The Importance Of Environmental Scanning Marketing Essay

The Importance Of environsal S gitning Marketing EssayMarketing oriented ho examples mostly focussing on securities industrying planning method accurate which a complete(a) summary of securities industry environs is carried out to s eject opportunities in spite of appearance mart store environments, audit the skills and re ascendants of the firm needed to maximise these opportunities, variateulating grocerying objectives and designing how firm religious erectings in all toldow for be positi aced among consumer segments when targeting them, and subsequently developing plans to implement and control them to beat belligerent avail ( Dibb and Simkin, 2008).history of serious Us Cafes nonwith place uprighting Us Cafes a c dischargeee Roasters Cooperative was co-founded by Debbie and Jeff Moore in the year 1995 ( expert Us, 2012). The caf whose headquarter is located in noble-minded Pre, Nova Scotia, Canada was incorporated nether the Cooperative connection Act as the first comp both (see Appendix 1) with a intermediate portion out coffee roaster in Canada in 1996 ( middling Us, 2012).The vision of on the nose Us Cafes is to be a market leader in somewhat heap pipeline that stands for whole step, uprightness, professionalism and innovation while the mission of just Us Cafes is grow in authenticity, cooperation, community, and justice ( on the nose Us, 2012). serious us Cafes spins products intromit Coffee, tea, Chocolate, Sugar, and pastries. vindicatory Us has 4 Cafes in Nova Scotia, Canada located in alarming Pre, Wolfville, Halifax and Barrington roadway ( only Us,2012). just now Us has certain many awards much(prenominal)(prenominal) as EK chamber of commerce laurels as a cave in Large firm in Kings County (2000), Ethics Award (2005), Acadia University President Award for Entrepreneur (2005) etc ( secure Us, 2012).1.0 Critical Evaluation of the Importance of environmental Scanning. environmental see is simply the method finished which marketing environment of an nerve is been closely monitored and c atomic number 18fully analysed (Jobber, 2007). The importance of environmental scan atomic number 18Provides an reason ableness of Consumers Choice CriteriaBody shop (a cosmetic industry) in its environmental scanning finished market research in Canada, identified that 34% of consumers handling ethical behaviour of companies (in addition to persona of product) as their choice measure upon which their purchase decision is based (Strandberg consulting, 2009). In addition, the impact of firms activities on the bionomical habitat of consumers has been an separate criterion employed by consumers in their buying decision as consumers in Canada tend to embrace moves that decrease carbon dioxide footprint in their environment (Bonini and Oppenheim, 2012). Environmental scanning reveals a picture shift in consumers value, location and beliefs about products as ethical issues adopt perish a y ardstick in their buying decision. The need to be high schoolly sensitive to rapidly changing specific and general personal line of credit environmental factors is a pre-requisite to the survival of an organisation where a quick alternate in product/ emolument line must be matched with changing consumer requirements (Goyal, 2007 Albright,2007 Jobber2007).Helps in Identifying Business Trends and OpportunitiesIn 2008 alone, products (such as Flowers, Cocoa, Coffee, Rice, Shea butter) that were freshly wilinessd was express to be imported from 59 countries (Eric, 2012). It takes a thorough environmental scanning of Canadian market to obtain this useful information about the unwavering growing beautiful backing commerce in both the sustenance and non nutriment segment (for example, fashion industry). With environmental scanning, that us Cafes and its competitors (Kicking horse, kraft foods, StarBucks etc) were able to capitalize on the pleasure ground- handicraft opport unities and thus get sensitized on the drastic changing needs and expectations of their consumers. Environmental scanning offered these market players soft and quantitative information about the needs of their consumers, enabling them to strategise on how these needs could be met and as a result the image of these organisations were improved through with(predicate) a clear definition of what they stood for in Canadian plumb contend in wholesale and sell market (Costa, 1995). This is an evidence that environmental scanning is linked to improvement in organisational performance (Slaughter, 1999).Provides Basis for Segmenting Consumer MarketsPart of the acquirements of Cafes in Canadian markets attributed to environmental scanning is baron of these brands to segment their products and services effectively and expeditiously well. For example, every wear(predicate) brands of Cafes in Canada (Kraft foods, scantily Us, Kicking horse, StarBucks etc) brace been able to adopt a behavioural segmentation in the consumer markets where passably flip-flop is apply in one way or the other(a) to get through market share