Mkg721 Food Marketing - Free Assessment Answers

Answer:

Introduction

With the developing environment, the energy bars market is also developing in the market. There are many tools to analyse the external environment of the market such as Porter’s five forces framework. Porter’s five forces framework is used to analyse the strength and weakness of the energy bar market. In this report, Energy bars are taken into the consideration whether it has a strong position or not. In the first phase of the report, the size and profitability of the market is discussed. In the next phase, Porters five forces framework is used to analyse the customer, supplier and the competitor of the market. In the end, the recommendation is discussed to expand the market by improving the product.

Description

Energy bars market in Australia is developing with the expected rate of 6% which states the Australia is becoming popular in the Australian market.  The leading firms of energy bars in Australia are Hormel foods, the Balance bar, the Kellogg Company and many others. Protein shakes and energy drinks are the barriers for the market. Consumers are the main drivers of the market which helps the company to expand the market. Each brand of an energy bar market is adopting the new technologies and attractive techniques which make the strong brand loyalty (Techsciresarch, 2018).

Porter’s Five Force Frameworks

New entrants

Energy bars market has the high threat of new entrants because of the low investment. It is observed that the health conscious consumers believes in quality instead of cost, and the consumers demand for the healthy product is increase which attracts the new firms to enter the market.

Bargaining power of Buyers

There are many groceries and departmental stores offer the discounts to the consumers to attract the consumers and increase the sale of product. It is observed that the increasing new firms open the many options for the buyers that attract them towards the product. Buyers buy the product where the prices are low. Thus, it can be said that the bargaining power of buyers is high (Dobbs, 2014).

Bargaining power of suppliers

Energy bars have very normal ingredients which can easily available in the market. By increasing the demand of the consumers towards the healthy product, suppliers of raw material of energy bars also attract towards the product. The numbers of suppliers increase with the increasing consumer demand. Thus, the manufacturers have many options to deal with the suppliers. Manufacturers can deal with the low price of raw material. Thus, the bargaining power of supplier is low (Porter, and Heppelmann, 2014).

Threat of competitors

Energy bars market has high threat of competitors due to increasing new entrants the competition of the market is also increases. There are many small and big firms produce the healthy product such as unique healthy product and many others. Substitute product is the second reason of the high competition. There are many healthy products market which can easily replace the products such as Energy drinks and protein shakes. Thus, the company has high threat of competitors (Khan, Alam, and Alam, 2015).

Threat of substitute

It has been seen that the many manufacturing firm produce the many healthy products such as energy drinks and protein shakes. Nowadays, consumers are conscious for their health they avoid the chocolates and bars. Energy bar is not healthy product for the many consumers just because they think energy bars is a chocolate. Thus, the consumers are more attractive towards the energy drinks and protein shakes which increase the threat for the market.

Opportunity and Threat

Opportunity

It is observed that Energy bars have the opportunity to expand the market in the large area due to increasing the demand of the Energy bars. Consumer is getting more conscious for their health which helps the market to expand the business at the international level. Energy bar has an opportunity to target the all age consumers. Youth and children are also attract towards the products thus the product market can easily target the new consumers. It can garb the high market share by targeting the new consumers by competing the energy drinks and protein shakes market (Grant, 2016).

Threat

From the above analysis, it can be said that energy drink market has high threat of new competitors as well as the substitutes. Due to low cost requirement and increasing the entry of new firms increase the threat of competitors for the market. Health market is expanding continuously like energy drink or protein shakes. These products can replace the energy bar which increases the threat of the market.

Conclusion

From the above analysis, it has been concluded that the Energy bars has high competition due to increasing the new entrants. The new firms can enter the market with the new techniques and recipes which attracts the customer towards the product, it also a threat for the market. Consumer believes and trust is increasing for the demand of the healthy products in which energy bar is an attractive product for all age consumers. Thus, the energy drink will grow rapidly in the next five years.

Recommendation

From the above analysis, it has been recommended that energy bar market adopt the fixed market strategy to fix their prices and decreases the bargaining power of buyers. Low barraging power increases the profitability of the company. Energy bar market provides the fresh product and adds the new flavour to attract the consumer and generate the more sales. Fresh product makes the strong position in the market and increase the brand loyalty of the company. Energy bar market can also introduces the new flavours at the time of festivals and occasions to generate the high sales.

References

Dobbs, E. M. (2014) Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

Grant, R. M. (2016 ) Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Khan, U.A., Alam, M.N. and Alam, S. (2015) A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.

Porter, M. E. and Heppelmann, J. E. (2014) How smart, connected products are transforming competition. Harvard business review, 92(11), pp.64-88.

Rothaermel, F.T. (2015) Strategic management. US: McGraw-Hill Education.

Techsci Research, (2018) Report Description. [online] Available from: https://www.techsciresearch.com/report/australia-energy-bars-market/1371.html [Accessed 5/09/18].

Wheelen, T.L., Hunger, J. D., Hoffman, A.N. and Bamford, C. E., 2017. Strategic management and business policy. New York: Pearson.