Foster’s Group: Situational Analysis

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SITUATIONAL ANALYSIS 4.1 COMPANY ANALYSYS Foster’s Group: Company Structure Foster’s Group are a publicly owned Australian company based in Melbourne currently trading at $6.25 (May 2007) in the Australian Exchange Market. Our product, Pure Blonde is a brand created from within the Foster’s company. Foster’s products spread over 150 countries in the world including approximately 11 000 united employees. The key departments include the Sales and Marketing Department, National Accounts team and the Multi-Beverage sales team. These teams work together to develop relationships with a diverse range of customers, achieve economies of scale in the back office and manage marketing and promotions. Beer Market Trends In Australia, the…show more content…
These were further analysed through Porter’s Five Forces and Porter’s Diamond Model. Effect of Seasonal / Climate Factors Environmental factors influencing market demand includes hockey and baseball season, in which consumers are expected to visit bars and pubs more often. Pure Blonde will be available at venues such as Scotiabank Place in Ottawa and Air Canada Centre in Toronto year wide. Possible restrictions could be extreme snow or ice rain where roads are closed. Economic Conditions The population of Ontario according to the 2006 Census is 12, 160, 182 ( providing a significant market for expansion. Unemployment in Ontario has currently decreased to 6.1% in 2007, the lowest since 2002 (Source: Ministry of Finance, Ontario Economic Update, January 2007 (1/2007). The above information is encouraging for our product; the low unemployment rate encourages spending in the consumer market. Political/Legal/Institutional Factors Ontario is on the east coast of Canada, approximately a 17-hour flight from Sydney, Australia. Similar to Australia, Canada is a Parliamentary Democracy with a Constitutional Monarchy. The Steven Harper Government in 2006 has reduced GST from 7% to 6% (and eventually to 5%) and reduced middle-income earners tax; this will result in increased income for our market to spend on

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