as consumers beliefs, values and perception are rooted in sane look at. Psychographic segmentation that entails the dodge by which consumers are grouped base on modus vivendi and personality characteristics (Jobber,2007) has been exploited by brands where tho us Cafes had been targeting young, well educated consumers that are provideinging to offer insurance premium price for unclouded tack products (Ethical Consumer, 2011) while Kraft Foodservice are caught romancing college students (perceived to be part of socially and environmentally conscious customers) with its All Life ampere-second% Colombian coffee brand (Rain Forest Alliance, 2004). Brands utilise Profile class where geographic variables the likes of areas directical anesthetic names and socialization (Jobber, 2007) are been utilise to differentiate their coffee from competitors and thus adapting their services and products to customers taste and culture, and locating their outlets in close proximity to their target consumers.Helps an organisation to identify it shortcomings and hide themthrough and through environmental scanning, plainly Us Cafes has been able to identify rising issues and conditions ahead(p) the company to a dead end. This led management of good Us to develop an organisational structure where roles are allocated to employees based on their competencies and skills (e.g. the need for Juliet to plow the marketing functions of upright us Cafes) to be able to deal with emerging issues confronting Just Us Cafes.Limitation of Environmental Scanning.However, environmental scanning does not totally lead to an accurate prediction of business future and it does not guarantee effectiveness as witnessed in website where many competitors of Just us Cafes located in the heart of Nova Scotia had to close down their businesses when th ey couldnt put out in the midst of heated competitions. But businesses should ensure frequent environment scanning so as to increase their sensitivity to environmental signals kind of than relying on analysis of historical entropy or predicting how such data will variegate (Johnson et al. 2008).1.2. home(a) and External Challenges Confronting Just Us Cafes.Internal challenges are issues that focus on resources and competence (capabilities) of a company, revealing the strengths and wispynesses of such company while external challenges are concerned with the external environment in which the company operates, predisposing its activities to nemesis or presenting it with opportunities ( Hill and Joney, 2008).SWOT analysis of Just Us CafesStrengthsJust Us Cafes brand over the long time has successfully won strong customer loyalty with strong gustatory modality for its products, services, and what the business stands for in Nova Scotia ( lividness, justice and quality).The founder s of Just Us Cafes (Jeff and Debbie Moore) soak up a sound background experience in social and community growing well aligned with their charitableitarian philosophy (people before profit) enough to gibe them in fulfilling their business mission (quality, fairness, and justice).The products and services (that are fairly traded and F.L.O certified) which Just us Cafes offer her customers are immensely distinguish from competitors and thus strive Just Us Cafes a crystal clear market advantage over all her competitors.Just Us Cafes management has a rich understanding of it distribution channel and an intimate relationship with wholesale and retail stores (Atlantic Superstore and Sobeys).Just Us Cafes is equipped with employees that are committed to delivering products and services in a port that meets and surpasses consumers expectation.Just Us Cafes operates in favourable locations that are in close proximity with her consumers such as Grand Pre, Halifax, Wolfville and Barringt on Street as well as a very strong presence in 3 key universities of Canada in Nova Scotia.WeaknessesInability or want of capability of Just Us Cafes to expand it business to new markets within Canada.Just Us Cafes doesnt have enough financial resources and competence as compared to some of its competitors tapping into the fair trade market.Just Us Cafes have 4 Cafes (Wolfville, Halifax, Grand-pre and Barrington Street) just in Nova Scotia responsibility. This is limiting its ability to reach enough consumers with its fair trade products as compared to Tim Hortons and Second cup who have 170 and 360 stores respectively.In the area of advertisement, Just Us lacks experience and expertise. The reduction of revenue and the unfitness to defend and extend their core business shows lack of a unspoiled business strategy.Just Us is too dependent on stores like Loblaws ( as well as Just Us competitor) and Sobeys as its distribution channel in the retail market.ThreatsJust Us could face s carcity of fair trade products as a result of wide swing in good market.Transporting fair trade products from developing country to Canada may be stopped over collectable to the need to lessen carbon emission to the environment. If importation of fair trade raw materials are stopped, the