-918210552450YOGURT INDUSTRY.-762007916545-609608354695Executive Summary This report is made to give a clear understanding about the yogurt industry in Australia, The report is made based on web information through different researches.The product has been positioned in the minds of the customers in a way in which we can see a rapid growth of consumption of yogurt which was initially a desert nowadays are consumed in breakfast. With the variety of flavors and types, there can be seen a larger space for yogurt in the market. The marketers with their marketing metrics have come up with ideas to give the suiting products according to the needs and wants of the consumers eg; coming up with sugar free yogurts as majority desire sugar free deserts. We understood that as there is much place in market for yogurt and obviously there is much space for more competitors too.
With more researches we found that companies like chobani, Yoplait, coles Greek style yogurts..etc are on the topmost list of Australian yogurts, they have fragmented the market and through segmentation of the market they make their standards. We choose to talk about the Yoplait company in brief in this report, The Yoplait company ranked the best yogurt company in 2013 but with time the company got declined and now stands at the third best place . At the latter part of the report we talk about the strengths, weaknesses, opportunities, and threats of the organization in detail. One recommendation for this company could be that they must be more attentive in their online service.
With more specific details included, this report can be regarded as a handful note about the dynamic market and company of Yogurt. Table of contentTOC o "1-3" h u HYPERLINK l "_Toc10914" Industry History. PAGEREF _Toc10914 4 HYPERLINK l "_Toc32026" Market size. PAGEREF _Toc32026 5 HYPERLINK l "_Toc13707" Market growth. PAGEREF _Toc13707 6 HYPERLINK l "_Toc5020" Market share. PAGEREF _Toc5020 8 HYPERLINK l "_Toc24172" Factors affecting Australian yogurt industry.
PAGEREF _Toc24172 11 HYPERLINK l "_Toc7528" Micro-environmental factors PAGEREF _Toc7528 11 HYPERLINK l "_Toc22234" Macro-envronmental factors PAGEREF _Toc22234 11 HYPERLINK l "_Toc2365" Company analysis. PAGEREF _Toc2365 13 HYPERLINK l "_Toc20506" Yoplait Products. PAGEREF _Toc20506 15 HYPERLINK l "_Toc12310" Mission Statement. PAGEREF _Toc12310 17 HYPERLINK l "_Toc9402" SWOT Analysis. PAGEREF _Toc9402 18 HYPERLINK l "_Toc11094" Strengths PAGEREF _Toc11094 18 HYPERLINK l "_Toc11870" Weakness PAGEREF _Toc11870 18 HYPERLINK l "_Toc21343" Opportunities PAGEREF _Toc21343 18 HYPERLINK l "_Toc16895" Threats PAGEREF _Toc16895 19 HYPERLINK l "_Toc25956" Conclusion. PAGEREF _Toc25956 20 HYPERLINK l "_Toc21723" Reference list.
PAGEREF _Toc21723 21Industry History.In recent years, there has been an increase in yogurt consumption and it is claimed to be one of the fastest growing markets in Australia. 53% of consumers eat more yogurt than they used to (Ausfoodnews.com.
au, 2018). Factors such as nutrition, availability and convenience, can influence product preferences and consumer purchase decisions. These shifts in preferences prove that consumers favor products that offer the most suitable quality, performances and features best suited to their own tastes. Therefore, organizations should focus and plan and execute all business activitie with the aim of fulfilling this demand. Practices such as identifying the real target audience, segmenting its product offering and continuous product improvements catered according to customer needs is vital for brand loyalty.
Companies that manufacture yogurt should first recognize and determined the needs, wants and interest of its target audience to eventually satisfy these desires more efficiently than competitors. In addition, the demand for yogurt has given way for more yogurt production. The reason being solely due to the rise in the demand for the product as well as social constructs and differences in changing consumer perceptions. For example, manufacturers have no choice but to boost production volumes to feed the growing demand of smart phones in the world. Similarly, Australia is known for having a reputation in terms of manufacturing and producing products that are of high quality also safe for consumers. However, a negative stigma exists with regards to food products that are fatty when consumed.
Also, the growing health conscious people of Australia can be seen as a driver of change in the dairy foods yogurt industry. “…Consumers are shifting from sweetened to unsweetened yogurt varieties..
