Macro-Environmental Analysis Essay Example

Macro-Environmental Analysis Paper An organisations marketing environment can be defined as the actors and forces external to the marketing management function of the firm that impinge on the marketing managements ability to develop and maintain successful transactions with its customers (Kotler, 1997). In order to fully analyse Marss marketing strategy, it is important to look at its marketing environment first, which is made up of a micro-environment and a macro-environment. According to Kotler (1984), the macro-environment consists of the larger societal forces that affect micro-environment (internal). The micro-environment, on the other hand, consists of the forces close to the company that affect its ability to serve its stakeholders (external). Macro-Environmental Analysis Macro-environment, in Marss case, refers to the whole European ice cream market, since it is beyond the immediate environment but can nevertheless affect Mars as a company. European Ice Cream Market We will write a custom essay sample on Macro-Environmental Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Macro-Environmental Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Macro-Environmental Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Capital requirement in advertising and branding is extremely high in the ice cream market. The spending is responsible for developing brands and generating effect on consumers decision-making process. For the premium ice cream where Mars has positioned itself, launching heavyweight advertising is of more importance, in an effort to create particular brand imagery by convincing consumers of its quality. In the ice cream market, the power of buyers and suppliers has been seen less strong as in other markets, because of the lack of concentration of its buyers and suppliers. Instead, buyers of ice cream has spread widely across all ages, although children are always the primary consumers. The threat of substitution may take forms of product-for-product substitution or substitution of need by a new product or service (Johnson Scholes, 1997). Ice cream, as a fulfilment of needs such as light hunger, refreshment, indulgence, fun sharing and thirst quenching, might be substituted by biscuits, chocolates, crisps, or some traditional snacks in some European countries. In competitive terms, there are two leading companies who dominate most shares in the European market, Unilever, headquartered in the UK and Netherlands, and Nestle, a Switzerland-based company. It indicates the unbalance of competitors. The attractiveness of industry is particularly high when the market growth rate is high (Johnson Scholes, 1997). Even up to the year 2000, the market was predicted to grow at around 5% per annum, especially in the super premium market where the growth rate is over 15%. This is unusual in mature European food markets. The high level of grow rate intensify the competition among various market players. It might also attract potential entrants, which, on the other hand, result to an even more intensive rivalry. However, rivalry can be alleviated to some extents through differentiation strategy. According to Naylor (1999), differentiation refers to the added value in which strategic business unit expects its customers to appreciate. The extra value offered by the company must also be valued by customers more than the extra cost it takes to provide it. In the ice cream market, the offerings of premium and super premium ones are regarded as kinds of differentiation. In this way, some companies will aim to gain market share by focusing on premier or super premium segment whereas the rest will fight for economy ice cream segment, thereby reducing the intensity of competition within the market. Finally, if the exist barrier is high enough, it can increase the competition as well. It is especially a concern of family firms, such as Mars. They tend to not leave the marketplace if this is the only business that they are in (Finlay, 2000). By taking all this factors listed above into account, the opportunity and threat for Mars can be categorised below. Opportunity After looking at the market in the general way, it is time to relate it to Mars company. Europe is relatively a stable environment, which provides a secure market for business, in terms of political factors. As its market share is spread evenly across Europe, Mars benefits a lot from the trading agreements, including EEC, EC, EEA, as they further lower the tariff and create customs union (Brooks Weatherston, 2000). Therefore, the prices of Mars Ice Cream tend to uniform all around the Europe. The expected increase in personal disposable income over a couple of years will also help Mars as consumers will have the necessary funds to realise their desires, and be more likely to go for high quality and more expensive products. The rise in personal disposable income helps the fast expand of Marss premium ice cream market, and indicates that this segmentation will still be beneficial to Mars in the future. As a recent trend, the traditional family meal time has now been challenged. It is largely due to peoples busy working lives. Therefore, it becomes common to find different family members eating different foods at different times. As an easy-to-prepare and ready-to-eat dessert, ice cream has obviously attracted a large number of consumers. Ice cream can be taken back to home and served in flexible portions (take home) or rather consumed immediately (impulse). Deseasonalisation has considered being a tendency in recent years. It implies the less dependency on the hot weather, which, in some European countries, last for quite a short time. Marss Ice Cream has been sold all over the Europe, thus producing deseasonalised items is of more importance on companys agenda. The production of the ice cream is subject to the use of advanced technology in areas like prevention of fat accumulation and coarse texture, sweetness, or drawing temperatures. It, in some ways, raises the threshold of entering ice cream industry, thereby protecting the existing companies, including Mars, from a too fierce rivalry competition. Continued innovation is also a key issue here. Unlike a stapler or cigarette, ice cream is the kind of product which needs continued refreshment and constant innovation in its taste, flavour, texture or ingredients in order to maintain consumer interest and encourage sales and repurchasing. The ability to conduct it relates to the technology as well, which re-invigorate the product portfolio. This kind of requirement has put Mars onto an advantage position since the company has been well-known for its ability of innovation. Threat The biggest threat refers to the counter-offensive defence strategy (Kotler Singh, 1981) employed by Unilever against Mars, since Unilver has effectively prevented Mars from accessing its freezer cabinets. It is done by supplying smaller outlets with free freezer cabinets, which are exclusive to other brands, thus increasing and enhancing its retail outlets. Since macro actors are more difficult to manage and control, a proactive action is required in order to survive in the market. Overall, the European ice cream market is a stable, growing, but highly competitive environment. Stale always indicates that the low level of changeability, higher level of predictability and visibility. Therefore, a prescriptive strategy can take place. Micro-Environmental Analysis Micro-environment is the internal factors that impinge directly on Mars. Mars Ice Cream Mars is highly profitable in confectionery and prepared petfood areas, acting like the market leader in these two categories. However, since the growth rates of these two industries are not high enough, its confectionery and petfood can be regarded as cash cows. The profit generated by its cash cows is actually used to support its question mark, namely Mars Ice Cream (see Figure 1). According to Mars, the ice cream has not generated significant profit since its launch in late 1980s. Mars Ice Cream, enjoying only 5% to 10% market share in Europe, demonstrates an ambiguous future in this growing ice cream market. In this scenario, the company should decide whether to continuously fund it in order to increase market share, or withdraw it from the marketplace as it erodes the companys profit. Therefore, It is said that Mars Ice Cream is a question mark. However, in its product portfolio, no star or dog has been observed. It might imply the unbalance of its current product offering. Strength Probably the major strength Mars has demonstrated for years is its innovation ability. It refers to what Lynch (1998) calls as distinctive strategic element relevant to competing in the marketplace. However, during the early 1990s, this strategy was borrowed by Nestle, a major competitor of Mars. For that reason, the advantage of being able to innovate is a competitive advantage of Mars instead of a core competence. By adopting Porters (1985) model for generic strategies, Mars concentration on a segment of the market is categorised as differentiation (see Figure 2). One of Marss strategies was to price the ice cream at a premium level, which proves to be highly successful. By doing so, Mars has implemented a flanking attack by concentrating distinct market segments that are not adequately served by Unilever and Nestle (Kotler, 1997).

