Nutri Natural, Herbal, and Vitamin Supplements - Research Paper Example

Nutri Natural, Herbal, and Vitamin Supplements Introduction The world has now embraced the use of vitamins and supplements, which have seen a lot of investors look at taking advantage of the demand for establishing more companies. According to research, the market is expected to grow to about 509.33 million GBP by the end of 2018 (UK Times 21). The reason the market is growing is due to the increased awareness on the threats lifestyle diseases pose to people. For this reason, most people consider buying of vitamins and supplements as the best way to reduce contracting a lifestyle disease. The increased demand for the food supplements and vitamins is being watched by organizations, which have sparkled stiff competition in the industry. The competition is what poses the greatest threat to entrants in the market as they have to consider bridging any gaps between what the consumer wants and what is being provided for them in the market. Unfortunately, more organizations in the market translate to the consumer having more bargaining power, which is never a good thing for the company. The paper seeks to identify the competition that will face Nutri Natural, Herbal, and Vitamin Supplements as it enters the market. Main Competitors It is fair to say that there is no single market that is not prone to competition. Naturally, an investor identifies a consumer need and develops a product that will satisfy the need. Later, the demand for the commodity increases and the company makes increased profits. As other investors note the growing demand, they develop their own version of the products. More investors join the market flooding it and bringing more choices to the consumer. Eventually, only those manufacturers that have a competitive edge remain in business or make any profit. Nutri’s entry to the market will face stiff competition from popular manufacturers of food supplements and vitamins. These competitors include but are not limited to Bayer, Seven Seas, Bayenica, and Boots (Leah 10). Potential competitors if moved to online retail in UK Internet use has become widespread over the past decade. However, not every company has utilized the full potential of using the internet to market its products. The advent of social media has made online marketing more effective as a platform for companies to use to create awareness of the products offered. A company that takes advantage of every opportunity they have to market their goods becomes the best possible way to remain competitive and thus profitable. Nutri is aiming to take full advantage of what technology offers companies and will be using an online platform to sell the supplements. Online sellers of the same products, Nutri will be marketing already exist, and that will be a source of competition for the company. Nutri’s move to the online retail will be met by competition from Healtspan, Holland and Barrett, Just vitamins, Zipvit, Natures Best, and Lamberts. Nutri should note that these companies have already established in the online retail business and should, therefore, brace up for the competition. Identify any competitor market strategies The main competitors have very effective strategies in place. While it may be important to cover most of the strategies, this paper will focus on one of the competitor’s strategy. Since Bayer is one of the most competitive companies in the UK, it is important to look at their strategy. Bayer’s strategy is wrapped around the value of sustainability. The company is convinced that to achieve long-lasting commercial or financial growth, it has to balance economic growth with both ecological and corporate social responsibility (CSR). To ensure CSR is achieved, the practices of the businesses must be founded on responsibility. Bayer, therefore, believes in not engaging in corruption and focuses on responsible marketing of their products. With proper social responsibility, Bayer can identify good human resources policy, health, product stewardship, supplier management, and environmental protection and safety. The company’s corporate strategy conforms to the values of sustainability in fulfilling their mission. Basing the strategy on responsible business practices and reducing risks of the business has proved effective for the performance of Bayer. The success of any business is based on proper evaluation of self and the environment so that it can identify its strengths, weakness, opportunities, and threats. The evaluation has to consider external factors that will affect the functioning of the business. Such factors include politics, economy, society, technology, environment, and legal issues. Below is a SWOT and a PESTEL analysis of Nutri. 