.” (Euromonitor.com, 2018). This transition of consumer preferences towards more natural and nutritionally healthy options has paved the way for manufactures differentiate themselves by developing new flavors and types of yogurts such as Greek yogurt and natural styled yogurts. These product variation act as good marketing pivots for companies to remain fresh and appealing amidst consumer choices and taste.
Market size.By understanding what their customers value now, marketers must understand the current and future needs and wants of their customers and be able to identify any changes that occur in preferences and respond to these changes. The organizations people and processes must be geared to deliver added value. Table 1Table 1 illustrates the per capita consummation of dairy products in Australia which is at a substantial 7 kg’s per year (Dairyaustralia.
com.au, 2018). Hence, the consumption of yogurt is witnessing an upward trend in the Australian market. According to Anon (2008), yogurt sales in Australia were AUD 982 million in the year 2007.
Although, studies suggests adults consume 69% of yogurt as opposed to children. From which 40% of Australians consume it at least once every week (Walker et al., 2009). In essence, yogurt is no longer only regarded as a dessert since choice and event that people consumers have adopted in a way where its eaten for breakfast, in between meals in the form of a snack or even as a dessert. Nevertheless, this modification of the trend means there is potential for growth. Market growth.
As discussed previously, yoghurt is usually perceived to be a rather healthier option, thus driving growth in overall consumption. Accordingly, manufacturers are forced to expand and enhance their production to feed this increase in domestic demand. Source – (Statista, 2018).
With a global market volume for yogurt and curdled milk standing at staggering 34.5 billion US$, out of which Australia boasts US$1.45 billion. Moreover, According to IBISWorld researcher Brooke Tonkin, he sees that the rising income levels and desire for safe and high quality Australian products have been a contributing factor to this growth (Tonkin, 2018). Furthermore, he stresses that the yogurt industry revenues in the year 2014/5 were at AUD 561 million (growth of 2.5% year on year).
In comparison to figures that of the year 2007 mentioned previously in this report, there seems to be a slight decline. It can be argued that fierce competition as in the case of any industry may be a contributing factor since other industry players who prevent sales price increases can result in a constraint within the growth in revenues. Source – (Agriculture.gov.au, 2018)Figure 1Above diagram describes the Australian diary industry export in millions.
The volume of export in terms of sales is at a steady increase considering the year 2012 ; 13. (AUD 17 million in 2012 and AUD 19 million in 2013). This can lead to an increased per capita consumption and the trend has significantly skewed towards personal preference through individualization of the product. Furthermore, the market for yogurt and curdled milk posted revenues of over US $1.
45 billion in 2018 (Statista, 2018). A figure which is forecasted to grow further at a rate of 1.3% annually to reach AU$ 1.
50 billion by the year 2021 (shown in figure 2 ; 3). Source – (Statista, 2018).(Figure 2)Source – (Statista, 2018).(Figure 3)Market share.Major companies of the Australian yogurt industry include, Fonterra Co-operative Group, Parmalat Australia Ltd, Lion Pty Ltd Limited and the company selected in this report which is Chobani Australia (PVT) Ltd.
Studies also suggest that yogurt preferences and consumer tastes vary across countries creating more opportunities for companies to create more varieties to feed the growing demand. However, the Australian market has become more segmented which have companies like Chobani producing a vast array of products and flavors to reach a greater customer audience. Source – (Statista, 2018).(Fig 4)The above graph shows gradual increase in the per capita consumption of yogurt in Australia. As a result companies are shifting their focus towards premium products such as organic yogurts and Greek styled yogurts which have higher profit margins (see Fig 4) helping to increase overall revenues in the industry since it attracts higher spenders with conscious perceptions of eating healthier. In addition it can also be argued that consumers are willing to pay more that better align according to individual’s dietary requirements, (Ausfoodnews.
com.au, 2018).Source – (Statista, 2018).(Fig 5)In the year 2012 -13 Australia’s annual food exports shows an upward trend which recorded a 4.3% increase to AU$32 billion (Agriculture.gov.
au, 2018). However exports of dairy products such as yogurts and milk products declined in the same year. Issues such as production served to be the cause for this downfall.
