MMK368: APMC Market Analysis Report - Soft Drink Industry Expansion

This report, prepared for the MMK368 Business Marketing course, presents a comprehensive market analysis and market plan for the Australian Packaging and Machinery Company (APMC). The report focuses on APMC's expansion into the soft drink industry within an unspecified overseas market, addressing the need for plastic containers and wrapping. It includes an executive summary outlining the company's strategy, target market segments, and revenue projections. The analysis delves into market segmentation, examining geographic, demographic, psychographic, and behavioral factors. It evaluates and justifies three target markets, providing detailed market share and revenue data for each. The report outlines a comprehensive market plan covering product, distribution, promotion, and pricing strategies. The report concludes with strategic recommendations to enhance APMC's competitive advantage and profitability in the new market. The study includes tables and figures to support the analysis and recommendations.

Running Head: BUSINESS MARKETING
Business Marketing
Name of the Student:
Name of the University:
Author Note:

1BUSINESS MARKETING
EXECUTIVE SUMMARY
The report shows that the three segments the company of APMC in the consideration of
expanding itself in the market of the United States are the diversified form of products, the target
customers and their satisfaction as well as the implementation of effective distribution strategies.
The company needs to study the complete business market structure of the United States
concerned with the packaged beverage industry in the concern of avoiding the risks that may
occur in the business proceedings. The market study before the prior establishment of the
company will help the same to manage the uncertainties of risks that occurs in a business firm
and thus mitigate the same at the immediate basis. Moreover, the study of the business market
will help the company to understand the competitive strategies of the peer competitors of the
firm and this will also help the company to gain the knowledge of setting up the effective pricing
strategies. The target market of the company would be based on the different market
segmentation strategies that would help the firm to study and understand the tastes and
preferences of its target market based on the age factor, the occupational and the educational
background, the size of the family of the customers as well as the income. Along with this, the
interest of the customers, the attitude of consuming packaged beverages as well as the
consciousness of the society towards the same.
The revenue and market shares APMC will achieve for its first target market of high
usage manufacturers in total is estimated to be 64.2 and 6919362 respectively. Moreover, it is
also deemed that APMC will attain revenue and market share of for its second target market of
low usage manufacturers respectively 64.3 and 982,768 in total. This targeted market share and
revenue is deemed to be attained by APMC through successful marketing plan launched for all
its product segments in the selected country, US.

2BUSINESS MARKETING
The recommendations suggested by the report in the concern of achieving the target and
expanding the business into new nation are determined as making re-use of the natural resources
because of the scarcity in the water resources. Avoiding the use of plastic in the concern of
packaging the beverages offered by APMC. Implementing better and innovative technological
advancements in the concern of benefiting the company in the long run concerning to its
manufacturing department. Studying the market of the United States before establishing the firm,
so that the target market and other business operations concerned to the financial, economic as
well as departmental sectors of the firm are decided before-hand.

3BUSINESS MARKETING
Table of Contents
Market Analysis...............................................................................................................................6
Forecast for Market......................................................................................................................6
Market Segmentation...................................................................................................................8
APMC Revenue by Product Category.......................................................................................10
Product Segments in Market Segmentation...............................................................................10
Evaluation and Justification of the Three APMC Targets.........................................................11
Market Plan....................................................................................................................................15
Recommendations..........................................................................................................................16
References......................................................................................................................................18

4BUSINESS MARKETING
List of Tables
Table 1: Target 1 – High Usage Manufacturers
Table 2: Target 2- Low Usage Manufactuers
Table 3: Target Market Selection………………………………………………………………..

