Marketing Environment of a Branded Good Organization in the UK and India - Case Study Example

International Marketing Table of Contents 0 Introduction 3 2.0 Opportunities in pet care industry 4 2 The trend of pet’s population in developed and developing countries 4 2.2 The profit prospect in the pet industry 5 3.0 Competitor Analysis of Nestle Purina Pet-care Company in UK and India 5 3.1 Future Pet food Market in UK and India 6 4.0 Macro Environmental analysis of the markets of United Kingdom and India for Nestle Purina Pet-care Company with PEST 7 4.1 Micro Environmental analysis of Nestle Purina Pet-care Company in United Kingdom and India 10 5.0 Conclusion 11 References 12 1.0 Introduction In modern families and households, pets play a very important role. This is mainly because, increasing number of families throughout the world consider pets as their family members and not as pets. So, the demand of the products and services offered by the organizations dealing in pet industry has been increasing rapidly as compared to many other industries. According to Australian Companion Animal Council, (2010), there are more than 33 million types of pets reside in the world. In United Kingdom, almost 23 percent of the households comprise of dogs and 20 percent include cats. From the above mentioned statistics, it might be clearly avowed that the consciousness and kindness of the human beings for pet animals is increasing day by day and this is key reason behind rapid growth of the pet care industry. This rising trend of human characteristics towards pets has proved worthy for the organizations operating in the pet care industry and this factor acts as positive catalyst to the demand of product and services of the branded pet care companies and amplifying revenue to a considerable extent (Australian Companion Animal Council, 2010). The rationale of this essay is to compare and contrast the marketing environment of a branded food organization in United Kingdom and India. The company that has been selected for this study is Nestle Purina Pet Care Company which is a multination pet food brand having strong footprint in many countries around the world including United Kingdom and India. In order to do so, varied types of analytical tools are used such as PEST analysis and Porter five forces analysis. 2.0 Opportunities in pet care industry 2.1 The trend of pet’s population in developed and developing countries According to Australian Companion Animal Council, (2010), the number of pets has been increasing every year in an increasing rate. In United Kingdom, the number households or families having cats are 75% of the number of families having pet dog. In opposite to this scenario, maximum percentage of the Indian households who own pets, have pet dogs as compared to cats. Such type of trend might prove highly effective for Nestle Purina Pet-care Company. BRIC Household Penetration for Dog and Cat Ownership (Source: Euromonitor, 2010) The above figure of indicates that the trend for pet dog ownership has increased in India that may prove effective for Nestle Purina Pet-care Company to enjoy increased demand of their pet food products. 2.2 The profit prospect in the pet industry The industry of pet-care is increasing and so its contribution towards the gross domestic product of the nation may not be neglected. This is mainly for the increased attention of the human beings over the pet animals. So, as per the report of Australian Companion Animal Council, (2010) the expenditure of consumers over dogs and cats increased by 59.7 % and 23.5 %. However, this enhanced the profitability and demand of the products of dogs and cats in both developed and developing counties like UK and India respectively to a considerable extent. Improvement of the demand of the products of Pet-care companies amplified its consistency and position in these competitive markets in this recent age. This might be possible only if the organization offers high attention over research and development in introducing innovative product lines. Then, the range of pet lovers might get enhanced to a significant extent in the up-coming years. Hence, Nestle Purina Pet-care Company also needs to follow the similar strategy to improve its popularity. 3.0 Competitor Analysis of Nestle Purina Pet-care Company in UK and India Nestle Purina Pet-care Company is one of the reputed brands in pet-care industry, based in Missouri of United States. Very soon, it positioned itself as one of the leading player in this market for its brands such as Alpo, Baneful, Arthurs, Go-Cat, Fancy Feast and many others (Purina, 2014). However, in order to remain in the top-most position from its competitors like Barking Mowing heads, Lily’s Kitchen, Whiskas, Nestle Purina Pet-care Company introduced many new products like Bonio, Chef’s Blend, Friskies, Dog Chow etc. This new strategy of product innovation is highly necessary for the Company that may amplify its market share and brand value. In order to increase demand and sale of the pet care products, Nestle Purina Pet-care Company has been offering best quality and taste of pet-care products at a quite lowest price in Indian markets. This overshadowed the profitability of the competitors like Mars Inc, Petco, Iams and many others. This strategy helped the organization to increase sale and gain competitive advantage in Indian market that can amplify its brand image. Therefore, it might be stated that in order to retain its gain competitive advantage and rising market share in both the pet care food markets of United Kingdom and India, Nestle Purina Pet-care Company needs to offer high attention over its product lines and continuous new product development. From the sales trend of pet care food, it