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Paleo Hero Marketing Analysis

Institutional Affiliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

Introduction. 1

Internal Analysis. 1

External Micro-environmental Analysis. 2

External Macro-environmental Analysis. 3

Political 3

Economic. 3

Social 4

Technology. 4

Laws. 4

Environment 4

SWOT Analysis. 4

Strengths. 4

Weakness. 4

Opportunity. 5

Threats. 5

Conclusion. 5

References. 5

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

Paleo Hero (PH) is a company that creates food products modeled after the Paleolithic era. The products mainly consists of a purely raw diet that is rich in protein. This diet boosts energy and is useful in sponsoring weight loss. This essay thus examines Paleo Hero to determine the viability of its marketing analysis, whether it stands to excel at the Paleo diet and, its long term staying power as a food producer. It will do this by analyzing its internal audit, micro, and macro-environmental factors and by creating PESTLE and SWOT analyses.

Internal Analysis

To begin with, ‘Marketing Management’ defines internal analysis as an exploration of a company’s competency. This competency is usually measured to underscore the viability of a company competitively within the market (Haider, Zafar, Khalid, Majid, Abdullah & Sarwar, 2019). It utilizes the cost position, strength, and competency of brands the company represents, thus giving a clear picture of the internal workings of the organization. In the internal analysis of a company, there are several main elements; first, the resources and capabilities of the company, its organizational structure and cultural characteristics, Product strength and performance and, its configuration and co-ordination (Ahmed & Rafik, 2013). This help creates a complete picture of the company’s current place and its future direction. The internal analysis is also crucial as it helps create a value chain for the company. Its leaders and managers can utilize this analysis to improve upon areas leading to more significant profitability. It is thus essential as it makes it easier for an organization to develop objectives, develop strategic plans, and, boost sustainability. This keeping the business viable for the long term.

Paleo’s marketing environment is comprised of a strong managing department that influences the decisions the company goes through. As a family-owned business, its core competency leans towards the return to optimal healthcare through a strict primal diet.  As a result of this, one of its biggest departments is the research and development team, which is tasked with developing 100% natural paleo products. Secondly, the management of the company focuses on the creation of brand awareness. As a relatively new company in the market, PH’s budget is allocated towards marketing itself. This is done through effective market positioning. The company has a big following on social media advocating for wellness as well as partnering with supermarkets and gym chains. As it is marketed towards health and wellness, the company’s main target is millennials and young women. This demographic is the one that is most likely to engage in activities that would directly put the company in its view. These activities include; organic shopping, going to the gym, wellness centers, and doing yoga. Its marketing mix thus targets the health-conscious middle to upper class demographic who are the biggest spenders in health food according to the Italian Journal of Food Science (Vicentini, Liberatore & Mastrocola, 2016).

The company’s internal structure is also geared towards optimal performance as it is run by its owners allowing for clear objectives and effective management.  PH is thus a strong brand because it focuses on creating a niche for itself within the market. Its products have performed been performing well in the market, allowing it to expand within Australia and overseas to the United States of America. Its products are further boosted by the worldwide trend towards healthy and alternative dieting strategies, making it a brand that is set to expand even further (Paleo Hero, 2019).

External Micro-environmental Analysis

Secondly, in the analysis of an organization’s marketing strategy, it is essential to analyse the microenvironment. It is defined as the social factors that are outside an organization’s boundaries. The microenvironment consists of consumers, an organization’s partners, and its competition. These often have a direct line towards a company’s ability to meet its specific targets. These groups of people hold the dynamics of power within the market. As a result, companies need to establish a sufficient balance of power to prevent them from being steamrolled by any one of those players (Mose, 2016). When creating a market strategy, the management needs to consider the influence that each element has, thus enabling the company to react to a sudden change in direction.

