MKT600/MKTG6002 Marketing Assessment 1 - Situation Analysis Sample
This assessment task requires you to develop a Marketing Environmental Analysis that comprises both the micro-environment and macro-environment. The micro-environment analysis involves scrutiny of the internal environment that facilitates specifying the strengths and weaknesses, while, the macro-environment analysis requires the scrutiny of demographic, economic, natural, political, technological, and cultural (DENPTC) dimensions which will assist in specifying the opportunities and threats. Changes within the macro-environmental forces are outside of an organization’s direct control requiring an organization’s marketing strategies to be adjusted to capture emerging opportunities and minimize any potential threats.
Therefore, in this assessment task you will need to:
• Articulate your learning about marketing concepts and principles covered from Module 1 to 3.1 to demonstrate your level of understanding to evaluate the organisation's overall situation;
• Critically analyse the link between marketing theory and practice;
• Demonstrate research skills to reveal the insights;
• Apply appropriate business report writing skills;
• Discuss appropriate strategies with regards to your SWOT analysis.
• Use the appropriate APA style both in text citation and the reference list at the end. You should use at least 10 relevant academic references from leading marketing journals and text books to showcase quality of your research.
Tasks: 1. Discuss the value propositions, core brand values and buyer behaviour of your chosen organisation;
2. Analyse the micro-environment (the company, suppliers, intermediaries, relevant publics, customers and competitors); 3. Analyse the macro environment, that is, demographic, economic, natural, political, technological and cultural (DENPTC) forces to demonstrate their impacts on your chosen organisation's strategies/capabilities to serve the target market (s; 4. List the strengths, weaknesses, opportunities and threats (SWOT) as well as suggest appropriate strategies by incorporating the TOWS matrix to draw from strengths to capture opportunities, to overcome weaknesses and to defend from threats.
Situation analysis is a primary step while making marketing plan. In this technique, macro and micro environment analysis of market is done to extract information to support marketing strategy. The chosen organization for this report is Tony Ferguson. The company is well known for selling protein shakes to lose weight. The quick early growth of the Tony Ferguson’s weight loss product is the indication of successful overseas expansion plan of the company.
Value propositions, core brand values and buyer behavior
Value proposition is strategic analysis of a company which acts as unique selling proposition for a company. Core brand values and buyer behavior are associated with identification of main services provided by Tony Ferguson, and matching of these services with customer preferences to analyze market gap of that service (Osterwalder et al., 2014).
• Customers are facing challenges in identifying appropriate sources of protein which is also healthy in their daily life routine.
• Protein takes time to consume in the body; there is no proper diet available in the market which is a quick source of protein.
• All the protein containing products are not sufficient to fulfill the actual requirement of the protein by the body. The available sources have slow results and not suitable to every person (Murray, 2013).
• Protein shake provided by Tony Ferguson will solve the problem of carrying it from one place to another. The protein powder is easy to fit in hand bag and requires some filtered water to shake it.
• The availability of this product at every retail outlets and big malls makes it convenient for customers to choose it as a supplementary source of protein.
• The powder can even be packed in small pouches to carry into the pockets. This makes it convenient for people to consume it even in gym or while travelling for business tour where carrying big luggage is not possible (Canster blue, 2021).
• The Tony Ferguson’s protein shake product has high availability due to its sound distribution channels.
• The different packages of protein shake product makes it convenient for consumers to carry it easily from one place to another and use this product anytime and anywhere.
• After consuming protein shake, consumer doesn’t feel hunger and feel energetic. Another advantage of easy digestion makes this product attractive to those people who don’t have enough time to burn their calories (Murray, 2016).
• Protein gives immense energy to its users, thus consuming it in the morning makes consumers energetic and active (Tony Ferguson, 2021).
Core brand values
Its products can be included in the dining table to improve body alignment, and strength without adding too much weight. Many people can make a profit by adding Tony Ferguson to their menu:
Strong and dynamic adults: Adults who take part in regular exercise may find that Tony Ferguson helps improve body structure by helping to increase body mass, a level at which the body builds appropriate muscles. Tony Ferguson's 20 gram supplement increases protein synthesis when burned before or after the block (Winget, 2017).
Those trying to manage their weight: High-protein diets have been shown to help people feel fuller, which can reduce their weight gain (Kostelijk, 2017). More protein, further calorie reduction has been shown to improve the nature of weight reduction by increasing the deficiency of the muscle-to-fat ratio and also reducing the deficiency of lean muscle mass (Kostelijk and Alsem, 2020).
Mature population: Starting at the age of 40, many adults experience age-related loss of mass, capacity and strength, a condition known as sarcopenia. Exercise and protein supplementation, for example, including Tony Ferguson's protein with every meal, can be an easy way to harden your dick or measure this bad luck (Nguyen, Melewar and Brown, 2019).
Protein has seen significant development in recent times, characterized by an uncommon expansion in the apparent lack of development by buyers, awareness and development of plant-based protein use and the subsequent proliferation of high protein and advanced protein elements through various food and drink courses (Miller, Washington and Richard and Associates, 2017). In any case, the development of the previous year is down. Whatever the improvement over the previous five years, general information from consumers about the medical benefits of protein, especially muscle support / building in the past, is much needed, and potential for protein food / drink manufacturers. Also, there are changes between classes, with some logos and even reductions (Miller, Washington and Richard and Associates, 2019).
Interest in protein has skyrocketed in recent years. For example, in 2014, the majority of consumers were shown to be looking for high-protein foods, compared to 39% in 2006, and were shown to be close to 3/4 of consumers using high-protein food types / drinks in 2020. Of these, a quarter indicated that they would expand their use over the same period (Statista, 2020).
