Describe the Pestel analysis of the organization.
Marketing is an essential tool in the recent century. Marketing helps an organization to make communication between the product and the customers. Marketing includes a set of activities and processes. Technology has also helped marketing to reach a new horizon. Oxfam is an international confederation which is formed with the collaboration of seventeen organizations. Oxfam has its operation across ninety-four countries across the world (Australia 2016). The main function of the organization is to help the poor people in the world and provides them a job to fight against poverty. The organization also fights against the injustice for the poor people. Oxfam was founded in the year 1942 Australia, O. (2016). The headquarters of the organization is Oxford in the United Kingdom and the director of the organization is Mr. Winnie Byanyima. The organization is now planning to launch a new product in Australia, which is a handmade Nepalese paper. Before the launching of the product, the organization tries to find out the situation of the country with the help of Environmental scanning. Along with environmental scanning, the company also finds out the SWOT analysis and the marketing mix of the product.
Oxfam is a big international confederation across the globe. A market analysis helps an organization to find out the environmental scanning of the company. Pestel Analysis is a framework which is used to find out different environmental aspects.
Figure 1: Pestel Analysis of Oxfam
Political aspects: According to Dufty-Jones and Connell (2016), political aspect is an important factor for the normal functioning of the organization. In Australia the political problem is low, and the government has a strong control over different aspects to prevent political disturbances. Along with these, the government of Australia always encourages organizations to start new inventions. New trade laws which are introduced by the government also provide facilities for new inventions. The government provides land for the organizations at a minimum price for new ventures. Along with these, the government also provides tax reliefs for new ventures. All these create a favorable condition for Oxfam to start their new business in Australia.
Economic aspects: The economy of Australia is also well developed, and the country has the third largest mixed economy in the world. GDP of Australia is rising, and the present GDP growth of Australia is 1.62 trillion Australian dollars (Gupta and Mishra 2016). The people of Australia always have a fascination to buy a new type of products, and this is an added advantage for the organization. Developed economy of Australia also increases the purchasing power of the people.
Social aspects: Oxfam is always involved in building the social life of people in Australia. They look after the well-being of the people in both urban and rural areas. Lifestyle and tradition of people also support the functioning of the organization (Gupta and Mishra 2016). Residents also get an opportunity to get a job in the organization and can easily maintain their livelihood.
Technology aspect: According to Jurevicius (2013), technology is also an important aspect of developing the growth of the organization. Latest machines and equipment are used by the organization to develop its product at a rapid pace. The Internet has also been used by the organization to spread information about the new product in different corners of Australia. Latest mixing machines are used by the organization to give a new look to the product.
Environmental aspect: The activities of the organization also have a positive impact on the surroundings. The products are produced in an ethical way which is less harmful to the environment. Lokta paper is produced from lokta bush in an economical way (Manic 2016). Along with these, the organization also removes the harmful substances from the waste materials before they are disposed into nature.
Legal aspect: Legal legislation is an essential criterion to make the workplace safe and protected. Employees feel happy to work in a place which is safe and protected. Australian government introduced different policies to look after the benefit of both the employer and employees. Special care is taken to prevent sexual harassment of women in a workplace. Along with this gender biasness is also minimized in Australian workplaces.
Strength: Oxfam is a big company which is spread across the globe. The financial condition of the organization is also strong enough to produce the new product. People of Australia like a new product and this helps Oxfam to launch the Nepalese loktha paper (Resnick et al. 2016). Different tax relief facilities provided by the Australian government supports the functioning of the organization.
Weakness: The product launch by the organization may not be as good as that of the exact loktha paper produced by the Mulbery paper. The company follows different infringement policy. The cost structure is also not clear within the organization. This is also a serious concern for the organization. The organization faces strong challenges from Bhaktapur craft papers and Mulberry paper.