1. SWOT analysis for Nutri Natural, Herbal and Vitamin Supplements. Strengths Nutri understands the market dynamic as it has conducted proper research Intensive capital A strong drive Understands legal issues well Knows exactly what the consumer needs Weaknesses The company is relatively new Does not intend to invest on the traditional marketing avenues as they are expensive Opportunities An expanding food supplements and vitamins marketing An underutilized online market Venturing into the online market that requires limited capital to start and operate as there is no need for expensive offices. Threats Increased cybercrime will require Nutri to invest heavily in the venture to protect both the company and the consumer Use of online platforms can be used to the disadvantage of the firm such as when people share negative issues about the company’s products Competition is very stiff in the industry. 2. PESTEL analysis for Nutri Natural, Herbal and Vitamin Supplements. Political Politics plays a very central role in the functioning of any company. In the UK, the government policies on both uses of online marketing and sale of nutritional products are favorable to the industry, which means that Nutri can do well. The UK also enjoys stable governance, which means Nutri will not be dealing with civil unrests. Economic UK’s economy has not been favorable for the market, but things are slowly sobering up. The reduction of oil prices is seeing inflation drop which means that the purchasing power of the consumers is up. Social The main drivers of the demand for food supplements and the vitamins are social-cultural factors. High rates of obesity and increase in lifestyle diseases require a sudden change in dietary behavior (Sean 19). High consumption of energy foods in the UK is responsible for the surging cases of dietary complications and has therefore brought about the need for the people to be sensitive of what they eat to avoid the lifestyle diseases. Such change in feeding habits has brought attention to food supplements and vitamins, which are by far healthier than the fast foods or junk food (Ritchie 2-7). Technology Technology is undergoing leaps and bounds of improvement in almost every industry, and the food supplement industry has not been left behind either. Initially, companies reached out to the people through the use of print media, television, and radios. Media has become less useful as the internet takes the center stage thus convenient and economic medium of communication. Companies including the food supplement industries are now tapping onto the benefits offered by social media, and that is exactly what Nutri is looking forward to doing in its aim to reach out to the people. The use of Twitter and Facebook is widespread and offers firms a good platform through which firms can market their goods. On the other hand, it is the same technology that can cause devastating effects to a company if used against the company. Since the company has no control over Twitter and Facebook, negative media publicity can reach millions of customers in no time and consequently destroying a brand name. Environment UK has favorable weather, and that is not projected to cause any problems in the establishment of Nutri. Legal Regulation of both vitamins and supplements is crucial in the UK industry and affects every entrant to the market. The European Food Safety Authority (EFSA) seeks to protect the consumer by ensuring that the companies provide the highest quality products and do not jeopardize any aspect of the consumer’s personal health. Among the 40000 requests for food supplements, the company has only accepted 248 requests (Tabet, Rummana and Helen 267-271). Conclusion Food supplements and vitamins are very important products for the livelihood of the people as they reduce contracting lifestyle diseases. The knowledge that the consumers have on the products is very essential as it boosts the likelihood of the products being embraced by the consumers. While Nutri has a great market to tap, the company will face stiff competition and has to pull resources together to ensure that it is highly advertised and to create a good first impression so that it can remain in the market. Works Cited "Nutritional Suppliments.” The Times [UK] n.d.: n. pag. Print. Hardy, Leah. "BEAUTY ON N A PL ATE; Cellulite-Busting Marshmallows. Anti-Ageing Jam. Askincare Miracle - or Just Too Much to Swallow?" Daily Mail (London). N.p., 23 Nov. 2009. Web. 23 Feb. 2015. Ritchie, M.R. "Use Of Herbal Supplements And Nutritional Supplements In The UK: What Do We Know About Their Pattern Of Usage." Proceedings Of The Nutrition Society (2007): AGRIS. Web. 2 Dec. 2014. Sean, Poulter. The Great Health Supplements Con: How Firms Like Seven Seas and Vitabiotics Exaggerate benefits of by Millions. 2014. Accessed from:< http://www.dailymail.co.uk/news/article-2399370/Health-supplements-Which-says-firms-like-Seven-Seas-Vitabiotics-exaggerate-benefits.html> [Accessed on 2nd Dec, 2014] Tabet, Naji, Rummana Khan, and Helen Idle. "Vitamin And Herbal Extracts Use In Patients Diagnosed With Dementia: What Do Health Professionals Know And Think?." Aging & Mental Health 15.2 (2011): 267-271. Academic Search Premier. Web. 2 Dec. 2014. Read More