The primary purpose of this task is to portray the ample of information about business activities and operations of Manuka honey. Manuka honey renders various honey products, skin care and wound care products. It products are sold through its distribution network in New Zealand and globally. The paper outlines that how situational analysis is done by Manuka health to grab the rivalries in the market. Various tools such as pest, SWOT, TOWS, and porter five forces analysis are done by Manuka honey to measure and identify the external challenges and risks of the market. The paper also represents that how competitors may affect progress and targets of Manuka honey. In second phase, the paper outlines that how segmentation is done after considering future and current trends. Marketing mix and positioning strategy that play a vital role in maximizing profitability also have been explained in the task.
Monuka honey is one of the biggest brands in the market. Monuka honey is not only a jar but also it has proven to be dynamic and effective when added to lozenges, face creams and soaps. Monuka honey products are effective and excellent way to help enhance and improve well being and health (Manukahoney,2018). Monuka health was incorporated in 2006 and it is a leader in Monuka honey. The brands of the company include monuka honey, Royal Jelly and Propolis that helps to capture the living energy of New Zealand nature. The firm works towards the improvement of personalized services in the competitive market (Manukahealth, 2018).
Situational analysis is done by the company to identify and analyze the opportunities and threats of the market. It also helps in eliminating and reducing the risks and challenges of the market.
It is noted that market size of New Zealand large and wider. Therefore, the company can take ample of benefits by selling the honey products in the country. In 2015, New Zealand honey exports soared 41% therefore, the country benefited from demand for high and effective value Manuka honey (Morrison, 2016). New Zealand data indicates that the value of honey exports jumped to $285 million from $202 million (Morrison, 2016). The taste of honey products are increasing in the country day by day.
Aside this, it is noted that market structure of New Zealand is also very unique and effective for production of honey. Manuka honey production in the country has explored and expanded speedy in the last few years (Marketresearchfuture, 2018). It is stated that majority of Manuka honey is now being sold in New Zealand. Apart from this, the price of honey products is also rising due to increasing the demand of the honey products. Along with this, the popularity of honey products has spread widely in the country. Honey is a Canterbury based business therefore it helps in attracting gift market and tourist. Thus, the market structure for honey products is dynamic (Parliament.nz, 2015).
Porter five forces analysis is done to cope up with the rivalries in the international market. Porter five forces analysis for Manuka honey has been discussed below.
Threats of new entrants: There is no threat for new entrants in the country because the company is maintaining brand loyalty in the market.
Threat of substitute: The threat of substitute would be high if other alternatives available too. Manuka honey does not compromise the quality of the products and have fixed the competitive rates. The company can won the trust of the customers if it provides good quality of honey products to the customers.
Competitive rivalry: There are various competitors of Manuka honey in the marketplace. The competitors may affect the growth and success of the company. The price of Manuka honey is low as compared to its rivalries.
Bargaining power of buyers: The bargaining power is high in the hands of buyers. The company is using innovative and dynamic strategies to stand out against the competitors in the market.
Bargaining power of suppliers: Suppliers maintain high and strong power in the competitive market. Manuka honey needs to focus on the suppliers to maximize and enhance the sale and revenue in the market.
It has been found that New Zealanders enjoy a comfortable and unique standard of living and rank highly on the global happiness index. It is noted that Manuka honey may contain an extraordinary type of antibacterial activity which is not found in other honeys. People buy Maunka honey because they want a natural source of nutrition. Manuka products are also used by the people as medicinal plants to treat colds and fevers. The country’s apiculture industry has rapidly grown in the last few years because people demand for premium and excellent honey (Koukoulaki, 2010).
Marketing is one of the significant success factors for Manuka Honey. Manuka honey is well known for quality of honey. Apart from this, distribution and reputation are considered another success factors for the company. One of the effective and important success factors for Manuka honey is its yield. With the help of greater yield, the company has been able to beat the competitors in the international market.
The macro environment affects the progress of the firm adversely as well as positively. Thus, the company needs to focus on the macro environment to eliminate and reduce the threats and challenges of the market. Pest analysis is done to identify and analyze the risks and challenges of the market (Brooking & Pawson, 2010).