Opportunity: The users of loktha paper are increasing rapidly. This encourages the organization to expand their business in various parts of Australia. The Economic condition of Australia is also favorable for the expansion of the new business. The demand of loktha paper is also increasing creating a favorable condition. The upper-middle-class family is also supporting the function of the organizations (Rosohata, 2012). The company wants to make Mahaguthi Nepal as their benchmark to produce their products.
Threat: The organization does not face any threat because the Oxfam is launching in the new dimension. The presence of Mulberry paper is a strong challenge for the organization. Availability of labor is also very rare, and this is a serious concern for Oxfam (Silva, Cavalcanti and Gomes 2015). Different rules introduced by the government are also affecting the production of the organization.
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Strength · Strong financial condition · New venture · Support from Australian government |
Weakness · Product is not as good as Mulberry papers · Competitors like Bhaktapur Craft papers · Unclear cost structure |
|
Opportunity · Favorable economy of Australia · Lifestyle of people · Mahaguthi Nepal as benchmark |
Threat · Increasing labor cost · Unavailability of skilled labor · Different rules |
Table 1: SWOT analysis of Oxfam
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Segmentation |
Psychographic segmentation · Income of people: Middle and higher income group. · Age group: 10 years to 45 years. · Lifestyle: Both lavish and normal lifestyle. Behavioral segmentation · Knowledge of people: Mediocre and highly knowledgeable (Sun et al. 2014). · Usage rate: Medium to high. Cultural Segmentation · Culture of people : Religion. · Education: Medium to a higher level of education. |
|
Targeting |
Psychographic segmentation · Generally, the product can be available to people of all income group because price is minimum · School student and college are the main buyers of the product · Middle-class people are the main buyers Behavioral segmentation · The product will be bought by individuals who are highly knowledgeable · Medium level usage organizations mainly will use this product Cultural Segmentation · Religion is also important. Mainly used by religious people in writing spiritual thoughts · Mainly used in colleges. |
|
Positioning |
· The paper cannot be damaged by water · The paper can be modified to any form · The paper will not catch fire · The paper is stylish in nature |
Table 2: Customer analysis
Figure 2: Brand analysis of Oxfam
From the above diagram researcher has found that Oxfam lokta paper is produced high quality a cheap product at a cheap rate. On the other hand Mulbery paper produces high quality product at a high rate. Bhaktapur craft paper produces low quality product at a low price. Mahaguthi Nepal produces low quality product at the high price. Therefore, Oxfam lokta paper has a competitive edge over others (Waterschoot and Bulte 2012).
7.0 Marketing mix
Figure2: Marketing mix of Oxfam
Product: The name of the product launched by “Ox-lokta paper” (Australia 2016). The paper will be available in the market in the form of copies or a bundle. The paper is made from the bark of the trees like evergreen shrubs. The paper is of fine quality and is used to print different writings. The paper can be used by a different group of people varying from business class to students (White et al. 2015). The paper is also used to produce drawing sheets. The paper is eco-friendly in nature and is less harmful to nature. The papers are available in different colors like green, yellow and light blue. The paper is also available in a different style like pinto patterns, solid colors and sun-washed design.
Price: A price is an important tool. It determines the success and failure of the product. The price of the product varies according to their material. The minimum price of the paper is 5 Australian dollars, and maximum price is 25 Australian dollars (Yüksel 2012). The company also uses market penetration pricing strategy to increase the sales volume. Therefore, every people can buy the product. Along with these, the company also gives a high rate of discounts to attract a different level of customers.
Place: The main motto of Oxfam is to spreads its business across Australia. Several strategies have been used by the organization to meet its objective. Distribution channel like distributors, retailers, and outlets are used by the organization to spread its product. The organization has also contacted schools and colleges to distribute its product. Oxfam has also opened several outlets in Australia to communicate with the customers (Tirunillai and Tellis 2014). Kiosks have been an important place to promote the product. A well-developed sales network channel of Oxfam also visits the dealers and big showrooms of Australia to distribute the products. Technology has also been used by Oxfam to expand their sales channel.