is evident that product lifecycle of a newly launched pet care food is very short in the market and most of the products reach to maturity or decline stage of product life cycle after few months or maximum 1 or 2 years of launch. This is only because high competition among the top brands and also threat of rising new entrants with low priced products in the market. Therefore, the company needs to offer highly qualitative products at competitive prices to increase the life cycle of each product in the market. Then, it might prove effective for the organization to amplify its productivity and profitability to a significant extent in the coming years in these markets among its competitors. This might help the organization to attract more and more quality conscious pet lovers towards the products of Nestle Purina Pet-care Company thereby increasing its revenue. 3.1 Future Pet food Market in UK and India The pet food market in United Kingdom and India might prosper to a remarkable extent. This is mainly for the increased preference and fondness for the pets in these regions as presented in the reports of euromonitor (2013). However, increasing consumption of pet-care products may increase the CAGR percentage to 13.8 in India by the end of 2015 and 1.1 percentages in United Kingdom by 2015. This might prove worthy for the organizations operating in pet-care segment like Nestle Purina Pet-care Company. But, in order to retain such prosperity and demand, the organization need to offer high attention over the changing trends and preferences of the pets. This means, it need to present varied types of dog and cat food segments such as cat mixers, premium dog food, premium cat food, dietary supplements, mid-priced dog and cat foods etc. However, in order to improve the total sales of premium dog and cat food, the prices of these products need to be lowered in Indian market as compared to its competitors like Mars Inc and Petco. Whereas, Nestle Purina Pet-care Company need to offer varied types of inventive products in UK markets, so as improve its market share and customer base as compared to Lily’s Kitchen and friskies. Moreover, in order to increase the dominance and position of the products of Nestle Purina Pet-care Company, it need to highlight the benefits in front of the packaged tins like high vitamins, high proteins, no preservatives, no wheat, no artificial colour and many more. These facts are effective for the organization to attract a wide range of pet-lovers towards the brand that may amplify its market demand and profitability to a significant extent among others. 4.0 Macro Environmental analysis of the markets of United Kingdom and India for Nestle Purina Pet-care Company with PEST PEST is considered as one of the most important analytical tool that may be used to evaluate the environment of United Kingdom and India. Political: The organizations operating in pet care industry always need to follow the rules and regulations of pet food. Pet care foods are manufactured and distributed in the similar fashion as of human nutritional packaged food. The pet-food manufacturers also need to obey the industry codes and guidelines of pet food in terms of safety and quality, as the health of the pets is directly linked with these foods. If the products manufactured by the pet-fop manufacturers are not safe, then it may result in death of numerous pet animals. This might hinder the brand image of the organizations that may reduce sales. Moreover, as per Feeding Stuffs Regulations 2005 and The Animal By-Products Regulations 2005, the products prepared must include the meats of animals. And it needs to be tested by veterinary inspectors, prior launching in the market so as to qualify its accuracy for the consumption of animals (Food Standards Agency, 2005, Food.gov.uk, 2005). Therefore, Nestle Purina Pet-care Company need to obey all the above mentioned policies and guidelines, prior developing products for the pets in the market of United Kingdom and India. Nestle Purina Pet-care Company also needs to follow the changing trends of consumption of animals. This is because; as the consumers are of lower age, they fail to take proper care and concern for the animals and so the animals may fall ill. However, in order to maintain proper care and diet, the age-groups of households desiring to keep pets are increased from 12 years to 16 by the new Animal Welfare Act of 2007 (UK.Gov, 2007). This act highly affected the total sales and demand of the pet products of Nestle Purina Pet-care Company and many others. Therefore, in order to cope up with negative impacts of these acts, Nestle Purina Pet-care Company need to introduce varied types of inventive as well as qualitative products lines. Then, revenue of Nestle Purina Pet-care Company might get enhanced to a significant extent among many other rival players in both the markets of United Kingdom and India. Economic: The increased rate of disposable income and rising values of real estate properties increase the craze of pets in both the markets of United Kingdom and India. This is the prime reason that might help Nestle Purina Pet-care Company to enhance its market share and demand. And the introduction of varied types of inventive but low-priced products might also act as a boon for Nestle Purina Pet-care Company that may amplify its brand value and loyalty among many other rival players such as Mars Inc, Lily’s Kitchen, Whiskas, Petco etc. But, in order to cope up with the challenging environment of turmoil, Nestle Purina Pet-care Company need to offer its products at a quite lowest prices as compared to its above mentioned competitors. It might also offer high attention over safety of the products, so as to retain its distinctiveness