The next step in order to determine the feasibility is analysing the competition. The identification of the competitors and their products is done in the supermarkets Aldi, Coles and Woolworths in or around the Sunshine Plaza in Maroochydore. These are the main supermarkets in Australia. The biggest one is Woolworths with a market share of 37.3% in December 2015, which declined from 38.5% in March 2015, followed by Coles with a market share of 31.8% in March and 32.5% in December 2015. Also Aldi increased its market share in the time period of these 6 months from 11.5% up to 12.5% (Retail World 2016). Thus, Aldi had the highest increase in market share with nearly 9%. During the observation it was determined that there are four different chocolate …show more content…
The history of Pauls began with the opening of Pauls milk factory in 1932. Nowadays, the company has 2,500 employees working with approximately 500 Australian farmers in Australia (Parmalat Australia 2015). Coles ‘Choc Snack Chocolate Dairy Dessert’ is offered as Coles own brand. It is not possible to research the actual manufacturer for this dessert due to non-disclosure agreements between Coles and its suppliers (Ann [Customer Service Coles], 2016, pers. comm., 31 August). YoGo is a dessert brand of the company Lion Pty Limited (Lion). The subsidiary for food is called Lion - Dairy & Drinks Australia (Lion 2014b). Lion is one of the largest companies for food and beverages in Australia and its history goes back to 1840. The company purchases about one billion litres of milk from more than 550 Australian farmers and employs around 6,700 people in Australia and New Zealand (Lion 2014a; Lion 2014c). Brooklea is a home brand of Aldi and Aldi is also not willing to disclose its suppliers due to similar agreements as Coles (Deborah [Customer Service Aldi], 2016, pers. comm., 31 …show more content…
From an environmental point of view, it can be said that Australia is a suitable country for market entry due to its political stability, absence of violence and terrorism as well as due to the growing population, the rising private consumption, decreasing of household savings and due to the increasing disposable income. The regulations for import, which are given for entering the Australian market, should not pose a challenge for Zott since they are already offering another product in Aldi in New South Wales. So the machineries as well as the production and manufacturing processes are already adapted for the other product to fulfil all the regulations. Dairy is an important and big industry in Australia, but the number of sold units of pudding decreased in the last two years, which nevertheless resulted in a higher value due to a rise in price. But despite these market trends, Zott has less direct competition in the Australian market because there are no cream puddings available in the supermarkets and no chocolate puddings for adults. The competitors supply only four different products to Aldi, Coles and Woolworth which are all for children. Thus, a cream pudding, especially for every person, is a market gap in Australia, which Zott can respond to by entering this market with