Market Analysis & Strategy for a Coffee Shop in Greater Brisbane, QLD

This report presents a market analysis for a coffee shop in Greater Brisbane, utilizing ABS 2016 census data to inform marketing strategies. The analysis identifies the target market as individuals aged 19 to 60 and suggests that strategies such as low pricing, personalized services, and Wi-Fi offerings can attract this demographic. The report examines the industry outlook, noting the growing coffee shop industry in Greater Brisbane and the importance of competitive strategies. Key findings include the high percentage of dwellings with internet access, suggesting the value of offering Wi-Fi, and the prevalence of working families, indicating the potential of a low-pricing strategy. The report also highlights the competitive landscape with established coffee shops like Di Bella Coffee and suggests unique strategies like live coffee-making demonstrations to attract customers and increase sales. Desklib provides access to similar solved assignments and study tools for students.

Market Analysis Business Report
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Executive Summary
The aim of this study is to analyze the market for Coffee shops in Greater Brisbane. By applying
the data of the community profile of Greater Brisbane the study has concluded that here
marketing strategies like low pricing strategy, personalize services and offer of Wi-Fi
connections can help the Coffee shop to attracts the target population by the shop. The target
population is the individuals from age group of 19 to 60 thus from teenagers to adults all are
targeted by the shop. The industry outlook shows that Coffee shop industry is growing in Greater
Brisbane and thus to sustain in the market devising marketing strategies is very essential and this
can be done by utilizing the market analysis procedure.
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Table of Contents
Introduction......................................................................................................................................4
Significance of Market analysis.......................................................................................................4
Business Requirement of the market Analysis................................................................................5
Industry Outlook at Greater Brisbane..............................................................................................5
Target Market of the Business.........................................................................................................9
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14
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Introduction
Organizations can gain competitive advantage in several ways, however for a new startup to gain
competitive advantage is hard to achieve because this is time consuming and a startup can take
long time to gain competitive advantage (Tan, 2015.). For a startup that is new to the market, a
proper market analysis is very significant so that the new startup can sustain in the m
marketplace because lack of proper analysis may end up in shutdown of the business (Gilman,
2017). In this current study, the market analysis will be conducted for a Coffee shop in the
Greater Brisbane area of Queensland, which is located in Australia. The market analysis is
conducted for devising better marketing strategy.
Significance of Market analysis
Along with globalization, the marketplace of the economy has changed a lot and this is due to the
fact, extreme competition was faced by the organizations. This severe competition resulted in
survival strategy for the organizations and this survival strategy was the competitive advantage.
Those organizations, which were being able to gain the competitive advantage, survived in the
competitive business environment (Lee et al., 2015). Thus, it can be seen that for a business to
sustain in the marketplace it is essential to gain competitive advantage over the other business
organizations.
Market Analysis is the study of learning the characteristics of the market and this analysis is
required for running a business organization properly. This analysis is very significant for the
success of the organization because it gives idea about the competitors and the potential
customers (Adams et al., 2018). Market analysis is the process of data collection that provides a
superficial outlook of the market in which the organization is planning to set up. Effective
market analysis aids the organizations to achieve valuable insights of the market and these can be
competitors, market trends, customers profile and many more. Thus, it can be said that market
analysis is the vital element that helps the business with the essential information’s and lets it to
take the most feasible decisions out of these information’s. The core reasons why the market
analysis is important before setting the business are discussed below:
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 Analysis of the market helps the organization top know its potential customers in a better
way. The customer profile helps the business organizations to adopt the right step to
serve them better and satisfy their needs because lack of proper services will lead to (Van
Doorn et al., 2015) customer’s dissatisfaction, which ultimately will affect the reputation
of the organization.
 Market Analysis helps the organizations to determine their unique selling points. In order
to sustain in the competitive business environments organizations adopt several strategies
to sustain and some of these strategies are low pricing strategy, 24*7 availability and
many more (Najafi-Tavani, Sharifi and Najafi-Tavani, 2016).
Business Requirement of the market Analysis
In this study, the business, which is located in the Greater Brisbane area, is a Coffee Shop. This
Coffee Shop in order to gain competitive advantage is resolving to adopt a new marketing
strategy and for the design of the marketing strategy, a thorough market analysis is very
essential. Marketing strategy designed by the organizations will incorporate various aspects by
implementing which the shop will move towards the path of sustainability (Ruiz and Holmlund,
2017).