As one of the most significant players in its industry, PH’s micro-environmental analysis includes Suppliers, Resellers, Customers, Competition, and the General public (Mose, 2016). Its marketing strategy often needs to break down the elements into these five subgroups because they each influence it differently. Currently, its biggest influences are customers, resellers, and suppliers. PH is a brand that is expanding globally and thus is partnered with distributors who market their 38 products. Although they have physical shops in Australia, they also partner with large retailers who purchase products at wholesale prices.  In addition to these, the company outsources its natural ingredients from local farmers who vary in farming scale. These suppliers can affect the organizations supply-chain, thus harming the company in the event of a strike or downturn (Zhang, 2018).

The company since 2016 has thus sought self-sufficiency by investing in growing its natural products. However, competition from other brands like Owler, (who also sell Paleo diet meals) means the company cannot afford to spend too much revenue on growing its ingredients. In the present, the company is ahead of its competition as it offers more to its customers, vendors, and the general public by way of rewards, i.e., discounts and loyalty programs. The company also wins over its competition through its accessibility. It has over 70 stores in Australia, partnerships with retailers, and an online system that allows for deliveries, not to mention its international subsidiaries (Lemańska-Majdzik, Sipa, & Skibiński, 2018).

PH’s microenvironment thus is sustainable as it is structured to allow the company to promote, sell, and distribute its products to the final consumer. As a result, the company only needs to concentrate on streamlining its suppliers by keeping them happy through bonuses and incentives. By doing this, it will continue to improve its organizational performance.

External Macro-environmental Analysis

Furthermore, analysed is the macro-environmental analysis affecting the company. Macro-environmental factors are those which exist in society at large and are able to affect the company in one way or another. These include concepts like politics, culture, the economy, and various forces (Kennedy, 2016). PH, as a company is susceptible to factors that are out of its immediate control like any business. As a result, companies often analyze these environmental factors to adapt to their marketing strategy effectively. Macro-environmental analyses have various elements, the Demographic, Political, Economic, Social, Technological, Environmental, and Legal.

PH is a market leader within its field and thus must be able to adapt to new stimuli. The success of a marketing campaign is beholden to the ability of the company to predict the unforeseen. Therefore, this essay creates a pestle analysis as PH’s macro-environmental analysis.

Political

First, Political Stability in Australia is guaranteed as fundamental freedoms are enshrined in the law leading to regular free and fair elections. This creates stability for business practice for PH. Secondly, Labour laws exist protecting citizens and businesses alike with corruption being negligible, making the country ideal for companies.

Economic

The country’s economic growth has remained steady. Australia is one of the few countries without economic depressions. With the 13th largest economy in the world and a GDP of 1.3 Trillion Dollars, the economy is stable enough for business. In addition to this, the unemployment rate is less than the global average at 3% with the country having a large workforce of professionals allowing for cheaper labour through expatriates and immigrants (Carlsom, 2019).

Social

Third, Australia’s population growth, although increasing, is stagnant. It has a population of 25 million people as of 2019 estimates. The country possesses a diverse ethnic population with the median age being 37.5 years. PH’s marketing strategy focuses on the youth, and thus, this age bracket aligns with its vision to provide healthy alternatives to the population.

Technology

As a developed nation, technological innovation in the country is up to par with the rest of the world. The government encourages innovation by investing in programs throughout schools and colleges. PH is at the forefront of this by encouraging automation through app development. These make it easier for consumers to obtain their meals through its service delivery platform.

Laws

Penultimately, the law in Australia protects the freedoms and rights of workers. It also promotes taxation and company fiscal responsibility. PH, as a food producer would also be subject to strict health and food safety laws that protect the consumer. Its intellectual property rights are also protected by the law, allowing for fair competition in a country with some of the best anti-trust laws in the world.

Environment

Lastly, Australia has a temperate climate that fosters the growth of most of the ingredients that make up PH’s foods such as granolas, berries, and wheat.  As a holistic and whole-food brand, the company will face little resistance from NGO’s and advocacy groups as the company’s aesthetic fits into their vision.

