(MKT 60010) - Market Analysis of IRIS Cafe

In this assignment we will discuss about market analysis and below are the summaries point:- The marketing analysis provides insights into the macro-environment, target customer segments, and consumer behavior for IRIS cafe. The analysis highlights the importance of adapting operations to accommodate macro-environmental factors and developing a marketing plan specific to the young family-oriented young adult segment. The report includes a thorough examination of the macro environment and the 4C's framework, analyzing political, economic, sociocultural, technological, legal, and environmental factors, as well as trends, company, customers, competitors, and collaborators.

MKT 60010
Assignment 1: Market Analysis
[DATE]
[COMPANY NAME]
[Company address]

Executive Summary
This marketing analysis aims to provide IRIS cafe insights into the macro-environment, target customer segments, and
consumer behaviour of IRIS’s target audience. This plan includes a comprehensive analysis of the PESTLE and 4C’s model,
market segmentation, target segment profiling, and psychological profile development.
Based on the analysis, IRIS cafe should focus on adapting its operations to accommodate macro-environmental factors
while incorporating the insights gained from the persona of Sarah. Sarah is a persona developed from the segment of young fam
oriented young adults, which has a work-life balanced lifestyle and enjoys meeting up with close ones during weekends. By
understanding her personality and self-image, and culture and age subculture, IRIS can develop a marketing plan specific to this
segment.

Introduction
Iris is a sustainable and community-centred bakery project that is seeking funding through Kickstarter to cover the costs o
equipment and supplies needed to start the bakery. The project aims to create a local, accessible, and inclusive space that
prioritizes sustainability, environmental responsibility, and social equity.
The business will use organic and locally sourced ingredients, offering a range of vegan and gluten-free options. The baker
aims to promote sustainable food practices and reduce food waste by using seasonal and surplus ingredients, composting food
scraps, and using eco-friendly packaging. The project team consists of a diverse group of individuals with backgrounds in baking
community building, and sustainable agriculture. They are committed to creating a welcoming and inclusive space that reflects
diversity of the neighbourhood.
This report aims to provide a comprehensive and structured marketing analysis for the business, targeting the Australian
market. The analysis has been conducted using three key areas: Environmental analysis, Segmentation analysis, and Target
market selection and profiling. By examining these areas, the report aims to provide a detailed understanding of the market
environment, identify potential customer segments and develop a target market profile.

Macro External Environment Analyses
The marketing analysis begins with a thorough examination of the macro environment to gain insight into external factors
that may affect business operations. This analysis is critical in developing an effective marketing strategy to achieve organizatio
goals. The macro-environment comprises of several factors such as Political, Economic, Sociocultural, Technological, Legal, and
Environmental. Meanwhile, the 4C’s framework considers Customers, Company, Competitors, and Collaborators in conducting an
in-depth analysis. By merging these two frameworks, relevant information is gathered to focus on how each PESTLE element
influences consumer behaviour and spending patterns (Reed, 2015).

PESTLE & 4Cs
Trends Company Customers Competitors Collaborators
Political:
The Australian Government is adjusting
laws to accommodate the post-
pandemic time. The Australian
government has taken various
measures to promote consumer
spending after the pandemic, including
tax cuts (Remeikis, 2022) and cash
payments to eligible households, as
well as supporting businesses through
grants, loans, and wage subsidies
( Business Grants and Support |
Coronavirus Victoria, 2020;Small
IRIS will be benefitted
from getting loans,
grants, and wage
subsidies from the
government.
Customers receiving tax
cuts and incentives will
have increased spending
power, benefiting the
sales of IRIS.
The government grant support
benefits its competitors, such
as cafes and bakeries, among
other local businesses (Small
Business COVID Hardship
Fund, 2021).
-

Business COVID Hardship Fund,
2021) to maintain employment and
consumer confidence.
Economic:
1. Australian government supports
local agriculture producers through
several programs and initiatives such
as the Farm Household Allowance
campaign (Farm Household Allowance
- DAFF, 2022), the Agriculture Trade
and Market Access Cooperation
Program (Agricultural Trade and Market
Access Cooperation (ATMAC) Program
- DAFF, 2022), which maintains the high
quality of local produce.
2. Australian government support local
products and businesses through
various programs and initiatives, one of
which is the Australian Made campaign
- - - The Australian Government suppo
agriculture and businesses, the
collaborators such as local farmer
and producers will benefit from th
providing better opportunities for
collaborations between IRIS as a
small business and local
producers/suppliers/farms.

