Walkers Crisps Analysis | SWOT and PESTEL

2835 words (11 pages) Essay

5th Jun 2017 Marketing Reference this

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Jump to: Marketing Mix Analysis of Walkers | SWOT Analysis of Walkers Crisps | Product Lifecycle of Walkers Crisps | Importance of PESTEL Analysis | PESTEL Analysis of Walkers Crisps

Introduction

PepsiCo is a world leader in convenient snacks, foods and beverages with revenue of more than $43 billion and over 198,000 employees. PepsiCo took social and environment responsibility and provide hygienic products to their customers. They are committed to delivering sustainable growth and build trust with people. They have unique value because they bring people of different culture and diverse brands in different culture. To understand different culture is the advantage. They are integrated with suppliers, consumer, retail customer and communities. PepsiCo identify needs of customers and put right thing in right market place.

Employing over 48,000 people and bringing in over $11 billion of business, Frito-Lay invigorates PepsiCo’s portfolio of products with plenty of good food and good fun. Frito Lay producing snacks on earth starting with simple, farm grown ingredients. They put their effort to minimize environmental factors and improving their snacks. Frito Lay provide best testy chips with less fats because they used natural ingredients, no using artificial flavor, color, and other ingredients that are associated with hygienic.

Walkers Crisps History

Henry walker (1880’s) was a butcher as professionally. He belonged to a town Midlands near to the Leicester. In 1945 meat was scarce than Henry began cooking slices of potato. In 1954 first flavor crisps were introduced with ingredient cheese and onion. After that Henry Walker convert into crisps brand Walkers. Now Walkers has been introduced different brands in crisps and very famous in consumers who like snacks with different taste.

Walkers Crisps are made from a good old British spuds. British land condition and temperature are suitable for potatoes production. Rain and mud are perfect for potatoes growing.

Introduction of task

In this task identify a type of growth for Walkers and requirement two marketing strategies and justify how Walkers can achieve competitive advantages and long term growth to use these strategies.

Market

Market refers to the group of consumers or organizations that is interested in the product, has resources to purchase the product, and is permitted by law and other regulations to acquire the product.

Marketing

Marketing is a management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Growth for Walkers

Henry Walkers took step in crisps world and introduced different brands in market.

Walkers created natural flavors and ingredients like sun seed oil (naturally lower in saturates) and capture potential market. According to survey conducted for marketing magazine by TNS that Walkers is biggest brand in UK. It sales was 505 million.

One of the most important elements of growth is how to give leverage to their customer and which type of bond you build with your customers. Companies first step to build strong relation with customers. It is a good year for Walkers Crisps, which made 3rd place out of 100 grocery brands. With a 5.2% growth in brand value now Walkers brand worth 424.5 million pounds and previous figure was 403.6 million pounds.

Walkers Crisps Marketing Mix Analysis

The 5p’s

Products

  • Walkers have introduced variety of products and produced new products and can see their products on market
  • Walkers French fries
  • Walkers lite
  • Walkers sensations
  • Walkers square
  • Walkers quavers
  • Walkers max
  • Walkers monster munch
  • Walkers cheese & onion
  • Walkers grilled bacon
  • Walkers ham cheese
  • Walkers salts’n shake
  • Walkers success base on these products.

Price

  • In UK the price of Walkers Crisps around 30 p to 2.50 pound. In some places or stores their prices vary according to market. We see their price differ in hospitals, health club, and social club as compare to regular market.

Place

  • Places where the crisps are sold like stores, mini market, super market, retail stores or public places.

Personnel

  • Now over 5,200 employees are working in 15 locations. Only good quality potatoes are selected for making crisps. Every individual are attached with machine that peels the potatoes other in charge of slicing machine, frying, seal of approval, weighting. All work are done under supervision of management and finally loaded on truck. It takes approximately 20 min to full a tuck with crisps.

