Essay on Anotts Marketing
Number of words: 1395
Anotts biscuit has been popular in Australia and in other regions. The company specializes in the production of biscuits straight from its inception in 1865. However, with various acquisition and market restructuring, its products have reached market destinations in Russia and other regions. The products of the company include bush biscuits, chocolate ripple, dessert, caramel crowns and coconut rings (Wright & Lund, 2003). Other products that make the firm competitive include Ginger Nut, Jaffa Cakes and Marie biscuit products. Anotts positioning comes because of consumer change in lifestyles. Today’s consumers prefer packaged products and Anotts’ advantage lies on the production process. The positioning of the firm lies on its marketing strategies, market competition and other influences.
Anotts in Russia and the UAE
In respect to the biscuit, market in the United Arabs emirates, Anotts’ position relates to trends of consumers. The biscuit market comes under the influence of changing lifestyles in the region. The trend of the market is a continued popularity among consumers for Snack-sized packaged products (Mead & Andrews, 2009). The trend is various streets of the region have been on an increase and this encourages consumption of company’s products. Further, in the market, there has been a continual awareness relating to the benefits of healthier foods (Wright & Lund, 2003). This awareness has an influence on the consumption levels of individuals. In regards to trends in the Russian market, Anotts biscuit swing to Russian consumer trends.
In Russia increase in the consumption of Annotts products, relate to an increase in the pace of life of consumers. This improvement in lifestyle status has a positive influence on the demand for packaged products. Another important aspect of the trend in the country relates to an increased expectation of packaged foodstuffs (Macro, 2006). The activity of manufactures has an impact on the market share of Annotts. There is a lot of companies in Russia branding biscuits making the products popular among consumers. Further, there has been an increased desire for healthy foods among consumers. The impact of these interests from consumers necessitates manufactures to use natural ingredients during manufacturing.
The competitive natures of the market of Annotts in Russia suffer from various influences. One of the influences includes completion from local producers. Annotts therefore utilizes various strategies in meeting the Russian market needs. For example, one may state that Modelez Rus has been one of the rivals for Annotts biscuit products (Mead & Andrews, 2009). Other factors to the competitive positioning of the firm relates to the influence of organized supply, distribution and logistics chains. Therefore, organizations need to invest a lot on their promotional activities. In relation to the biscuit market in the UAE, Tifany Foods Ltd maintains the highest position (Macro, 2006).
Macro- Enviromental Analysis
The macro environmental of Annotts market in Russia and in the UAE varies. In the Russian market, Anotts entry faces challenges related to the politics of the regime, technology level, social, economic and legal aspects. The government t of Russia controls majority of business transactions within its borders. The government has specific policy frameworks for the food processing industry. Such policies consider the packaging rules, safety and other issues. In Russia, the company faces challenges from the fragmented nature of the political structures of the country. This political structure influences therefore affects the creation of a unified market.
For this reason, Anotts products trade diversely in regions within Russia. The other factors affecting the firm in the country are the difference in wealth within the region, social tensions and other barriers. This factor has had an influence in the profit margins of Anotts around the region of Russia. For example, the firm faces stiff challenges in other regions where the local administration charges more. The diverse charging of business rates in the country makes business profits vary.
Moreover, one can state that the government has formal authority over local subsidies, financing, natural resources and licencing. On the other hand, the local leaders of bases of operation have control on production. The local governors have a lot of power over production and operations (Macro, 2006). In respect to the UAE, the macro economic analysis of the biscuit relates to the political trends. The other aspects of importance in the analysis include the influence of demographics, legal trends and the economic aspects.
Annotts a leading manufacturer in foodstuff production faces various economic influences globally. Its Parent company base in Australia faces same economic trends challenges. There has been a considerable improvement on the economic conditions in Russia, UAE and in Australia. However, in Russia Anotts face stiffer challenges due to the high rates of charges. The UAE offers a better environment in terms of its economic contribution to Anotts.
On the other hand, Russia had a GDP of $2.5trillion by the year 2014 (Macro, 2006). The country’s populations have drastically improved their economic status. This change in the economic standing of citizens has an influence on the purchasing power. In Australia on the other hand, there has been an increase in the rate of disposal incomes of consumers. Additionally studies reveal that Russia has a higher interest for business operations. Inflation is higher within the Russian region as well as unemployment rates.
In relation to political influences, businesses transacting in Russia faces stiffer barriers. The country is at risk of political tensions that might distract the production rates in industries. It is also imperative to note that in Russia, local politics affect businesses. For Anotts political consideration needs to be made on local production units. The governments of Russia, UEA and Australia have open markets (Macro, 2006). They all consider trade freedom rights, monetary freedoms as well as property rights.
Cultural and Social Trends
In relation to social trends and cultural diversities in Russia and in the UAE region, certain similarities arise. The culture within these countries comes under the influence of media and social networking. Consumers in all of these countries have almost similar perspectives of culture. This trend is true taking considerations of the Young generations. Anotts understand this perspective and it makes it a strategy to meet all consumers’ demands. Other perspective of social trends is the changes of lifestyle of individuals in these countries. Other perspectives of culture relates to eating habits of citizens.
In terms of legal aspects influencing Anotts biscuits operations in the UEA and in Russia, divergent views arise. In Russia, local politics have an influence on business operations. In the UAE the government develops similar procedures and rules that control the industry. Such laws capture aspects of registration, policies on processing, safety and employment laws (Wright & Lund, 2003).
There has been a shift in the technology of food manufacturing. Anotts production units utilize similar levels of technology. The influence of technology has a significant influence on the production rates. In Russia and in the UEA companies utilize modern production machinery (Mead & Andrews, 2009). In respect to distribution, the firm utilizes online modes. Since the inception of the internet, individuals may procure online. Further Anotts marketing team commits its team to advertising its products on the social media networks (Macro, 2006). In these countries majority of consumers are young; this therefore entails company to use social media. Social media has been an important marketing tool for the food packaging industries.
The biscuit manufacturing market in the UAE and Russia is growing at a considerable rate. Both market rates have a growth rate of above 2%. This position of growth reveals that food-processing companies might increase their market share (Wright & Lund, 2003). With respect to the level of growth, Russia expects an improvement of 2%. The prospect of the industry in the UAE is 7%. The market size of the industry in UAE is over 9million while in Russia it is 141.9million.
Mead, R., & Andrews, T. G. (2009). International Management : Culture and Beyond. Chichester, England: John Wiley & Sons.
Macro, U. S. (2006). Market Review and Outlook. Policy. http://eds.b.ebscohost.com
Wright, C., & Lund, J. (2003). Supply Chain Rationalization Retailer Dominance and Labour Flexibility in the Australian Food and Grocery Industry. Work, Employment & Society, 17(1), 137-157.