Micro and Macro Environment for Baby Formula
Every business organization is part and parcel of the business environment. This environment is the one in which the business operates and interact. In reality, no business or organization can operate in isolation. This is because; many factors are closely surrounding the business (Blythe, 2005). These factors are what is referred to as a business environment. The microenvironment is a type of environment that affects the internal functioning of an organization. It is directly attached to the organization, and moreover, it covers a smaller area in which the organization operates. The micro-environment can be distinct from one organization to another, and the organization can adequately take necessary steps to control this type of environment (McDonald, Dunbar, 2013).
On the other hand, Macro- environment is a type of environment within the economy, which affects an organization decision making and the strategy of all the businesses in the economy. This type of environment cannot be easily controlled since it keeps on changing. Also, no business organization is exempted from this particular type of environment (Cant, 2006).
Baby formula is the type of product that acts as an alternative to natural breast milk. This product is mainly meant for infant babies, and instead of mothers having direct breastfeeding they resort to the use of the baby formula. This formula is ascertained to be safe and healthy for the babies. They exist in different ranges and types, but all in all, they serve the same purposes (Dibb, Simkin, 1995). The business is manufacturing baby formula. Type known as Aptamil Gold.
The target market for the Amtamil Gold product will be the breastfeeding mothers and their infants. This is because the products are mainly meant for mothers who have already delivered. The market will be positioned into segments and also geographical positioning. To start with the market segmentation, the Aptamil Gold formula will be segmented according to the period of breastfeeding. Infant below the age of 3 will be segmented on their own and between the ages of 3-4 will also be segmented alone, and lastly, the age of 5 and above will have their segmentation. In simple terms, the market will be segmented into three parts, and each market segmentation will have its product which will be in line with the age of the infant. Different prices will also be charged in these different segments (Wedel, Kamakura, 2000).
Since the target market is as well the underdeveloped countries, the market will as well be segmented according to geographical areas. This will enable the sales to increase and to make the product available to all the consumers who need it. Different prices will have to be charged according to the geographical position.
The organization is having a challenge of the microenvironment such as stiff competition from other companies that are manufacturing other types of baby formula. In addition to this, the organization has highly qualified employees who are competent to ensure that the organization products outperform the competitors' products. This does make the organization to have a high control of market share (Blythe, 2005). On the other hand, the Macro-environment in which the organization operates in includes the political and legal requirements. Aptamil Gold is manufactured and produced according to the health and safety standard governing the production of this formula hence the business must comply with these standards. Secondly, the business uses the most recent technology in the production of the baby formula product to outperform and compete fairly with the competitors.
In conclusion, the business must be ready to try as much as possible to have control of these two environments, even though the macro-environment is not easy to forecast. Market positioning and segmentation is also essential in the marketing of a competitive product.
Blythe, J. (2005). Principles and practice of marketing. London: Thomson Learning.
Cant, M. C. (2006). Marketing management. Cape Town, South Africa: Juta
Dibb, S., & Simkin, L. (1995). The market segmentation workbook: Target marketing for marketing managers. London: Routledge
McDonald, M., & Dunbar, I. (2013). Market segmentation: How to do it, how to profit from it. Chichester: John Wiley & Sons.
Wedel, M., & Kamakura, W. A. (2000). Market Segmentation: Conceptual and Methodological Foundations. Boston, MA: Springer US.