Marketing Audit of a Grocery Company - Article Example

The flows of money, information, images and symbols in networks, which form a network of interconnected nodes, become elements that are essential in social action. Demographics can provide such opportunities as new customers, increased sales, and an increased variety of customers, which all point to an increase in sales and productivity. Threats can also occur such as customers moving away, and customers developing other tastes, because of interaction (Cayla & Arnould, 2008).

The economy has increasingly become weak, and, as a result, margins keep on falling and so do asset values. Because of these economic difficulties, the company has faced numerous financial challenges though it remains profitable. To deal with these financial problems, the company is planning to close about 20 of its stores that are underperforming so as o cut costs and save money (Fortune 500 List of Best Companies, 2009).

It is clear that with the current financial problems and challenges with the environment, the availability of the company’s raw materials is going to go down with costs increasing. The costs of energy are also likely to increase because of the same challenges. There have been few, if any, complaints about the role of the company in conservation and pollution. The company has been widely recognized for its initiatives in taking care of the environment and sustainability. The company has come up with several goals to fulfil by the end of 2012 to ensure conservation and sustainability. In addition to this, the company also utilizes a carbon footprint, sustainable foods, reusable bags, zero waste, and conservation initiatives to ensure that the company does little damage to the environment (Fortune 500 List of Best Companies, 2009).

There have been major technological innovations in today’s global market and the grocery industry. For example, there are new technologies for packaging, eliminating waste, ensuring green initiatives, and production and manufacturing. The company strived not to be left behind as it has adopted new technologies in production and manufacturing processes, and in supply and delivery services (Fortune 500 List of Best Companies, 2009).

Other trends might affect the company’s business other than demographics and culture, like politics. For example, there are numerous rules, regulations and policies that the government has come up with that can affect the profitability of the company. These changes might have to do with trade regulations, regulation of raw materials, and environmental policies that require large amounts of money for sustenance (Fortune 500 List of Best Companies, 2009). For example, there have been policies that the government has developed to control and regulate pollution. These require complex and expensive technologies and initiatives that might affect the profitability of the company. Additionally, other policies such as equal opportunities for employment might lead the company to employ unskilled workers leading to less productivity. Product safety might also affect the productivity cost of the product. Advertising might lead to reduced exposure of a product while price controls can lead to losses. Generally, all these regulations and policies affect the productivity of a company and its profitability.

The consumers of the company feel that the goods and products it produces are safe for consumption. This has resulted in a large customer base for the company. However, as customers travel more and experience different lifestyles and attitudes in other countries, their preferences change and their perceptions of usual products might change, shifting their preferences. The consumers, for instance, might experience organic foods and greenhouse foods and make them change their preferences, and require the products of the company to change to match the new preferences of the company (Nijssen & Douglas, 2008).