Macroenvironmental Analysis - Needs and Trends

Macroenvironmental Analysis.

Needs and Trends.

Needs

Customers and potential customers of Perdue have certain needs. They want fresh chicken meat, a high quality of the meat and tasteful meat.

Mega trend

In the chicken meat industry of Perdue, we can notice a very obvious trend. There is a mega trend noticeable of people wanting meat which is faster to prepare, home meal replacements, individually quick frozen items and products for the delicatessen.

This is a mega trend because it will probably last longer than 7 years. People want to prepare their food faster and faster because of the new lifestyle, more things to do, busier and more stress.

Major Forces.

There are a couple of major forces which can affect the marketing of Perdue. The company should always keep those forces in mind.№

• The substantial speedup of international transportation, communication and financial transactions, leading to the rapid growth of world trade and investment.

• The movement of manufacturing capacity and skills to lower-cost countries.

• The move toward market economies in formerly socialist countries along with rapid privatization of publicly owned companies.

• The rapid dissemination of global lifestyles

• The growth of global brands across a wide variety of industries such as autos, food, clothing and electronics.

The macroenvironment exists of six major forces which the firm must monitor:

• Demographic

• Economic

• Social-Cultural

• Natural

• Technological

• Political-Legal

The demographic environment.

Perdue has to keep an eye on demographic trends. These trends are highly reliable for the short and intermediate run. The main force within the demographic environment is the population. We’re going to analyze the demographic environment according to a couple of indicators.

Worldwide population growth

The world population is growing very fast. There are forecasts that the population in 2025 will be 7.9 billion people. In comparing with the 6.1 billion people in 2000 is this growth very explosive.

For Perdue this is a good sign. More people mean more consumption. That means more sells what for Perdue more revenue is.

Ethnic and Other markets

Perdue should act in several markets in several countries. Ethnics can be very important to the meat industry. Based on religion is pork meat for example forbidden or less used in a big part of Africa an Asia. Perdue could consider adopting the markets in those countries for chicken meat. Off course this cannot be done without further analysis of the situation in those countries but it is considerable.

Household Patterns

For Perdue a household pattern is very important. For example: a household with single live-alones is very different in its consuming patterns that a traditional household with a husband, wife and children. A pattern which is noticeable is that single live-alones consume more food which is quick to prepare, for example quick frozen items. A traditional household consumes more ‘fresh’ products.

Perdue produces mainly fresh products so an environment with more traditional household would be more interesting.

Geographical Shifts in Population

Perdue has to keep an eye on the geographical shifts in population. There is a trend of people moving from the city to more rural areas. Perdue should investigate this when trying to adopt a market in a different area.

The Economic environment.

To keep a market going a market needs population but also purchasing power. Purchasing power depends on income, prices, savings, debt and credit availability.№

Purchasing power is clearly important for Perdue. Perdue needs purchasing power to get its products sold.

Perdue is located in several countries. For this analysis we take the United States. The United States has a ‘low, medium, high