MKG721 Marketing | Study on the Food and Nutrition Industry

Write a  report on food product. Which is now in demand and also it has bright future. 

Answer:

Introduction

With the increased social trend, the industry of protein powder also has been observed to be growing in a rapid manner over the last few years (Juliano and Clarke 2013). Shedding light on the rapid increase of the market of protein powder, the report conducts an industry analysis. The whole course of the discussion includes a brief industry overview of protein powder, competition within industry and a PEST analysis. Finally, the report sums up the entire discussion.

Industry overview

Reports suggest that over the past five years, the consumption of protein powder has been increased in a rapid pace. Accordingly, the sales margin of protein powders experienced an annual increasement by 1.6% in 2017-2018 financial years (Juliano and Clarke 2013). Sales generated from several sources including retail shops, pharmacies and super markets have contributed to the revenue growth of the company. Seeing a considerable demand in market many brands has been entering in the industry with different specifications. However, it needs to be mentioned that the due to the wellness factor a major trend of consuming protein powder was seen among the sports persons and gym goers significantly which further created a large scope for the growth of industry.

Competitive rivalry 

According to Mandle et al., (2015), the two giant companies namely UPROTEIN 100% and Optimum Nutrition Whey Gold Standard are the main dominators in the industry. The company UPROTIEN 100% has a large range of products targeting a wide range of customers. On the other hand, Optimum Nutrition takes different in terms of product development, marketing strategies etc, in order to remain ahead while competing with UPROTIEN. However, the sales margin of UPROTIEN has been observed to have increased at a rate of 13% in comparison of the other brands of protein powders in the industry (Lawrence, Lyons and Wallington 2013).

PEST analysis

Thus a PEST analysis would be given in order to give a clear picture of analysis of the company.

The political impacts

It is seen that the political condition of the country is extremely helpful. The political situation of the country has been extremely beneficial for the protein powder industry because of flexible government policies (Lawrence, Lyons and Wallington 2013). Thus it is seen that the Australian government’s trade policies are easy that enabled many protein powder brands to enter in the industry.

Social impacts

Since protein powder falls under the category of nutrition and food, the social trend of health impacts heavily on the industry. It has been observed that due to the social trend, Australian people stresses on nutrition value of products. Thus they prefer products that are without preservatives (Juliano and Clarke 2013). Hence, the protein powder brands effectively focus on non use of preservatives so that customer base can be retained.

Economical factors 

The economical condition of the Australia is stable for which the Australian economy is one of the largest economies across the world. Naturally, due to the stable economic condition, the brands like protein powders find it very beneficial (Carey et al. 2016). Due to a strong economy, the industrial growth of the country has been considerable over the past five years.

Technological factors 

In order to discuss the impacts of the technology over the protein powder industry, it deserves mention that latest technologies of food processing are being used by the brands. Most of the protein powder brands are always in continuous companies to give a tough competition to each other. The companies use latest technologies in manufacturing, processing, packaging, marketing and delivering of the end products (Mandle et al. 2015). Thus it is observed that most of the time the companies emphasize on strong network of cross the market so that major customer base of the company can be retained. Thus in order to enhance strong delivery network, modern technologies are being used by the companies

Conclusion

Therefore in order to conclude it will be right to state that the report elaborates on the industry of protein powder that has been observed to be growing in a rapid manner over the past few years. As per the findings of the analysis, it has been seen that the growth of the protein powder industry has been considerable over the last five years. It has been seen from the above analysis that the more than any other factors, the social factors impact the growth of the industry most. Meanwhile technology can be considered as another major influential factor on the protein powder industry.

References  

Carey, R., Caraher, M., Lawrence, M. and Friel, S., 2016. Opportunities and challenges in developing a whole-of-government national food and nutrition policy: lessons from Australia’s National Food Plan. Public health nutrition, 19(1), pp.3-14.

Juliano, P. and Clarke, P., 2013, August. Whey utilisation in Australia. In AusAID PSLP. Workshop (Vol. 1, pp. 26-31).

Lawrence, G., Lyons, K. and Wallington, T., 2013. Food security, nutrition and sustainability. Earthscan.

Mandle, J., Tugendhaft, A., Michalow, J. and Hofman, K., 2015. Nutrition labelling: a review of research on consumer and industry response in the global South. Global health action, 8(1), p.25912.