Business Environment Analysis

An analysis of the macro environment and the micro environment for Australian soft drinks industry. Focus on key players, market share, and strategies.

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Executive Summary
An analysis of the macro environment and the micro environment for Australian
soft drinks industry is conducted in the report. It has focused on the key players in
the market and have also highlighted their market share and strategies. With the
same, all the political, economic, socio-cultural, technological, legal and
competitive factors that generally influence the operation and business of the
industry are been taken into consideration in this paper. The young children, the
teenagers and the single people are possibly the best potential target market for
the Soft drinks industry and they will have positive impact on the business of the
companies that are working within the Australian Soft Drinks industry.

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Business Environment Analysis

Macro Environmental Analysis
Competitive Political Economic
• Presence of rivalry
among the existing
players
• Bargaining power of the
suppliers
• Threat of Substitutes
• Bargaining power of the
customers
• Foreign trade policy
• Environmental policy
like Waste management
regulations
• Trade restrictions
• Tax policy
• Political stability and
instability
• Food and Drug
Administration
Regulation (FDA)
• Rate of inflation
• Interest Rates
• Rate of exchanges
• Growth in the economy
• Disposable income of
the customers or
businesses
• Unemployment rate

Macro Environmental Analysis
Social Technological Legal
• Diet Craze
• Consumer Preferences
• Buying trends
• Social media outlets
• Automation
• Level of technological
awareness
• Research and
development
• Innovation level
• Safety Standards
• Labour laws
• Consumer protection
laws

Micro Environmental Analysis
Market Size- As per 2014, the market size of the Australian Soft drinks industry was
9.3 billion GBP and it is continuously growing. At present it is 11.8% (Neves, Gray and
Bourquard 2016).
Growth- the Australian market for Soft drinks is growing at a rate of 3.4% CAGR over
the last forecasted period. It is also to note that the carbonated soft drinks market in
Australia has been shrank by 5.9% in the year 2017 for reaching the value of 4956.2
million.

Micro Environmental Analysis
 Future Outlook- As per Ibrahim (2018), the market size of the soft drinks industry in Australia
is expected to reach 4994.9 million and 5,813 million USD by 022 and 2025 respectively.
 Key trends- Establishing crafts is the key trend in the present Australian soft drinks industry.
Also, there are many developments made in the industry in order to acknowledge the every
increasing health concerns of the consumers that is rapidly driving the industry growth.
Furthermore, it is also to note that the advancements such as the quality check labels as well as
the sugar free soft drinks are also rapidly increasing the customers’ spending on the Australian
soft drinks.

Segmentation and Targeting
Market Segments
Segment Description of
Segment
Demographic Geographic Behavioural Psychographic Segment
Attractiveness
Children and
teenagers
The children and
teenagers are the
ones from 11 to 18
years. Their
preference are
generally
influenced by their
parents.
Age- 11 to 18
Occupation- study
Sex- Boys and girls
Australia Tastes
New Users
Cool
Youthful
Medium attractiveness
Younger
Children
The younger
children belonging
from age 4 to 10
years.
Age- 4 to 10
Occupation- Study
Sex- Both boys and girls
Australia Parties
Tastes
Youthful
Tasty
Cool
Medium to high
attractiveness
Single People People, who are
not married and
belong from 21 to
27 years.
Age- 21 to 27
Occupation- Working
Sex- male and female
Level of income- more
than 1k dollars
Australia Parties,
Benefits
Taste
Loyal customers
Cools
Youthful
Energetic
Party-freak
High attractiveness
Married Married ones have
family and they
usually income
more than the rest
others.
Age- 27 to 35
Occupation- Business
man and woman, working
Level of income- 5k
dollars to 5 lakh dollars
Australia Parties,
Benefits
Taste
Loyal customers
Party-freak
Personal & family
parties
Medium to low
attractiveness

Recommendations and Conclusions
 Youths, single People and children should be the major target for the soft drinks company
 there is a considerable and increasing buying power among the children and teenagers. With the
same, they have an increasing influence over their parental purchases. They make use of media
heavily and easily adopt new media technologies, like Internet and cell-phones. This provide
additional marketing channels
 Also, Single people drink more than the married ones. They tend to part hard, go for more outings
and need more source of entertainment and refreshment. They earn and can easily afford to buy
cold drinks of different flavours.

References
 Ibrahim, O.O., 2018. D-Tagatose: A New Low-Calorie Sweetener from
Lactose in Cheese Whey as a Nutraceutical Value-Added Product.
In Food By-Product Based Functional Food Powders (pp. 207-224). CRC
Press.
 Neves, M.F., Gray, A.W. and Bourquard, B.A., 2016. Copersucar: A world
leader in sugar and ethanol. International Food and Agribusiness
Management Review, 19(1030-2016-83127), p.207.

Thank You