( About Australian Made - the Australian
Made Campaign, 2015), which
promotes and certifies locally made
products and also provide funding for
small enterprises that produce local
products.
Sociocultural:
Changes in demographics, increasing
multiculturalism in Australia (Cultural
Diversity of Australia, 2022).
Shifting consumer preferences towards
healthier and more natural food options
(Writer, 2018).
Such trends toward
healthier and natural
food options could
increase the demand for
IRIS’s products.
Consumers become
increasingly aware of this
trend and thus, may
switch to more healthier
and more locally
produced products.
Brunswick is a laid-back
multicultural suburb with a
young alternative crowd,
multiple long built cafes with
similar social and
environmental-conscious
beliefs (Gorman, 2018).
-
Technological:
Advancement in Artificial Intelligence
technology for both hardware and
IRIS has many
opportunities in adapting
new technologies
- Bakeries and cafes that utilise
AI technology benefit from
consistent higher quality
-

software (Smith, 2022). Such as food
waste monitoring application (Savvie –
the First AI-Powered App to Reduce
Food Waste in Cafés, 2020), self-
service checkout system
(insightdottech, 2020), and remote
monitoring baking systems (Hyslop,
2019).
(Bocock, 2022). output.
Legal:
The recent change in post-pandemic
employment regulation for international
students (Immigration and Citizenship
Website, 2019) do not address the
recent skills shortages and could risk
understaffing problems.
Changes in labour laws
and regulations could
impact IRIS’s staffing
and operational costs.
- - -
Environmental:
Increased awareness within the
Australian society and concern to
IRIS’s commitment to
limiting themselves using
only local ingredients
aligns with the growing
- Competitors that do not
practice environmental
protection and sustainability
Packaging suppliers and milk
suppliers that provide eco-friendly
packaging (coffee cups, straw) an
practice sustainable agriculture

environment and sustainability
( IBISWorld - Industry Market Research,
Reports, and Statistics, 2023);
trend of consumers
placing greater
importance on
sustainability and locally
sourced products. This
appeals to socially
conscious consumers
and enhances their
brand reputation.
will be impacted negatively. (plant-based and regular milk) wil
have better chance of collaboratin
with IRIS.

Segmentation
Segment Name Benefits Sought Lifestyle Occupation Income Age range
(approximate)
Work-study’s Hub Daily coffee fix, quick
breakfast/lunch.
Budget-conscious.
Good place for working,
meeting, and studying.
Expect great coffee
quality, but not food-
focused.
Work or study-focused,
busy daily routines, seek
caffeine daily and enjoy
a buzzing environment
for work.
Students, freelancers. Lower income 18 to 25.
Socialite Oasis A comfortable space for
meetups, chats, and
hangouts. Focus on food
and coffee quality.
Relaxed lifestyle, enjoy
going to cafes for family
or friends meetups
during weekends.
Young adults, family-
oriented individuals.
Moderate income 25-35

Evening Retreaters A place to relax, and
unwind. Usual visit time
is around evenings,
focus on food quality
and enjoy wine.
Enjoy people-watching,
and spend downtime
alone.
Professionals. High income 35-55
Community
Connoisseurs
Devoted to the local
café, takes pride in
knowing every worker
and building
connections. Focus on
food and coffee quality.
Prioritise on community
relationships.
Retired. Low to Moderate income50 and above.
Target market selection

Segment Name Compatibility Attractiveness
(size/growth)
Effectiveness Cost Efficiency
Work-study’s Hub ++
IRIS is able to provide a
large amount of quality
takeaway coffee, and a
buzzing environment for
work and study.
-/+
Lower income range
limits purchasing power,
but the high demand for
daily coffee can offset
the cost.
++
Easily reached through
social media and word-
of-mouth.
++
Marketing efforts can be
focused on this segment
with minimal waste of
resources.
Socialite Oasis ++
IRIS provides a
comfortable space for
socializing with quality
food and coffee.
++/++
Moderate-income
individuals that value
social connections are
willing to spend to gather
with friends and family.
++
Effectively reached
through social media
and local advertising, the
attractive space can
create word-of-mouth
recommendations.
++
Marketing efforts can be
focused on this segment
with minimal waste of
resources.

