Macro and Micro Environmental Analysis of Soft Drinks Industry in Australia

2019
Marketing Stand and Deliver
Assessment 2
NAME OF THE STUDENT:
STUDENT ID:

Table of Contents
Executive Summary...............................................................................................................................2
Introduction...........................................................................................................................................3
Situational Analysis................................................................................................................................3
Macro-Environmental Analysis..........................................................................................................3
Competitive...................................................................................................................................3
Economic.......................................................................................................................................3
Political..........................................................................................................................................4
Legal & Regulatory.........................................................................................................................4
Technological.................................................................................................................................4
Socio-Cultural................................................................................................................................5
Micro-Environmental Analysis...........................................................................................................5
Market Analysis.............................................................................................................................5
Competitor Review........................................................................................................................5
Customer Landscape.....................................................................................................................6
Market Segmentation........................................................................................................................0
Targeting & Recommendations.........................................................................................................1
Segment 1: Youths.........................................................................................................................1
Segment 2: Single People..............................................................................................................1
Segment 3: Children and Teenagers..............................................................................................1
References.............................................................................................................................................3

Executive Summary
This paper has been elaborated on presenting a brief analysis of the macro and micro environment
for the soft drinks industry of Australia. It has highlighted the key players within the industries along
with their market share, the strategies that they use along with their type of business. Also, all the
political, economic, socio-cultural, technological, legal and competitive factors that are likely to
influence the industry are also highlighted in this paper. It is to note that as per the marketing
segmentation, it has been identified that the youth, the teenagers and the single people are likely to
be the best potential target market for the industry as their characteristics and the advantages that
they possess do will positively impact the business of the companies working within the industry in
Australia.

Introduction
This report shall elaborate on performing a macro environmental analysis of the food and
beverage industry using PESTLE analysis in order to examine the current market for Soft Drinks. It
would identify and describe the various segments along with the segmenting variables that are used
within the industry. Firstly, a situational analysis of the industry shall be conducted, within which the
macro-environmental and the micro environmental factors that are affecting the industry would be
presented. Lastly, how the industry conducts the segmentation shall be analyzed. At the end of the
report, several sets of recommendations for segmenting the market for Soft Drinks.
Situational Analysis
Situational analysis is a collection of all the methods that the managers make use of for
analysing the internal and the external environment of the organisation for understanding the
capabilities, customers and the business environment of an organisation (Van Velsen 2017). Below is
presented a brief overview of the macro-environmental and micro-environmental analysis of the
food and beverage industry that are likely to influence the market for Soft Drinks.
Macro-Environmental Analysis
The following section identities and explains the impact of key variables in each of the
environmental factors impacting the industry.
Competitive
The Food and beverage industry is major industry in Australia in terms of employment and
financial contribution (Sheldon and Erdogan 2016). It is worth 60 billion dollars. The industry is not
growing rapidly. This is making it difficult for the new entrants to enter into the market for
competing with the already existing companies in the industry. Following are the forces that is
impacting the competitive factor:
 Rivalry among the existing players in the market
 Bargaining power of the suppliers
 Bargaining power of the customers
Economic
The economic factor refers to the determinant of the performance of the economy. Following
are the forces that is impacting the Economic factor are mentioned below:
 Inflation Rates
 Interest Rates