Promotion: Promotion is an important activity which is related to marketing. Oxfam put stress on promotion to aware the customers about the product. Effective advertisement and sales promotional activities are also used by the organization to promote its product. Game shows have also been used by the organization in an effective way for promotional procedures. The organization sponsors cricket matches in Australia to aware about their products. Technology has also been used by Oxfam in an effective way. Social media like Facebook and twitter has also been using by the organization to promote its product (Beneke and Trappler 2015).
8.0 Conclusion
The researcher has thoroughly described the Pestel analysis of the organization. Australia has a stable political condition which is effective for the functioning of the organization. The researcher has also analyzed the marketing mix and the SWOT analysis of the organization. It has also been found that Oxfam lokta produces quality products at a cheap rate. All this is favorable for Oxfam to expand their business in Australia.
References
Australia, O. (2016). The Power of People Against Poverty. [online] Oxfam Australia.
Dufty-Jones, R. and Connell, J. 2016, Rural Change in Australia: Population, Economy, Environment, New edn, Ashgate Publishing Ltd, GB.
Gupta, G., and Mishra, R. P. 2016. A SWOT analysis of reliability centered maintenance framework. Journal of Quality in Maintenance Engineering, 22(2), 130-145. doi:10.1108/JQME-01-2015-0002
Hasan, M. R. 2013. Apple Inc.-An Analysis: PESTEL analysis, Porter’s 5 Forces analysis, SWOT analysis, Comprehensive analysis of financial ratios, and Comprehensive analysis of share performance of Apple Inc. GRIN Verlag.
Jurevicius, O. 2013. PEST & PESTEL Analysis,”. Strategic Management Insight, 13, 2013
Manic, S. 2016, “Economics Imperialism: SWOT Analysis”,Asian Economic and Financial Review, vol. 6, no. 3, pp. 151.
Resnick, S.M., Cheng, R., Simpson, M. and Lourenço, F. 2016, “Marketing in SMEs: a “4Ps” self-branding model”,International Journal of Entrepreneurial Behavior & Research, vol. 22, no. 1, pp. 155-174.
Rosohata, A.S. 2012, “Theoretical bases analysis of scientific prediction on marketing principles”, Marketing ì Menedžment Innovacìj, vol. 3, no. 2, pp. 99-111.
Silva, C. F. M., Cavalcanti, F. R. P., and Gomes, Á. 2015. SWOT analysis for TV white spaces. Transactions on Emerging Telecommunications Technologies, 26(6), 957-974. doi:10.1002/ett.2770
Sun, Y., Guo, P., Ma, Z., Li, T. and Dang, S. 2014, “UK-based external business environment analysis of outdoor adventure clothing using the PESTEL tool and its future outlook”, IEEE, , pp. 306.
Van Waterschoot, W., and Van den Bulte, C. 2012. The 4P classification of the marketing mix revisited. The Journal of Marketing, 83-93.
White, T. H., de Melo Barros, Y., Develey, P. F., Llerandi-Román, I. C., Monsegur-Rivera, O. A., and Trujillo-Pinto, A. M. 2015. Improving reintroduction planning and implementation through quantitative SWOT analysis.Journal for Nature Conservation, 28, 149-159. doi:10.1016/j.jnc.2015.10.002
Yüksel, I. 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52.
Tirunillai, S. and Tellis, G.J. 2014, “Mining marketing meaning from online chatter: strategic brand analysis of big data using latent Dirichlet allocation”, Journal of Marketing Research, vol. 51, no. 4, pp. 463.
Beneke, J. and Trappler, E. 2015, “The might of the brand: A comparative analysis of brand prevalence in an emerging market setting”, British Food Journal, vol. 117, no. 2, pp. 485-505.
Ghiassi, M., Skinner, J. & Zimbra, D. 2013, “Twitter brand sentiment analysis: A hybrid system using n-gram analysis and dynamic artificial neural network”, Expert Systems with Applications, vol. 40, no. 16, pp. 6266-6282.
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