Principles of Marketing (MARK101) - Coffee Market Analysis Report

This report provides a comprehensive analysis of the Australian coffee market, examining its external environment, including market size, growth trends, and consumer behavior. The report delves into market segmentation, targeting, and positioning strategies, highlighting the importance of understanding consumer demographics, psychographics, and behaviors. Furthermore, it explores the development of a new product within the coffee market, applying the marketing mix (4Ps: Product, Price, Place, and Promotion) to create a viable product strategy. The report emphasizes the significance of aligning the marketing mix elements to effectively reach the target market and achieve a competitive advantage. The conclusion highlights the necessity of a well-defined marketing plan, incorporating strategic targeting and positioning, along with creative promotion, to secure a strong market presence in the coffee industry. The analysis draws upon research of market trends, consumer preferences and the impact of the COVID-19 pandemic.

Marketing & Product
Development

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................2
External analysis of the Australian Coffee Market..................................................................................3
Market segmentation, targeting and positioning......................................................................................4
Development of a new product in the coffee market...............................................................................6
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
Marketing research indicates the data expected to resolve the issues, plans and the
strategy for gathering the most important bits of knowledge from the market. It in this manner
oversees and executes the information assortment process, examinations the outcomes, and
imparts the discoveries and their suggestions. Commercialism is essential in all phases of a
business’s selling process, and it can utilize this at various stages, virtual entertainment channels,
and groups inside their association to recognize their crowd, impart to it, enhance its voice, and
fabricate brand steadfastness over the long run. Essentially, these 4 Ps explain how marketing
interacts with each stage of the business i.e., Product, Price, Place and Promotion (Ehrensperger
and et. al., 2022). This report thus focuses over the development in the Australian Coffee Market.
The requirement to conduct the research is to comprehend the subtleties, the significant
companies, and the comprehensive customer behaviour tendencies of this market. The scrutiny
thus will focus over the market segmentation, targeting and the brand positioning and the overall
development of the product in the market.
External analysis of the Australian Coffee Market.
In 2020, the coffee industry experienced a fall with inside the marketplace because of the
closure of espresso stores and eating places in respect to the lock down and the quarantine trials,
primarily grounded upon the prevailing COVID-19 situation. Subsequent the retrieval, i.e., post
lock-down, the marketplace is predicted to broaden step by step all through the forecasted period,
aided via way of means of place of business protection measures together with social distancing.
 Coffee is the most famous and consumed fermented drink ready from broiled espresso
beans. Further, the Australian espresso market is divided result type and circulation
channel. Based on item type, the espresso market is sectioned under entire bean, ground
espresso, moment espresso, and espresso unit cases (Firu and et. al., 2022).
 In light of the conveyance channel, the market is sectioned under grocery
stores/hypermarkets, corner shops, expert retailers, and other appropriation channels. For
each section, the market measuring and gauges have been finished based on esteem.
 The interest for confirmed espresso has extended as of late, especially during the
pandemic. This is generally because of purchaser’s expanded attention to moral

utilization. The affirmation has assisted with keeping up with moral and ecological
standards. Manageability is a main pressing issue for the two organizations and shoppers
in the espresso business.
 Coffee shippers, roasters, and retailers every now and again use declaration guidelines as
a component of their maintainability methodology. Australian buyers are excited about
acquiring an outline of the whole store network of food and refreshments, including
espresso. Thereby, shoppers are promptly searching for confirmed espresso items to
guarantee the validity of their espresso buys (Lewis, 2022).
The market size of the cafes and the coffee industry, for the year 2022, was measured to be about
$10.7bn. The growth rate in terms of the industry was about 2%, as per the figures of the recent
year. The relative growth of the market size was about 0.5% between the year 2017-22. the
trends that have been analysed for the considerate growth is because he increasing popularism of
complementing the leisure with the consumption of the coffee in the social market.
Market segmentation, targeting and positioning.
Today, the STP showcasing model (Segmentation, Targeting, Positioning) is a natural
key methodology in current promoting. It is one of the most normally applied showcasing
models by and by, with promoting pioneers crediting it for productive, smoothed out
correspondences rehearses (Mousavi and et. al., 2022).
Segment the market – The citizens who are the major consumers of the Coffee in the market
has to be segmented in an appropriate manner. So, the utilisation of the market segmentation
technique in order to draw a comparison of the clients into gatherings with normal attributes and
needs. This permits to fit the way to deal with meet each gathering's need successfully, and yield
a gigantic benefit over contenders who utilize a "one size fits all" approach. There are a wide
range of ways of dividing your objective business sectors:

Figure
1 STP model
 Demographic– By secluded acclaims like age, conjugal status, orientation, identity,
sexuality, instruction, or occupation (Rajput and et. al., 2022).
 Geographic– By republic, province, state-run, municipal, or locality.
 Psycho graphic– By character, risk repugnance, standards, or routine.
 Behavioral– By how individuals utilize the item, how faithful they are, or the advantages
that they are searching for.
Targeting of the potential customers - Then, there is a need to conclude which portions to
focus by distinguishing the gathering that will offer the biggest return and will be the most
productive. There are several factors to consider here:
 The productivity of each fragment. Which client gathering grant most to your base most
line? (Tsybulskaya, 2022)

