Uncle Toby Environment Analysis

Q 3.5 Environmental Analysis for Uncle Toby’s Oats in HK

Economic

Low-income household consumers experience fairly elastic demand for hot cereals such as oats when compared with high income households (ref: 5). This makes price a statistically significant figure for anylysing the environmental market for oats. Products that will be marketed to lower income houses such as low unit price family packs of oats and basic flavours should be as cheap as possible to compete for market share with competitors, resulting in higher sales of oats. For high income houses, demand is fairly inelastic with respect to price. In order to market to these consumers, Uncle Toby’s must ensure to provide a premium alternative focusing on competing with quality as opposed to price. If a variety of products is not provided to adequately market to each segment of low and higher income households, the potential sale of oats will be significantly limited.

Technological

Technological advances are allowing strides to be made in the scientific field regarding our understanding of the benefits of adequate and suitable nutrition. Studies have recommended breakfast foods with low Guclose levels and high protein content. This combination of nutrients that is found in oats has been linked to higher energy levels, and in the long term, metabolic disease prevention (ref: 4).

Another FDA approved claim is the hypocholesterolemic (cholesterol lowering) qualities of oats, leading to the prevention of coronary heart disease (in conjunction with a healthy life style). Oats have been found to lower cholesterol by 2 to 23%, if eaten in the required amount of 3 grams of oat beta-glucans a day (ref. 6). In order to achieve this level of lipid depletion, one and a half cups of cooked oatmeal should be consumed. (ref 7)

In order to minimize risk and maximize success of the introduction of Uncle Toby’s oats to Hong Kong, efforts to increase the level of consumer awareness and its multiple health benefits...