865. The founder for this was Willam Arnott. He
opened up a bakery in Morpeth, then slowly but steadily it got expanded to various places. The
company produces the product for the home country initially and then later they start exported
their products first into the parts of United States and then the other many countries (Arnott, &
Pervan, 2016). In the year 2019 the Campbell soup company decided to sell their Arnott business
to KKR for $ 2.2 billion.
SITUATIONAL ANALYSIS
The food snack industry in Australia country is keep on increasing as the demand for the
same is getting an increase. According to the report the demand for the plain biscuits and the
cookies are getting in a high demand. This has been resulted as the industry has brought up
various types of food snacks which have forced the customer to make a purchase for the same.
Arnott’s biscuits company is consider as a largest retail company in producing and selling the
biscuits and second largest in selling the food snacks. The demand for the company’s products
are much like by the people, this increase in demand is also due to the variety and quality of the
products they manufacture for the market.
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All these retail industry into Australia account for around 4.1 percent in the GDP. From the
record it is being clear that this retail industry has a major contribution into the growth of the
country (Arnott, & Leibbrandt, 2020). And as the company Arnott’s Biscuits is the largest selling
biscuit company into whole Australian market and its market growth and share both are high
among the other competitors, it is obvious that this company’s contribution is also very highest
among the competition available.
Macro Environment Analyses
POLITICAL Analyses Health star rating” which is proposed by the
government created big controversies about the
company’s biscuits that whether they are
manufacturing a healthy product or not for which the
company did face many problems.
As the government of the country increased the tax on
sugar and sugary products due to increase in the
obesity in people, the company faced problems as their
cost for sugar as increased. This also has resulted in
increase in the price of products and decrease in the
demand.
ECONOMIC analyses As the disposable income for the customer gets
increase the people tend to purchase more of the
products due to which the sales for the company also
gets increase (Arnott, & Bernstein, 2018).
SOCIAL Analyses More customers get serious about their eating habits
and start preferring the healthy products, due to which
the Arnott came up with the varieties of biscuits like
gluten free, sugar free, wheat based biscuits and like.
TECHNOLOGICAL analyses Often change in technology has enable the company in
effective and efficient production activity which
incurred less cost and more productivity for the
company
ENVIRONMENTAL analyses Change in water and climate has affected the crops
due to which the production of biscuits does get
affected.
LEGAL analyses As all the products should be in accordance with the
CCA law, the company has thoroughly followed that
in its system.
Micro environment analyses
Company Analyses
Positives
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Supply network: The supply network for the company is very large and strong. There
supply network has enabled the company in gaining the competitive advantage into the
market place.
Prices: The prices which are offered by the company are very much reasonable and very
affordable by the customers (Arnott, Beck & Kalesnik,2016).
Brand name: The name of the brand is very much famous and known among the
customers. Every customer is familiar with the company and its offered products.
Negatives
Promotional strategy: The promotional strategy which is used by the company is very
weak, in their advertisement activity something is lacked behind. The activities related to
the marketing does not able to cover a large market.
High sugar content: The biscuits which are manufactured by the company contain a
high level of sugar in them which is not so healthy for sugar patients.
The company needs to work more upon its promotional activities and strategies so that they can
cover the market as planned. They also need to work upon their sugar content into biscuits.
Competitive analyses
The followings are the competition for Arnott’s Biscuits
Organ Fruit biscuits: These biscuits are different from Arnott biscuits as they promise to have
all allergic free. They promise to provide the low saturated fat in them (Aveyard, Arnott, &
Johnson, 2018). But like Arnott biscuits they also are very much active at all social media site
like Facebook, Twitter and etc.
Leda Fruit Bars: Unlike Arnott biscuits, these promises to have sugar free products and they
marketed to the niche market. But like Arnott they also are very much active at social media sites
and provide the reasonable prices for the products.
Naturally Good Muesli Cookies: These biscuits costs are quite high from the one which are
provided by Arnott’s as they are very much particular about their offerings. The ingredients
which are used by the company are nutritionally dense. Like Arnott biscuits they are also most
preferred by the customers.
Kookas Naturals: Unlike Arnott biscuits the prices for these products are very much high and
they are available at the selective retail stores and sites. Both the Arnott and Kookas naturals
uses the natural and healthy ingredients into the manufacturing of biscuits (Hemminki &
Puttonen, 2016).
