Market Analysis for Coffee Industry in Brisbane

Market Analysis-
Coffee drinkers have raised the standards for cafes, baristas and businesses as their demand
for the bean continues to skyrocket in Brisbane. Australian coffee culture along with growing
numbers of small coffee café and restaurants leading to growth in the level of competition
with less restriction to entry and sparse industrial concentration. Price, quality of product and
customer service are the major determinant factors for the success of any business entity. In a
specific concern to coffee, its texture, brand and even level of cream in espresso are getting
important to customers. Love for coffee is the main factor for industry growth in the last five
years aftermath of the global economic downturn. Revenue growth can also be seen to be
fuelled by this factor. It has been estimated that the industry is expected to grow 3.2%
annually. It also estimated revenue growth of 2.4% in 2014-15 to $4.3B.
Mission-
The analysis will help to establish a place where customers can enjoy the best-brewed coffee
to get relax and comfort in an environment that will be praised by all. The café will be the
place that will provide coffee of consistently increased quality along with a sense of peace to
mind with its convenient location, ambiance, and friendly customer service. The
establishments need to invest the profit for the capital development of their employees.
Keys to success-
While analyzing for the establishment of any business entity keys that leads to success can be
mentioned as:
 Efficient and visually attractive store design that provides faster operation and service
to customers.
 Training of employees to prepare the best coffee to serve.
 The market strategy that helps to build a solid and loyal customer base also helps in
maximizing the sale of some products with high margin available in the store.
1- Market Trend
Cafes and coffee have grown in both diversity and number in the last five years. The
industry has increased the variety of services offered as there is a consistent increase in
the number of cafés owned by artisan bakers. There is a diversified increase in food
offerings by the industry at the territorial level. Products are broadly segmented into
coffee, food, and other beverages. (Mordorintelligence.com, 2019).
The nature of product and service has significantly affected by income level in any
market. Product demand is based on the discretionary income of an individual to a great
extent.This leads to market segmentation depending upon income level. While the
industry service so far depends upon income segmentation of society, the Australian
coffee culture is less reliant on income level.

lowest income quintile
second income quintile
middle income quintile
fourth income quintile
highest income quintile
0%
5%
10%
15%
20%
25%
30%
35%
MARKET SEGMENTATION
These are the customers who are most likely to buy coffee products as given in market
research. Since coffee consumption, by and large, depends upon the specific section of
society and higher education attendants and it mostly depends upon the level of higher
education, so proximity to university or college will be best for the business of café.
2- Target Market Strategy
Here analysis will base on the people who want their coffee cup in one of the best and
relaxing environment. There will be variation in age, location, and types of customers.
As we have decided to have proximity with the university so a major share of
customers will be students and faculty. Also, we know that these are the type of
customers whose preference will be quality of service and will gravitate towards the
better taste of the coffee. Also, the coffee bar acts as a perfect reading and meeting
location for a lot of students. Here they can read and meet with each other and friends
without the need of paying extra charges. This will lead us to create a loyal client
base. A general trend among Australian customers towards quality can be seen in the
recent growth in the consumption of coffee. Along with this, the desire of some
indulgences and something more exotic and unique can provide selling opportunities
for coffee bars.

Teenager
Students and Faculty
Office Workers
others
0
5000
10000
15000
20000
25000
Market Share
Market Share
3- Industry Analysis
The retail coffee industry has a bright potential to flourish in Australia primarily due
to climatic and weather conditions. Rain and prolonged cold season are best suited for
the consumption of hot beverages. While in summers, iced drinks made using coffee
drive people to cafes as it will bring relaxation from hot summer. Also, coffee has
become a lifestyle for people in the Pacific that helps to create widespread and strong
coffee-based beverages that can be consumed to get a relaxing environment. The chart
below displays market potential with many customers who prefer to drink coffee.
(Mordorintelligence.com, 2019).
Revenue($m)
Industry Value Added ($m)
Establishment
Enterprise
Employment
Wages($m)
0
20000
40000
60000
80000
100000
Industry Data
Industry Data
Product-