Discuss about the Situation Analysis of Mars Australia.
Mars Australia won the Bronze awards in The Australian Effie Awards in 2017 for their ‘Hungerithm’ campaign and the concept of the campaign is that the angrier the internet, the cheaper the snickers. Mars Australia is in Food Processing industry and the parent organisation of Mars Australia is the Mars Incorporated. Mars Australia Pty Ltd. is the distributor and manufacturer of the consumer products. This organisation was founded in the year 1954 and it was established in the area Wodonga, Australia with manufacturing sites in New Zealand and Australia (Mars.com 2018). Mars Australia has 1600 employees and headquarters of this organisation lies in Wodonga, Petcare Palace. It offers mainly gum, chocolate, mint, confectionery products. It exports its products to the customers worldwide. Mars Australia reached $1,092 and net income of Mars Australia reached $116.26 (Ibisworld.com.au 2018).
Mars Australia’s mission statement is to create a mutually benefits organisation for all of the stakeholders through the operation. This organisation strives to do this by putting the principles into the action every day to make the difference to people and planet through the performance (Mars.com 2018).
Marketing aim of Mars Australia is to create the brand awareness with making a large reach and influence on the customers. Mars Australia believes that it is the duty of the organisation to market inappropriate and responsible way. Mars Australia believes in responsible marketing and it respects the customers. Mars Australia is also the part of the International Food and Beverage Alliance (IFBA) that commits the member organisation to uphold the shared marketing standards (Mars.com 2018). The goal of the marketing is to reach the large customer segment and they never do marketing for the children.
Current markets of Mars Australia belong to all age groups of upper middle and middle-class families in Australia. Mars Australia targets the segment mainly that looking for good products and chocolates or animal food mainly. Positioning statement of Mars states that it provides high-quality products and it is the trusted confectionary and animal food brand that is popular across the globe. The current market in Australia for Mars Australia touched almost $1,512,078,000 and it includes sales and revenue (Ibisworld.com.au 2018). It is in the food products and confectionary industry. In Australia, it sells mainly Snickers, Bounty, Mars and Orbit Chewing gum. Mars Australia ranks 289 out of the top 1000 companies in Australia (Tomczak et al. 2018). In Australia, chocolate and confectionery manufacturing industry have been facing the factor of changing consumer preferences over the past five years. Industry revenue can be expected to grow almost 1% in the next two years and it has already touched the benchmark of $5.9 billion (Ibisworld.com.au 2018). Apart from Mars Australia, in Australia; there are more than 320 other businesses that are associated with chocolate and confectionery manufacturing. In addition, competitors of Mars Australia are the Nestle Ltd, Kraft Foods, Perfetti Van Melle and Hershey’s.
It is important to the government that there is low unemployment rate and the people must be able to pay the tax. Mars Australia employs over 1600 employees in the factories and Mars Australia is coming under the scrutiny from the government as statistics say that 8% of the school children in Australia are obese. It is the cause of the concern for the government and it can pose a negative impact on the organisation as the government may ban the advertisement of Mars. In addition, GDP rank of Australia was 13th in 2017 and GDP growth in Australia was 0.6% in 2017 (Manalo et al. 2017). Per capita GDP in Australia is $55,707 and the disposable income of Australia is high. Therefore, the people have the buying capability. Average gross salary of the people weekly in Australia touched AU$ 1,180 for the employees (Golev and Corder 2016). This will be beneficial for Mars Australia as it means that Australian people have more money to spend on a thing like chocolate, pet food, chewing gum and snickers. In addition, social-cultural factors can impact on the business of Mars Australia as Australia’s demographic is currently changing as it is mainly experiencing ageing population (Proctor 2017). This development may bring negative impact on the business of Mars Australia as their main targets are the young and teens. Health and fitness is the important factor in Australia and Australian people are getting conscious of the health and wellbeing. Lastly, technological factor plays important role in the manufacturing of the products and Mars Australia uses global and improved technologies in the manufacturing of the products. Facebook and Twitter both have been used by Mars Australia in order to attract the customers. Mars Australia has launched YouTube and Facebook campaign where they have been promoting cat food ‘Kitten Kollege’ (Rees et al. 2016). In Australia, food products have to follow Food Safety Act 1991; there are some food standards which the products have to meet.