Rhetorical Analysis Sample Essay

Rhetorical Analysis Sample EssaySome of the same principles as in course work can be applied to a rhetorical analysis sample essay PDF. As you go through a course, you will learn how to organize your thoughts and communicate them in a persuasive way. As you do this with your essay, you will learn the principles that are used in each grade level and the specific syllabus content that will apply to you.In addition to learning the correct argument structure, you will learn the specific structures for each grade level in an analysis of a rhetorical analysis sample essay PDF. As you read through your own essay you will read through the lines of each paragraph as well as the article. You will use this material to help organize your thoughts.As you read through your essay, you will begin to see patterns and find connections. Your first sentence will serve as the introduction to your paper and you will use this opening paragraph to connect your first two paragraphs. As you read, you will not ice your thought being expressed in one sentence or a few sentences. Later in the essay, you will change your topic or your opinion to reflect the change you have made in your writing skills.As you complete the essay, you will be in a good chance to revise the writing skills you already have or develop new ones. You will not realize this until you are reviewing your essay later. If you plan on using your essay in class, you may want to discuss it with your instructor before you submit it. This will help to ensure that you follow the syllabus, structure, style and design of the assignment and your own personal style.In addition to working to improve your essay, you may want to find other materials online to help with your assignment. There are many online resources that offer sample essays. These include such things as a response to a topical essay, a response to a debate or a response to a speech. These may be used in your essay when you complete it and you will not find them requir ed but they will help you make the most of your essay.One of the easiest ways to learn how to write a rhetorical analysis sample essay PDF is to use a website that offers you more than one essay to choose from. The more you use these resources, the more you will be able to see patterns and learn to use the various structures. Once you have used the site in a number of essays, you will be well on your way to using a good essay for school.Reading the essay at home is not a bad idea either. By reading the passage as you go through your work you will be better able to see what the rules are and apply them to your own skills.