Pest Analysis – the Coloratura Environment BY Benefits The coloratura environment encapsulates demand and tastes, which vary with fashion, disposable income, and general changes, can again provide both opportunities and threats for particular companies (Thompson, 2002; Pearce and Robinson, 2005). Over-time most products change from being a novelty to a situation of market saturation, and as this happens pricing and promotion strategies have to change.
Similarly, some products and services will sell around the world with little variation, but these are relatively unusual. Organizations should be aware of anemographic changes as the structure of the population by ages, affluence, regions, numbers working and so on can have an important bearing on demand as a whole and on demand for particular products and services. Threats to existing products might be increasing: opportunities for differentiation and market segmentation might be emerging.
Social: demographics (age, gender, race, family size, etc. ), lifestyle changes, population shifts, education, trends, fads, diversity, immigration/emigration, health, living standards, housing trends, fashion, attitudes to work, leisure activities, occupations, and earning capacity. Thompson, J. (2002) Strategic Management, 4th Edition, London: Thomson. Pearce, J. And Robinson, R (2005) Strategic Management, 9th Edition, New York: McGraw-Hill. Social – SOOT Consumer attitudes and opinions Media views Law changes affecting social factors Brand, company, technology image Consumer buying patterns Major events and influences Buying access and trends Ethnic/religious factors Advertising and publicity Ethical issues Demographics (age, gender, race, family size,) Lifestyle changes Population shifts Education Trends Fads Diversity Immigration/emigration Health Living standards
Housing trends Fashion & role models Attitudes to work Attitudes to people doing certain types of work Leisure activities Occupations Earning capacity Staff attitudes Management style organizational culture Changes to education system http://www. Overreaches. Com/samples. PH 2. 3 Social/Cultural Factorizations trends indicate that British customers have moved towards ‘one-stop’ and ‘bulk’ shopping, which is due to a variety of social changes. Tests have, therefore, increased the amount of non-food items available for sale.
Demographic changes such as the aging population, an increase in female rowers and a decline in home meal preparation mean that I-J retailers are also focusing on added-value products and services. In addition, the focus is now towards; the own-label share of the business mix, the supply chain and other operational improvements, which can drive costs out of the business. National retailers are increasingly reticent to take on new suppliers (Clarke, Benison and Guy, 1994; Denominator Report, 2003).
The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Consumers are becoming more and more aware of health issues, and their attitudes towards food are constantly changing. One example of Tests adapting its product mix is to accommodate an increased demand for organic products. The company was also the first to allow customers to pay in cheeses and cash at the checkout. Clarke 1. , Benison D. And Guy C. (1994) The Dynamics of I-J Grocery Retailing at the Local Scale, International Journal of Retail & Distribution Management, Volvo. 2 Issue 6, up. 11-20; social * lifestyle trends * demographics * consumer attitudes and opinions * media views law changes affecting social factors * brand, company, technology image * consumer buying patterns * fashion and role models * major events and interlines * buying access and trends * ethnic/religious factors * advertising and publicity * ethical issues Social factors. Changes in social trends can impact on the demand for a firm’s products and the availability and willingness of individuals to work.
In the I-J, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living anger. It also means some firms such as USDA have started to recruit older employees to tap into this growing labor pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines has increased whereas demand for toys is falling. Http://www. Pup. Com/UK/Orca/bin/9780199296378/01 student/additional/page_12. Tm Social external factors – Jeepers Jeepers has been a leader in the photographic business for over 75 years. Today, the company is the Auk’s premier photographic retailer. The modern photographic industry has changed radically. As a result, traditional film printing in the I-J is declining by around 30% year on year. To sustain and grow the business, they must develop ideas and plans to combat the changing market and stimulate new demand. External factors have had an impact on Jeepers’ operations and strategy.
Managers study the company’s external environment through a PEST analysis. This involves identifying the political, economic, social and technological factors in the external environment that could impact on the business. This information is then used to assess the company’s current position within the market. The findings of the PEST analysis can be used to reassess business strategy and tactics and decide what changes should be made to business operations to respond to external environmental changes. In this way, Jeepers has been able to develop new business opportunities.
Social factors – Society is continually changing. For example, tastes and fashions constantly change. As an example, consider the growing popularity of social media such as Backbone, especially among younger people. Unlike their parents, young consumers have been brought up in an age where mobile phones and computers are used every day. Young customers are more likely to use digital technology, to shop online and to prefer online methods to print images. Older generations are more likely to stick to traditional methods.
For example, they are more likely to want to have their photos developed and printed in-store. Jeepers must meet the needs of all customer types. It is important that Jeepers caters for more traditional customers, as 65% of the photo business is still associated with producing standard prints. However, the company is responding to the younger demographic by delivering its multi-channel strategy using modern technologies. For example, phone, android and pad APS which allow customers to order and print gifts directly from their phone/tablet.
Customers can upload and download images from Backbone to use in a single-image premium product, such as a high-quail print or wall art. They can produce photo books – a collection of their images presented in a personal book. A challenge for Jeepers is to increase customer awareness of this product. Its research shows the 80% of people in the I-J have not come across the idea of a photo book. As well as meeting the needs of the different generations, Jeepers is also developing products for niche markets.
It offers: 0 services for students who need to produce portfolios, including art and design work 0 short print runs of personalized products such as headed notepaper, business cards and calendars 0 products designed specifically for professional and amateur photographers. Consumers’ expectations are higher than ever. Today’s customers want products and services on demand. They are not prepared to wait. To respond to this social change, Jeepers now offers a 25- minute service for prints or a one-hour imaging gift service for products such as photographic wall art, posters, banners and photo books.
Many consumers like to try a product before they make a purchase, so customer interaction with products is a key feature of its stores. To underpin the new focus on multi- channel delivery and gift products, Jeepers has invested heavily in staff training and development. As a specialist retailer, Jeepers seeks to provide the best possible service to its customers. High levels of customer service will help to provide competitive advantage and create loyal customers. Http://fastidiousness’s. Co. UK/]shops/responding-to-changes-in-the-market- environment/