SWOT Analysis

Lastly, it is essential to analyze PH’s SWOT analysis. This is an acronym for the Strengths, Weaknesses, Opportunities, and Threats that a company faces. It helps an organization meet its objectives by planning for the future. This is important as it allows the company to gauge the potential success of a new product or direction it is planning to undergo (Gurel &Tat, 2017). PH intends on being a global leader in the Paleo diet and thus, in preparation for this, must undertake a SWOT analysis to prevent it from making poor business decisions and succumbing to its competition.

Strengths

PH has a line of incredible products. The Australian medical board has certified the paleo diet, and thus the products are recommended by nutritionists and trainers. PH also has an extensive network of suppliers throughout Australia and beyond in America. It also plans on expanding into the European market early next year, making its economic viability secure. As a family-owned business, its direction and vision are stable because of fewer internal squabbles for leadership. It has tangible property in terms of physical locations where you can purchase its products. Lastly, its staff is made up of industry specialists who conduct adequate research from its research budget on products. Personnel are also motivated, leading to more sales.

Weakness

PH has a marketing strategy that focuses purely on online campaigns. Although these are effective, investing in some advertisements on television and print media allows the company to attract a wider audience. Similarly, PH’s focus is on millennials and the youth. However, there is a growing generation of elders who seek better alternatives to their current diets. Expanding its target to include this group would make the company collect revenue from a more comprehensive stream.

Opportunity

PH has the chance to tap into emerging markets. Asia, South America, and Africa are on the rise, and tapping into these markets is an opportunity. This especially with the growing middle class in these regions with disposable incomes. Furthermore, PH has few competitors in the Paleo diet sphere, making it easier for it to dominate markets in these regions.

Threats

PH, however, has competition from other healthy diet companies like Whole Foods and Owler. Another threat is the attitudes that consumers have towards the company and its products. Some view the Keto and Paleo diets as inadequate for human sustenance. Secondly, emerging markets may have different regulatory practices that make it harder for the company to thrive. In addition to this, consumer food habits may vary in different regions in the world, making it hard for the company to succeed in those places.

 

Conclusion

In summation, Paleo Hero is an innovative brand in Australia. Having grown from a family-owned business into a multinational corporation, it has what it takes to establish a continuous presence in the international market. However, its marketing strategy, although significant, can be improved to cater for a wider audience. This is critical in an increasingly competitive market that is driven by fads, especially in the food, health, and wellness industry. PH is on track to becoming a great all-natural food provider, if it increases the customer base it targets, especially on the global stage.

 

 

 

References

Ahmed, P. K., & Rafiq, M. (2013). Internal marketing issues and challenges. European Journal of marketing37(9), 1177-1186.

Carlson, R. M. (2019). Atlassian: Analysis and strategic recommendation.

Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International Social Research10(51).

Haider, A. A., Zafar, A., Khalid, A., Majid, A., Abdullah, M. A., & Sarwar, M. B. (2019). Marketing Management.

Home of health food products to support your paleo lifestyle. (2017). Retrieved August 18, 2019, from Paleo Hero website: https://paleohero.com.au/

Kennedy, A. M. (2016). Macro-social marketing. Journal of Macromarketing36(3), 354-365.

Lemańska-Majdzik, A., Sipa, M., & Skibiński, A. (2018). The Impact of the External Environment on the Functioning of SMEs-Results of Own Studies. In Economy, Finance and Business in Southeastern and Central Europe (pp. 497-512). Springer, Cham.

Mose, A. (2016). Analysis of Macro and Micro Environment on the Marketing Strategy Formulation and the Influence to the Competitive Advantage (Case Study). Academy of Strategic Management Journal15, 35-41.

Vicentini, A., Liberatore, L., & Mastrocola, D. (2016). FUNCTIONAL FOODS: TRENDS AND DEVELOPMENT OF THE GLOBAL MARKET. Italian Journal of Food Science28(2).

Zhang, L. (2018, May). Research on the Marketing Strategy of Enterprises Based on the Change of Marketing Environment. In 8th International Conference on Social Network, Communication and Education (SNCE 2018). Atlantis Press.