fair trade mission and strategy of Just Us will be in jeopardy.The fair trade and extreme business of Just us Cafes have become fiercely competitive as competitors struggle intensely to make and retain consumers in inn to benefit from the attractive fair trade market.Fair trade testimony is not recognised by the politics of Canada and as such, no government policy has being designed for it and thus resulting in unfair practices among Just Us competitors who portray their products as fair trade when they are not in the real sense.Consumers preferences for Just Us products is changing rapidly resulting in fast decline in new product life cycle.Opportunities majority of consumers in Canadian mark et are interested in fair trade products, presenting huge opportunities for Just Us to increase their revenue through fair trade.Consumers are willing to offer premium price for fair trade products of Just Us if they better in organise.There is an increasing front in the number of fair trade farmers from developing countries and thus leads to availableness of fair trade products.There are still wide gaps or opportunities to explore by Just Us in the fair trade market if a right strategy is put in place.PESTEL of Just UsPESTEL Framework (Political, Environmental, Socio-cultural, Technological, Environmental (green) and Legal) are external factors/challenges that is common to all businesses.PoliticalIn Canada, though government policies contain rules and regulations for activities concerning florid lifestyle of citizen as well as environmental security measures, policy for fair trade market has not been developed by Canadian government. For example, CISO (2012) stated that Canadian Federal and Provincial Agencies (CFPA) are guided by respective buying departments in their purchasing decisions. At Federal level, Public Works and presidential term Service Canada (PWGSC)-who have standing offers (open contract) for many goods and purchase them on behalf of other Department-, make green purchasing or recommendations to the department through their portion of unripeneding government operations but their recommendations do not take on fair trade products Evidence of lack of attention given to fair trade in Canada is shown in the table 1.1 below.This made it easier for Just Us competitors who are not dedicated to fair trade (maybe ascribable to appeal associated with it) to portray their offerings to the market as fairly traded.CountryPolicy or GuidelineSpecifies CertifiedFair TradeCanadaFederal Policy on Green Procurement (as of April 1, 2006 for all federal departments) sustainable learning Strategies (prepared by all federal departments every 3 years) and Departments Environmental policies and Departmental procedure Reports Environmental Petitions by Canadian Residents Department of Foreign Affairs Green Procurement checklist Department of Foreign Affairs Kit for Ensuring Green Conferences Environment Canada principles or practice on green purchasing, as well as a standard clause for product tenders and service contracts Provincial The Sustainable Development Act (Manitoba and Quebec) and related Sustainable Development Procurement Policies topical anesthetic Ethical Purchasing Policies (Vancouver, Toronto, Black Diamond) No No (for ForeignAffairs, othersunknown) No No No No No Yes (no for Toronto)Table 1 Examples of pertinent Guidelines and Policies that Encourage Social and Environmental Purchasing in Canadian regimen Agencies (CISO,2012).EconomyBetween 2010-2011, Canadas gross domestic product was said to have grown by 2.8% a year (which was more than economies of other rich country, most especially U.S). However, in 2012, Cana das economy has been discovered to have a slow GDP growth of 1.9% as a result of lower prices for Canadas resource exports, weak demand of its goods from Europe and its strong currency (The Economist, 2012). This has led to recession directly in Canada, preventing Just Us Cafes from implementing her expansion strategy.Also, Recession in Canada due to decline in GDP could result in budget constrict and driping cuts leaving consumer with little or no disposable income to spend on premium fair trade products that Just Us offers, since handiness of consumers purchasing power absolutely relies on income, prices, debt and savings (Kotler and Keller, 2012).Social-CulturalOver the last 3 decades, the main driver of fair trade is expressed to be the highly growing twist of ethical consumerism (Burke and Berry, 1974, cited in Opal and Nicholls, 2005, page 23).Consumers values, attitude and lifestyle are rooted in high quality, ethically sourced and healthy products. The preference for th ese attributes has created a great opportunities for fair trade markets and thus resulted in a highly competitive fair trade market that is fitting too heated for Just Us the early player.Technological.From among 2002-2008, on that point was no record that reveals that Just Us Cafes integrated e-commerce into their customer service operation despite the fact that e-commerce that includes online service had been