Evening Retreaters ++
IRIS provides a relaxing
environment with quality
bread/light snacks and
wine around evening
time.
++/-
High-income individuals
that value downtime are
willing to spend to
unwind alone in a cosy
atmosphere.
-
Challenging to reach
through social media or
local advertising, and
relying on word-of-mouth
takes longer.
-
Marketing efforts may
need to be targeted to
reach this segment
effectively, which
requires more
resources.
Community
Connoisseurs
+
IRIS prioritizes
community relationships
and build a loyal
customer base.
-/++
This segment has low to
moderate income, and
the monetary value may
not be significant, but
the social value of
building relationships
can be attractive.
-
Requires more personal
outreach and community
engagement rather than
relying on traditional
advertising channels.
+
Marketing efforts can be
focused on this segment
with minimal waste of
resources.
++ = High, + = Moderate, - = Low, -- = Extremely Low

Based on the analysis of the segmentation table above, ‘Socialite Oasis’ has the highest ranking for every category, thus it has
been chosen to be the target market segment.

Target Customers Profiling

Consumer Behaviour

Personality and Self-Concept:
Personalities play a big role in consumer behaviour, including their loyalties to a brand (Lavidge & Steiner, 1961) and spending
choices (Evans, 1959). Grubb and Hupp (1968) have found the relationship between personality traits and brand selection,
specifically in the measurement of consumers’ self-concept, where they will purchase a product/service which they think will
enhance their own self-concept. Solomon (2019) explains personality traits as ‘any distinguishing, relatively enduring psycholog
characteristics in which each individual differs from another’.
The personality traits of the target customer segment based on the persona template according to the ‘Big five personality
dimensions (McCrae & Costa, 2008)’ may consist of:
1. Open to new experiences: As a creative individual, Sarah is passionate about discovering new cafes.
2. High conscientiousness: Sarah is organized, responsible, and goal-oriented. She plans weekly catch-up with her close circle in
advance, finishes her job during weekdays and follow-up with her relationships with others. She is likely to be health-conscious a
chooses quality healthy food over flavourful cheap dishes.
3. Extrovert: Sarah values human interactions, she allocates time and makes efforts to build strong relationships with close ones
likely to be building community relationships through regularly visiting her ideal cafe place.

4. High agreeableness: As a professional in her late-20s, Sarah has developed well social skills and due to her job nature, she
faces clients on a daily basis, which trained her to be cooperative, compassionate, and empathetic towards others. She values
harmonious relationships and is often described as warm and friendly.
5. Moderate-to-high neuroticism: Sarah may experience high emotional stress as a young marketing executive dealing with a lar
number of daily tasks and responsibilities in dealing with different clients regularly. On the other hand, an extrovert might not be
able to digest emotions alone and rely on others to cope (How Do Extroverts Deal With Stress? (A Complete Guide) – PsychReel,
2020), which leads to a higher tendency toward emotional instability. Thus, she tends to frequently visit a familiar cafe.
Some other personality traits are the need for uniqueness, susceptibility to interpersonal influence, pro-environment, and sensa
seeking.
Sarah’s self-concept may include:
1. Ideal self-image: Sarah wants herself to be an outgoing, independent, balanced lifestyle person.
This leads her to arranging social meetings and building relationships with the community.
2. Ideal social self-image: Sarah wants others to view her as unique, confident, loved by close ones, and popular.
This leads her to posting social gatherings photos and new cafe visit photos on social media.
Age subculture and Culture:

Kotler (2016) defines cultural influence as the broadest and deepest influence on consumer behaviours, each culture consists of
smaller subcultures that provide more specific identification and socialization for their members.
As a young adult in her late 20s, Sarah is likely to be a part of an age subculture that values experiences, social interaction, and
authenticity. This subculture is often associated with the millennial generation and is characterized by a focus on individuality,
creativity, and self-expression.
Being born in 1995, Sarah grew up in the 2000s, which is the largest modern technology advancing time, she experienced a dig
transformation and places a large value on online appearance and accommodating to trends. This leads her to be easily influenc
by her peers and visits aesthetic cafes; while societal expectations also influence her preferences for organic and sustainable ty
of food and drink.
Growing up in Melbourne, which has a rich history of cafes and coffee culture, Sarah has high standards for the quality of cafe
ambience, food, and coffee. She is likely to visit cafes that provide consistent quality and unique experiences.

Conclusion
The marketing analysis conducted includes a comprehensive analysis macro-environment, market segmentation and targe
segment profiling, and psychological profile developments. Based on the insights obtained, it is recommended that IRIS cafe
adapts its operations to accommodate the macro-environment and target individuals like Sarah, the persona representing the id
customer, in its marketing strategy. This will help IRIS cafe differentiates itself from competitors, attracts and retains customers
Sarah, and ultimately achieves its business goals. The marketing analysis can serve as a useful tool for IRIS cafe to develop a
practical and effective approach to its marketing strategy.

