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PESTEL Analysis. Tee industry


Enviado por   •  22 de Mayo de 2023  •  Ensayos  •  1.145 Palabras (5 Páginas)  •  40 Visitas

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PESTEL Analysis.  Tee industry

Political 

  • Government Policies: The government has the power to control the industry through different regulations, such as taxes, export and import policies, labor and environmental laws, among others, all of which affect both the production and distribution of tea.
  • Political stability: The lack of stability in a government within the country results in the generation of conflicts within the same company, within its different areas such as distribution and administration.
  • Industry regulation: It is very important that there are good regulations within the competition in the industry by political institutions, with the purpose of protecting all those companies both large and small that seek to grow.

Economic 

  • "Annual growth is 4% , and in the country, the value of the industry amounts to 62 million dollars ($340 million pesos); according to Olivia Medina , general director of Euro Té." (Redacción El Universal & Gámez, A. 2019).
  • "In 2016, according to the latest figures available, the value of the tea market reached 339.8 million pesos, while the herbal market closed at 980 mdp, Jurado highlights." (Fermin, S. 2018).
  • Leading companies in Mexico are La Pastora, with 20.1% of the market; McCormick, with 19.4%; and Therbal, with 18.2%.
  • “In 2016, the value of the tea market reached 339.8 million mexican pesos (U$S 17 million), while the herbal market closed at MXN 980 million (U$S 49 million). pesos (US$ 49 million).”

Social

  • International Tea Day, which since 2019 has been celebrated on May 21. 
  • "With the camellia sinensis plant, six types of tea are prepared: white, green, black, yellow, ulong, and pu-erh or red tea. The rest of the infusions that are prepared with other types of plants are called tisanes." (Aguilar, 2022). 
  • It is a cultural and translation issue that in Mexico all infusions sold in cloth bags or similar are known as tea. 
  • "An increasing number of companies have launched products with tea aroma or flavor, in order to attract the public eager to find the benefits of the plant in all kinds of products" (Cubas, I. 2022).
  • "More than 60% of online searches around tea are related to functional benefits attributed to them." (Cubas, I. 2022).
  • Teas and tisanas most consumed in Mexico are Jamaica, chamomile, peppermint and lemon. 
  • 40% of Mexicans drink tea (2011). 
  • The tea market in 2017 grew by 20% in Mexico. 
  • "Per capita Mexicans drink an average of 7.8 cups of tea per year and it is estimated that these will grow to 8 cups by 2021." (LaculturadeltéenMéxico,2019).
  • "It is the second most consumed beverage in the world. In Mexico, the pandemic boosted it." (Aguilar, 2022).
  • "Eugenio Larrinaga, founder of Tomás Té comments. "The category is not growing so much in volume, it is growing in value. People, instead of drinking cheaper teas, are looking for higher quality"" (Fermin, S. 2018).
  • "Mexicans consume 12 grams of tea a year, the equivalent of six cups." (Aguilar, 2022). 
  • "According to the Mexican School of Tea. In the same way, Euromonitor estimates that the average number of cups per Mexican will close at 8 per year." (Redacción El Universal & Gámez, A. 2019).
  • The market is betting on a consumer belonging to generation Z. Gong Cha (bubble tea) is an innovative example in the use of tea. "Bubble tea has tea (aha, the one from camellia sinensi) and tapioca as bases. From there, drinks can be combined with milk and/or fruit flavors and toppings." (Aguilar, 2022). 
  • "Tea is in fashion, more than we can imagine; and in that young people have a lot to do, especially in countries like Mexico, where according to the latest INEGI census (2020) 25% of the total national population belongs to this group eager to try something different."(Berruecos, 2022).
  • According to a recent study by the consulting firm Kantar, 56% of younger consumers prioritize experience over products or services.
  • The traditional format of drinking tea is changing and it is time to innovate this process, something key in the product is its presentation. 

Technological 

  • Technological processes in the manufacture of tea: As time goes by, technology has advanced, thus managing to automate processes that were previously manual, thus improving the efficiency and quality of the product.
  • Social Media: If we want to approach a younger audience, the companies need to invest and create a good management of their social media, with the purpose of getting a greater scope. 
  • E-commerce: Thanks to the great reach that e-commerce has had in the last decade, several companies within the tea industry have adapted their digital platforms so that their consumers can buy their products online.
  • Tea packaging: In the same way, the packaging processes of the products have been optimizing, seeking to create more sustainable packaging but at the same time managing to preserve the product for longer and with a good presentation.

Ecological 

The tea industry is strongly linked to ecological factors since they play a very important role in its production.

  • Climate, soil quality, water availability and energy consumption.
  • Investments in clean energy: Nowadays, companies seek a more sustainable approach in accordance with the environment, this through various actions, including investing in clean energy that creates more environmentally friendly processes.
  • Responsible consumption trends: consumers currently seek to invest their money in products that are sustainable, generating purchases that are more environmentally conscious.

Legal 

  • NORMA Oficial Mexicana NOM-218-SSA1-2011, Products and services. Non-alcoholic flavored drinks, their frozen products, concentrated products to prepare them and drinks with added caffeine. Specifications and sanitary provisions.
  • All foods and non-alcoholic beverages marketed in Mexico must have front-end nutritional labeling, which consists of the obligation to indicate the content of "Saturated fat", "Other fats", "Total sugars", "Sodium" and "Energy". 
  • For multipack containers the information required by NOM must be located on the container, except for the lot number and expiration date, which must appear on each product. date, which must appear on each product. The package must include the statement not labeled for individual sale".
  • “Imports of plants, plant products and by-products must comply with requirements specified by SAGARPA and enforced through its regulatory agency, the Servicio Nacional de Salud, Seguridad Alimentaria y Calidad de los Alimentos Agro (SENASICA). SENASICA includes the Dirección General de Sanidad Vegetal (DGSV) and the Dirección General de Sanidad Animal (DGSA).”
  • Sanitary and phytosanitary requirements. (SENASICA)
  • NOM051-SCFI/Health 1-2010, "General Specifications for the general specifications for the labeling of prepackaged foods and non-alcoholic beverages".
  • NOM - 002 - Health 1-1993. This regulation prohibits the sale or importation of food or beverages in metal containers with lead solder and specifies the type of seams allowed for hermetically sealed containers. hermetically sealed containers. 
  • NOM -130 - Health1-1995 establishes the basic sanitary requirements for hermetically sealed heat-treated products, including limits on microorganisms, heavy metals and additives. 
  • For Packaging The Official Mexican Standard NMX-EE-059- NORMEX-2000 "Symbols for handling, transportation and storage"

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