within the minds of its loyal customers. Then, Nestle Purina Pet-care Company might become successful in amplifying its brand value and sustainability in long run. Socio-cultural: According to the Euromonitor (2013), maximum number pet owners have pets in their households in order to reduce loneliness and boredom. But according to the household sizes of United Kingdom, the number of one-person households is reducing at a significant extent (UK Statistics Authority, 2011). So, the intensity of preserving pets might get declined to a considerable extent. This might affect the total sale and profit margin of the pet care organizations like Nestle Purina Pet-care Company to a significant extent. But in Indian market, most of the individual preserve pets for care and kindness. This might act prospective for Nestle Purina Pet-care Company thereby amplifying its loyalty and brand value among other competitors like Mars Inc and Petco. However, in order to maintain the topmost position, Nestle Purina Pet-care Company need to invent varied types of high quality products. Only then, it might prove effective for Nestle Purina Pet-care Company to enhance its productivity and market share. Changing lifestyle of the customers also offers significant influence over the health of the pet animals. In recent age, maximum extent of the individual in both the markets of United Kingdom and India are busy in their professions and so the pets need to remain confined within their residences for huge time span. Therefore, the rate of pet-obesity is increasing at a rapid pace in this recent age. Therefore, in order to get rid from these disorders, most of the consumers desire to offer health-conscious products to their pets. Therefore, Nestle Purina Pet-care Company need to introduce low calorie products. Then, it might become successful in retaining its brand position and demand of products in these markets as compared to other rival players. Technological: Now a day, technological innovation is viewed in every aspect and so innovativeness is also seen in pet-products. Now, the pet food manufacturers desired to offer more attention over organic ingredients and natural products. Therefore, Nestle Purina Pet-care Company also need to offer organic products so as to retain its demand and reliability within the minds of the customers among others. Such types of changes are preferred in this recent age, in order to maintain the health of the pets and reduce all sorts of disorders. 4.1 Micro Environmental analysis of Nestle Purina Pet-care Company in United Kingdom and India Bargaining power of the customers: As the trend and preference of the pet lovers is changing rapidly, most of them desire to offer health conscious as well as qualitative products to their pets. This is mainly; to reduce the disorder to obesity. Therefore, Nestle Purina Pet-care Company also need to prepare varied types of organic, low calorie products as well dietary supplements for the pets. These types of products might prove extremely effects for the pets that may amplify the prosperity and profitability of Nestle Purina Pet-care Company among others (Euromonitor, 2014). Bargaining power of suppliers: The bargaining power of the raw material suppliers of organic products is extremely high and so the organizations had to increase the prices of its products. But as the quality of these organic products is extremely high, so the total sale might get enhanced consistency. Similar strategy need to be followed by Nestle Purina Pet-care Company in both the markets of United Kingdom and India in order to amplify its total sale and popularity as an ethical organization (The ethical-company-organizations, 2013). Competitive rivalry: The competitive rivalry in both the markets is extremely high for Nestle Purina Pet-care Company. So, Nestle Purina Pet-care Company need to offer high attention over the concept of product innovation as well as cost leadership. These strategies might prove effective for Nestle Purina Pet-care Company to amplify its customer base and profitability to a considerable extent among other rival players (Kumar, 2009). Threat of substitutes: The threat of substitute products is extremely high in this segment. This is mainly for the presence of numerous rival players. Therefore, Nestle Purina Pet-care Company might try to present the products at a quite low price within the market region of India so as to improve its position. However, in the market of United Kingdom, Nestle Purina Pet-care Company might try to develop varied types of inventive products to attract pet-health conscious customers. Barrier to entry: The barrier to entry is quite in this segment is extremely low. This is mainly because of the presence of numerous rival competitors such as Mars Inc, Petco, Lily’s Kitchen etc. This might prove extremely advantageous for Nestle Purina Pet-care Company in both the markets of United Kingdom and India. 5.0 Conclusion From the above detailed analysis, it can be stated that, amplification of sustainable demand of their pet food products is the prime requisite of the Nestle Purina Pet-care Company. In order to fulfil it, it might try to offer best quality of products at an effective price in Indian markets so as to attain leadership and dominance. Whereas in the market of United Kingdom, Nestle Purina Pet-care Company might try to offer low calorie products or organic products through product innovation strategy. Then, it might surely offer prospective results to Nestle Purina Pet-care Company in long run as compared to its rival players. These strategies might help the company to increase the profitability and customer base to a significant extent. 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