Pestel's Pest Analysis

The macro-environment:
The macro environment is concerned with broad trends and patterns in society as a whole, which may affect the working of organisations.

PEST analysis is a strategic tool to learn about the organization’s working environment and the factors that could affect it. A PEST analysis including legal and environmental parameter is called a PESTEL analysis.

Political
Political factors can influence an organization’s activities in many ways. It can either be advantageous for the company or there can be levies and duties on the company. Government’s intervention affects the working of the organization. It can impose various taxes, regulations, etc., on the organization. Even the type of government being run (e.g.

‘Market segmentation is the subdividing of a market into distinct and increasingly homogenous subgroups of customers, where any subgroup can conceivably be selected as a target market to be met with a distinct marketing mix.’ (Kotler, 1994) Market segmentation enables firms to make the best use of the opportunities in the market for products and services. The needs and wants of all consumers can’t be satisfied by an organization. Segmentation is the division of a particular market into sections. The market of the organization is split into homogenous units. Segmentation allows the organization to better satiate the customer according to his needs. The primary technique consists of dividing the broad view of the market into smaller groups by reference to one or more characteristics, so that the supplier can concentrate on specific resources to fulfil each group’s requirements.

The need for market segmentation:
The organizations need to understand the wants and needs of their customers better than their competitors. Although, different customers have different needs, it wouldn’t be possible to treat all of them similarly. To penetrate and stay in the market along with attaining a good market share, an organization needs to understand its consumers and their needs so that it segments them and delivers goods and services that satisfy their needs. This would lead to customer retention, which would benefit the

It gives a broader perspective to the organization of their customer.

Under psychographic segmentation, Cadbury provides Cadbury Celebrations according to people’s activities, and interests during the festivals.

Behavioural Segmentation
Behavioural segmentation breaks down into people behaving in a certain way towards a product or service. Why does the consumer buy that product? How will that product change the lifestyle of the consumer? How often does the consumer buy a certain product? Does the consumer opt for need or ease of the product? Things like brand loyalty, benefits a consumer receives from the product, usage rate of the consumer, all these things are brought under behavioural segmentation. Cadbury Bournvita and Oreo biscuits can be taken as examples for behavioural segmentation. These two products are marketed according to the consumer’s buying habits. Chocolate drinks are consumed on a daily basis and habitual buying behaviour is seen among the consumers for this product. Also, biscuits and chocolates are usually impulse buys, and Cadbury promotes these products according to the behaviour and traits of the