Customer analyses
The customer for the biscuits is:
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Health seekers: The company has manufactured a particular segment for the customer who are
very particular about their health and diet. In that segment the biscuits produce from the fine
nutritional ingredients which are healthy for the customer health.
Young professionals: The young professionals are the people who are too busy with their than
they do not have the proper time for their food. The biscuits which are manufactured by the
company are also in the view for full filling the hunger of such these category (Lopez & Arnott,
2018). The biscuits contain the high and heavy ingredients like nuts, fruits and etc which can fill
a hungry stomach.
Modern family: the modern family is also the customers for the Arnott biscuits. Now as all the
family members are working, the parents might not enough time to cook for their kids or for
themselves so to full fill the brunch or snack time they prefer to have such biscuits as they saves
time for them to prepare food for themselves and for their family.
SWOT analyses
Strengths
The company has a very reputable
brand.
Good and fine quality products.
The company also provides reasonable
prices for its products.
Weakness
The promotional strategy used by the
company is not as good as per planned.
The company also has poor positioning
for the products.
The biscuits have the high sugar
content in them.
Opportunities
Providing more creative and tasty
biscuits will increase the market share
and growth for the company.
The company can also go for the
mergers and more expansion for their
products.
Threats
Increase into the rate of competition has
created a threat for the company.
The increase in prices for the raw
materials has also resulted into the
increase in price for biscuits which may
cause reduction in customer base.
Marketing objectives
The company has the following marketing objectives which are:
They have the aim for increase in customer loyalty by providing the healthy food.
They also aim in increasing the brand awareness in the UK market from 2% to 4%
through right methods of advertising and promotions.
The company has made their marketing strategy in such a way that it reduces its cost by
total of 6% when compared with the past incurred cost.
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Target market and positioning
The company has planned to target the UK market in an effective way. They have
planned to increase their market share into that particular region. Therefore the targeted market
for the company is UK market. For placing the products into the market, the company has
planned various marketing strategies for which they can position or place their products into that
region. Positioning is very important as it creates an image into the minds of customers in
relation with the product (Webster Arnott & Burgar, 2019). The company can use the various
methods for positioning of their products which may include promotional events, sponsorships
for events, building the public relation, proper methods for advertisements like newspapers,
holders, television and etc.
The products which the company will going to place are:
Basic biscuits: they have the benefits of basic but creamy taste.
Gluten free biscuits: they will provide the gluten free biscuits to the customer who is
allergic to glutens.
Fruits and nuts biscuits: They are the biscuits which has nuts and fruits in them, the
customers which are very much preferable for fruits and nuts.
CONCLUSION
The report discuss above talks about the marketing analyses of Arnott’s biscults. In that
the pestel analyses, SWOT analyses, targeted market and positioning, competitor analyses has
been performed by the company.
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REFERENCES
Books and Journals
Arnott, D., & Pervan, G. (2016). A critical analysis of decision support systems research
revisited: the rise of design science. In Enacting Research Methods in Information
Systems (pp. 43-103). Palgrave Macmillan, Cham.
Arnott, J., & Leibbrandt, N. (2020). A hydrogen future?. The APPEA Journal. 60(2). 385-388.
Arnott, R. D., & Bernstein, W. J. (2018). “The Long-Run Drivers of Stock Returns: Total
Payouts and the Real Economy”: A Comment. Financial Analysts Journal. 74(1).
Arnott, R. D., Beck, N., & Kalesnik, V. (2016). Timing'Smart Beta'Strategies? Of Course! Buy
Low, Sell High!. Of Course.
Aveyard, P., Arnott, D., & Johnson, K. C. (2018). Should we recommend e-cigarettes to help
smokers quit?. BMJ, 361.
Hemminki, J., & Puttonen, V. (2016). Fundamental indexation in Europe. In Asset
Management (pp. 323-330). Palgrave Macmillan, Cham.
Lopez, J. C. G., & Arnott, R. J. (2018). Is higher-quality land developed earlier?. Environment
and Planning B: Urban Analytics and City Science, 2399808319828728.
Webster, S., Arnott, R., & Burgar, W. (2019). U.S. Patent No. 10,360,811. Washington, DC:
U.S. Patent and Trademark Office.
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