A ‘PEST’ analysis can be applied to the confectionary market in order to analyse the macroeconomic factors which have an impact on the business. The four main elements it looks at are political, environmental, social and technological; however it can also incorporate the economic factor as well.
The political factor refers to changes in the government and government departments as well as cohering to any legislation or regulation in place. A recent example is that of the growing government and consumer concerns over increased levels of obesity. It maybe necessary for Thorntons to consider altering their brand image as well creating new, healthier products in addition to offering the same traditional products. The marketing of this new healthier range is likely to show how Thorntons has taken into account consumer concerns with regards to attempting to combat obesity as well as boost sales figures. Also, should Thorntons decide to go global, they must make sure that they abide by all laws in other countries.
The environmental factor refers to pollution (disposing of waste legally), global warming and scarcity of resources however recently it has been a growing concern of consumers of where their products actually come from. Thorntons is aware of this and has provided reasonable conditions for workers in order to ensure that the product shows an all round quality. It would also involve Thorntons controlling the amount of emissions from their factories as well as perhaps using reusable or recycled packaging, in order to minimise negatively affecting the environment.
The social factor refers to demographic changes, lifestyle changes, changes in family life and cultural differences. This links in with the economical factor as when interest rates are high, people’s lifestyles will change in order to accommodate for the higher prices. This means that luxuries such as Thorntons chocolates may have to be cut back on which in...
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