Factors affecting Australian yogurt industry.The marketing environment refers to internal and external forces that influences all parties in the industry.Micro-environmental factors – also called the internal environment, these factors has a direct co-relation in the extent to which it controls the company. Therefore, it’s important to understand the customer requirement and respond accordingly. Changing consumer preferences trigger yogurt manufacturers to include a wide range into their product offering to better suit customers. Hence, being more competitive in terms of differentiating themselves to remain in the market.
This will be discussed further in detail later n this report taking yoplait as an example.Suppliers DistributorsCostumersCompetitorsMacro-environmental factors – are factors that are outside of the industry that influence factors that include changing and adapting offers in response to changes in the following;PoliticalEconomicSocio culturalTechnologicalEnvironmentalLegalThe fast changing technologies in the world influences the way both customers perceive and reach products as well as companies in the way they focus on these perceptions. This will be discussed further in the report. Company analysis.
Yoplait, the most famous and largest French yogurt brand was licensed and launched in Australia in September 1982. Parented by the company General mills Yoplait is a subsidiary which falls under the category of processed diary goods. Company operates by offering the widest array of yogurt which also serves the purpose as their unique selling point. (Chandan and Kilara, 2013)Figure 5However yogurt can be segmented into groups as shown in (fig 5).
Yoplait spreads its segmentation of yogurt in to a wide range of fruit and flavored as well as the all-natural lines that compliments rather takes advantage of the current social stigmas associated with consumers changing preference for healthier and more refined options. But markets are always not favorable particularly when it is contracted which tests their ability to be flexible and adaptive to changing consumer demands. Since this report highlighted the increase on growth in yogurt volume and sales in Australia, the demand for yogurt is further expected to be driven by the dire of consumers to choose healthy and safer alternatives. Hence, Yoplait’s market positioning discussed later in this report should capitalize on this opportunity of having a greater catchment through the offering varieties of products that differentiate themselves from competitors.Yoplait Products. With over 335 flavors, Yoplait offers a variety of 14 types of yogurt ranging from dippers, fridge packs, kids, lactose free, Greek low fat and a range of others to choose from.
According to researchers, the percentage of Australian people who chose flavored/ fruit yogurt declined to 48% from 58%. However, between October 2010 and September 2015, the extent of Australian men who ate unflavored natural yogurt a month developed from 30% to 36%, while the extent of ladies eating it ascended from 41% to 49% further defining the shift of consumer choices towards a rather conscious nutritional perception. See figure 6.
Source – (Morgan, 2018)Figure 6Mission Statement.Yoplait is striving for ;so goodness.;In ourselves.In our yogurts.
In the way we behave. We’ve been about this for a long time.But now we’re trying to make it more of a mission, and to include more people on the journey of spreading ;so goodness.
;(Generalmills.com, 2018).Yoplaits as a yogurt manufacturer which operates in an industry which has a few key players that compete with each other can be argued to be an oligopoly. It can be argued that being a manufacturer, integrate their selling concept using the wide array of existing products catering to a bigger catchment. On the other hand, they also take an approach on focusing to satisfy customers wants highlighting a good marketing concept where they advertise and promote healthier variations into their product mix.
SWOT Analysis.Manufacturing its products in 15 countries, General Mills is a global food manufacturer and marketer of consumer foods which operates in more than 100 countries. Yoplait being the subsidiary is a major brand and product category. The company has a business model that focuses on growth in product segments through the manufacturing of many types of yoghurt. Innovation, customer growth, brand position are namely key business drivers to the company.Strengths Strong brand value and having positioned themselves in the yoghurt industry in Australia enables them to maintain customer loyalty.
A strong supply chain makes Yoplait more responsive to changes in market trends and cater to the changing trends of consumers tastes.Having a Unique and large product portfolio helps differentiate Yoplait from other market contenders. In addition, it serves as a competitive advantage where with such perception they have the opportunity to extend their margins on products as consumers will not find the product elsewhere.Centralized supply chain.WeaknessPoor performance in last five years.Poor online presence when compared to other manufacturers.
Opportunities Rising demand in consumer products. Shifting trend towards natural food sources giving them the chance to capitalize of their product assortments.ThreatsIncreased competition from rivals in the industry such as Cobhani Australia. Threat of new entrants in the market will be a decisive factor for Yoplait. Easy to substitute.