the major driver of bring chain in coffee industry in the 21st century. However, Just Us has integrated e-commerce into their customer service operation where customers orders are received and fulfilled via e-commerce.Environment and LegalThe current trend in westbound Europe involves series of public actions (legal) to reduce Co2 emission to the environment, visual perception majority of firms been taxed heavily on the basis of Co2 emission that their activities (majorly machinery) crack to the environment (co2gram/kilowatt/hour). However, opportunities abound for orga nisations that can reconcile profitability with the protection of their business environment (Kottler and Keller, 2012).But this trend towards greener activities is partly a little terror to Just Us fair trade as the need to source for raw materials locally rather than sourcing from distant developing countries (which is the basis of fair trade) to lessen Co2 emission to the atmosphere due to transportation is bonny an emerging issue presently.On the other hand, weather is becoming quite unpredictable and this is a threat to farm productivity. For example, the Archer Daniels Midland (ADM) the worlds largest hoidenish commodities traders recently got its net profits reduced by 60% due to a sudden drought in the U.S that hampered farm productivity (Financial Times, 2012). This can besides pose threats to the fair trade markets, resulting in scarcities in the commodity markets, high prices for food and high cost of raw materials.Porters 5 forces for Just Us.The Porters 5 forces as shown in Fig 1.1 below is used by businesses to indentify how profitable a particular business is (Johnson et al. 2008).Threat of forward-looking Entrants to Fair Trade MarketThere is a high threat of new entrants to the fair trade market with a growing trend in the demand for fair products. As a result of this, small, self-sufficient and well established cafes are competing with Just Us as a result of this.Threat of Substitute for Just Us products and ServicesAs barriers to fair trade market are getting weaker, competitors are offering a uniform fair trade product as Just Us in that respectby presenting consumers with opportunities to replace Just Us products if they do not meet their expectations.Bargaining Power of SuppliersThe number of farmers producing farm produce has been account to be growing. In 2008 alone, 59 countries have been reported to have supplied Canada. Thus, as the growing trend increases, the bargaining power of buyers becomes higher(prenominal) than the farmers.On the other hand, bargaining power is to a fault dependent on the availability of produce. If at that place is scarcity of fair trade produce, then the bargaining power of farmers become higher.Bargaining Power of BuyersLogically, as barrier to new entrants gets weaker and threat of utility(a) get higher, end users may not be able to offer premium price for fair trade products of Just Us. This gives consumers the ability to determine price.Threat of RivalrySince competitors of Just Us offer similar products to same group of consumers, competitive rivalry is certain.1.3 Extent to which Challenges threaten the here by and by of Just UsUp to a very large extent, challenges in the form of fierce competition (which is promoted by government policies), constant pitch in fair trade market (occasioned by rapid change in consumers preferences for coffee and other products) and lack of sustainable strategy of Just Us to address these issues will lead to lower consumer base, reduc tion in market share and profit and as time goes on, Just Us fair trade business will cease to exist in Canada.2.0. Appropriate Framework of Analysis to Analyse Competitive Strategy take by Just UsIn analyzing the competitive strategy adopted by Just Us, marketing mix strategy (7Ps) will be adopted.Products Just Us satisfied the wants and needs of consumers with fair trade and organic products like Coffee, Tea, Chocolate, Sugar, and Muffins. Just Us adopted a characteristic product differentiation strategy through provision of fair trade and organic products to its customers that are willing to pay premium. Just Us also have specialty products lines such as Coffee (Rwanda Caf Femenino, Tarrazu Honey, Mexican Morning, Wisdom, rainforest Rhapsody, etc), Teas (Chai Tea, Early green, Darjeeling loose, Maritime Breakfast tea etc) that meet various tastes of consumers. expense For all Just Us fair trade products and added services (atmosphere adapt to consumers taste), a premium prici ng strategy was adopted by Just Us where consumers are charged for added value in form of organic and fair trade products provided to them.Place With respect to place, Just Us pursue an adaptation strategy where atmosphere of different locations (Wolfville, Halifax, Grad Pre and Barrington Street) were adapted to taste, culture of consumers and making it comfortable as incubator for developing relationships among consumers within their communities.Just Us adopted ii types of strategic alliance in a bid to make their products available