Strategic Marketing Report: Manuka Honey Market Analysis and Strategy

This report offers a comprehensive strategic marketing analysis of Manuka honey. It begins with an introduction and situational analysis, examining market size, structure, Porter's Five Forces, market trends, and key success factors. The analysis delves into the macro environment using PEST analysis and competitive analysis, culminating in SWOT and TOWS analyses to identify strengths, weaknesses, opportunities, and threats. The report then focuses on customer segmentation, identifying and describing two customer segments and their differences. It explores positioning strategies and concludes with a summary of findings and recommendations. The report includes references to support the analysis. This report uses various tools and frameworks to assess the current market conditions of Manuka honey and develops strategic marketing plans.

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Table of Contents
Introduction.................................................................................................................................................3
Situational analysis......................................................................................................................................3
Market analysis relevant to the business..................................................................................................3
Market size..........................................................................................................................................3
Market structure...................................................................................................................................4
Porter five forces analysis....................................................................................................................4
Market trends.......................................................................................................................................5
Key success factors..............................................................................................................................5
Analysis of macro environment...............................................................................................................5
Pest analysis........................................................................................................................................5
Competitive analysis...............................................................................................................................6
SWOT analysis and Tows analysis..........................................................................................................6
Summary.................................................................................................................................................8
Customer and positioning............................................................................................................................8
Identify and describe two customer segments..........................................................................................8
Difference between the segmentation......................................................................................................9
Positioning strategy...............................................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Introduction
The primary purpose of this task is to portray the ample of information about business
activities and operations of Manuka honey. Manuka honey renders various honey products, skin
care and wound care products. It products are sold through its distribution network in New
Zealand and globally. The paper outlines that how situational analysis is done by Manuka health
to grab the rivalries in the market. Various tools such as pest, SWOT, TOWS, and porter five
forces analysis are done by Manuka honey to measure and identify the external challenges and
risks of the market. The paper also represents that how competitors may affect progress and
targets of Manuka honey. In second phase, the paper outlines that how segmentation is done after
considering future and current trends. Marketing mix and positioning strategy that play a vital
role in maximizing profitability also have been explained in the task.
Monuka honey is one of the biggest brands in the market. Monuka honey is not only a jar
but also it has proven to be dynamic and effective when added to lozenges, face creams and
soaps. Monuka honey products are effective and excellent way to help enhance and improve well
being and health (Manukahoney,2018). Monuka health was incorporated in 2006 and it is a
leader in Monuka honey. The brands of the company include monuka honey, Royal Jelly and
Propolis that helps to capture the living energy of New Zealand nature. The firm works towards
the improvement of personalized services in the competitive market (Manukahealth, 2018).
Situational analysis
Situational analysis is done by the company to identify and analyze the opportunities and
threats of the market. It also helps in eliminating and reducing the risks and challenges of the
market.
Market analysis relevant to the business
Market size
It is noted that market size of New Zealand large and wider. Therefore, the company can
take ample of benefits by selling the honey products in the country. In 2015, New Zealand honey
exports soared 41% therefore, the country benefited from demand for high and effective value
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Manuka honey (Morrison, 2016). New Zealand data indicates that the value of honey exports
jumped to $285 million from $202 million (Morrison, 2016). The taste of honey products are
increasing in the country day by day.
Market structure
Aside this, it is noted that market structure of New Zealand is also very unique and
effective for production of honey. Manuka honey production in the country has explored and
expanded speedy in the last few years (Marketresearchfuture, 2018). It is stated that majority of
Manuka honey is now being sold in New Zealand. Apart from this, the price of honey products is
also rising due to increasing the demand of the honey products. Along with this, the popularity of
honey products has spread widely in the country. Honey is a Canterbury based business therefore
it helps in attracting gift market and tourist. Thus, the market structure for honey products is
dynamic (Parliament.nz, 2015).
Porter five forces analysis
Porter five forces analysis is done to cope up with the rivalries in the international
market. Porter five forces analysis for Manuka honey has been discussed below.
Threats of new entrants: There is no threat for new entrants in the country because the
company is maintaining brand loyalty in the market.
Threat of substitute: The threat of substitute would be high if other alternatives available too.
Manuka honey does not compromise the quality of the products and have fixed the competitive
rates. The company can won the trust of the customers if it provides good quality of honey
products to the customers.
Competitive rivalry: There are various competitors of Manuka honey in the marketplace. The
competitors may affect the growth and success of the company. The price of Manuka honey is
low as compared to its rivalries.
Bargaining power of buyers: The bargaining power is high in the hands of buyers. The
company is using innovative and dynamic strategies to stand out against the competitors in the
market.
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Bargaining power of suppliers: Suppliers maintain high and strong power in the competitive
market. Manuka honey needs to focus on the suppliers to maximize and enhance the sale and
revenue in the market.
