¶ … Sanitarium Heal & Wellbeing Company is the operating/trading name of twin fod companies (New Zealand Health Association Ltd. And Australian Health and Nutrition Association Ltd.). Both of these companies are owned and operated by the Seventh-Day Adventist Church .The company produces a wide range of breakfast cereals and a wide range of vegetarian products. Sanitarium was founded in 1898 with Weet-Bix being its flagship products that topped sales in the New Zealand and Australian breakfast market. Sanitarium also operated several health food shops in numerous cities before the 1980s.The company has factories in various locations across New Zealand and Australia. In this paper we conduct the company's Organisation, Environmental and Market analysis as well as a determination of its segmentation and positioning strategies.
A SWOT analysis of Sanatorium
In order to conquer and dominate any given market, adequate information is needed on the prevailing market conditions as well as the organization's micro and macro environment.
The SWOT analysis is a tool which is very useful in both the understanding and the process of making decisions for various sorts of situations within a given business (Businessball,2008).As noted by Kotler, a SWOT analysis focuses on the strengths, weaknesses, opportunities as threats of an organization from a critical perspective. The SWOT analysis therefore distils the data that is gathered from these observations in order to i9ndicate the critical items from the external and internal audits. The number of items is noted by Kotler et al. (2005,p.58) to be very small for any form of forceful communications but they are critical in showing the areas that the business needs to focus its attention to. Additionally, the internal and external factors have a very great influence on the business' marketing objectives as noted by Brassington & Pettitt (2005).
The External Environment analysis
The external environment analysis entails the analysis of the opportunities as well as threats. At this stage, the company's main threats and opportunities are identified. The purpose of this analysis is to ensure that appropriate developments are made that can positively impact the company. The opportunities as well as threats can be considered from economic, demographic, technological, market-based, competition, political as well as pressure perspectives (Kotler et al.,2005)
The opportunities as well as threats are noted to have s sharp focus on both the present and the future while taking a more external outlook. This is in consideration of the strategic views of the possible development options. Several opportunities as well as threats are noted to emerge from the prevailing marketing environment. This is in consideration of the demographic as well as cultural factors (Brassington & Pettitt, 2005).It is worth noting that not all threats require the same form of attention, It is therefore critical that every threat be assessed with the potential damage of each being evaluated.
Internal Environmental analysis
The strength as well as weaknesses are noted to have a focus on both the present and the past. The internal environment analysis also focuses on the internally controlled factors like the 4Ps as well as the overall marketing strategy that is employed towards a target market. The external environment must never be ignored totally. Several strengths as well as weaknesses can therefore be defined within a competitive context as noted by Brassington & Pettitt (2005, p. 408).
Strengths
Loyal customer base
Strong brand portfolio
Unique product offering
Production of healthy vegetarian products
Strong financial position backed by finances from the Seventh-day Adventist Church
Dependence on information technology to streamline its logistics and product sales
Weaknesses
A weak management team
Overdependence on the Australian and New Zealand markets
Legal proceedings affecting brand image
Lack of an elaborate online marketing strategy
Opportunities
Emerging markets and expansion abroad
Diversification in regard to venturing into the provision of other products and services.
A growing trend towards healthy living and consumption of vegetarian products
Franchising
Venturing into the soft drink and beverage market to complement the existing product
Premiumrisation
Threats
Stiff competition
Tough government regulations
Low cost competitors as well as imports
Existence of substitute products
Economic downturn which adversely affect consumer spending levels
Strengths
Loyal customer base
Sanitarium is noted to be a very dominant player in the New Zealand's ready-to-eat (RTE) market. It is in fact the leading manufacturer of ready-to-eat (RTE) products.The company has a loyal customer base which is drawn from its vegetarian product line as well as breakfast serials.
Strong brand portfolio
Being the number one manufacturer of ready-to-eat (RTE) products in New Zealand, the company has also managed to maintain a very strong brands portfolio that include the traditional favourites like Weet-Bix, Ricies, Honey Puffs, Skippy as well as other emerging brands like Light 'n' Fruity, Up & Go as well as Muesli (Hoh,2008).The company also...
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