to consumers and in a bid to expand. The two types of strategic alliance adopted werea.Logistical Alliance where Just Us formed alliance with wholesales and retail outlets (e.g. Loblawas, and Sobeys), health food shops, churches, universities (Saint Francis Xavier, Saint Mary University etc) that offer logistical service to ensure the availability of Just Us products all around Canada.b. Product and Service alliance although this type of strategic a lliance failed Just Us, Just Us had once partnered with a local businessman in Toronto as part of their expansion strategy into Toronto market. Just Us also formed partnerships with Acadia Cinema Cooperative to use the film service as a means to sell fair trade products.Promotion In a bid to promote Just Us fair trade offerings, 10% of its profit was allocated for opening fair trade coffee museum where consumers are assoiled about the advantages of fair trade. On top of this, a non-profit organisation known as JUDES (Just Us Development and teaching Society) was developed to create awareness for fair trade and societal development. Just Us through JUDES also used documentary and educational activities to enlighten social institutions on the importance of fair trade.Just Us also used newspaper, magazines (student magazines and discount coupons), outdoor advert (board in Grand Pre), point-of-purchase advertising (Valentine, Christmas and other seasonal events), internet (www.justu scafes.com), sales promotion (reduced Christmas merchandise) and PR, events and sponsorship (during CEDIF meeting).People through proper recruitment and selection process, Just Us was able to attract talented staff and committed employees which were subsequently trained to deliver finished products (e.g. Coffee and Tea) in a way that expressed quality and care. forge part of the process of Just Us aimed at preserving and delivering fresh and quality coffee to her consumers includes roasting Coffee for example in small batches after which they were packaged in the plant and subsequently sent to consumers. Process of Just Us also involves close supervision of coffee quality at every stage of the production process (from raw materials to finished products) somatic Evidence This is essentially environment that surrounds the fair trade products and services that are offered by Jut Us (Richard and Gilligan, 2005). This includes fair trade coffee museum in Grand Pre, the brown coloured log o of Just Us that differentiated them from competitors, coffee bean manufacturing plant in Grand Pre , Just Us theatre, gift shops and other facilities and equipment (tangibles) that communicate message concerning fair trade that Just Us stood for.3.0 Strategic Options Available to Just UsDespite the continual growth of consumers in fair trade segments since 2008 (now around 44% of consumers in Canada), Just Us, a distinctive fair trade food business that was incorporated under the Cooperative Act and certified by Fair Trade Labeling Organisation (FLO) has seen it growth slightly increased in the midst of 2008 to 2011 ( stick out 1.1) in the midst of competitors (Kicking Horse, Tim Hortons, Second cup, Kraft, Nestle etc) that are not profoundly committed and consistent to fair trade model witnessing a high revenue from the fair trade market.For example, between 2009 to 2010, sales revenue grew by 1.72% to $7,103,981 with an increasing cost from 4,257,282 in 2009 to 4,310,222 in 2 010 (Figure 1.2).Figure 1 revenue of Just Us between 2002 to 2011(Just Us, 2012)Figure 2 The closing curtain of Year Statement of Just Us Coffee Roasters (Just Us,2012).To address these problem, Just Us can engage one of these optionsConsolidationThis is the situation where Just Us can strategise on defending their existing fair trade products (coffee, chocolate, tea, sugar) in their existing market in the province of Nova Scotia (Wolfville, Barrington Street, Grand Pre, and Halifax) . According to Safah (2008), this non-growth strategy is aimed at maintaining the business status quo to protect a business status in its environment.Just Us can achieve consolidation through eitherDefending their market share through with(predicate) Customer Relationship Management (CRM) , Just Us can cook a protective wall around its customer base (Smith and Zook, 2011) through effective management of individual consumers information in order to maximize loyalty ( Kotler and Keller,2012). Just Us s hould invest in communication technology where consumers database will be housed and used effectively. For example, automated greetings should be programmed to respond to any occasions consumers are celebrating. CRM management should go beyond business performance to personal affection and care for consumers welfare. by this CRM, Just Us will be able secure their consumers. Even CRM can also be done through social media where Just Us club can be formed for the purpose of a two-way communication between Just Us and existing consumers.Downsizing or DivestmentIn Figure 1.2 above, cost of good sold, administration and members expenses all constitute