GLOBAL BUSINESS SCHOOL, HUBLI – 580025

Academic Year: 2017 - 2019

Submission of Assignment / Project

Semester : MBA 1ST SEMESTER

Division : SPARTA

Subject : MARKETING MANAGEMENT

SI NO. Student Name

1 PRATIK .N. DESAI

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.

FACTORS WITH HIGH IMPACT

Social Environment

 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

 Inrease in the need of natural ingredients

 More and more people want to consume natural drinks. This ecological trend can affect
the energy drinks market by threatening the image of the products.

FACTORS WITH MODERATE IMPACT:

Economic environment

 Recession, loss of purchasing power

 Relative high price of energy drinks, comparing to traditional beverage.
 Market maturity for carbonated soft drinks (soda).
 Increasing demand for alternative beverage.
  Steady growth in purchasing power of consumer in developing countries.

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.

Legal & Political Environment

 Pressure on caffeine and taurine rates.

 Health concerns of governments.
 Implementation of restrictive laws.

FACTORS WITH LOW IMPACT:

Technological Environment

 Internet, social media era.

 Technological development can impact the production and distribution.

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:

Factors Impact Changes

Social High The reason of consumer consumed functional beverage is
complex, not only to fulfill their thirst but also the image,
benefit, lifestyle, health and other factors that they get from
the products. So, company that have innovation and can meet
consumer want, will be success in this industry
Economic Moderate The premium price of functional beverage make it sensitive
towards economic condition because it will affect consumers
purchasing power where their disposable income will
decrease or increase depends on their economic condition.
Technology Low The technology in functional beverages industry do not
change much in recent years.
Political Low There few government regulations that really control about
functional beverages.

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/