Industry Outlook at Greater Brisbane
The area in which the Coffee shop is situated itself is a crowded place, Brisbane is a hilly region
and especially in Greater Brisbane, dense population characterizes the area. Along with the
suitable scenic beauties, the area where the coffee shop is located heritage buildings are also
located which makes the place crowded one especially in the weekends. Here in Greater
Brisbane the number of large organizations is low in number, the number of industries are also
low, so here most of the population engage themselves in business. The number of Coffee shop
in Greater Brisbane is high and this is due to the fact here the requirement of such shops is high.
The suitable weather of the Greater Brisbane urges the population to enjoy their special moments
in Coffee shops. From high class Coffee shops to medium class Coffee shops all are located in
this region of the country. All these coffee shops have resolved their sustainability by gaining
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competitive advantage and this competitive advantage is very necessary because here the
numbers of shops are large in number.
Considering the Census Report of 2016 for industry outlook, it can be seen that number of
employed persons here is maximum in the Health Care and Social Assistance while minimum is
in Electricity, Gas, Water and Waste Services.
Industry sector Number Australia %
Agriculture, Forestry and Fishing 10,005 2.5
Mining 12,423 1.7
Manufacturing 70,096 6.4
Electricity, Gas, Water and Waste Services 11,684 1.1
Construction 92,559 8.5
Wholesale trade 31,774 2.9
Retail Trade 102,073 9.9
Accommodation and Food Services 69,836 6.9
Transport, Postal and Warehousing 60,714 4.7
Information Media and Telecommunications 14,953 1.7
Financial and Insurance Services 34,589 3.6
Rental, Hiring and Real Estate Services 21,543 1.7
Professional, Scientific and Technical Services 84,646 7.3
Administrative and Support Services 37,750 3.4
Public Administration and Safety 76,123 6.7
Education and Training 98,667 8.7
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Health Care and Social Assistance 141,121 12.6
Arts and Recreation Services 16,228 1.7
Other Services 40,815 3.7
Inadequately described or not stated 46,174 4.4
Total employed persons aged 15+ 1,073,773 100
Table1: Industry report of Employed Persons
(Source: Quickstats.censusdata.abs.gov.au, 2019)
Coffee shop falls under Recreation services and the data above shows that here the employment
is 1.7 percent. Now considering the occupation data from the Census 2016 data it can be
observed that most of the population work here as the professionals.
13%
24%
13%10%
14%
9%
6%
8%
2%
Managers
Professionals
Technicians and Trades
Workers
Community and Personal
Service Workers
Clerical and Administrative
Workers
Sales Workers
Machinery Operators And
Drivers
Labourers
Not stated or inadequately
described
Graph 1: Employment by Occupation
(Source: Quickstats.censusdata.abs.gov.au, 2019)
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In Australia, as a whole the Coffees shops industry is growing since the past five years. Coffee
industry has witnessed a increase in revenue. In Greater Brisbane, the Coffee shops have adopted
special strategies to connect with the consumers. From providing special discounts to
implementing eco friendly methods these shops has managed to sustain in the competitive
business environment. Among the most promising Coffee shops, Di Bella Coffee is mentionable
because it has expanded its services in China and parts of India (Frösén et al., 2016). This Coffee
shop is known for its best quality coffee beans which results in unique flavor that the population
of the region craves for. Thus for sustaining in such a competitive environment it is very
necessary to devise the marketing strategies.
Now considering data of Industry employment in Greater Brisbane it can be seen that 2.3 % of
the workforce is engaged here which is a large number. Compared to Queensland and the whole
Australia, a large number of coffee shops are located here.
Industry of employment, top
responses Greater Brisbane % Queensland % Australia %
Hospitals (except Psychiatric
Hospitals) 47,630 4.4 91,756 4.3 411,808 3.9
Primary Education 25,847 2.4 54,394 2.5 231,198 2.2
Cafes and Restaurants 25,165 2.3 49,488 2.3 253,385 2.4
State Government Administration 24,722 2.3 36,185 1.7 158,980 1.5
Supermarket and Grocery Stores 24,631 2.3 52,291 2.4 254,275 2.4
Table 2: Greater Brisbane industry of employment
(Source: Quickstats.censusdata.abs.gov.au, 2019)
Owing to the greater number of Coffee shops in Greater Brisbane, the Coffee shop should adopt
aggressive strategies which have the capability of attracting consumers towards it because given
the large number of Coffee shops consumers will choose the one which have the capability to
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meet their requirements. Marketing strategy like offering Wi-Fi connection within the shop
purview can help the shop to attract the consumers towards it because considering the data of the
dwellings with the internet connection it can be observed that 86% of the dwellings in Greater
Brisbane area have access to the internet connection. Providing Loyalty bonus points can be
another strategy that the shop can include in its marketing process.