a higher cost to Just Us Cafes. Just Us could seek to unite by pruning its staff size to reduce cost of human resources or it could hold on to 20% of Just Us products that erect 80% of its revenue while the rest are shed off the Cafes product line. For example in Table 1.2 below, between 2004- 2007, fairly traded Tea and Sugar (though s ugar is perceived to have adverse impact on health and thus fair trade honey could be a good substitute) have been observed to contribute a less gross profit to revenue and hence less growth to fair trade market in Canada. So Just Us could remove these products from it portfolio while they slim down on Coffee and Cocoa.Growth2004200520062007Totalmarket share %market rankCofee41%56%61%55%$ 9,083,83680%1Cocoa115%96%91%0%$ 1,253,84911%2Sugar139%158%97%63%$ 789,1507%3Tea54%74%68%339%$ 173,6422%4Total Revenue49%65%67%50%$ 11,300,477 degree Celsius%market share %100%market rankTable 2 The growth of fair trade products in Canadian MarketMarket Penetration.Just Us could also increase sales of their current fair trade products in the province of Nova Scotia in which they are presently operating (Halifax, Barrington Street, Wolfville and Grand Pre) through lovely competitors consumers by planning and implementing effective promotion or distribution strategy or they could cut prices of thei r productsPromotionA good promotional strategy with an appropriate channel to reach target markets will be one of the appropriate methods by which Just Us can attract competitors consumers. Through integrated marketing communication, Just Us can better get up its marketing tools in order to deliver its social and environmental responsibilities, quality, fairness and equity message in a clear and consistent manner to all consumers.For example, Just Us is the only Caf business that is incorporated under the cooperative act which seeks greater fairness and poverty eradication in developing countries and on top of this, all fair trade products of Just Us were certified by Fair Trade Labeling Organisation. Just Us could choose to deploy it resources towards creating awareness about what it stands for and this could stimulate interest, desire and repeated purchase of its products. The landing page of Just Us site (www.justus.com) should be decorated with prestigious awards obtained by Ju st Us to affirm what they stand for and this could lead to customer conversion upon arrival to the landing page. Just Us should also use social media to communicate their messages while using aflame adverts on Tv and Radio station to preach fairness in addition to what JUDES does for them. For example, over 4 years, Cadbury Schweppes had attributed its high revenue to high expending on promotional efforts.DistributionAccording to Chopra and Meindhl (2007), distribution has been expressed to be the major driver of an organisations overall profitability since it directly determines both submit chain cost and consumer experience. The presence of Just us in 4 places within the province of Nova Scotia alone is not an effective means of attain potential consumers of Just Us. Tim Hortons (170) and Second cup (360) within Nova Scotia have been able to decentralize their shops in every nook and cranny to better reach their consumers and increase response time and convenience and through this, they have been known as a quick service restaurant in Nova Scotia. There is no point in having good quality fair trade products without reaching enough consumers.Even if there is no stock to lease or build more cafes, Just Us could form more partnerships (logistical or product and service alliance) with more retail and wholesale outlets in Annapolis, Pictou, Inverness, Yarmouth, Antigonish, Hants etc.For example, Sainsbury has emerged as market leader in UK grocery market due to its ability of Sainsbury to open more convenience stores all around UK.Pricing strategyJust Us could also use price to penetrate and attract competitors consumers. Just Us involving itself in a price war wont go too well for the Caf. However, a psychological pricing strategy could be adopted to increase demands for its quality fair trade products. For example, Apple used price to penetrate the market when it launched its 3G iphone at a cheaper price ($199) as compared to its competitors that were offe ring $399 for 2G iphones (Jobber,2007)Market DevelopmentMarket development is another strategic option that Just us can explore to increase it market share by change fair trade products to new markets beyond the shores of Nova Scotia or outside Canada.For example, in Vancouver and Black ball field, Just Us can seek to expand their Cafes to these provinces where there are ethical purchasing policies that favour their fair trade business model (as indicated in Table 1) unlike Nova-Scotia. Mergers or acquisition will be a fast way through which Just Us can sell its existing products to Vancouver and Black diamond swiftly. For example, Just Us could merge with Earths Choice a fair trade coffee roaster business in Vancouver or Cinnamon spoon in Black diamond .Other