Conclusion.The world is witnessing technologically and geographical change that has a key impact on consumer behaviors. With the rise in production costs and increasing demand for consumer goods, manufacturers are forced to remain within the industry through ways of fulfilling this volatile demand. This report discussed the significance and affect in the changing consumption patterns in the Australian yoghurt industry. Therefore A long time player in the market such as Yoplait although having a strong footprint may be forced to adapt according to the consumer preferences and truly offer a unique experience and product to have a lasting impact in the customers mind. With the rise in female population, the potential of growth for manufacturers is seemly more positive in terms of the offering it has to end users.
However, I is important to understand the way in which companies should adapt and plan their approach where they can compete with each other making the market place more immerse and change savvy. Reference list.Agriculture.gov.
au. (2018). online Available at: http://www.agriculture.
gov.au/SiteCollectionDocuments/ag-food/publications/food-stats/australian-food-statistics-2012-13.pdf Accessed 22 Jul. 2018.
Yoghurt growth opportunities fuelled by global lifestyle differences, market research | Australian Food News. online Available at: http://www.ausfoodnews.com.
au/2015/02/18/yoghurt-growth-opportunities-fuelled-by-global-lifestyle-differences-market-research.html Accessed 20 Jul. 2018.
Anon. (2008) Nielsen-Dairy Case-Category Update. Retail World 61, 24–25.Burk, J.
(2018). Good culture: how the rise in yoghurt consumption is helping Aussie farmers – Food ; Beverage. online Food ; Beverage. Available at: https://foodmag.
com.au/good-culture-how-the-rise-in-yoghurt-consumption-is-helping-aussie-farmers/ Accessed 20 Jul. 2018.Chandan, R. and Kilara, A. (2013).
Manufacturing Yogurt and Fermented Milks. New York, NY: John Wiley ; Sons, pp.4-16.Dairyaustralia.com.au.
(2018). Consumption summary – butter, milk, cheese and yoghurt | Dairy Australia. online Available at: https://www.
dairyaustralia.com.au/industry/production-and-sales/consumption-summary Accessed 20 Jul. 2018.Dairyaustralia.
com.au. (2018). Consumption summary – butter, milk, cheese and yoghurt | Dairy Australia.
online Available at: https://www.dairyaustralia.com.au/industry/production-and-sales/consumption-summary Accessed 20 Jul. 2018.
Generalmills.com. (2018). General Mills: Yoplait yogurt. online Available at: https://www.generalmills.com/Brands/Yogurt/Yoplait.aspx Accessed 29 Jul. 2018.Morgan, R. (2018). Natural yoghurt: more than flavour of the month. online Roy Morgan. Available at: http://www.roymorgan.com/findings/6631-natural-yogurt-more-than-flavour-of-month-201601142247 Accessed 22 Jul. 2018.Statista. (2018). Yogurt and Curdled Milk – Australia | Statista Market Forecast. online Available at: https://www.statista.com/outlook/40010200/107/yogurt-and-curdled-milk/australia Accessed 21 Jul. 2018.Statista. (2018). Yogurt and Curdled Milk – Australia | Statista Market Forecast. online Available at: https://www.statista.com/outlook/40010200/107/yogurt-and-curdled-milk/australia#market-volumePerCapita Accessed 22 Jul. 2018.Tonkin, B. (2018). Yoghurt Production in Australia Industry Market Research Report Now Available from IBISWorld. online PRWeb. Available at: http://www.prweb.com/releases/2014/10/prweb12261052.htm Accessed 21 Jul. 2018.Walker, K., Woods, J., Ross, J. and Hechtman, R. (2009). Yoghurt and dairy snacks presented for sale to an Australian consumer: are they becoming less healthy?. Public Health Nutrition, 13(07), pp.1036-1041. doi:10.1017/S1368980009992965.Group members Student IDSenuri Dissanayake 102236865Lisa Hettiarachchi 102232973Chirathi Perera 102233170Student contribution Senuri Dissanayake – 102236865Cover picture Industry History Market shareMarket GrowthFactors Affecting Australian yogurt industry.Company analysis Yoplait products Mission statement SWOT analysis Conclusion Reference listLisa Hettiarachchi – 102232973 Company analysis Yoplait products SWOT analysisChirathi Perera – 102233170 Contributed nothing.Word count (2705)