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1.0 Background and Introduction

Marketing strategy is all about combining the marketing objectives in one plan through market research and focusing on appropriate product mix. Developing a marketing strategy requires analysing internal and external environment for effectively marketing the product in the market (Dishman and Calof, 2008). In context to that, a case of Kerry Food has been considered which operates in food and beverage markets. The product portfolio of the company is Dairy &Savoury, Beverage, Cereal & Sweet and Nutrition (Kerrygroup, 2016). The company has produced a new product Yollies-yoghurt on a stick for kids and the company is planning to market the product in the UK. Therefore, the marketing plan for Yollies would be developed for the next three years by focusing on customer trends and market growth.

2.0 External Analysis– PEST Analysis

According to Cadle, Paul and Turner (2010), PEST analysis is effective for any organisations as it enables them to determine the implications of penetrating into new markets both globally and nationally. Also, it helps in exploiting and identifying the new opportunities (Ho, 2014).

2.1 Political Factors

  • Tax: Sugar tax needs to be considered by the company as to fight obesity, the WHO (World Health Organisation) stipulates a 20% tax on sugary drinks. It has been found that in the UK, more than 30000 people die every year due to obesity (Van Ansem et al. 2015). Therefore, sugar levels require to be taken in account as the main target market for Yollies are children. However, if the UK government increases the tax rate on sugar usage, then it can affect the production of Yollies. Thus, Kerry Food would have to use the sugar in a sustainable manner or other alternatives have to be drawn.
  • Consumer Protection Law: The Kerry Food is required to follow and abide by Consumer Protection Act, 1987 so that only quality product is supplied to the customers (Williams et al. 2015). The company may need to maintain that no artificial colour and added sugar is used in Yollies that can affect the health of the kids. Abiding by the law would create good impression on the customers and they would be interested in buying the product.
  • Employment Law: Kerry Food needs to adhere to the UK Employment Rights Act, 1996 for providing safe and secure environment to the workers. Also, discrimination shall not be allowed in providing wages or benefits (Simpson, 2009). Therefore, following the law would support the company in receiving better engagement of workers in marketing of Yollies. However, if the company fails then it can lead to shutdown of the company and production of Yollies.

2.2 Economical Factors

  • Economic Growth: The GDP of the UK has increased by 2.1% in 2016 from the last year (2015) and it is expected that the rate would increase to 2.55% by the end of the year (Oecd.org, 2016). The economy of the nation is growing which indicates that Kerry Food would be able to market Yollies in successful way. However, the inflation rate in the country has increased by 0.3% as of April, 2016 (Goodwin and Beck, 2016). It indicates that lower-income people would find it difficult to buy the product due to high inflation rate. Therefore, the company might have to target on the high income group consumers for selling Yollies.
  • Labour Cost: In the UK, the cost of labour is below average which indicates that the company can get productive workforce in producing Yollies at a low cost (Boulhol et al. 2011). Due to this, the operational costs can also be reduced that might be effective in increasing the brand value of Yollies in the country.
  • Income: Income of individuals in the UK is also rising which points that the company can target them for selling Yollies. Average gross salary as on 2014 is £2480-£3814 per month which increased by 4.7% from 2007 (Goodwin and Beck, 2016). Therefore, increase in the salary would make the customers spend more on buying Yollies.

2.3 Social Factors

  • Health Consciousness: Obesity among the children is the major concern in the UK. Therefore, the parents of the kids may not be willing to allow their children to consume unhealthy products as it can affect their health (Stamatakis et al. 2010). The company would require guaranteeing that there are no added minerals in Yollies that can hamper the health. Thus, ISO standards need to be mentioned on the package to ensure quality of the product.
  • Culture: According to Jin and Rashad (2015) UK’s people are quite fun, loving and attractive. Therefore, there is no or few societal pressure which positively influences their buying decisions. The people are more independent for taking decisions which is a positive sign that Kerry Foods can target these kids for their product.
  • Education: The people of the selected country are mostly educated which influences their buying decisions (Albiser, 2015). Therefore, the educated people would know that Yollies contains natural products that are good for health. Also, the company would not have to explain in much detail about the ingredients used for producing the products to the educated individuals.

2.4 Technological Factors

  • Rate of Technological Change: UK is technologically advanced nation which largely supports in the economy growth. Most of the UK organisations have gained success in providing their product and services to the marketplace (Peters et al. 2013). Also, use of social media and internet is high in the country. Therefore, Kerry Food can use social media for creating awareness about Yollies among target audience. 
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