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The macroenvironment consists of larger societal forces that affect the

microenvironment and is shaped by demographic, economic, natural, technological,









macroenvironment to determine which factors may pose threats or present

opportunities (Armstrong, Adam, Denize & Kotler, 2012).
The market is divided into segments based on certain common traits in the population,
for the purpose of demography (Armstrong, Adam, Denize & Kotler, 2012). The
aging Baby Boomers and Generation X in Australias population are most likely
to suffer from sleeping problems and disorders, as shown by statistics conveying that
the two groups hold high regard for healthy lifestyles (Miller, 2011) highlighting
ChiliBeds opportunity to thrive. Economic factors, factors that affect consumer
purchasing power and spending patterns affect these generations, the two main
consumers, as the Global Financial Crisis hit them the hardest as many of their
investments were failed (Armstrong, Adam, Denize & Kotler, 2012). Consequently,
spending habits changed to become more conscientious about their spending and to
look for a good quality-price product relationship.
The natural environment is dependant on the companys natural resource usage. With
rising electricity bills, consumers want to avoid using air-conditioners, therefore
ChiliBed is beneficial to this market segment as the mattress will adjust temperatures
to maximise utility. Therefore, the ChiliBed causes a reduction in electricity usage and
thus is not only financially beneficial for the consumer but also environmentally
beneficial for society. Electricity cost savings may lead to increased public interest.
Technological forces create new technologies, creating new products and market
opportunities (Armstrong, Adam, Denize & Kotler, 2012). Technology is constantly
changing and adapting to new wants by consumers. Currently the ChiliBed is one of
the most superior mattresses on the market. For the ChiliBed to keep up to date,
innovations and improvements need to be made to prevent the product obsoleteness.
Chili Technology will also need to do research on potential competing brands and

products in order to create new ideas to retain its market niche as growing
technological advances significantly contribute to market competition.
Political factors influencing the macroenvironment are Laws, government agencies,
pressure groups that influence or limit various organisations and individuals in a given
society (Armstrong, Adam, Denize & Kotler, 2012). Introducing new products into
the Australian market require products and marketing strategies to comply with the
laws and regulations of the country. The strict policies on health and safety with
regards to electrical products such as the ChiliBed must be approved and certified
prior to sale in Australia (and New Zealand) and must be marked with the regulatory
Compliance mark (SAA Approvals, 2014).
Sociocultural factors are reliant on forces that affect a societys basic values,
perceptions and behaviours (Armstrong, Adam, Denize & Kotler, 2012). The number
of wary consumers about health concerns in the market is growing, opening up
opportunities for the ChiliBed as it focuses on providing body support and pressure
relief. The benefits of using water rather than wires for heating highlight the health
benefits associated with using the ChiliBed. Obtaining the latest technology item and
these factors may shift views from competitors to the ChiliBed due to the additional
benefits and value of the product. However, the buy Australian attitude (Australian
Made, 2014), may pose a threat to the American-developed ChiliBed.
Armstrong, Adam, Denize & Kotler, 2012, Principles of Marketing 5th Edition
Australian Made Campaign Limited, 2014, accessed 3 September 2014,
Miller, Jon D., 'Active, Balanced, and Happy: These young Americans are not
bowling alone'. The Generation X Report, Fall 2011, accessed 1 September, 2014, <>
SAA Approvals, 2014, accessed 3 September 2014,