Promotion

Promotion is the part of marketing. Walkers promote crisps through media like television; newspapers etc. promotion is the key element of strategy to attract customers. In this era without promotion company can not be succeed because customer did not aware about brand without advertising.

Main promotion of crisps is television and internet because its target market is child and young people and those who like salty things.

Walkers Crisps SWOT Analysis

(S)trengths

  • Own potatoes production
  • Sun seed oil (saturated fat)
  • Natural ingredients.
  • Provide range of taste in crisps
  • Has taken steps to reduce carbon footprint.
  • Biggest brand according to TNS.
  • 3rd place out of 100 grocery brand.
  • Good quality
  • Lower priced products.
  • Strong brands

(W)eaknesses

  • Create new product with high expenses
  • People like healthy eating.

(O)pportunities

  • Go multinational
  • Update technology
  • Outturn every other company

(T)hreats

  • employees could go on strike
  • high competition forcing
  • people life style
  • customer needs
  • government influence
  • potential entrance

Walkers Crisps Product Life Cycle

Now Walkers Crisps is in its maturity position because it is a biggest UK brand but when product get high position than its sales graph decline after maturity. Marketers develop new products.

Walkers went to maturity after competition started its sales decline because competitors had introduced better quality crisps in low price in market. But it was no end of Walkers, it create new flavors and taste and push right button at right time.

Marketing strategies for Walkers

Walkers can adapt two strategies to achieve their objectives

  1. market development
  2. market penetration

Market development strategies

Every one is familiar with the Walkers brand. Walkers has strong brand in UK and captured 100% crisps market. They have proved their sales and good promotion. Walkers have established a very strong, compatible, reliable, qualitative brand.

Walkers need to current products in new market because it is strong weakness that they don’t focuses on new market. Other hand new market has potential like Asian market.

Market penetration

Walkers are working in UK, it has established its brand in current market but after maturity product naturally decline because new competitors enter in current market and provide resistance to the current market leader.

At this situation R & D department innovate new products t achieve competitive advantages. Walkers will try to come up with even more great flavored crisps.

Justification for Walkers

Intensive growth:

  • Walker should adapt intensive growth to maximize its profit.
  • Market penetration strategy
  • Encourage new customer to buy more through advertising.
  • Attract competitor’ customers to own products by new taste and style in current products
  • Attract new users to tell them that it’s for you and essential for you.
  • Market development strategy
  • Expend new market where crisps like but few competitors
  • Have additional distribution channel both including direct or indirect
  • Sell new locations
  • Above mention two strategies market development & market penetration must be adapt to achieve long term objectives.
  • Only few companies operating in Europe, Asia, Africa and others. It means that market have potential.

Task 2

Introduction of task

In this task discuss PESTEL analysis for Walkers. Assess the impact of technological change and globalization for the company’s market planning in the next three years.

What is a PESTEL analysis?

PESTEL is the abbreviation of:

P: Political

E: Economic

S: Sociological

T: Technological

L: Legal

E: Environmental

Many are factors that influence in macro environment of any organization. These factors effect on decision of managers of the organizations. For example, change in Tax, new laws, geographic factors, demographic factors (income change, style change, fashion change etc.), change in government policy are the factors that influence on organization.

PESTEL analysis help the decision maker to analysis these factors and make solid decision.

Example PESTEL Analysis:

Political

e.g. the pound, international trade, taxation policy

Economic

e.g. interest rates, exchange rates, national income, inflation, unemployment, Stock Market

Social

e.g. ageing population, attitudes to work, income distribution

Technological

e.g. innovation, new product development, rate of technological obsolescence

Environmental

e.g. global warming, environmental issues

Legal

e.g. competition law, health and safety, employment law

Before making decision, it is necessary to predict micro and macro environment factors. Micro factors influence on the organization internal environment whereas macro factors influence on externally. Organization can not affect on these factors, nor do these factors directly influence on profitability of an organization. But through these factors, organization can minimize weakness and maximize strengths internally because strength and weakness affect organization internally while threats & opportunity affects externally.

