Future Opportunities and Threats
Opportunities
Goodman Fielder has the opportunity to create new products to fit the changing needs of consumers. Recently, Australians have become a lot more health conscious and there is increasing demand for products that are low in fat, sugar and salt and high in vitamins, minerals and fibre. Goodman Fielder can develop new products and expand its product ranges to suit increasingly health conscious consumers.
People’s lives are becoming a lot more hectic and stressful, which means there is an increasing tendency to buy products that are convenient and quick. Goodman Fielder’s products, product ranges and packaging can be developed to fit the needs of these time-poor consumers. Some alternatives could include: heat and serve meals, single serve products and readymade desserts.
Another opportunity is increasing consumer demand for products such as gluten free bread which meet the needs of people with food intolerances or allergies. Goodman Fielder’s Country Life range already offers consumers gluten free choices and the company could extend into new product ranges and categories which could attract new customers.
Shows such as MasterChef and The Great Australian Bake Off are creating increased consumer interest in at-home cooking and present opportunities for Goodman Fielder to increase consumer awareness and market its products to a broader range of consumers, including younger generations.
Goodman Fielder can also look at expanding their business in Asia, and particularly China, where there is a large target market for some of the products the company sells.
Threats
One of the factors that is a potential threat to Goodman Fielder is competitive price pressure. The company’s competitors may reduce prices or increase promotional activity to encourage consumers to buy their products. This can cause a reduction in sales for Goodman Fielder, which can then affect its earnings.
The price of labour, raw materials and other production costs may rise in the future causing it to be more expensive for Goodman Fielder to manufacture its products. This could lead to reduced margins or rises in the price of the company’s products, which may result in less people purchasing them.
In the future, the tastes and preferences of consumers are likely to change and if Goodman Fielder does not continue to make new innovative products, its products may become less attractive to consumers. This could cause the company’s sales and earnings to decline.
If Goodman Fielder does not maintain a good relationship with its major customers like Woolworths and Coles, some of its products potentially could become delisted and would not be sold in their supermarkets. This can cause major problems for the company as most consumers shop at these stores and would likely just buy a different product if Goodman Fielder’s products are not available. As a result of these lost sales, Goodman Fielder’s earnings could fall.
Goodman Fielder has the opportunity to create new products to fit the changing needs of consumers. Recently, Australians have become a lot more health conscious and there is increasing demand for products that are low in fat, sugar and salt and high in vitamins, minerals and fibre. Goodman Fielder can develop new products and expand its product ranges to suit increasingly health conscious consumers.
People’s lives are becoming a lot more hectic and stressful, which means there is an increasing tendency to buy products that are convenient and quick. Goodman Fielder’s products, product ranges and packaging can be developed to fit the needs of these time-poor consumers. Some alternatives could include: heat and serve meals, single serve products and readymade desserts.
Another opportunity is increasing consumer demand for products such as gluten free bread which meet the needs of people with food intolerances or allergies. Goodman Fielder’s Country Life range already offers consumers gluten free choices and the company could extend into new product ranges and categories which could attract new customers.
Shows such as MasterChef and The Great Australian Bake Off are creating increased consumer interest in at-home cooking and present opportunities for Goodman Fielder to increase consumer awareness and market its products to a broader range of consumers, including younger generations.
Goodman Fielder can also look at expanding their business in Asia, and particularly China, where there is a large target market for some of the products the company sells.
Threats
One of the factors that is a potential threat to Goodman Fielder is competitive price pressure. The company’s competitors may reduce prices or increase promotional activity to encourage consumers to buy their products. This can cause a reduction in sales for Goodman Fielder, which can then affect its earnings.
The price of labour, raw materials and other production costs may rise in the future causing it to be more expensive for Goodman Fielder to manufacture its products. This could lead to reduced margins or rises in the price of the company’s products, which may result in less people purchasing them.
In the future, the tastes and preferences of consumers are likely to change and if Goodman Fielder does not continue to make new innovative products, its products may become less attractive to consumers. This could cause the company’s sales and earnings to decline.
If Goodman Fielder does not maintain a good relationship with its major customers like Woolworths and Coles, some of its products potentially could become delisted and would not be sold in their supermarkets. This can cause major problems for the company as most consumers shop at these stores and would likely just buy a different product if Goodman Fielder’s products are not available. As a result of these lost sales, Goodman Fielder’s earnings could fall.