 The size and the determined development of every client bunch. Is it sufficiently large to
be commendable for the tending to?? Is steady-going development accomplishing?
Positioning of the offering - Finally, the organization needs to distinguish how they ought to
situate the item to focus on the most important client sections. Then, at that point, select the
advertising blend that will be best for every one of them (Rautela, Yerpude and Singhal, 2022).
Consider why customers should purchase the newly designed or offered product rather than
those of the contenders. The identification of the USP in order to attract a situating guide to
comprehend how each portion comprehends with the invention, variety or facility. This will help
in determining the position of the offering. A good way to do this is by precising the extent of the
problem that the offered product can solves for the respective individuals. Make an offer that
obviously makes sense of how the contribution will meet this prerequisite better than any of the
contenders' items, and afterward foster a promoting effort that presents this worth proposition
such that the main interest group will recognize.
Development of a new product in the coffee market.
The overview of a novel creation in the market requires a comprehensive and a detailed
plan which includes the significance of the tactful elements such as the characteristics of the
Products, the Price of the product, the Place that will be chosen for the distribution and the
techniques that will be taken into account for the Promotion. The four Ps of promoting are the
key factors that are engaged with the showcasing of a decent or administration. It is often advert
to as the marketing mix, and they are affected by the implications of internal and external factors
in the overall commercial environment. Their respective interactions are significant to one
another. The 4 Ps are utilized by establishments to determine the relevant significant variables
for their business, taking into account what purchasers need from them, how their item or
administration addresses or neglects to meet those issues, how their item or administration is
seen on the planet, how they stand apart from their rivals, and how they associate with their
clients (Ravindar and et. al., 2022).
 Product - Product refers to a good or a service that a company offers to its respective
customers. The product must be in a position to fulfils the demand of the consumers in
the market. The introduction of new flavours in the coffee market which can satisfy the
needs and demand of the customer is the variation that has been brought down in this

study. The tastes and preferences of the customers have been identified and thereby such
an aspect has been taken into consideration. Although, the demand of the coffee in the
Australian market must be influential enough to generate impeccable profits for the
companies. The packaging of the products has been designed in a format to attract the
customers, especially the coffeeholics.
 Price - Price is the charge which the consumers pay for a product. The marketers must
form a viable link between the real and the perceive value of the product along with
considering the overhead expenditure incurred upon it (Shi and et. al., 2022). The
appropriate pricing in the coffee market must be in accordance to the standardised plan of
the companies. In order to fight the rivalry, the determination of the pricing strategy must
be in accordance to the significance the product holds in the market. The supply in the
Australian market must be profitable enough to carry on the business to secure
sustainable profits in the market.
 Place – The availability of the products for the consumers at a right place and at the right
time is a must to achieve the targets. The supply of the coffee products must be in
abundance to meet the demand of the market. The launch of the newly designed product
has to be segmented and positioned in the relevant market to secure a significant market
place in the industry. The sections where the demand in competitively high in regards to
the demand for coffee should be exclusively taken into account.
 Promotion - Advancement incorporates endorsing, publicising, and restricted time
practice. The objective of elevating an item is to uncover to shoppers why they need it
and for what reason would it be a good idea for them they spend on a specific brand. The
elevation of the outlets rendering the services of the provision of coffee and its related
products must be done according to the desired outcome. The publicity of the newly
designed and packaged coffee items should be appropriately done in the reputed and
commercially viable coffee houses. The online platform can also be utilised to secure a
position in the market. This can help in generating substantial and potent profits from the
marketplace (Tsang and et. al., 2022).

CONCLUSION
An inference can thus be made that in order to capture a secure and a profitable market in
the business world for the distribution of coffee products, it is imperative to determine a and
construct a impactful plan. The targeting and positioning of the brand must be in accordance to
the segments that has been chosen by the organisation in accordance to the promotion of the
brand effectively and efficiently. The marketing mix must be certainly designed, keeping in mind
the factors that influences it has upon the Australian market. The strategies that will be opted for
the implementation thus should be creatively and exclusively designed and the promotion must
be made in respect to secure a powerful position for a longer period of time.

REFERENCES
Books and Journals
Ehrensperger, and et. al., 2022. Succeeding in competitive arenas with arena-relevant marketing
capabilities. European Journal of Marketing.
Firu, A.C., and et. al., 2022. New Approaches to Product Development in the Current Industrial
and Economic Context. In Sustainability and Innovation in Manufacturing Enterprises
(pp. 165-184). Springer, Singapore.
Lewis, H., 2022. A Strategic Approach to Product Stewardship. In Rethinking Project
Management for A Dynamic and Digital World (pp. 260-271). Routledge.
Mousavi, S., and et. al., 2022. A new fuzzy multi-criteria decision-making approach for risk
assessment of competitors’ cooperation in new product development projects. Journal of
Business & Industrial Marketing.
Rajput, N., and et. al., 2022. Current global green marketing standard: changing market and
company branding. International Journal of System Assurance Engineering and
Management, pp.1-9
Rautela, S., Yerpude, S. and Singhal, T.K., 2022. Augmentation of effectiveness of new product
development through social media: an empirical validation. International Journal of
Public Sector Performance Management, 9(1-2), pp.5-24.
Ravindar, M., and et. al., 2022. AI: A New Strategic Method for Marketing and Sales Platforms.
Impact of Artificial Intelligence on Organizational Transformation, pp.183-199.
Shi, Y., and et. al., 2022. Time pacing of product development: The influence of goal clarity and
autonomy. Technology in Society, p.101897.
Tsang, Y.P., and et. al., 2022. Unlocking the power of big data analytics in new product
development: An intelligent product design framework in the furniture industry. Journal
of Manufacturing Systems, 62, pp.777-791.
Tsybulskaya, A., 2022. Internet marketing and its benefits.