PEST ANALYSIS

             

Demographic/Psychographic:

The age group that MLF needs to focus on varies. Their main target market is young families with three or more people in the household.  The different ethnic composition and geographic distribution is spread out across Canada. Western Canada prefers all beef dogs; Central Canada prefers the cheaper dogs; and Eastern Canada prefers the healthier dogs.  Also, hot dogs appeal to people of all income levels and educational backgrounds which widens the market.  It is also noted that hot dogs are most enjoyed in the summer and during baseball season.

Sociocultural:

Families are a main part of Maple Leaf Foods market, so any changes that people make that slow the birthrate would have an effect on the demand for MLF’s hot dogs.  Also, there is a trend where people are becoming a little more health conscious. However, MLF will have to find a balance because people will not sacrifice taste for healthier contents in the hot dogs.

Political/Legal:

The legal perspective that focuses on the hot dog industry is from the Canadian Food Inspection Agency.  This agency regulates the cuts of meat that go into the dogs as well as the nature of the vitamins that are added (for example, where does the extra calcium come from).

Technological:

Technological advances allow for more streamlined manufacturing and data analysis.  Canada has up-to-date technology available for MLF to use; this means that they will be able to update their systems and machinery in order to keep their data from present projects to compare with future projects.

Economic:

Hot dogs are at a cost where they can be continuously bought.  However, as interest rates and unemployment increase, people will have less disposable income and therefore buy less. MLF will have to keep their prices low in order to compete with JMS.

Global:

MLF focuses on the USA and Canada.  In this case they are looking at their market within Canada.  Because they produce the majority of the goods that go into hot dogs, they do not have to worry about bringing in ingredients as much as other companies do.