Sanitarium Heal & Wellbeing Company Is the Essay

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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).

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The company also has a new products range that includes the Wet-Bix Fruity 'Sultana Bran and Apple' variant that has so far witnessed more than 65% growth in the value of the Weet-Bix Fruity Brand. This made it the fastest growing cereal product within its category.

Unique product offering

The company offers unique products that are tailored to its ever increasing client base.The company have of late resorted to the production of products that are targeting different demographics like allergic customers (with a focus on then production of formulations that are gluten-free).The company also produces product for women (with focus on the issue of weight management) and children ( with a strong focus on health as well as character merchandising).

Production of healthy vegetarian products

The company produces several healthy vegetarian products in order to accommodate the needs of the vegetarian clients as well as the health conscious ones.

Strong financial position backed by finances from the Seventh-day Adventist Church

The company has a strong financial position due to its dominance of the marhet share in both New Zealand and Australia.This is coupled with the fact that it is fully owned by Seventh day Adventist Church, a worldwide religious body with strong financial backing

Dependence on information technology to streamline its logistics and product sales

The company uses several IT services such as the SAP solution -Motorola MC9000 in order to streamline operations in its warehouses and its logistical chains.

Weaknesses

A weak management team

The company does not have a strong management team.This is as evidenced from its Australian operations where workers protested the move by the management to have them sign contracts that violated their terms of service (Sanitarium Workers Campaign For a Union Agreement,2008)

Overdependence on the Australian and New Zealand markets

Legal proceedings affecting brand image

The Company has in certain cases been sued. These law suits affect its brand image negatively

Lack of an elaborate online marketing strategy

The company lacks an elaborate online strategy for the marketing and sales of its products.

Opportunities

Emerging markets and expansion abroad

The company can focus in international expansion strategies in order to make its products and services available to the emerging markets is other regions

Diversification in regard to venturing into the provision of other products and services

The company can diversify its product portfolio to include the cold and hot beverage product lines

A growing trend towards healthy living and consumption of vegetarian products

The general trend towards healthy living can serve to create a market niche for the company's vegetarian products

Franchising

The company can adopt a franchising business model in order to allow it reach a wider audience abroad.

Venturing into the soft drink and beverage market to complement the existing product portfolio

The company can venture into the lucrative soft and hot beverage market

Premiumisation

Hoh (2008) indicated that premiumisation is the incoming trend that involves the expansion of product lines to meet the interest of consumers in exotic flavours as well as quality ingredients.

Threats

A weak management team

The company has a weak management team as witnessed in the worker complaints and its poor relationship with the worker unions.

Overdependence on the Australian and New Zealand markets

The company depends heavily on its Australian and New Zealand operations. This exposes it to risks should the economy of these two countries collapse.

An analysis of the macro environment

A macro environmental analysis involves the description of the business environment that is crucial for the formulation of business strategy. These dimensions are noted by Fahey and Narayanan (1986).It is therefore crucial for managers to carry out analysis of the environment within which they operate in order to fathom the current as well as the potential business changes. The macro-environmental analysis in this case is carried out using a PESTEL analysis.

Sanitorium's PESTEL analysis

Political factors

The operations of Sanitorium are vhighly influenced by the New zealand state policies. These policies include the ones that regulate the health and food industry.Harmful products such as cholestrol that may cause obesity are tightly regulated by the NZ government. The company is also ictated upon by the New Zealand policies regulating health, worker protection as well as the environment. The company also has to fulfil its tax obligations accordingly as dictated by….....

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