Bellamy’s Organic: Business Plan
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Bellamy’s Organic: Business Plan
Situation Analysis
There are several macro environmental or CDSTEP factors that have greatly influenced Laura McBain’s Bellamy’s Organic Company. Cultural, demographics, social, technological influence, legal factors, and economic factors are the most challenging for the company.
Apart from good leadership and skilful employees, technology has played an important role in the company’s growth. Before the technological upgrade, the company’s performance was low, and the company was not able to provide high quality products. Just like in any other industry, technology has helped this company achieve its organizational goals. Technology is employed at the farms, during the processing phase and quality control phrase, and during the delivery. The technology that enhances the quality of production helped the company become the market leader in organic food production (Kruger, 2017). Apart from farms, technology has been also used to run day-to-day office operations and enhance the decision-making processes of the employees.
Another major factor contributing to company’s growth is its economic strategical framework. The company has built a brand name in Australia, which is the company’s home country. It has become the most trusted and top-selling organic food company in Australia, currently occupying more than 10% of the market. Due to its leadership, the company has opened branches in many countries, especially in Asia, increasing its sales significantly. Another reason for the company’s growth is its diversified products. The company provides different products that satisfy the needs of diverse customers.
II. Marketing Goal
By the end of 2017, the company aims to raise more than $25 million with help of advertising and control at least 20% of the Australian organic food market.
III. Marketing Strategy
Bellamy’s Organic has many marketing strategies, ranging from target market level to value propositions.
Target Market
According to Kruger (2017), this company has increased the number of shares and profits due to its constantly growing market share. It has branches in more than four countries. The company supplies its products to more than 4,400 major stores in Australia alone. Some of these stores includes Coles, Big W, Costco, Terry White, Woolworths, Target, Chemist Warehouse, and Amcal. It also supplies the products to major chemists, which makes it the biggest distributors of baby products in Australia, with up to 50% of the market.
Apart from Australia, Bellamy also became profitable in China. Distribution channels have been ensuring that the products reach its destinations, helping mothers access them regardless of their location. China’s economy and the change in consumers’ consumption habits have also helped the company succeed in the new market. Bellamy’s Organic also performing well in the countries of Southeast Asia. Distribution partnerships in Singapore and Hong Kong have leveraged distribution platforms. Besides, the adoption of a direct market model in Vietnam helped the company control its product distribution.
According to Green and McBain (2017), with the current global Internet connection and e-commerce, many companies have opted to sell their products to the global market with help of online stores. Bellamy’s Organic has not been left behind. For the past 3 years, the company has heavily invested in online marketing and online sales, which, in return, earned the company a good reputation and enormous sales. With the current market trend, many people are shifting to online business. Bellamy’s Organic, for example, has sold a lot of products through thirty-party websites like t-mall.com, vip.com, and jd.com. They use delivery agencies such as trade zones and also local Chinese providers to enhance the company’s efficiency.
Value Proposition
Bellamy’s Organic has got a good reputation besides other factors that attract customers and help the company beat the competition. The company’s analysis helped it understand the main reasons people love their products and buy them constantly. The company receives a lot of customer feedbacks and takes into account the suggestions.
Certification is one of the factors that attracts people to the Bellamy’s Organic. The company is certified by NASAA, which is a highly regarded organic product certifying organization. The certificate means that the company’s products are of high quality or organic. Secondly, Bellamy’s products are made in Australia. Therefore, mothers love these products because they believe supporting them they will improve the Australian economy. They also know that these products have passed strict Australian standards (Bellamy's Organic, 2016).
Branding is also an important marketing factor. Many people prefer to buy from Bellamy just because of the company’s profile. The company’s image helped many clients appreciate the importance of organic products because of high concentrated nutritious contents found in Bellamy’s products. Furthermore, the company is also environmentally responsible, which attracts new markets. Additionally, the business was started by a mother, which is why the company focuses on mothers. Lastly, people love the company because of convenience, accessibility, and safety of its products.
Bellamy’s Swot Analysis
Bellamy’s Organic has grown to an international level in midst of myriad of challenges. There are a number of factors that have contributed to its growth and also those which have been a hindrance. Below is a SWOT analysis of this company.
Strength
The company has a high growth rate as compared to its competitors. Furthermore, it has an already established sale and distribution networks that have enhanced its revenue growth. Another strength is the market monopoly the company enjoys and its benefits in hindering new start-ups from entering the market (Morgans, 2015).
Weaknesses
Such a big global company as Bellamy’s Organic always requires finances for its operations. While the company is financially stable at the moment, it may be forced to borrow money in the future. There is also a shortage of raw materials as the company does depends on other farms for the agricultural products (Weiner, Consulting, 2017; Morgans, 2015)
Opportunities
An ever-growing demand for its products is a big opportunity for the company. Another opportunity is a constant increase in the new markets where the company operates. This factor has helped the company grow from a small Australian firm to a big international company (Morgans, 2015).
Threats
Price changes are a major threat to the company as input costs are rising as a result of extreme weather conditions that are affecting production. Besides, many government regulations threaten the company’s operations and growth. Inflation is also another concern that is making product costs to rise, a worrying fact since it lowers the demand (Weiner, 2017; Morgans, 2015).
References
Bellamy's Organic. (2016). 8 reasons why mums choose Bellamy’s Organic! Retrieved from https://www.bellamysorganic.com.au/blog/8-reasons-why-mums-choose-bellamys- organic/
Green, B., & McBain, L. (2017). Annual report 2O15-16. Bellamy's Organic Report, 16(1), 3-15.
Kruger, C. (2017). The new strategy from Bellamy's Australia boss Andrew Cohen: Let's actually make something. Retrieved from http://www.smh.com.au/business/the-new- strategy-from-bellamys-australia-boss-andrew-cohen-lets-actually-make-something- 20170612-gwpqnl.html
Morgans (2015). An organic growth story. Retrieved November 13, 2017, https://www.morgans.com.au/~/media/44A8CC9140C14B718F11E562B84DA9E1
Weiner Consulting (2017). Swot analysis. Retrieved November 13, 2017 from https://www.swotanalysis24.com/swot-b/14036-swot-analysis-bellamy-s-australia- limited.html
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