PESTEL analysis is the useful tool to understand the broad picture of the environment in which an organization is operating. This is also tells about risk that are associated with market.

Using PESTEL analysis:

Internal environment is nor more complex as compare to external environment because to identify competitive change in landscape. So it is needs to undertake PESTEL analysis in regular base and for managers, using PESTEL analysis must be prepared to look all around them.

Walkers Crisps PESTEL Analysis

Now using PESTEL analysis of Walkers in UK:

(P)olitical:

These refer to government policy that may be change such as degree of invention in the economy. Identify in which environment you operate including tax policy, employment laws, trade policy, tariff, and political stability. If we analysis UK political system which is stable and perfect. National and international investors invest in UK. Because it is best place where numerous visitors and students are came. Political decision impacts on many areas in business environment. May be tax policy discourage investors and investors can switch off or any other political disability.

In UK include face a big problem a recession. Walkers also face this problem.

(E)conomics:

Economic factors include interest rate, taxation, economic growth, inflation, exchange rates etc.

High interest rates affect investor decision because investors borrow from bank to invest in his business but he will pay high amount to the bank.

Inflation can affect, labors and employees demand high rates and they will purchase raw material in high cost.

High national income growth may boost demand for firm’s products

We are discussing the new market for Walkers to develop their market or launching new product in current market.

(S)ociological:

Change in social trends can impact on demand. Social factor is important. In UK population has been aging. This factor is caused increase in cost of organization. Staff is spent long time in organization that cause in increase salary and other benefits and retirement employees get benefit in the form of pension.

In sociological environment culture values and norms directly affects on organization. Beside this others factor like health, population growth rate, career, security & safety, global warming factors influence on organization. some countries very conscious on health issues and Walkers focus on this issue and has implemented clean environment plan.

(T)echnological:

Technological change impacts on business. New businesses create new products & services and replace old technology. Innovation brings improvement in business and business take competitive advantage and capture new market and customers. Before online transition, customer was paid cash but now we can purchase every thing through online. Online shopping, bar coding, and other improvement in technology bring satisfaction both customers & organization.

Business can expand through new technology and make quick decision financially. It is necessary to Walkers to update new technology but technology change should not cause health and other related issues.

(E)nvironmental:

If we discuss environment it means we focus all environment factors. Now global warming is the biggest issue. This factor get high important among industries all focus on this issue and trying to minimize this factors. Firms are creating environmental friend products.

It is necessary to Walkers to introduce such products which provide protection to the environment.

(L)egal:

It is related to legal environment in which firms operate. In UK, many legal changes that have been affected firm’s behavior. UK government has revised wages plan. This change has been impacted on firm’s cost. This may impact employment, resources, import/export, taxation etc.

A Walker is UK Company so change in legal policy may not affect on it.

Impact of Technological change:

In modern ear technological has got great important. Every day new invention is going and organization updating their technologies.

In past FORDISM change create great impact on all world and Fordism concept was is the combination of mass production to produce sustained economic growth and widespread material advancement. During this period, the system of organization of production and consumption has, perhaps, undergone a second transformation. Which when mature promises a second burst of economic growth.

Now distance shrink and communication become fast and world become smaller. Internet has got great importance in this era and business are attached with business. E business has got significant importance in developed countries and developing countries are going to E. business. Most of the organizations are adapting produces and models that will helpful in future. Business making strategies for developing their strength and minimize weakness.

Conclusion & Recommendation:

Walkers have very good market in UK, providing their customers good crispy products having twelve brands of snacks and crisps. They have captured forty three percent of UK market; have very good marketing strategy like having a former England football team captain as Walkers brand ambassador. But they have very potential growth opportunities which will need to be availed by having improved marketing strategy and addressing the hidden markets to penetrate in those areas, and also try to attract new customers into market, also the customers of their competitors. Also they need to keep updating on their system and technologies both for information sharing, marketing and product preparation to have improved quality of products and achieve the organizational goals and objectives.

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