Political factors: It has been found that government of the country support the honey industry to explore and export its products in the market. Along with this, trading policies are also positive for Manuka honey so it can export its products in the foreign market.
Economic factors: The economic factors such as living standard, consumer focus, national income, exchange rate and inflation rate may also affect the profitability of Manuka honey in a large extent. The company is constantly focusing on measuring the needs and requirements of the customers. It is the main and significant reason for the success and growth of Manuka honey.
Socio-cultural factors: The socio-cultural factors include income level, demographics, education level and consumerism could also impact on the revenue and returns of Manuka Honey. These factors can affect the buying behavior of the consumers in the competitive market.
Technological factors: It is stated that innovative and advanced technologies are used by the country therefore; it can be a good opportunity for the company. Apart from this, research and development team is appointed to produce innovative and tasty products for the customers in the market (Mintu-Wimsatt & Winston, 2013).
The two main competitiors of Manuka honey include Comvita and Capilano that affect the effectiveness and efficiency of the firm adversely (Owler, 2018). The company provides different types of honey to the customers across the world. It is noted that the firm has been able to strive with rivalries just because the price for bulk Manuka honey is low as compared to the competitors. The firm uses low pricing strategy to stay in the competitive market. Aside this, Manuka honey also uses product differentiation strategy to distinguish its products from the rivalries available in the market (Owler, 2018).
It is noted that TOWS analysis is direct complement for the SWOT analysis because TOWS analysis would not complete without SWOT analysis. The TOWS and SWOT analysis for Manuka honey have been discussed below.
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Strength-opportunity strategy |
Weaknesses-opportunity strategy |
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The company uses this strategy to grab the macro environmental opportunities by using the internal strengths. Manuka honey maintains a strong and unique brand image in the market thus, it has been able to attract and retain maximum number of customers in the market. Along with this, the company can also introduce new and innovative products by investing large amount on research and development sector. |
This strategy is initiated for aiming of improving internal weaknesses by using exterior opportunities. If the company focuses on the advertising and promotional strategy then it can overcome the competitors. |
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Strength-threat strategy |
Weakness-threat strategy |
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This strategy is used by the firm for minimizing the effects of external threats by using its internal strengths. It is stated Manuka honey company uses effective and dynamic branding and advertising strategy to capture the entire market and to hit the competitors. |
By using this strategy, Manuka honey tries to eliminate internal weaknesses while ignoring the external threats. Mostly,, this strategy is not used by Manuka honey. |
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Strengths |
Weaknesses |
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· Strong and unique brand name is one of the significant strengths for Manuka Honey. · Excellent and effective distribution and advertising. |
· Manuka honey is not good for diabetic patients. · The food products have a limited shelf life. |
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Opportunities |
Threats |
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· Buy out rivalries · More advertising shall be done by the company. |
· Local made honey is preferred by people. |
It is analyzed that application of Manuka honey for medicinal purpose is predicated to have an effective and unique growth during the forecast period. Along with this, the top exporters of the company include Australia, China, Spain, New Zealand and Germany. In addition, pest analysis, porter five forces analysis, SWOT analysis and TOWS analysis are significant and essential for Manuka honey to analyze and determine external opportunities and threats in the competitive market.
Segmentation may be defined as a process of dividing the entire market into the different piece of units. Manuka honey has been divided on the basis of particular and unique food type which Gluten Free, HFCS-Free, organic and others. HFCS-Free Maunka honey is noted to hold a majority of share due to its maximizing health issues among the customers (Marketresearchfuture, 2018).
Manuka honey is also segmented on the basis of distribution channel which consists supermarkets and hypermarkets and specially stores. The online selling through internet and e-commerce are found to be strong and high (Watanabe, Rahmasari, Matsunaga, Haruyama & Kobayashi, 2014). The current Manuka honey market is also segmented into Asia pacific, North America and Europe. Apart from this, Manuka honey products are also segmented after considering the various applications that entails culinary purpose, confectionery, direct consumption, personal care products, medicinal purpose and bakery (Van Eaton, 2015).
The future segmentation can be done after considering the various segmentation areas such as demographic, geographic, behavioral and psychographic segmentation. Constantly changing life style has led to acceptance of delicious and healthy diet by customers due to which Asia pacific is projected to create high returns and revenue during the given predict period (Marketresearchfuture, 2018). On the basis of regions, the segmentation of Manuka Honey has been discussed below.