Market trends
It has been found that New Zealanders enjoy a comfortable and unique standard of living
and rank highly on the global happiness index. It is noted that Manuka honey may contain an
extraordinary type of antibacterial activity which is not found in other honeys. People buy
Maunka honey because they want a natural source of nutrition. Manuka products are also used
by the people as medicinal plants to treat colds and fevers. The country’s apiculture industry has
rapidly grown in the last few years because people demand for premium and excellent honey
(Koukoulaki, 2010).
Key success factors
Marketing is one of the significant success factors for Manuka Honey. Manuka honey is
well known for quality of honey. Apart from this, distribution and reputation are considered
another success factors for the company. One of the effective and important success factors for
Manuka honey is its yield. With the help of greater yield, the company has been able to beat the
competitors in the international market.
Analysis of macro environment
The macro environment affects the progress of the firm adversely as well as positively.
Thus, the company needs to focus on the macro environment to eliminate and reduce the threats
and challenges of the market. Pest analysis is done to identify and analyze the risks and
challenges of the market (Brooking & Pawson, 2010).
Pest analysis
Political factors: It has been found that government of the country support the honey industry to
explore and export its products in the market. Along with this, trading policies are also positive
for Manuka honey so it can export its products in the foreign market.
Economic factors: The economic factors such as living standard, consumer focus, national
income, exchange rate and inflation rate may also affect the profitability of Manuka honey in a
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large extent. The company is constantly focusing on measuring the needs and requirements of
the customers. It is the main and significant reason for the success and growth of Manuka honey.
Socio-cultural factors: The socio-cultural factors include income level, demographics,
education level and consumerism could also impact on the revenue and returns of Manuka
Honey. These factors can affect the buying behavior of the consumers in the competitive market.
Technological factors: It is stated that innovative and advanced technologies are used by the
country therefore; it can be a good opportunity for the company. Apart from this, research and
development team is appointed to produce innovative and tasty products for the customers in the
market (Mintu-Wimsatt & Winston, 2013).
Competitive analysis
The two main competitiors of Manuka honey include Comvita and Capilano that affect
the effectiveness and efficiency of the firm adversely (Owler, 2018). The company provides
different types of honey to the customers across the world. It is noted that the firm has been able
to strive with rivalries just because the price for bulk Manuka honey is low as compared to the
competitors. The firm uses low pricing strategy to stay in the competitive market. Aside this,
Manuka honey also uses product differentiation strategy to distinguish its products from the
rivalries available in the market (Owler, 2018).
SWOT analysis and Tows analysis
It is noted that TOWS analysis is direct complement for the SWOT analysis because TOWS
analysis would not complete without SWOT analysis. The TOWS and SWOT analysis for
Manuka honey have been discussed below.
Strength-opportunity strategy Weaknesses-opportunity strategy
The company uses this strategy to grab the
macro environmental opportunities by using
the internal strengths. Manuka honey maintains
a strong and unique brand image in the market
thus, it has been able to attract and retain
maximum number of customers in the market.
Along with this, the company can also
This strategy is initiated for aiming of
improving internal weaknesses by using
exterior opportunities. If the company focuses
on the advertising and promotional strategy
then it can overcome the competitors.
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introduce new and innovative products by
investing large amount on research and
development sector.
Strength-threat strategy Weakness-threat strategy
This strategy is used by the firm for
minimizing the effects of external threats by
using its internal strengths. It is stated Manuka
honey company uses effective and dynamic
branding and advertising strategy to capture the
entire market and to hit the competitors.
By using this strategy, Manuka honey tries to
eliminate internal weaknesses while ignoring
the external threats. Mostly,, this strategy is not
used by Manuka honey.
Strengths Weaknesses
 Strong and unique brand name is one of
the significant strengths for Manuka
Honey.
 Excellent and effective distribution and
advertising.
 Manuka honey is not good for diabetic
patients.
 The food products have a limited shelf
life.
Opportunities Threats
 Buy out rivalries
 More advertising shall be done by the
company.
 Local made honey is preferred by
people.
Summary
It is analyzed that application of Manuka honey for medicinal purpose is predicated to
have an effective and unique growth during the forecast period. Along with this, the top
exporters of the company include Australia, China, Spain, New Zealand and Germany. In
addition, pest analysis, porter five forces analysis, SWOT analysis and TOWS analysis are
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significant and essential for Manuka honey to analyze and determine external opportunities and
threats in the competitive market.
Customer and positioning
Identify and describe two customer segments
Segmentation may be defined as a process of dividing the entire market into the different
piece of units. Manuka honey has been divided on the basis of particular and unique food type
which Gluten Free, HFCS-Free, organic and others. HFCS-Free Maunka honey is noted to hold a
majority of share due to its maximizing health issues among the customers
(Marketresearchfuture, 2018).
Manuka honey is also segmented on the basis of distribution channel which consists
supermarkets and hypermarkets and specially stores. The online selling through internet and e-
commerce are found to be strong and high (Watanabe, Rahmasari, Matsunaga, Haruyama &
Kobayashi, 2014). The current Manuka honey market is also segmented into Asia pacific, North
America and Europe. Apart from this, Manuka honey products are also segmented after
considering the various applications that entails culinary purpose, confectionery, direct
consumption, personal care products, medicinal purpose and bakery (Van Eaton, 2015).