Bibliography
About Australian Made - The Australian Made Campaign. (2015). Australianmade.com.au. https://australianmade.com.au/why-buy-australian-
made/about-australian-made/
Agricultural Trade and Market Access Cooperation (ATMAC) Program - DAFF. (2022). Agriculture.gov.au.
https://www.agriculture.gov.au/biosecurity-trade/market-access-trade/atmac
Bocock, R. (2022, January 21). 6 new technologies in the baking industry. Countingup. https://countingup.com/resources/6-new-technologies-in-
the-baking-industry/
Business grants and support | Coronavirus Victoria. (2020). Vic.gov.au. https://www.coronavirus.vic.gov.au/business-grants-and-support
Cultural diversity of Australia. (2022). Australian Bureau of Statistics; Australian Bureau of Statistics. https://www.abs.gov.au/articles/cultural-
diversity-australia
Evans, F. B. (1959). Psychological and Objective Factors in The Prediction of Brand Choice Ford Versus Chevrolet. The Journal of Business,
32(4), 340–369. http://www.jstor.org/stable/2350647
Farm Household Allowance - DAFF. (2022). Agriculture.gov.au. https://www.agriculture.gov.au/agriculture-land/farm-food-
drought/drought/assistance/farm-household-allowance

Gorman, J. (2018, April 5). Green Cafes & Eco-Friendly Places In Brunswick | GreenMe Melbourne. Our Travel Home.
https://www.ourtravelhome.com/green-me-sustainable-tour-brunswick-melbourne/
Grubb, E. L., & Hupp, G. (1968). Perception of self, generalized stereotypes and brand selection. Journal of Marketing Research, 5(1), 58–
63. https://doi.org/10.2307/3149794
How Do Extroverts Deal With Stress? (A Complete Guide) - PsychReel. (2020, December 2). Psychreel.com. https://psychreel.com/how-do-
extroverts-deal-with-stress/
Hyslop G. (2019, November 25). Next gen AI equipment will future proof the baked goods market. Bakeryandsnacks.com.
https://www.bakeryandsnacks.com/Article/2019/11/25/Next-gen-AI-equipment-will-future-proof-the-baked-goods-market
IBISWorld - Industry Market Research, Reports, and Statistics. (2023). Ibisworld.com. https://www.ibisworld.com/au/bed/public-concern-over-
environmental-issues/5298/
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Manipal Pearson India Ed.
Immigration and citizenship Website. (2019). Immigration and Citizenship Website. https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-
listing/student-500/temporary-relaxation-of-working-hours-for-student-visa-holders
insightdottech. (2020). What’s AI Doing in My Bakery? [YouTube Video]. In YouTube. https://www.youtube.com/watch?v=-TDPHO0tJW0
Lavidge, R. J., & Steiner, G. A. (1961). A Model for Predictive Measurements of Advertising Effectiveness. Journal of Marketing, 25(6), 59–62.
https://doi.org/10.1177/002224296102500611
McCrae, R. R., & Costa, P. T., Jr. (2008). The five-factor theory of personality. In O. P. John, R. W. Robins, & L. A. Pervin (Eds.), Handbook of
personality: Theory and research (pp. 159–181). The Guilford Press.

Reed, P. (2015), Strategic Marketing: Decision Making and Planning, 4th Ed., Cengage Learning. (n.d.).
Remeikis, A. (2022, October 9). Stage-three tax cuts: what are they, how do they work and why do they exist? The Guardian; The Guardian.
https://www.theguardian.com/australia-news/2022/oct/09/the-stage-three-tax-cuts-what-are-they-how-do-they-work-and-why-do-they-
exist
Savvie – the first AI-powered app to reduce food waste in cafés. (2020). Businessnorway.com. https://businessnorway.com/solutions/savvie-the-
first-ai-powered-app-to-reduce-food-waste-in-cafes
Small Business COVID Hardship Fund. (2021). Business Victoria. https://business.vic.gov.au/grants-and-programs/small-business-covid-
hardship-fund
Smith, M. (2022, September 19). Artificial intelligence helps bakeries in many ways. Bakingbusiness.com; Baking Business.
https://www.bakingbusiness.com/articles/57333-artificial-intelligence-helps-bakeries-in-many-ways
Solomon, M. R., Soren Askegaard, Bamossy, G. J., & Hogg, M. K. (2019). Consumer behaviour : a European perspective. Pearson.
Writer, S. (2018, October 25). Australians are spending $13.6 billion on healthy eating, report suggests - Spice News. Spice News.
https://www.spicenews.com.au/uncategorized/australians-are-spending-13-6-billion-on-healthy-eating-report-suggests/