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Affect of Macro Environmental Forces On
Affect of Macro Environmental Forces On
Affect of Macro Environmental Forces On
Division : SPARTA
2 KRUPA REVANKAR
3 TEJASWINI BASTAWAD
4 NANDA MADIVALAR
5 SHIVAPRASAD
MACRO ENVIRONMENTAL FORCES THAT AFFECTS
PRODUCT AS WELL AS ITS MARKETING
Every business is affected by macro environmental forces. A macro environment is the condition
that exists in the economy as a whole, rather than in a particular sector or region. In general,
the macro environment includes trends in gross domestic product (GDP), inflation, employment,
spending, and monetary and fiscal policy
The PESTEL analysis describes the environment of a specific market by defining the influence
factors at the political, economical, social, technological, ecological and legal levels.
Applied to the energy drinks market, we identified 2 main influences: the social and
ecological factors.
Unemployment (Work place is one of the important place where people consume energy
drinks)
Demography: Ageing population in Europe.
Health concerns of consumers: They have doubts about the health dimension of energy
drinks.
The fashionable dimension of energy drinks.
Consumer preference shifted from energy drinks to alternative beverages.
Health concern from physician, health professional etc.
Market has to face some threats: the health concerns of the consumers and the ageing
population phenomenon can question the future of the energy drinks market.
Ecological Environment
Energy drinks are premium products with a relative high price. Consequently, this market is
sensitive to the economic conditions which impact purchasing power of consumers. The risk is
that people can switch from an energy drink to a traditional drink, less expensive.
The current technological innovations are not important enough to impact the energy drinks
industry. However, this sector requires that the brands have a real presence in social media
because of the youngness of the consumers: this is a “must-have” in this market.
VISIBLE CHANGES SEEN IN THE PRODUCT DUE TO THE EFFECT OF
MACRO ENVIRONMENTAL FORCES:
References:
1. Marketing Management by Philip Kotler & Kevin Lane Keller.
2. https://abullburnedbymonsters.wordpress.com/2013/11/20/the-general-environment-of-
the-energy-drink-industry-pestel-analysis/