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Pestle Analysis - Heinz-Kraft

Essay by   •  November 5, 2016  •  Coursework  •  271 Words (2 Pages)  •  3,861 Views

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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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