5BUSINESS MARKETING
Table of Figures
Figure 1: Total US Beverage Production.........................................................................................3
Figure 2: Forecast- Segment Demand in Tonnes (Largest Four Beverage Product Segments)......4
Figure 3: Beverage Production in US by Product Category............................................................5
Figure 4: APMC Revenue by Product Category.............................................................................6

6BUSINESS MARKETING
Market Analysis
Forecast for Market
Bottled Water
Carbonates
Concentrates
Juice
RTD Coffee
RTD Tea
Energy Drinks
Sports Drinks
Soft Drinks
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
Total industry revenue $ (based on
$50 a tonne & 2018)
Total industry revenue $
(based on $50 a tonne &
2018)
Figure 1: Total US Beverage Production
(Authors Creation)

7BUSINESS MARKETING
Bottled Water
Carbonates
Concentrates
Juice
RTD Coffee
RTD Tea
Energy Drinks
Sports Drinks
Soft Drinks
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
2014
2015
2016
2017
2018
2019
Figure 2: Forecast- Segment Demand in Tonnes (Largest Four Beverage Product
Segments)
(Authors Creation)

8BUSINESS MARKETING
Figure 3: Beverage Production in US by Product Category
(Source: Passport 2018)
Market Segmentation
As opined by Kesting, Gerstlberger and Baaken (2018), the process market segmentation
helps a business entity to divide its market into a group of potential customers in the synergy of
different segments and characteristics. In this connection, the market segmentation of APMC is
determined below.
Geographic
The target customers of the bottled company
to be established in the US will target the
customers based on the geographic boundary
of the nation (Wheeler, 2017). The difference
Demographic
Considering the demographic segmentation,
the company needs to determine the variables
of the society such as the age, the education
and income standard, the size of the family as

9BUSINESS MARKETING
in the interests, choices and preferences as
well as values of the customers are known to
vary dramatically as per the nations.
Therefore, the country needs to study the
current market condition of the United States
to segment its market.
well as the gender of the population (Deshwal
2016).
Psychographic
The company needs to focus on the intrinsic
traits that the target customers of the United
States indulge with (Kumar, Lahiri and Dogan
2018). Psychographic traits in this connection
are known to be ranging from the value,
personality, interest to the attitude as well as
the consciousness of the society needs to be
understood and studies.
Behavioral
Breaking down the synergy of work process
and transactions in a way that the customers
would go through the aspect of their decision
making process and buying processes
(Lancaster and Massingham 2017). The
attitudes the customers have towards the
brands and the manner they use the same and
all needed to be studied by the APMC
company in the concern of gaining knowledge
base about the behavioral examples of the US.

10BUSINESS MARKETING
APMC Revenue by Product Category
Bottled Water
Carbonates
Concentrates
Juice
RTD Coffee
RTD Tea
Energy Drinks
Sports Drinks
Soft Drinks
-
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
Industry Product
Total industry revenue $ (based on
$50 a tonne & 2019)
Figure 4: APMC Revenue by Product Category
(Source: Authors Creation)
Product Segments in Market Segmentation
Product
category
Million ($) Low Usage High Usage Total $M
Bottled Water Industry Revenue $ $ 3010000,
11
$ 50230000 ,
12
$53,240,000
Carbonates Number of
Manufacturers
$ 6000000,
4
$ 81310000,
9
$87,310,000
Concentrates Industry Revenue $ $ 2598000 ,
6
$ 1977000, 1 $4,575,000
Juice Number of $ 25370000, $ 7900000 , 3 $33,270,000

11BUSINESS MARKETING
Manufacturers 15
RTD Coffee Industry Revenue $ $ 7722000 ,
7
$ 793000, 2 $8,515,000
RTD Tea Number of
Manufacturers
$ 1000000,
6
$ 2970000, 4 $3,970,000
Energy Drinks Industry Revenue $ $ 1698000,
8
$ 5697000, 3 $7,395,000
Sports Drinks Number of
Manufacturers
$ 2031000,
6
$ 5124000, 1 $7,155,000
Soft Drinks Industry Revenue $ $
100005000,
5
$ 105420000,
6
$205,425,000
Evaluation and Justification of the Three APMC Targets
Target 1 – High Usage Manufacturers
Company Market Share Firm
Value/
APMC
Revenue
($)
Coca-Cola Co, The 8.1 2377560
Asahi Group Holdings Ltd 4.4 960586
PepsiCo Inc 3 808328