Market Demand and Demand Trends - Research Paper Example

Running Head: The Situational Analysis Criteria The Situational Analysis Criteria Name Course Institution Tutor Date Executive Summary The report have conducted a situational analysis of Eco Stock Supplies limited, this has been achieved by of defining the business as well as its scope, conducting of an external analysis of the firm, and this section entailed the macro environment, industry critical success factors and the microenvironment. This section was closely followed by a discussion of the internal capabilities, the SWOT analysis and marketing Objectives and Strategies. In conclusion, Eco Stock supplies ltd have been in operation for a considerable amount of time now. In relation to the external environment, the business does not seem to face major challenges. The management team needs to take note of the weaknesses and threats as outlined in the SWOT analysis. Additionally, to achieve the best they should also undertake the critical success factors and make use of the proposed strategies to achieve their objectives. I. Introduction Since its inception, Eco stock supplies limited have been offering the farmers with environmentally and financially beneficial solutions and mostly to the surplus food, products and they achieve these by recycling the surplus products onto stock feed. This paper sets out to conduct a situational analysis of Eco Stock Supplies limited, this will be achieved by of defining the business as well as its scope, conducting of an external analysis of the firm, and this section will entail the macro environment, industry critical success factors and the microenvironment. This section will be closely followed by a discussion of the internal capabilities, the SWOT analysis and marketing Objectives and Strategies. The discussion will end up with a conclusion to sum up what have been discussed in the paper. II. Business Definition and Scope Eco Stock Supplies limited have been in operation for over ten years now and the company was formed backed in 2007 in Auckland. Andrew Fisher founded the company and their headquarters are based in Wiri, Auckland (Eco Stock 2017). The main objective of EcoStock supplies limited is to recover the surplus materials from the food distributors, food manufacturers and from the retailers. After sourcing the surplus materials, they turn them into products that are nutritionally balanced, and high performance animal feeds components that are cost effective, environmentally friendly and in increase productivity. By recovering and at the same time recycling the nutritious resources the company helps in preventing the unwanted food from ending up in the landfills. In instances when the surplus food products can be turned into quality feeds for the livestock’s. The company is able to save a lot and they boost their environmentally credentials (Eco Stock. 2017). The main product offering of Eco Stock supplies limited is the animals feeds that they offers to the wide range of clientele that they have and mostly to the farmers who rears livestock. The main target market segments for the company are the farmers based in New Zealand and as time goes by the company, aims at expanding their business and offer their products to a greater number of the farmers even in other states of Australia. While the core business of Eco Stock is the recycling of the food into animal feeds but at the same time they aims at developing solutions so as to make the most of all the food types that that as of date they are not suitable to be used as animal feeds (Eco Stock 2017). III. External Environment A. Macro-Environment The understanding of the macro environment is of great importance and based on these managers can predict the market tends and take note of the opportunities and at the same time minimize the threats and this can be achieved by adjusting the strategy (Daft, 2000). Appendix one shows the components of the PESTLE analysis Economic The economic factors tend to have a major impact on the manner in which a business conducts their business and their profitability. These factors include the interested rates, economic growth, disposable income of the consumes and the exchange rates. The legal’s aspects are closely related to the political factors and they include the advertising standards, equal opportunities, product safety and product labeling. A Socio-cultural These factors include the areas that involved with the shared attitudes and belief of the people. These factors include but are not limited to the age, population growth, career attitudes and the health consciousness of individuals. A strong economic growth has led to a surge on the number of animals in New Zealand and the surrounding areas. The animal’s figures can be said to be on the rise and this is mainly because of the strong growth in terms of the disposable income. Additionally, a great number of people have embraced the rearing of animals to ensure that they get good, high quality and quality products such as eggs, milk and meat just to mention a few of them. Another group has fully taken up on rearing of animals for income gains. Political-Legal This entails how and the degree to which the government intervenes. The political factors includes political stability, government policy and trade restriction just to mention a few of them. The animals feeds usually enjoys political policies since the animal feeds industry is highly regulated and they are required to follow a number of codes as well as guidance which will enable them in fulfilling their obligations to ensure that they produce safe animal feeds. Since the animal feeds are at times manufactured and distributed in a similar manner as the human food it is crucial to note that some of the legislation that governs the human food is equally applicable to the animal feeds. In this line, the products usually undergo inspection to ensure that they are fit for consumption. Technological It is evident how rapid the technological landscape is changing and these have been found to have major affects in the manner in which companies markets their products. The technological factors usually affects the management and marketing in three major ways which includes making use of new ways of providing the services and goods, new and innovative ways of distributing the services and goods as well as news ways when it comes to communication with their target markets. It can be ascertained that the market is mainly driven by technological innovation. In addition to the fact that technological aspects have led to new product development it comes along with a number of opportunities and challenges. The industry is not likely to affect by economic down turns since the targeted audience tends to cut costs on other aspects such as travel, luxury and holidays. The players in the industry are making use of innovation by adding more value with the aim of maintaining and attracting new sales. Environmental The environmental factors entails issues to making sure that company’s activities are environmentally friendly. In this regard, Eco Stock Supplies limited takes care of the environment by making sure that the surplus food products did not end up in the landfills. B. Micro-Environment I. Market Demand and Demand Trends The demand of animal feeds is in a way closely related and determined by the human populations and their demand for the various demands for livestock products. A certain aspects when it comes to the determination of demand