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Arnott's Biscuits LTD - Arnold Palmer summary
International Marketing
University of the Punjab
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Arnott’s Biscuits Limited
Email: arnotts
SWOT & PESTELWebsite: Arnotts/au
ANALYSIS
SWOT & PESTEL
ANALYSIS
Arnott’s Biscuits Limited
Email: arnotts
Website: Arnotts/au
EXECUTIVE SUMMARY
This report's goal is to discuss the Australian biscuit industry market. Arnotts Ltd will be discussed in greater detail in this essay. This analysis will take into account the company's internal and external environments, as well as the size, expansion, and market share of Arnotts Ltd. This article will focus more on external elements including economic aspects, political situation, governmental laws, technical advancement, and socio-cultural aspects in order to evaluate Arnotts' current market position.
In order to evaluate a new product development (NPD) project for the Arontt’s Biscuits Ltd, this paper analyses the Australian market, consumers, and business industry trends. In order to properly comprehend the environment in which Sanitarium will launch its new product, the paper emphasizes the importance of taking a methodical approach to NPD. It provides a brief SWOT analysis as well as a PESTEL analysis. These analyses demonstrate the importance of developing a market research program in a methodical manner for NPD while also highlighting the limitations of market research data, which cannot by themselves provide any assurance of success.
Businesses operating in the local market are compelled to continuously monitor environmental changes that have an immediate impact on their operations. The most well-known PESTEL and SWOT analyses are just two of the unique methodologies this study has developed to analyze the external environment. The analysis' findings can help the Arnott’s Biscuits Ltd determine in its long-term danger, as well as its strengths and weaknesses. They can also be used to improve how the business runs and boost its competitiveness.
INTRODUCTION
For this report we have selected Arnott’s as the company for which product development is done by extending the existed product line in Australia and for that purpose Market analysis is done with the help of SWOT & PESTEL analysis.
One of the biggest manufacturers of biscuits and snack foods in Australia is Arnott's Biscuits Limited. With just one bakery when it was first established in 1965, the business has since expanded to become a global behemoth with over 4,300 staff members in Australia alone ("About Arnott's," n.). More than 50 significant goods are offered to Australian and international markets by Arnott's Biscuits, which also owns a number of beneficiary companies globally. According to ("About Arnott's," n.), the business generates annual revenues of roughly 1 billion Australian dollars. In order to understand the brand management tactics used at the supermarket interface, this article will conduct an experiment in fact-gathering.
BACKGROUND OF THE COMPANY
- Arnott’s Vision
There is no formal vision statement for Arnott's Biscuits Limited that can be found on their website or in the media. However, it may be believed that the implicit vision statement incorporates
The corporation presents itself as a significant employer, benefiting from brand exposure from both its own employees and companies connected to its supply chain. Last but not least, Arnott's Biscuits engages in CSR activities with the aid of Arnott's Foundation. The company's charitable arm participates in a variety of endeavors across Australia, including assisting children with cancer, promoting education, aiding injured drivers, and sponsoring the creation of lovely gardens.
- Target Customers
The provision of delectable biscuits and snacks, which could be enjoyed during breakfast and teatime with the family, was the main strategy for fostering connection. In doing so, Arnott's Biscuits was successful because many Australians identify the flavor of their biscuits with happy childhood memories and experiences. The business has a philosophy of hiring Australian staff and sourcing food and materials from Australian sources. In doing so, Arnott's Biscuits establishes itself as a well-known national brand and helps local communities by generating jobs and retaining money in the nation.
PESTELE ANALYSIS
Arnott's is attempting to grow their business by entering the Australian market with a new product. This study will estimate the SWOT analysis and PESTL analysis, followed by recommendations, to forecast the success rate of new products. One of the biggest food manufacturers in Australia is Arnott's, which produces biscuit items. The product we want to market is an energy bar from Arnott's that is covered in two layers of biscuit and has a chocolate cream filling in the middle, but it has fewer calories and more energy.
