MKT 60010: Market Analysis of IRIS Cafe - Customer & PESTLE Analysis

This report provides a comprehensive market analysis for IRIS Cafe, a sustainable bakery project, focusing on the Australian market. It includes a detailed examination of the macro-environment using PESTLE and 4Cs frameworks, market segmentation analysis identifying potential customer segments, and target market selection and profiling, with a focus on the 'Socialite Oasis' segment. The analysis delves into consumer behavior, personality traits, cultural influences, and the development of a persona, Sarah, to better understand and target the desired customer base. The report aims to provide actionable insights for IRIS Cafe to adapt its operations and marketing strategies effectively.

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.