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24 Cards in this Set
- Front
- Back
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Micro environment refers to the:
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Internal environment
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Factors that impact on the environment:
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External factors (macro environment) Internal factor (micro environment) |
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Macro environment refers to the:
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External environment
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The Internal factors are:
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P: Personnel expertise P: Production facilities F: Finance C: Company Image |
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The External factors are:
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P: Political environment E: Ecological environment T: Technological environment E: Economic environment |
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The economic environment includes: |
Exchange rates: trade and foreign investment Interest rates: fluctuations make investors cautious Inflation/recession: alters people's purchasing patterns and types of food products purchased Unemployment: limited food choices - reduces spending Tax: impacts on price, income and purchasing High salaries: more choices of food |
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What is the economic cycle?
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recession, expansion, boom and contraction
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The ecological environment consists of:
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Use of natural resources: important for promotion in the 'clean green' food supply. Important for Aust international reputation of clean, safe food supply Farming procedures: impact on erosion, use of chemicals and ge Waste management: during production (reduce, reuse, recycle) Packaging issues: materials, volume - impact on environment Disregarding environmental issues: impact on trade and future production potential |
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The technological environment includes:
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Improved productivity: results from greater use of technology Increased choice Need for technology increases as production increases Cost effective for large scale production when associated with reduced labour costs |
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The political environment includes:
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**Government (Federal, State and Local) determine policy and legislation which impacts on: - price: taxes, subsidies and tariffs - The environment: all aspects of production, air, water, noise, additives and use of chemicals - Education: food and nutrition education, food standards, food handling and hygiene - Working conditions: awards, trading hours, WHS **Lobby groups have an interest in change |
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Types of food product development:
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- New to the world - Me too products - Line extensions |
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New to the world products are:
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- Unlike any other product
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Me too products are:
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- Copies of existing products
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Line extensions are:
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- Existing products changed in some way
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Company image is influenced by:
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- Packaging: presentation and environmental issues - Price: Value for money - Marketing strategies - Quality of the product - Reputation |
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The marketing plan consists of how many P's?
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4
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The 4 P's are:
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1. Product: specifications of the product well matched to market demand 2. Price: price adjustments based on volume purchased eg: 2 for 1. Price is influenced by competition in the market 3. Place: where the product is sold and how accessible it is to consumers 4. Promotion: strategies used to encourage purchases (advertising, in-store promotions, free samples) |
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What is a target market?
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anticipated consumers
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'Marketing mix' means:
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Marketing strategies. Consists of the 4 P's |
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What is the purpose of a market plan?
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To increase sales
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Personnel expertise includes:
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- Employment is changing: workers must be adaptable and flexible to change roles in the workplace. Have to perform a number of tasks - Education and training: opportunities for training has increased - workplace training |
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Financial position includes:
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- Market share is important - Economy: fluctuating interest rates and stock market affect the financial position of the company - Investment capital available will depend on the stability of the industry - Balance between expenditure and profit |
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Reasons for food product development
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C - Convenience and cost: lifestyle changes H - Health issues: influence of food on diet related health problems E - Environmental issues: increased consumer demand for chemical free foods, resource management S - Specialised applications: Military and space foods (B-rations and MREs - Meals Ready to Eat) T - Technological developments: Scientific approach to food development, improved quality control and increased use of technology C- Company profitability |
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Steps in Food Product Development
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1. Design brief: description of food problem 2. Idea generation and screening: possible solutions to the design brief 3. Market research: info gathered on consumer needs (primary and secondary sources, quantitative and qualitative research) 4. Product specifications: requirements, target market, packaging and pricing 5. Feasibility study: analysis of resources and anticipated return 6. Prototype: produce the product to trial and test consumer response 7. Production 8. Evaluation |