Clients see Tony Ferguson as a boon for muscle development and weight reduction. Buyer thinks this option is the best protein boost. Customers love to buy Tony Ferguson’s protein shake because it’s powerful and simple to process (East et al., 2017).
The continuous increase in the demand of protein supplements has been noticed for the past eight years. Like for instance, in the year 2014, more than 50% consumers prefers protein rich foods and supplements, while this figure was 39% in 2006. In 2019, it increases to 75% consumers who take high proportion of proteins compared to other nutrition's in their diet (Schiffman and Wisenblit, 2019).
Consumers perceive that Tony Ferguson is good for muscle growth and weight loss. Buyer considers this product as best supplement alternative for protein. Buyers prefer to buy Tony Ferguson’s protein shake as it is effective and easy to digest (East et al., 2017).
Micro environment analysis has main focus on company itself. Micro environment covers all those external factors which affect the performance of the company on small scale level. The micro environment analysis of Tony Ferguson has been done below:
Tony Ferguson's classic food substitutes are made for lasting slimming potential. It's perfect for those who need to shed pounds but are happy to do it at a steady pace that requires regular festival evaluation every day. The Classic program includes 2 classic snacks, a regular dinner and 2 snacks per day that add up to approximately 1600 calories. Not suitable for pregnant or lactating women and under 18 years of age (Marketing.net, 2020).
Tony Ferguson's suppliers include PSD network ltd., BHI nutrineo GMBH, Foodcom S.A. and many others. Tony Ferguson's suppliers are well organized around the planet. Lion's share of the company's products is traded with various countries (Tony Ferguson, 2021).
The intermediaries of Tony Ferguson includes malls, retail stores, online platform and sometimes gym instructors also act as intermediaries for protein supplement product.
Customers and competitors
The demand in protein products of the youth population usually extends to competitors as they offer a number of benefits such as lowering cholesterol, working muscles, extending strength, fighting disease, improves invulnerability and reduces pulse. As a result, this basic factor has a positive impact on the protein supplement market figure (Farroq, 2017).
Due to the presence of strong players in the market as well as the presence of several small and medium parts in the market, the global market for whey protein fasteners is very poor. The market is expected to develop at a CAGR of over 10% over the specified period. Manufacturers are trying to coordinate with the growing interest with changes in consumer sentiment, both in terms of taste and location. It can be removed from the pen for foods that contain whey protein, food and beverage manufacturers, supplements, and others generally use whey protein in a variety of details. The main customers of wheeled protein setters are manufacturers of sports support products and manufacturers of supplement products (Business Jargons, 2021).
Macro environment is kind of industry analysis where similar nature of small and large firms taken into consideration. Macro environment analysis is a brief about trend prevailing in the market of particular industry. DENPTC forces have been used to analyze the macro environment of Tony Ferguson.
Demographic factor includes population, and size of particular market segments. The main users of protein shakes are athletes and young bodybuilders. Thus increase in their population can also increase the demand for the product (Claessens, 2015).
A healthy protein shakes have high cost, which sometimes is not affordable for each economic group of the nation. To increase the demand of the product, it is necessary to increase income of lower economic groups.
Health conscious people prefer natural ingredients in protein shake rather than artificial flavored chemicals. Thus, including more natural ingredients in the product could raise the product demand in the market.
Government policies also play an important role in increasing and decreasing demand of any product. Thus, allowing subsidies on health products could increase the demand of the product at reducing prices.
Improvement in technology can help company in reducing its overall cost and increase the demand of the product at reducing price.
A health conscious and physical fit culture in the society can also increase the demand for protein shakes product in the market (Claessens, 2015).
It is a form of internal analysis of a particular company. Tony Ferguson’s SWOT/TOWS analyses are focusing on how company’s strength and opportunities can be channelized to mitigate its weakness and threats (Kiron, 2019).
· Produce a quality product that solves the customer's problems
· Employee reliability is also a strong strength of the organization
· Attract more consumers to expand their business more than competitors (Mariani, 2017).
· Inadequate number of sellers promoting the item.
· Lack of cash flow to support advertisement.
· Cases with messengers that accept a new logo.
· Offers common marketable items.
· Increase your awareness of leading a better lifestyle.
· More funding.
· Providing natural products in the market to fulfill customer needs.
· Rising in healthy lifestyle awareness through employee’s loyalty.
· Increased sponsorship through gaining more market share (Muth and Zive, 2020).
· Competition in market while offering natural products
· Increased in sponsorship can fulfill the capital requirement for advertisement.
· Increasing awareness will help company in increasing brand awareness.
· Competition from previous industry segments.
· The impacts of the crisis in a crisis that will make individuals spend less.
· Companies that offer other items for medical benefits
· Lack of ability to offer borders to customers (Ginter, Duncan and Swayne, 2018).
· Selling quality products can minimize the competition and avoid adopting discount strategy to attract customers for Tony Ferguson.
· The worldwide operations of the company can reduce the threat of competition in health benefits product (Academic Pr., 2017).
· Less availability of retailers for product promotion can increase the competition in preexisting markets.
· In the absence of discounts to the user can create the issues like consumers will find it difficult to accept the brand.
· Other health products deliver by companies can grab the market share of Tony Ferguson in the absence of advertisements by the company.
Based on above analysis, it can be concluded that Tony Ferguson has huge opportunity available to expand its business by adopting product differentiation strategy. It has also an advantage over other competitors in terms of positive buyer behavior for its protein shake.
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