Bargaining power of customers is low in confectionery and chocolate products in Australia as price sensitivity of the chocolate products for the customers is low. Mars Australia keeps the price of the products relatively low and customers do not have a role to set the price. The threat of new entrants in chocolate and confectionery market is high as the new organisation does not need to invest a large amount of money (Kim et al. 2016). If the competitors want to start the business from the scratch, it would be difficult. In addition, the threat of substitute in the market is medium as the customers can switch to other brands easily. The customers have options in the market to purchase the products apart from Mars Australia. Competitive rivalry in the market is medium as the competitors make the industry oligopoly type and price can be weakened due to the competitive rivalry (Cherney 2018).
Strengths of Mars Australia lay in the globally recognized brand as the Australian customers purchase the products of Mars Australia since they hear the name of the brand in global perspective. Therefore, Mars Australia has the brand awareness in the market. Mars Australia has strong supply chain network and the employee strength of Mars Australia is 1600. Mars Australia has customer loyalty and it has strong financial power along with human resource. Five principles Mars Australia are responsibility, mutuality, quality, freedom and efficiency (Mars.com 2018). Moreover, weaknesses of Mars Australia are the competition in the market and the limited market share growth. Mars Australia has been facing the issues of the vegetarian people due to the use of animal rennet. Threats of Mars Australia are competition in the market and global economic slowdown and inflation (Webster et al. 2016). In Australia, it can face the challenges as the people are getting more health conscious.
Opportunities:
Health consciousness
Competition
Risk management function
Differentiation strategy:
There are many competitors in Australia in chocolates and confectionery industry. Mars Australia needs to take differentiation strategy from the competitors. The company can take the strategy of stylish packing or different taste from the competitors. They can launch something unique or different so that the customers purchase the new products. In order to ensure the position in the market cemented, Mars Australia can rebrand the look periodically.
Strong PR team:
Mars Australia can make a strong Public Relations team which can make good contact with the customers. The investors will be benefited and new customers will come. Increased business can provide both economic boom and customers’ retention. Mars Australia does PR campaign and they just need to increase the credibility and high-end talent. PR team will help to believe the customers that the products of Mars Australia are not harmful to health.
Social media strategy:
The marketing strategy of Mars Australia should have a social media presence. Australia people do use social media regularly and 78% of the population of Australians use the internet. Therefore, it will help the organisation to reach the people. Mars Australian can use intranet software to track the work process growth of the employees. Using the social media, Mars Australia will learn about target audiences and they can gain feedback of the customers utilising the opportunities of the organisation. Social media marketing will provide leads to the organisation.
Reference List
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Introduction. In Strategic Marketing (pp. 1-18). Springer Gabler, Wiesbaden.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage. Oxford University Press, USA.
Banerjee, S.B., 2017. Corporate environmentalism and the greening of strategic marketing: Implications for marketing theory and practice. In Greener Marketing (pp. 16-40). Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Proctor, T., 2014. Strategic marketing: an introduction. Abingdon: Routledge.
Kim, N., Shin, S. and Min, S., 2016. Strategic marketing capability: Mobilizing technological resources for new product advantage. Journal of Business Research, 69(12), pp.5644-5652.
Rees, D.M., Smith, P. and Hall, J., 2016. A Multi?sector Model of the Australian Economy. Economic Record, 92(298), pp.374-408.
Manalo, J., Perera, D. and Rees, D.M., 2015. Exchange rate movements and the Australian economy. Economic Modelling, 47, pp.53-62.
Golev, A. and Corder, G., 2016. Modelling metal flows in the Australian economy. Journal of Cleaner Production, 112, pp.4296-4303.
Webster, J., Trieu, K., Dunford, E. and Hawkes, C., 2014. Target salt 2025: a global overview of national programs to encourage the food industry to reduce salt in foods. Nutrients, 6(8), pp.3274-3287.
Duckett, S. and Willcox, S., 2015. The Australian healthcare system (No. Ed. 5). Oxford University Press.
Watson, W.L., Kury, A., Wellard, L., Hughes, C., Dunford, E. and Chapman, K., 2016. Variations in serving sizes of Australian snack foods and confectionery. Appetite, 96, pp.32-37.
Davies, T. and Kitchen, B., 2015. Confectionery: Growing and processing cocoa in Australia. Food Australia, 67(5), p.28.
Mars.com. 2018. Mars® Australia and New Zealand – Petcare, Confections and Food Products.. Available at: https://www.mars.com/australia/en/index.aspx [Accessed 27 Apr. 2018].
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