Marketing assignment essay on Smith Chips

IntroductionSmith Chips

It is very clear that Smith Chips was first produced in year 1931 by Mr. Smith and the associate Ensor. Smith had initially formed the product of the Smith and reputation in UK, before shifting to the Australia for setting up of the business here. Throughout the years various alterations took place in the ownership and several products were combined with the actual range of potato chip comprising Burger Rings, Parker’s Pretzels, Twisties and Nobby’s Nuts. It is viewed that in August of year 1998, the Smith Snack food was bought by the Pepsi Co. In current time, Smith Snack food employs approximately 2100 Australians in distribution and manufacture of the products (The Smith’s Snackfood Company Limited, 2008). The Company manufactures most of its products in region of Australia and main raw material such as corn, wheat flour and material of the packaging is sourced domestically. Frito Lay referred as the world’s greatest salty manufacturer of snack food and leader of the market in world’s greatest markets of snack food. It is viewed that association of Smith Snack food with the Frito Lay offers access to the first class expertise and technology and offering chances for global synergies in technology, marketing, manufacturing and sales. The mission of the Smith Snack food is to be the New Zealand & Australia fastest developing and Beverage Company and Convenience Food.The Company is dedicated for reducing the consequence of the business on the surroundings with procedures which are socially accountable, economically sound and scientifically based. To accomplish this, the Company is focusing efforts on energy, waste and water minimization –regions where the Company can create the largest impact (The Smith’s Snackfood Company Limited, 2008).  It is viewed that the Company has precise companywide metrics to better recognize and track the usage of resources and benchmark against another plants of snack food like Pepsi Co throughout the world. The Company also participates and endorse in basic initiatives of the Government like Federal Government EEO program, Victoria State Environment, Resource Efficiency actions and National Packaging agreement. These types of initiatives offer innovative ideas and tools to get progress in the Environmental Sustainability.

PEST AnalysisPolitical Factor: In general, political factor of the PEST analysis transacts with the consequences of the government policy. This comprises items like government stability, policy of the taxation and government policies. If government puts 10% tax on the junk food then it would become concern for the Smith Chips. It is very clear that junk food is convenient because it is cheap and easy to get and creating it more costly shall motivate another foods to be consumed. One of the main reasons individuals doesn’t prefer healthier foods because of inconvenience and money. If the taxes are levied on the junk food to make it more costly, then individuals shall be driven to prefer healthier food as they are least expensive. Hence eating healthier food shall combat obesity. The taxation on the junk food would make the life of the poor person more depressed, if cheaper and healthy alternatives were not available. If government levies 10% tax on the junk food, then Smith Chips would minimize the ingredients for avoidance of the tax. In general, imposing of the tax on the product can enhance the price of the product and making it more costly will motivate another food to be consumed.  In order to resolve this political factor, Smith Chips would minimize the ingredients for the avoidance of the tax. In last, as the marketer of the Smith Chips it is analysed that taxes should not be levied on the junk food items. If taxes are levied on the junk food items then consumer would prefer healthier food and this would affect the revenue of the Company in current year and next year.

Economic Factor: In general, basic economic indicators comprise rates of interest, disposable income, index of retail price, GDP and rates of exchange. In general, Smith Chips can increase its revenue with the help of promotion. The major factor might be precautious consuming of food dollar on the cheaper junk food as compared to the costly restaurants encouraged by the fascinating prices provided by advertisement campaign of Fast Food Company. Smith Chips may implement Television Campaigns, Print and Media Campaigns and Billboard Campaigns for increasing the revenue of the Company. Enhanced revenue may offer the various opportunities to the employees like hike in salary and other sort of promotions. Disposable Income also plays a very important role in the fast food industry because consumer spends on the food according to his income and requirements.

Social Factor: In general, social factors comprise cultural alterations throughout the surrounding and often considered to as the socio-cultural. In fast food industry, social culture defines how the social react to the product in condition of the customer health. The Company implements sunflower oil in the production of the snacks (Hamel & Prahalad, 2008).  It is viewed that potato chip of Smith, potato chip of Rock Deli and grain wave is cooked in 100 percent high sunflower oil. This minimizes their content of the saturated fat by approximately 75% compared to the chip cooked in 100 percent palmolein oil.  This shows that the Smith Chips is concerned about the health of the customer. It is viewed that products created by the Smith Snack food are not baked in hydrogenated fats and therefore comprise negligible stages of Tran’s fatty acid. The healthy lifestyle comprises searching the balance among the calories used and calories burned. Good potatoes are used to make the potato chips of the Smith. Any potato that appears damaged shall not be taken in use. In general, Snacks may contribute to healthy diet enjoyment and even the Government has understood this in its Australia Guide to the Healthy Eating (Smith, 2007). These all kinds of initiatives show that the Company is very much concerned about the health of the customer. At last, it can be said that Smith Chips will take care of its customers in the future as well.

Technological Factor: With no any doubt few of the main alterations arriving in the usual atmosphere which are affecting the competitive atmosphere are technological (Hamel & Prahalad, 2008). The technological change rate is so quick; most individuals view IT with the help of narrow lens and silver –bullet outcomes. Technology is implemented to minimize the food and labour waste and quick up the service (Evans & Johnston, 2007).  Technological factor comprises the obsolescence rates which is speed with which innovative discovery supersede the established technologies. The change rate in innovations and technology has the consequence of impacting the new industries to appear and alters the paths in which current industries compete. It is advisable for the Smith Chips to implement the CHP system of the co-generation. This new co-generation system permits the plant to create its own power of the electric, offering almost 100% of plant electricity needs. To create mainly out of co-generation system, the ability shall also change the waste heat created on the site into the steam, assisting Smith Chips to manufacture its products of snacks onsite. The usage of the co-generation system not only offers relief to Northeast by minimizing the considerable load on largely congested regional grid but also assists the site to minimize its environmental footmarks by minimizing its Co2 and emissions of nitrous oxide that contribute to the gases of the greenhouse. At last, as the marketer of Smith Chips it can be said that implementation of the co-generation system would help the company to make its personal electric power and helps the Company to manufacture its products of snacks in current year and coming years (Timor & Sipahi, 2008).

Legal Factor: In general, legal factor comprises the regulation for the Industry. The Australia Association of the National Advertiser has in put the ethics code that transacts with the advertising to the children. The code reveals that the advertisements for beverages and food must not motivate unhealthy eating, inactive lifestyles and drinking habits. Advertisements must also not comprise incorrect or misleading knowledge about the nutritional excellence of the products. Other broadcasting code like Business Television Industry Practice code comprises provisions in association to the programming and the advertising for the children (Evans & Johnston, 2007). These types of the codes in the theory safeguarding the misleading advertising and defending the existing patterns of the advertising, manufacturers generally point to effectiveness and existence of codes.

ConclusionIt is concluded that the macro-environmental trend from each of the PESTL forces of Smith Chips would affect the performance of the Company in the next financial year. For e.g. If the Government levies the tax on the junk food then consumers would prefer more healthier food and if this trend goes on then this would affect the revenue of the Company.  It is important for the Company to increase the ingredients of the products in order to avert the tax on products. On the other side, implementation of the co-generation system would help the Company in the manufacture of the snacks on the site in current and coming years.

 If you want Marketing management Assignment Help study samples to help you write professional custom essay’s and essay writing help.

Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.

To get more information, please contact us or visit www.myassignmenthelp.Com