North America
Europe
Asia pacific
Rest of the world
Manuka honey has segmented its market on the basis of psychographic and geographic basis. In geographic segmentation, the company focuses on the areas and regions which is not done in psychographic segmentation (Quinn & Dibb, 2010). On the other hand, psychographic segmentation focuses on the traits, habits, lifestyle and attitudes of people to boot or uplift profitability in the market.
Marketing mix: Marketing mix is one of the effective and unique strategies that used by Manuka Honey to gain competitive benefits in the global market. The marketing mix for Manuka Honey has been detailed below.
Product: Manuka honey is committed for providing its customers products that are of unique quality and taste. The main mission of the company is to provide good and health quality of products for its customers. The company deals in various products such as food products, skin care, home care and health care products.
Price: It is noted that lower pricing strategy is used by Maunka Honey in New Zealand to attract maximum number of customers widely. The customer reaction is also included in the pricing strategy.
Place strategy: The Company has enormous outlets and stores. Various distribution channels are used by the company to grab entire target audience.
Promotion: It is one of the dynamic strategies that initiated by the firm. Various campaigns and sessions are held by Manuka honey to promote honey products.
It has been found that Manuka honey uses application, product and pricing based positioning strategy to differentiate its honey products from the rivalries. In today’s era, the company provides good and tasty honey products at lower price. Therefore, the firm can use pricing strategy to overcome the rivalries in the international market (Quinn & Dibb, 2010).
Conclusion
It concludes from the above mentioned analysis that Manuka honey is oone of the significant companies who is dealing in enormous honey products. The above analysis shows that how Manuka Honey is gaining competitive benefits by considering choices, tastes and preferences of the customers. Porter five forces analysis, SWOT analysis and TOWS analysis are done by the company to analyze and evaluate the threats and opportunities of external market. On the other hand, it also explains roles and significance of segmentation and positioning. The paper also outlines that how Manuka Honey uses marketing mix to increase and enhance the demand of honey products in the international market.
References
Brooking, T., & Pawson, E. (2010). Seeds of empire: The environmental transformation of New Zealand (Vol. 4). IB Tauris.
Koukoulaki, T. (2010). New trends in work environment–New effects on safety. Safety science, 48(8), 936-942.
Lucintel.,2013. Pestle analysis of New Zealand 2013[Online], Retrieved from https://www.lucintel.com/pestle-of-new-zealand-2013.aspx
Manukahealth.2018. About us[Online], Retrieved from https://www.manukahealth.co.nz/en-nz/our-story/about-us/
Manukahoney.,2018. Manuka honey [Online], Retrieved from https://manukahoney.co.uk/medical-honey
Marketresearchfuture.,2018. Global Manuka honey market research report-forecast to 2023[Online], Retrieved from https://www.marketresearchfuture.com/reports/manuka-honey-market-3112
Mintu-Wimsatt, A. T., & Winston, W. (2013). Environmental marketing: strategies, practice, theory, and research. Routledge.
Morrison.T.,2016. Manuka honey fuels huge export growth [Online], Retrieved from https://www.nzherald.co.nz/hawkes-bay-today/business/news/article.cfm?c_id=1503458&objectid=11583463
Owler.,2018. Manuka health New Zealand’s competitors, revenue, number of employees, funding and acquisitions [Online], Retrieved from https://www.owler.com/company/manukahealth
Parliament.nz.,2015. Briefing from the bee industry [Online], Retrieved from https://www.parliament.nz/resource/mi-NZ/51DBSCH_SCR64555_1/a427396701a987cf7504dc5a792a79973621a3ba
Quinn, L., & Dibb, S. (2010). Evaluating market-segmentation research priorities: Targeting re-emancipation. Journal of Marketing Management, 26(13-14), 1239-1255.
Van Eaton, C. (2015). Manuka: The biography of an extraordinary honey. Exisle Publishing.
Watanabe, K., Rahmasari, R., Matsunaga, A., Haruyama, T., & Kobayashi, N. (2014). Anti-influenza viral effects of honey in vitro: potent high activity of manuka honey. Archives of medical research, 45(5), 359-365.
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