are the level of economic growth as well as the disposable income (Daft, 2000). Thus, the demand of the products of Eco Stock supplied ltd is lily to be on the rise since New Zealand economic growth seems to be on the rise. Thus, a great number of people are likely to rear animals and these make purchases of the products of Eco Stock Supplies ltd. Additionally, with a great number of people in the urban centers those left on the rural areas will need to rear animals more as a source of income to meet the needs of those living in the cities. II. Competitive Analysis Like any other company operating in their respective market Eco Stock supplies also have a number of competitors which compete favorably with them (Eco Stock, 2017)and this includes but they are not limited to James & Sons (Animal Feed company), waste management and EnviroNZ. James & Sons seems to be a major competitor and it is better placed since it has been in the industry for a long period and their wide range of products they offers to the farmers. EnviroNZ also seems to have an advantage since as opposed to Eco Stock supplied ltd the company’s offers waste and recycling service to businesses, communications and homes in areas. Additionally, they offer their services in a greater number of areas such as in landscape supply, areas of collection, liquid waste and integrated solution as well as bin hire services. III. Value Chain Analysis (supplier’s distributors) The value chain analyses deals with the primary activities and on the support activities. Support Activities Firm Infrastructure Eco Stock supplies limited seem to be better positioned as compared to its competitors in the industry. This is due to their unique approach about business and this has enabled them transformed and is among the most preferred company in the industry (Eco Stock, 2017). Procurement Eco Stock Supplies Ltd seems to be doing well in this respect since they are able to get the surplus products from the food distributors, food manufacturers and from the retailers. Technology development Technology is of great importance to all companies and with time, they are making use of technology and other innovative ways to ensure that all surplus products sourced can be made in great use. Primary activities Inbound Logistics Inbound logistics is one of the major concepts of the primary activities of organizations (Hartley & Rudelius 2001).Eco Stock supplies ltd will makes use of high quality foods surplus to ensure that they offers high quality products to the consumers. Outbound logistics Eco Stock has a number of stores aimed at offering their consumers with the much-needed products to meets their high demand of the goods. The availability of the stores ensures that the consumers can source the needed products with a lot of ease. Customers Analysis Eco Stock supplies limited aims at meeting the needs of the consumers. In a bid to offer healthy products Eco Stock supplies limited ensures that they offer high quality products that are differentiated to meet the needs of their various customers. A great number of people make purchases for ethical companies and those who care more about the environment. By gaining the trust and the respect, a great number of people will be willing to purchase the products from the company. C. Industry Critical Success Factors the three major things that successful firms in this industry do is offering products that are of high quality, meeting the needs of the consumers in the best way possible and ensuring that there products are priced fairly as compared to their competitors in the market (Cheng, 2007). IV. Internal Capabilities A. Non-Marketing Capabilities Human resources management is an important aspect and because they have, small populations, which can be easily managed, make the best out of them (Hartley & Rudelius, 2001). With time, there is a high demand for their products and thus they may with time have to increase the number of employees. While the core business of Eco Stock is the recycling of the food into animal feeds but at the same time they aims at developing solutions so as to make the most of all the food types that that as of date they are not suitable to be used as animal feeds. Eco Stock supplies ltd have a wide clientele and this can be further expended by souring their products widely and this offering a high number of people with their products. B. Marketing Capabilities Marketing Management The main themes of marketing at Eco Stock supplies limited is to sell products and make profitable business out of it and fulfill the needs of the people and at the same time gain profits (Hartley & Rudelius, 2001). Marketing Mix Strategies- Product The product is a premium product and this makes it preferred products among a great number of the farmers. The product is of high quality and this makes it a more preferred product than other that are of low quality. Marketing Mix Strategies- Price The pricing strategy to be applied will be very competitive and thus premiums pricing will be used since the products being offered are of premium value. Marketing Mix Strategies- Place About selling the products, the products will be made available through a number of dealer networks, the retail shops (Daft, 2000) and through executives to have a reach to the co-operatives. The retailers will be guided on how to display the products. Marketing Mix Strategies- Promotion The farmers will be sensitized and informed about the products of the company through the newspapers, TV, dairy magazines. Additionally, to have a further reach their will be demonstration campaigns and this will be carried out in reputed co-operative societies. V. SWOT Analysis Strengths Weaknesses Unique products Strong brand name A strong investment capability Cost advantages Focus on products Lack of R & D investment Opportunities Threats Emerging markets Acquisition Expansion of products Outbreak of diseases Stiff competition Substitution with cheaper products VI. Marketing Objectives and Strategies Below are the smart objectives that needs to be achieved i. Increase the number of sales ii. Increase number of customers iii. Acquire new customers (Daft, 2000) One major strategy to achieve the above stated is by promoting the products. Additionally, the customers will be rewarded with gift coupons for purchasing a certain number of animal’s feeds. Lastly, new customers will be offered with discounted prices for the products (Blythe, 2009). VII. Conclusion In conclusion, Eco Stock supplies ltd have been in operation for a considerable amount of time now. In relation to the external environment, the business does not seem to face major challenges. The management team needs to take note of the weaknesses and threats as outlined in the SWOT analysis. Additionally, to achieve the best they should also undertake the critical success factors and make use of the proposed strategies to achieve their objectives. VIII Appendix Appendix one: PESTLE Analysis VIII. References Blythe, J. (2009). Key Concepts in Marketing. Los Angeles: SAGE Publications Ltd. Cheng, J. (2007). Critical issues in international management research: an agenda for future advancement, European Journal of International Management, 1, 1, 23–38. Daft, R. (2000). Organization Theory and Design, U.S.A: South-Western College Publishing, Thomson Learning. Eco Stock supplies ltd (2017). Eco Stock supplies ltd. Retrieved from www.ecostock.co.nz Hartley, K. & Rudelius, W. (2001).Marketing, the Core, New York: McGraw-Hill. Read More