11%
86%
2%
Internet not accessed from
dwelling
Internet accessed from
dwelling
Not stated
Graph2: Dwellings with internet connection in Greater Brisbane
(Source: Quickstats.censusdata.abs.gov.au, 2019)
Target Market of the Business
The target market for the business in the study is the age group from 19 to 60 years. Under this
age target group, teenagers, to young adults to adults fall. Specially this target group is focused
by the coffee shop because coffee shop as the name suggest is the place where a chat can be
started over a cup of coffee, where fresh thoughts starts after sipping the first sip. Coffee shops
specially target the working population and college-going students because for them this Coffee
shop will provide a space where they can spend their quality time. Considering the population
age group from Census 2016, it can be observed that the presence of teenager here is more than
the whole country. Now considering the age group of young adults and adults, it can be observed
that quite a large number of this group resides here.
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Age Greater Brisbane % Queensland % Australia %
15-19 years 146,581 6.5 296,287 6.3 1,421,595 6.1
20-24 years 170,741 7.5 316,860 6.7 1,566,793 6.7
25-29 years 170,661 7.5 320,753 6.8 1,664,602 7.1
30-34 years 172,568 7.6 325,943 6.9 1,703,847 7.3
35-39 years 157,315 6.9 305,218 6.5 1,561,679 6.7
40-44 years 160,613 7.1 322,901 6.9 1,583,257 6.8
45-49 years 155,861 6.9 322,982 6.9 1,581,455 6.8
50-54 years 143,199 6.3 308,727 6.6 1,523,551 6.5
55-59 years 130,519 5.7 292,198 6.2 1,454,332 6.2
60-64 years 114,276 5 260,685 5.5 1,299,397 5.6
Table 3: Population by Age group
(Source: Quickstats.censusdata.abs.gov.au, 2019)
The above table shows that the target population selection is right for the shop because among
these target populations the requirement of Coffee shop is high. Thus it can be said that strategies
which are unique can help the organization to sustain in the market and these unique marketing
strategies can include live counters which will display the making of the aromatic coffee. This
live counter strategy will help the shop to attract the target population and increase its sales.
Now considering the employment status of the families living in Greater Brisbane it can be
observed that in most of the families both the parents work and thus it can be said that here the
number of working population is higher than other regions of the city. Both the parents of the
families living here work together and are engaged in full time job. After the number of both
parents working in the area, the second highest number comes from the one parent who is
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engaged in full time work. Thus, it can be said that adopting a low pricing strategy (Susanty and
Kenny, 2015 )will affect the target population because as working population here is higher in
number if the families’ dataset is considered. The datasets indicates that both the parents work
for living better life and hence adopting a low pricing strategy will impact them and attracts them
towards the shop.
24%
4%
22%
16%
6%
18%
5%
6%
Both employed, worked full-time
Both employed, worked part-time
One employed full-time, one part-
time
One employed full-time, other not
working
One employed part-time, other not
working
Both not working
Other (includes away from work)
Labour force status not stated (by
one or both parents in a couple
family)
Graph 3: Employment status of the families in Greater Brisbane
(Source: Quickstats.censusdata.abs.gov.au, 2019)
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Now considering the data of the weekly income of the families living in Greater Brisbane it can
be observed that here personal income, family income and the household income is higher than
the whole Australia.
Greater Brisbane
Queensland
Australia
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Household
Family
Personal
Graph 4: Median of weekly income in Greater Brisbane
(Source: Quickstats.censusdata.abs.gov.au, 2019)
Owing this data on the income of the dwellings in Greater Brisbane, the marketing strategy like
providing best quality with special personalize services can work because in Greater Brisbane
the income figures are high and this indicates that the individuals living here prefer personalize
services and they are in a state of affording it.
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