3-Year Marketing Plan for Omospondia Yefsis

The Context-P.E.S.T.L Analysis

  1. Political

Although Greece has introduced a number of reforms recently to assist the labor market, it is still experiencing an unemployment rate of 27.3% (2013) and minimum wage reductions between 20% and 30%. By 2013 the minimum level of wages had reached a low of €684 and productive capabilities had diminished; a direct impact of the financial crisis. Greece has yet to fully recover and as such, the availability of finances is still strict which will directly affect our analysis. (Euromonitor International, 2014).

  1. Economic

In the wake of the aforementioned instability investors have lost confidence in the Greek markets. This is, in part, due to volatile inflation rates and 0.9% price deflation experienced in 2013 leading to a considerable drop in consumer spending. Economic reforms undertaken by the country managed to reduce the deficit to 8.9% in 2012, however poorly implemented tax reforms and infrastructure caused the deficit to reach 12.7% by 2013. However, Greece’s GDP is expected to only marginally decline in the future, which has renewed confidence in business activities (Euromonitor International, 2014).

  1. Social

Greek consumers have changed their eating habits in response to changing economic conditions and lifestyle. Increasing demand for fast midday alternatives generated by young adults has led the population to dine during the later evening hours. Moreover, due to the effects of the recession Greeks have switched from going out to eating in and have been increasingly taking note of the provenance of their food. Homegrown ingredients and domestically produced foods are preferred while a variety of imported products are shunned. Finally, the increasing success of cooking shows has encouraged viewers to experiment with new dishes and ingredients previously considered niche, but currently rising in popularity. (Euromonitor International, 2013).

  1. Technological

Extensive use of online services and the continuous improvement in broadband technology over the last decade have played a vital part in Greece’s consumer behaviors. Companies took advantage of such online platforms not only to educate their consumers about their products and services, but also regarding promotional activities and sales opportunities. The manufacturing sector saw advances in food-preparation technologies which allowed producers to be more cost-efficient and operationally effective (Euromonitor International, 2014).

  1. Legal

Greece’s legal environment is impacted by continuous fluctuating tax rates. The rise of existing taxes, as well as the introduction of new ones, has made for a tumultuous economic platform. Corporation tax rate rose from 20% in 2012 to 26% in 2014, where it has remained since, while total tax revenues from commercial activities accounted for 44% of profits. Greece’s VAT currently stands at 23%, with food products sold under a reduced 13% rate (Euromonitor International, 2014).

Bibliography

Euromonitor International, (2014). Business Environment Greece. Euromonitor International.

Euromonitor International, (2013). Consumer Lifestyles in Greece. Euromonitor International.

Euromonitor International, (2014). Dried Processed Food in Greece. Euromonitor International.

Euromonitor International, (2014). Greece Country Pulse. Euromonitor International

Euromonitor International, (2014). Passport- Alfa-Beta Vassilopoulos SA in Packaged Food in Greece.Euromonitor International.

Euromonitor International, (2014). Pasta in Greece. Euromonitor International.

Euromonitor International, (2014). Sauces, Dressings, and Condiments in Greece.

Euromonitor International, (2014). Ready Meals in Greece.

This entry was posted in Marketing assignments and tagged , , , , , , , , , , . Bookmark the permalink.

Αφήστε μια απάντηση

Η ηλ. διεύθυνσή σας δεν δημοσιεύεται. Τα υποχρεωτικά πεδία σημειώνονται με *