The future segmentation can be done after considering the various segmentation areas
such as demographic, geographic, behavioral and psychographic segmentation. Constantly
changing life style has led to acceptance of delicious and healthy diet by customers due to which
Asia pacific is projected to create high returns and revenue during the given predict period
(Marketresearchfuture, 2018). On the basis of regions, the segmentation of Manuka Honey has
been discussed below.
North America
 Canada
 Mexico
 U.S
Europe
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 France
 Italy
 Spain
 Germany
 U.K.
Asia pacific
 China
 Japan
 India
 Australia
Rest of the world
 Argentina
 Brazil
 Saudi Arabia
Difference between the segmentation
Manuka honey has segmented its market on the basis of psychographic and geographic
basis. In geographic segmentation, the company focuses on the areas and regions which is not
done in psychographic segmentation (Quinn & Dibb, 2010). On the other hand, psychographic
segmentation focuses on the traits, habits, lifestyle and attitudes of people to boot or uplift
profitability in the market.
Marketing mix: Marketing mix is one of the effective and unique strategies that used by
Manuka Honey to gain competitive benefits in the global market. The marketing mix for Manuka
Honey has been detailed below.
Product: Manuka honey is committed for providing its customers products that are of unique
quality and taste. The main mission of the company is to provide good and health quality of
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products for its customers. The company deals in various products such as food products, skin
care, home care and health care products.
Price: It is noted that lower pricing strategy is used by Maunka Honey in New Zealand to attract
maximum number of customers widely. The customer reaction is also included in the pricing
strategy.
Place strategy: The Company has enormous outlets and stores. Various distribution channels are
used by the company to grab entire target audience.
Promotion: It is one of the dynamic strategies that initiated by the firm. Various campaigns and
sessions are held by Manuka honey to promote honey products.
Positioning strategy
It has been found that Manuka honey uses application, product and pricing based
positioning strategy to differentiate its honey products from the rivalries. In today’s era, the
company provides good and tasty honey products at lower price. Therefore, the firm can use
pricing strategy to overcome the rivalries in the international market (Quinn & Dibb, 2010).
Conclusion
It concludes from the above mentioned analysis that Manuka honey is oone of the
significant companies who is dealing in enormous honey products. The above analysis shows
that how Manuka Honey is gaining competitive benefits by considering choices, tastes and
preferences of the customers. Porter five forces analysis, SWOT analysis and TOWS analysis are
done by the company to analyze and evaluate the threats and opportunities of external market.
On the other hand, it also explains roles and significance of segmentation and positioning. The
paper also outlines that how Manuka Honey uses marketing mix to increase and enhance the
demand of honey products in the international market.
References
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Brooking, T., & Pawson, E. (2010). Seeds of empire: The environmental transformation of New
Zealand (Vol. 4). IB Tauris.
Koukoulaki, T. (2010). New trends in work environment–New effects on safety. Safety
science, 48(8), 936-942.
Lucintel.,2013. Pestle analysis of New Zealand 2013[Online], Retrieved from
https://www.lucintel.com/pestle-of-new-zealand-2013.aspx
Manukahealth.2018. About us[Online], Retrieved from
http://www.manukahealth.co.nz/en-nz/our-story/about-us/
Manukahoney.,2018. Manuka honey [Online], Retrieved from
https://manukahoney.co.uk/medical-honey
Marketresearchfuture.,2018. Global Manuka honey market research report-forecast to
2023[Online], Retrieved from https://www.marketresearchfuture.com/reports/manuka-
honey-market-3112
Mintu-Wimsatt, A. T., & Winston, W. (2013). Environmental marketing: strategies, practice,
theory, and research. Routledge.
Morrison.T.,2016. Manuka honey fuels huge export growth [Online], Retrieved from
https://www.nzherald.co.nz/hawkes-bay-today/business/news/article.cfm?
c_id=1503458&objectid=11583463
Owler.,2018. Manuka health New Zealand’s competitors, revenue, number of employees,
funding and acquisitions [Online], Retrieved from
https://www.owler.com/company/manukahealth
Parliament.nz.,2015. Briefing from the bee industry [Online], Retrieved from
https://www.parliament.nz/resource/mi-NZ/51DBSCH_SCR64555_1/a427396701a987cf
7504dc5a792a79973621a3ba
Quinn, L., & Dibb, S. (2010). Evaluating market-segmentation research priorities: Targeting re-
emancipation. Journal of Marketing Management, 26(13-14), 1239-1255.
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Van Eaton, C. (2015). Manuka: The biography of an extraordinary honey. Exisle Publishing.
Watanabe, K., Rahmasari, R., Matsunaga, A., Haruyama, T., & Kobayashi, N. (2014). Anti-
influenza viral effects of honey in vitro: potent high activity of manuka honey. Archives
of medical research, 45(5), 359-365.
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