Herbal, Nutri Natural and Vitamin Supplements
Introduction
The planet has already accepted the use of vitamins and nutrients, which has made numerous businessmen take advantage of the demand to start up further enterprises. The demand is anticipated to rise to around GBP 509.33 million by the end of 2018, according to report (UK Times 21). The explanation why the demand is rising is attributed to increased understanding of the dangers presented to individuals by lifestyle diseases. For this cause, most individuals consider the easiest approach to mitigate developing a lifestyle disorder is to purchase vitamins and nutrients. Organizations that have ignited stiff rivalry in the market are tracking the increased demand for dietary additives and vitamins. Competition is what presents the biggest danger to new newcomers, when they have to start bridging any differences in what the customer needs and what the market provides them. Unfortunately, more firms on the market translate more negotiating leverage into the buyer, which is never a positive thing for the consumer. If it reaches the industry, the paper aims to describe the rivalry facing Nutri Natural, Herbal, and Vitamin Supplements.
Main Competitors
It is safe to assume that no single market which is not vulnerable to rivalry remains. Naturally, an investor recognises a desire for the market and creates a commodity that satisfies the need. Later, the market for the product grows and the corporation generates better income. They produce their own version of the merchandise, while other buyers notice the increasing demand. More entrants are entering the sector, flooding it and giving the customer more options. Ultimately, only certain producers who have a competitive advantage continue in business or generate some benefit. The introduction of Nutri into the industry would face strong competition from famous nutritional additives and vitamin manufacturers. Bayer, Seven Oceans, Bayenica, and Boots are but are not exclusive to these competitors (Leah 10).
Potential Competitors if Moved to Online Retail in UK
Over the last decade, Internet use has been popular. Not every company, however, has used the full power of using the internet to sell its goods. As a medium for businesses to utilise to generate visibility about the goods sold, the introduction of social networking has rendered internet marketing more effective. The only potential approach to be successful and therefore sustainable is a business that takes advantage of any chance they have to sell their items. Nutri plans to take full advantage of what technology provides enterprises and to market the supplements using an online channel. 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;
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.
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:< https://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.