Marketing_Assignment

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Marketing_AssignmentI. SITUATION ANALYSIS. Minties, one of the most iconic Australian lollies since 1922, has earned for itself a certain number of loyal customers through almost a hundred years on ... market. This means that Minties has a specific segmentation market which is an advantage that any brand set a goal for (IBISWorld, para.1, page23). In addition, Minties is one of product lines of mint flavoured lolly belong to Allen brand, this is one of the most popular brand for sugar confectionery, this major player has invested a consider resources to boost up the demand through R&D, advertising, promotion and creating favourable contracts with key suppliers (IBISWorld, para.1, page14). Although Allens Minties have some advantages on confectionery market, there are also some disadvantages such as negative perceived on sugar confectionery due to non-healthy ingredients, for example: high sugar and fat level, artificial colours. Those unhealthy ingredients are associated with diabetes, heart disease and obesity one of the biggest heath concern of Australian (IBISWorld, para 5, page14) However, there are new trends and factors which creates more opportunity for the confectionery industry. First of all, customers tend to buy premium and healthy products, this is an opportunity for sugar confectionery manufactures to pay more investment on diversifying and producing their niche product line, in order to, increasing revenue growth in Chocolate and Confectionery Industry. Secondary, an increasing in real disposable income will give a rise in spending on sugar confectionery sector include Minties. In long term, this implies a shift from average products to premium products such as premium chocolate (IBISWorld, para.3, page 6). Along with opportunities, there are some threats to be considered such as increasing in health consciousness of customers, pressure from internal and external confectionery industry. The evolving consumer preferences on healthy diet could threat the revenue growth. The internal threat within sugar confectionery is based on price, product, innovation and quality. The external threat comes from the substitute goods and imports. Alternative snacks such as chip, biscuit or dry fruits product lines (Marketline, para 5, page 16). Imports expect to rise 5% at annualise over the next five years, this means that the competitive pressure could be more intense since the volume of comparative products from foreign manufacture is expected to be increasing. (Marketline, para.4, page 16). See Appendix A for SWOT analysis. After evaluating the CDSTEP there are 2 major macro- environmental forces influence the sugar confectionery manufacture Social trend - Research from IBIS World indicates that consumer preferences have changed, more and more customers rather spend on premium and healthier products than on the original chocolate and confectionery over the last five years (IBISWORLD, para.3, page 7). In addition, increasing concern on dental health and heathier diet is also driving the consumption volume down. Fortunately, some manufacturers have coped with this by producing sugar- free or fat- free product lines (IBISWORLD, para.5, page 14). [Show More]

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