Conduct an analysis of macro-environmental forces
Assessment
Option A: Case Study – Cooper’s Foods Pty. Ltd.
Read the case study. Cooper’s Foods, Pty. Ltd., then complete the tasks that follow. Both tasks in this Assessment relate to the case study.
Option B: An organisation of your choice
Choose an organisation that you are familiar with and complete the tasks.
You will be required to research this organisation and the market that it operates in to be able to successfully complete the tasks in these Assessments. Please ensure that you have access to information about:
The market size, key competitors, market shares for key competitors and the organisation of your choice
The organisation’s advertising and promotional activities and spend
The organisation’s consumer research that reveals intention to purchase and other elements.
The organisational structure, goals, business plan, marketing plan, the management team
Financial report
Resources
Tasks –
Task 1 – Select one of Cooper’s products for your further analysis.
Outline the external environmental forces impacting the business:
a) Conduct an analysis of macro-environmental forces using the PESTEL model. From your analysis, outline the opportunities and threats in this market. (Hint: You need to outline changes in PESTEL forces that may impact the business).
b) Identify Cooper’s strengths and weaknesses based on the case study. You are allowed to make reasonable adjustment.
c) Conduct a competitor’s analysis of this product by outlining the marketing mix of two major competitors. Outline their performance in the market. Based on your competitor analysis, identify one potential new entrant that may be competing in the market in the future.
Task 2 –
a) Consider the following four sets of data from the case study. Present each of these sets of data using an appropriate visual presentation technique. Use at least three different techniques and justify your choice of each one. (Hint: You could consider using line graphs, bar chart/column charts, and/or pie charts). Briefly comment on any trends highlighted by your presentations.
i. Sales – A&P spend (Advertising and Promotion spend)
ii. Sales – Distribution
iii. A&P spend – Intention to purchase
(Two variables must be shown on each chart for the above tasks i, ii, iii).
iv. The relative sales contribution of each brand to total company sales for the six month period.
b) Calculate the mean score (average) of sales of each product over the past six months.
c) In their mid-year planning and review meeting, Cooper’s are also required to analyse market need. Therefore, Cooper’s decide to forecast:
i. The industry revenue:
Using linear regression (trend-line projection), estimate sales of the industry for the next three years-period (year 201X+1, year 201X+2 and year 201X+3). (Hint: you need to refer to the industry sales revenue in the case study. Show the trendline chart and linear regression equation).
ii. Annual sales of each product:
Last year Cooper’s forecasted their sales for each brand for year 201X as shown in Table 1 (Cooper’s Sales Trend for 201X, Market Share and Market Growth Rate). Cooper’s can now revise this forecast based on the first 6 months of actual sales for 201X. Using linear regression (trend-line projection), estimate sales of each brand for year 201X. (Hint: you need to refer to Cooper’s sales trend and forecast their sales for Jul-Dec year 201X to get annual sales forecast. Show the trend-line chart and linear regression equation).
d) Referring to the above data in the case study, perform correlation coefficient analysis for the following variables. Outline your interpretation of the correlation coefficient value for each pair.
i. Sales – A&P spend
ii. Sales – Distribution
iii. A&P spend – Intention to purchase
e) In this mid-year planning and review meeting, Cooper’s needs to understand the performance of each brand.
i. Rank the brands in order of sales performance. (Hint: To determine each product’s performance, compare sales forecast with target).
ii. Discuss the possible reasons for this ranking by referring to Cooper’s marketing information and any other relevant data you analysed.
