1.0. A report presenting market data in order to inform a cereal company Bokomo Ltd. To consider whether to expand more in the United Kingdom market.
2.0 Executive summary.
This is a short report, containing marketing data on both the cereal market and a specific business, Bokomo UK. The data was obtained from secondary marketing research. Bokomo´s website was one of the main reference guide.
With the findings and analysis, it was recommended that Bokomo should expand their own brand products more in the UK.
The PEST analysis of the UK grocery industry included in this report was used to highlight the external factors that can affect Bokomo’s operation and interpret how these factors will influence Bokomo.…show more content… Migration also leads to a change in size of labour pool, which could have an effect on the availability of workers. Latest figures from the Office for National Statistics show some 503,000 people came to live in the UK in the year ending June 2013, compared with 517,000 people the previous year (ONS.gov, 2013).
Economic factors are important to consider in regard to the UK grocery market, as they are highly influential to demand, costs, prices, and profit. One of the most influential factors on the economy is high unemployment level, which decreases the effective demand for many goods, adversely affecting the demand required to produce such goods. Unemployment in the UK is at 7.1% as of January 2014, according to BBC. Another highly relevant economic factor is the grocery market size and the market growth. IGD forecast that the UK grocery market value will be worth £205.9bn in 2018, a 21.3% increase on 2013 (IGD.com, 2013). This is beneficial news to Bokomo, since any expansion would be possible in regard to the availability of area in the market to expand. Another market characteristic of importance is the amount of spending on groceries in regard to overall retail expenditure in the UK. The grocery market's share accounts for 54.9p in every £1 of UK retail spending (IGD.com, 2013).