Impact of the Marketing Environment on Industry

Question: Choose a city (India), and assess the impact of the marketing environment on the industry* in that city. Perform the following: PESTLE, SWOT analysis and comment on the impacts on the marketing environment. Answer: Introduction This report represents the impact of marketing environment on the food industry of Kolkata. Kolkata is a city of India. McDonalds is chosen for this report. It is one of the largest retail chains in food industry of India. McDonalds was founded in the US in 1940 by Richard and Maurice McDonald. The company operates its business in 130 countries in the world (Mcdonaldsindia.net. 2016). PESTLE Analysis The PESTLE analysis helps to analyze the effects of political, economic, social, technological, legal and environmental factors on any industry. In this context the PESTLE analysis of McDonalds in Kolkata as discussed below. Political: The local political parties play a big role for smooth operation of any businesses in Kolkata. The political turmoil of elections, frequent strikes affect the restaurant and hotel sectors of Kolkata. In this scenario, the political aspects of Kolkata are not favorable for McDonalds to expand its business and increase profitability (Inglis 2015). Economic: Kolkata is a city which consists of middle-class families (Ali and Nath 2013). Apart from that, it has high unemployment rate and tax rates. It affects the profitability of McDonalds. In this context, abundance labor supply and development of upper middle-class society is favorable for the company (Ali and Nath 2013). Social: The people of Kolkata are known as a food lover and people like to eat at restaurants, malls. It is positive for McDonalds as it has food chains and franchises at malls and various populous locations of Kolkata (Inglis 2015). Technological: Technology plays an important factor to maintain efficient supply chain. Kolkata is a tech hub of India (Inglis 2015). Therefore, McDonalds does not face any hurdle in recruiting tech-savvy workforce. The tech savvy population of Kolkata helps the company to promote its business through various social media like Facebook, Twitter and reach out to broad consumer sector (Ali and Nath 2013). Legal: Kolkata has stringent registration procedures for new businesses (Shukla 2014). Apart from that, in Kolkata legal proceedings get delayed due to various reasons. Therefore, the company may face hindrances if it wants to open new franchises or restaurants in Kolkata Environmental: According to Inglis (2015), Kolkata is the commercial hub of West Bengal and the city is connector of Nepal, Bangladesh and Bhutan. So, it is favorable for the company to promote and operate their business in neighbor countries as well. SWOT Analysis The SWOT analysis helps to analyze strength, weakness, opportunity and threat for the business. It is as discussed below. Strength: McDonalds has positioned itself as an international brand. It is located at busy places across Kolkata like shopping malls, airports and popular business and commercial center like Park Street, which are one of the positive marketing aspects for the company (Inglis 2015). Weakness: Fast food is often related to obesity and unhealthy. As result, the marketing initiatives of the company may not appeal to health-conscious consumers. The increased competition also acts as weakness for the company (Inglis 2015). Opportunity: The booming IT sector of Kolkata has increased the purchasing power of young people and it is hopeful for the company. Moreover, the company should invest more in research and development to include more varieties in menu for different demographic segments (Ali and Nath 2013). Threats: People of Kolkata prefer street food. Moreover, increased popularity of KFC, Pizza Hut possesses threat for the company (Inglis 2015). Conclusion The above discussion portraits many political, legal and social issues that can act as hindrance to the profitability of the company. The company faces competition from local and international brands in the food industry in Kolkata. Moreover, its effective marketing strategy and changing purchasing power of people in Kolkata are hopeful for the company. References: Ali, J. and Nath, T., 2013. Factors Affecting Consumers' Eating-Out Choices in India: Implications for the Restaurant Industry.Journal of Foodservice Business Research,16(2), pp.197-209. Inglis, D., 2015. Globalization and food.The Routledge International Handbook of Globalization Studies, p.469. Mcdonaldsindia.net. (2016).McDonald's. [online] Available at: https://www.mcdonaldsindia.net/mcdonalds-india.aspx [Accessed 23 Mar. 2016]. Shukla, S., Shankar, R. and Singh, S.P., 2014.Food safety regulatory model in India.Food Control,37, pp.401-413.