Situation Analysis Changes in the marketing environment are a source of opportun
ID: 343440 • Letter: S
Question
Situation Analysis
Changes in the marketing environment are a source of opportunities to exploit and threats to be managed. The process of continually acquiring information on events occurring outside of the organization to identify and interpret potential trends is called environmental scanning. Environmental trends typically arise from five sources: social, economic, technological, competitive, and legal/regulatory forces. These forces will affect the marketing activities of a firm such as Paradise Kitchens in a number of ways.
Paradise Kitchens Inc. was started by cofounders Randall F. Peters and Leah E. Peters to develop and market Howlin' Coyote Chili, a unique line of single-serve and microwavable Southwestern/Mexican-style frozen chili products. The Howlin' Coyote line of chili was first introduced in the Minneapolis-St. Paul market. Two years later, it expanded to Denver, and two years after that, it spread to Phoenix.
To the company's knowledge, Howlin' Coyote is the only premium-quality authentic Southwestern/Mexican-style frozen chili sold in grocery stores. Its high quality has gained fast, widespread acceptance in these markets. The company believes that the Howlin' Coyote brand can be extended to other categories of Southwestern/Mexican food products such as tacos, enchiladas, and burritos.
Paradise Kitchens believes its high-quality, high-price strategy has proven successful. Since the Howlin' Coyote line of Southwestern/Mexican foods has successfully expanded into 15 markets across the United States, Paradise Kitchens is currently drafting a marketing plan to support its newest product line extension, Earth Coyote Organics, an extension of the Howlin' Coyote line with a focus on organic ingredients and Earth-friendly marketing.
Match each of these actions under the appropriate category in the table
1. Walmart organics: Walmart has begun development on its own line of prepared organic foods to help modernize its image and serve the more affluent, health-conscious market.
2. USDA Organic: To earn the right to display the green USDA Organic seal, Earth Coyote Organics products must be certified to contain 95 percent or more organic ingredients.
3. Mother Earth: Americans are growing concerned about preserving the environment. Earth Coyote Organics would purchase ingredients from farms that do not use chemical pesticides or fertilizers.
4. Drought resistant crops: Research and development will soon make modified crops available to farmers that are both resistant to drought and require half as much fertilizer as typical organic crops.
5. Price premium: Organic foods are typically more expensive (up to 65 percent more) than their non-organic counterparts.
Social Economic Technical Competitive RegulatoryExplanation / Answer
Social
Economic
Technical
Competitive
Regulatory
Walmart organics: Walmart has begun development on its own line of prepared organic foods to help modernize its image and serve the more affluent, health-conscious market.
Price premium: Organic foods are typically more expensive (up to 65 percent more) than their non-organic counterparts.
Drought resistant crops: Research and development will soon make modified crops available to farmers that are both resistant to drought and require half as much fertilizer as typical organic crops.
Mother Earth: Americans are growing concerned about preserving the environment. Earth Coyote Organics would purchase ingredients from farms that do not use chemical pesticides or fertilizers.
USDA Organic: To earn the right to display the green USDA Organic seal, Earth Coyote Organics products must be certified to contain 95 percent or more organic ingredients.
Social
Economic
Technical
Competitive
Regulatory
Walmart organics: Walmart has begun development on its own line of prepared organic foods to help modernize its image and serve the more affluent, health-conscious market.
Price premium: Organic foods are typically more expensive (up to 65 percent more) than their non-organic counterparts.
Drought resistant crops: Research and development will soon make modified crops available to farmers that are both resistant to drought and require half as much fertilizer as typical organic crops.
Mother Earth: Americans are growing concerned about preserving the environment. Earth Coyote Organics would purchase ingredients from farms that do not use chemical pesticides or fertilizers.
USDA Organic: To earn the right to display the green USDA Organic seal, Earth Coyote Organics products must be certified to contain 95 percent or more organic ingredients.