The market status of any organization in a certain marketing structure can be determined with the aid of numerous external variables. These elements have a significant impact on how an economy operates, produces, and sells goods. Determine the numerous dangers and challenges that Arnott faces in the market by analyzing the various external environmental factors. It also identifies the numerous chances that the company may take advantage of to grow and operate successfully in the industry. The following are the six main factors:
- Political Analysis
Being a Campbell Soup Company brand in Australia, Arnott's operations may be negatively impacted by the political landscape of the nation, which may include unfavorable changes to legal and regulatory requirements, taxation policy, trade restrictions, political unrest, environmental disasters, and terrorist attacks. The Australian market is free of political ambiguity, environmental catastrophes, terrorist assaults, and business-friendly taxation and legal restrictions.
- Economic Analysis
The Australian food industry has seen a number of financial hardships as a result of the global economic slump, which has in turn impacted Arnott's business performance. Arnott's capacity to manage routine business relationships with customers, suppliers, and creditors may also be
negatively impacted by financial and credit market disruptions. In addition, the Australian economy's exchange rates, tax laws, interest rates, and inflation rate may have a significant impact on the company's operations.
- Social Analysis
Arnott's has pledged promotional interactions to children under the age of twelve encouraging healthy nutritional options, and it will not advertise foods to children in media unless those foods are nutritious and meet recognized scientific or Australian government standards. The company makes constant efforts to ensure a healthy nutrition of the customers, especially for those who are under the age of twelve. Arnott's Foundation is helping Australian families and aims to raise their standard of living; as part of this, it promotes safe driving, builds hospital gardens for children, and supports welfare organizations. In 2008, it donated more than 232, kg of cookies to Foodbank and helped more than 1,500 families with babies with cancer.
- Technological Analysis
The business could be negatively impacted if the company cannot use the necessary resources and technical infrastructure to strengthen its technological sector and to maintain computerized and manual control methods. Most crucially, the business lacks an online store that would enable Arnotts' consumers to make purchases and carry out a variety of other tasks from the comfort of their homes. Due to their possession of cutting-edge technology infrastructure, some of Arnott's rivals are obtaining a competitive advantage.
- Environmental Analysis
Arnott's environmental policy reflects its commitment to conducting business in a way that protects the environment. The company is determined to reduce the discharge of toxic material into rivers or the air, thus it collaborates with agencies like Sydney Water to reduce water waste. While Arnott's Smithfield operation used 850,000 liters of water per day in 2017, by
the actual size of the product is lower (4 flavours and 30 packages versus 7 flavours and 35 packages). Nearly the entire shelf is taken up by Arnott's products, with the remaining space being occupied by various rivals. In comparison to Mondelez's Griffin's Cookie Bears, which are sold at 4 dollars for a 320-gram bag, the company's products typically cost 3 dollars per 350-gram bag. There are no sales in this store's cookie aisle either.
iii. Monte Carlos: With four shelves entirely devoted to cookies, this store has the largest cookie area anywhere. Arnott's products also take up the least amount of space, and the client can choose from 4 flavours and 30 packs of cookies, which is about the same number as Pak 'n' Save. Other items with prices ranging from 3 to 7 dollars included Pam's Finest Cookies, Ernest Adam's Cookies, Cookie Time, Griffin's Cookie Bear, I Love Baking, and Naturally Good Cookies. Griffin's and Arnott's Cookie Bear cost the same, $3 for a box, with Arnott maintaining a little edge in terms of value for money. There are no promotions for the company's products, although there is a sale for Ernest Adam's and Pam's finest cookies.
As can be seen, Arnott's Biscuits enjoys tremendous popularity in Australia, which contributes to the influence of the Australian regional market. The bulk of Arnott's key goods are well represented in each of these three instances in a variety of flavours. In terms of pricing and customer value, the price is competitive enough to offer a product that falls in the centre of the pack. The company is typically able to outperform Mondelez's products in terms of exposure and pricing. Arnott's cookies consistently cost between $4 and $4, whereas indigenous brands from Australia and New Zealand offer enough competition but are targeted at a different price range, between $5 and $7. The number of products readily available suggests that consumers are familiar with the general population.
