Macro Environments and Breakfast Cereals

2315 Words Jul 19th, 2011 10 Pages
Macro environments and breakfast cereals

1. Introduction
Company A’s cereals are manufacturers of healthy and nutritional breakfast cereals and ready to go breakfast bars. While their main manufacturing plant is located in Brisbane, their products are distributed in major supermarkets Australia wide. Knowing that breakfast is considered by consumers as the most important meal of the day the company’s focus is on offering a multiple product range to various target groups with the added benefits of additional fiber and cholesterol lowering properties. Only by complying with strict guidelines within governmental regulations, this company is able to promote the health benefits of consuming their products and endorsements noted on their
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This may require multiple sourcing points globally, resulting in driving prices up (Parker, 2005). Company A’s cereals have redundant suppliers on hand in various locations. By having multiple suppliers, it mitigates against unforeseen natural disasters that may affect their supplies of raw products.
c. Economic Environment
Kotler describes the economic environment as “factors that affect consumer buying power and spending patterns” (Kotler, et al., 2010, p. 149). For consumers to be able to spend they need to have disposable income. Some of the factors included in the economic environment, but not limited to; income, employment levels, the value of the Australian dollar and the global economy.
There are changes occurring within the economic environment all the time, particularly within income structure. Average disposable incomes vary according to states, with Tasmania and South Australia recorded at 19 percent below the national average ("Australian Bureau of Statistics," 2008). Due to higher living costs, more women are returning to work resulting in dual income families. Many consumers are feeling the rising cost of living as opposed to increases in incomes and people have been changing the way they buy in efforts to save money. Bernstein, a US consumer survey, recently showed that breakfast cereals had been traded down by 27 percent of

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