Arnott’s Biscuits: Australia’s Largest Biscuit Producer

Company Overview

Dsicuss about the External Market Analysis Of The Arnott’s Biscuits.

Campbell Soup Company is the parent company for Arnott’s Biscuits. The Arnott’s Biscuits is the largest producer of biscuits in Australia, founded in the year 1865 by William Arnott (Arnott’s Australia, 2018). The company has it’s headquarter in 24 George Street, North Strathfield, Sydney and is the second largest supplier of snack food (Arnott’s Australia, 2018). It was primarily focused in the production and sell of biscuits and pies. However, presently it has added the production of many other snacks such as custard cream, breads, desserts, and such other products as well. The company has about 2,400 employees and a good channel of distributors that has enabled it to have a wide market all around the world. Arnott’s Biscuits is chiefly known for the wide range of biscuits that it produces. The company is progressive but is also threatened with some challenges that act as barriers for its marketing. The report will be dealing with the external environment situation of the company, with the use of the PESTLE analysis that would identify its present condition in the Australian market.

Arnott’s Biscuits is an emerging company that has a wide range of food products for the customers. The company produces a variety of biscuits, starting from different flavored ones to the nutritive biscuits as well. The specialty of Arnott’s is that it produces a wide range of products varying in tastes and flavors that attract the customers ranging from the age of 4 to 60. The company focuses on the nutritive value of the products that emphasizes its concern towards the health conscious people (Friel, Barosh & Lawrence, 2014). The company ships its products to more than 40 countries like USA, Japan, Canada UK and others worldwide that shows its updated and progressive marketing nature as a whole (Arnott’s Australia, 2018).

Various external influences help to identify the market situation of any company in a specific marketing structure. These factors affect the operations, productions and sell of products in an economy largely. Analysis of the various external environmental factors helps to figure out the various threats and challenges that a company has in the market. It also identifies the various opportunities that the companies can work upon to perform smoothly in the market and expand it. The six major external environmental factors that identify the macro-environment of an industry to determine its marketing environment are:

• Political
• Economic
• Socio-cultural
• Technological
• Legal
• Environmental

Variety of Products

The Arnott’s Biscuits is a food company with 150 years of experience that has been able to establish its place in the industry with many customers preferring its products (Arnott’s Australia, 2018). However, an external analysis of the company to assess its progressive notion and analyze the threats from other established names that it has in the industry helps to identify Arnott’s position in the Australian market. Six major environmental factors have been analyzed in the table below to determine the factors that are influencing the market of the company.

External Environmental force	Current Situation	Analysis
Political factor	·         More than decades of experience. ·         Government support ·         Stable political situation ·         Low trade restrictions ·         Ships to more than 40 countries. ·         Low barriers of market entries (Kizil et al., 2013)	The political situation of Australia promotes food industry (Booth & Whelan, 2014). It does not affect the business proceedings that help in smooth business. The company also spreads its business internationally with no major political obstructions. However, newer emerging companies due to lower restrictions in entries can threaten it.
Economic factor	·         Stable growth rates	The economy has not been on a suffering end and the company has been on a steady rise.
Socio-cultural factor	·         Huge workforce ·         Change in consumer attitude	The social scenario provides a sufficient labor force that is beneficial for the company. The customers show a change in their preferences and shift from one brand to other that is threatening for the company.
Technological	·         Increase in technology ·         Increase in developmental costs.	Arnott’s Biscuits invests a huge labor cost, engaging people in its process. The company must try to foster methods to implement modern technologies in its production that not only reduce the threat of labor unavailability, but also leads to greater production.
Legal	·         FSANZ operating in Australia has developed various standards for food business in Australia, which has been followed by the Arnott’s Biscuits. ·         It also abides by the regulations of New Zealand Food Act 1981 that helps it to operate freely in the main cities of the country (Sacks et al., 2015).	Arnott’s Biscuits is free of any legal obligations that has rendered to its effective business and marketing since its year of establishment.
Environmental	·         Climatic conditions	The weather of the country does not pose any threat to the production of the company (Gerber et al., 2013). It has been using moist reducing technologies recently that has made production effective and weather change effective (Bigliardi, & Galati, 2013).

An analysis of the various opportunities and threats that the company faces enable it to work on its loopholes and establish the name is a more recognized way. The threats and opportunities for the Arnott’s Biscuits Company have been discussed

Conclusion:

The entire report concludes that in spite of having established and emerging international companies that threaten the market economy of Arnott’s Biscuits, it has been able to sustain a steady growth in the Australian market. With slow and gradual adoption of methods and marketing strategies, Arnott’s Biscuits has achieved a recommendable brand name in many countries. The various flavored biscuits with an outstanding quality that it offers have been highly appreciated by people of all ages. The positive inclination of the company with its primary focus on the well being and health of consumers shows that Arnott’s Biscuits would definitely be able to sustain its business, promoting the brand name in several other countries in the near future.

References:

Arnott’s Australia. (2018). About Arnott’s | Arnott’s Australia. [online] Available at: https://www.arnotts.com.au/about-arnotts/ [Accessed 25 Mar. 2018].

Bigliardi, B., & Galati, F. (2013). Innovation trends in the food industry: the case of functional foods. Trends in Food Science & Technology, 31(2), 118-129.

Booth, S., & Whelan, J. (2014). Hungry for change: the food banking industry in Australia. British Food Journal, 116(9), 1392-1404.

Friel, S., Barosh, L. J., & Lawrence, M. (2014). Towards healthy and sustainable food consumption: an Australian case study. Public health nutrition, 17(5), 1156-1166.

Gerber, P. J., Steinfeld, H., Henderson, B., Mottet, A., Opio, C., Dijkman, J., … & Tempio, G. (2013). Tackling climate change through livestock: a global assessment of emissions and mitigation opportunities. Food and Agriculture Organization of the United Nations (FAO).

Kizil, C., Eddy, V., Clary, L., & Crowell, K. (2013). Hershey’s Entry to the Australian Market with a New Brand: An Accounting and Marketing Perspective. Emerging Markets Journal, 3(2), 97.

Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M., & Swinburn, B. (2015). Comparison of food industry policies and commitments on marketing to children and product (re) formulation in Australia, New Zealand and Fiji. Critical Public Health, 25(3), 299-319.

Webster, J., Trieu, K., Dunford, E., & 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), 3274-3287.