Weet Bix Situational Analysis
Autor: andrew • April 10, 2011 • Essay • 896 Words (4 Pages) • 3,310 Views
Weet-Bix Situational Analysis
Market Situation
Breakfast cereals/Weet-Bix Market size March 2011
Customer Demographics
• Age: 3 years to 80+
• Gender: 50% male and 50% female
• Current population estimate = 4,403,176
(refer to: http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/pop-indicators.aspx) estimated March 11, 2011.
• Infant population (0 to 3 years) = 190,753 est. Dec 2010
(refer to: http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/pop-indicators.aspx
Weetbix market size by population (population – infant population) =
4,212,423 people
Consumption
Average family size 2.6 people in New Zealand est. 2006 (http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/demographic-trends-2009/chapter9.aspx)
Weet-bix market size by population divided by average family size of 2.6 = 1,620,162 families est. 2010
Average family consumption per 1kg/48 biscuit pack = 6.15 days (based on 3 biscuits per serving/per person)
Weetbix cost per 1kg box = $6.18 (shop.countdown.co.nz)
Sales quantities: 365 days divided by 6.15 days = 59.35 sales per year
59.35 sales per year x $6.18 = $366.78 expenditure per average family/per year
Total market size (1,620,162 x $366.78 )
$ 594,247,878 IN SALES ANNUALLY OR 96,156,614.7 UNITS PER YEAR
What macro-environmental factors are affecting these markets? Do these offer threats or opportunities? Discuss in detail.
Immigration
With an increase in immigrant population in New Zealand consumer tastes are becoming broader and more differentiated. With new immigrants coming from countries where milk and wheat based products are not commonplace an opportunity exists to educate potential new customers to the cost saving and health benefits for their family and children.
Cost to market
With wheat biscuits being made by various manufacturers worldwide ensuring the cost meets global pricing is imperative. With locally made product the lack of international freight costs makes Weet-bix an
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