Pestle Analysis - Heinz-Kraft
Essay by pvhptm • November 5, 2016 • Coursework • 271 Words (2 Pages) • 3,816 Views
Example of a Completed PESTLE Analysis on ‘The KraftHeinz Company’
PESTLE | KraftHeinz |
Political | Global portfolio – sells food in some 200 countries - influenced by different political conditions in each of the countries. Policies of the EU Expanding into emerging markets, i.e. India, Brazil, China, Indonesia Politically correct pricing policies Gov. can dictate pay and also type of employees Pressure to reduce sugar content in foods along with fat and salt |
Economic | Price Wars from other food brands Supermarket price wars – push prices down Increase in popularity of discount retailers i.e. Aldi, Lidl Oil prices coming down – increase in consumer spending and confidence Economic climates of different countries Price of some foods down i.e. bread Inflation, Tax in each of the countries operating 3G tax avoidance scandal when brought together BK and TH, moved operations to Canada |
Social/Cultural | Horsemeat scandal – customer confidence Process foods decreasing in popularity Demographics – aging population in UK. More single people now shopping for one Consumer tastes are changing Different cultures Healthy Eating – fresh foods Growth in Breakfast market New trends in supermarket shopping ie online little and often Organic Ethical sourcing Fair Trade Rise in popularity of local sourced produce Customer expectations – always growing in terms of value for money, healthy, local produce etc. “Americans growing weary of the big food companies” |
Technological | POS – needs to be quick and efficient Supply food Chains – efficient Apps for promotions Loyalty schemes to attract new customers New product innovations |
Legal | Food Standards Commission Food labelling – trading standards etc Federal Trade Commission – nervous of food retailer mergers UK Fat Tax – new tax on advertising highly processed fatty foods by the food retailing commission Safety and Hygiene Regulations Competition and Tax Laws |
Environmental | Packaging, recycling Sustainable sourcing Limited damage to the environment, CSR and ethical expectations – charity work, supporting local community etc. Fairtrade goods |
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