No advertising for Arnott's products is present in any of the three stores. Promotional activities are typically started by the producer, who gives the store a batch of goods at a discount in exchange for holding a price reduction sale. Sales are frequently significantly increased by this kind of advertising. The lack of promotions for the company's goods in all three stores might be a sign that Arnott's is forgoing its plan to keep the brand well-known, which would give its rivals the opportunity to gain more market share and visibility. ARNOTT'S produces cookies in accordance with all Australian Government laws and the Australian Guide to Healthy Eating. ARNOTT'S attitude is to create an experience through-out well-being and enjoyment of eating. ARNOTT'S make sure that their products are always carefully marketed to youngsters.
SWOT ANALYSIS
With the help of a SWOT analysis, you can determine what your firm performs well right now and create a winning strategy for the future. SWOT can also reveal business areas that are restricting your growth or that, if left unchecked, your competitors may exploit.
The SWOT analysis in this study looks at both internal and external issues, and what's happening inside and outside of Arnott's. As a result, while some of these elements will be under our control, some won't. In either scenario, it will be easier to determine the best course of action once Arnott has identified, noted, and examined as many variables as possible.
- Strengths
Outstanding historical background and brand awareness for Arnotts Ltd.
Despite the economic slump, it produced strong commercial results; It has a large number of faithful clients in the market
More than 232,468 kg of biscuits were donated to the Food Bank by Arnott's in 2008.
It provides the consumer with high-quality, freshly prepared foods
More than 2,600 of its skilled, effective, and efficient workers hail from several Asian nations
It produces biscuits and other items with some originality, which aids the business in maintaining a strong position in the market
It now operates as a fully owned subsidiary of Campbell Soup Company, adding a new operational dimension to the business.
- Weakness
There are no online shopping options available. Compared to nearby rivals, Arnott's Ltd. offers a higher pricing for their products. One of the company's main issues is the use of promotional methods.
- Opportunities
Arnott's has the resources necessary to grow, and it has already committed $350 million in an expansion in Australia. With the help of its retail clients, it has the ability to provide biscuits everywhere in the world.
Arnott's has the chance to change the company by removing obstacles because it is aware of its loophole
It possesses all necessary components to offer home delivery services
Heightened consumer interest in a variety of biscuit items;
- Threats
Associated British Foods PLC, Morinaga Milk Industry, Cadbury, Nabisco Biscuit, United Biscuits, Yamazaki Baking, Goodman Fielder, Nabisco and other large national and international competitors are just a few of the rivals that Arnott's must contend with.
success. They will also incorporate a larger set of success criteria for the financial services industry.
CONCLUSION
The business environment has undergone significant change over the past ten years, including the following rapid and radical technological advancements in computers, telecommunication, and information sciences, particularly the explosive growth in the diffusion and impact of the Internet and intranets globalization of business, including increased international competition and the emergence of regional and global markets for resources and customers. The academic literature reflects that there have been very little modifications to new product development (NPD) procedures despite these significant advances, which have had a significant impact on all facets of our lives and corporate activities.
Any company that is serious about its NPD endeavors would do well to take a systematic approach, by developing a reliable market research program that will eventually allow for the creation of a data bank of Action Standard scores. Arnott’s has done a significant market analysis which shows that the new product will surely done well as the company has satisfactory market share.
According to the press and a poll of nearby stores, Arnott's Biscuits holds a dominant position in the Australian and New Zealand marketplaces. They are well-liked by clients and keep a product selection that is quite diversified. However, the business struggles with brand exposure and positioning abroad and still uses an antiquated form of customer relations management. Arnott's Biscuits' primary rival, Mondelez, is unlikely to displace it from its leading position in the Australian market, but it does have a competitive advantage there. Arnott's Biscuits would need to re-profile the business to match a worldwide agenda in order to be able to grow internationally.
Arnott's Biscuits LTD - Arnold Palmer summary
Course: International Marketing
University: University of the Punjab
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- More from:International MarketingUniversity of the Punjab10 Documents
