This market analysis is prepared to learn about the specific methodologies required to conduct a sound market analysis for a self-selected market segment. For this purpose, a hypothetical virtual business that serves as a gathering place for Australian breakfast or fresh bread lovers and bakeries has been created. To prove the profitably of this potential opportunity, influencing factors within the Australian baking industry as well as the ecommerce industry are researched.
According to Cravens (2000), it is essential to gain an understanding of the market to become market driven. Therefore, the first part of this analysis is often referred to as the PEST analysis, which identifies the external factors that influence the baking and ecommerce industry and thus change the size and composition of the market overtime.
The second part is concerned with obtaining internal information about the baking and ecommerce industry, its customers, suppliers, and direct and indirect competitors. The assessment of both the internal and external forces that drive the market, lead to the definition of the critical success factors for this virtual venture. A summary of the findings is then given through Porter′s model of market profitability to potentially serve as the basis for developing a market driven strategy for the virtual opportunity. Despite the high thread of substitute products, it is believed that the trend towards more convenience will make this business successful. With respect to the analysis provided and given that business partners are willing to cooperate, this business concept is considered a sound investment.
Table of Contents
1. Introduction
2. Environment analysis
2.1 Macro environment
2.1.1 Economy
2.1.2 Demographic, sociological, and cultural influences
2.1.2.1 Urbanization
2.1.2.2 Convenience
2.1.2.3 Food consumption trends
2.1.3 Political and legal
2.1.4 Technological
2.1.5 Natural environment
3. Industry analysis
3.1 Industry review
3.1.1 Major players
3.1.2 Geographic segmentation
3.1.3 Industry size
3.1.4 Product life cycle
3.2 Customer Identification
3.2.1.1 Customer Profile
3.2.1.2 Costumer needs
3.2.2 Supplier relationship and distribution channel
3.2.3 Supply chain
3.2.4 Selling chain
4. Competition analysis
4.1 Direct competition
4.2 Indirect competition
4.3 Opportunities and Threats
5. Critical success factors
6. Summary
7. Conclusion
8. References
9. Appendixes
Objectives & Core Topics
This report aims to conduct a comprehensive market analysis for a hypothetical virtual business model focused on daily breakfast bread delivery in Australia. The research explores the feasibility and profitability of this eBusiness venture by assessing environmental factors, industry structures, and competitive dynamics.
- Analysis of the Australian baking industry and e-commerce landscape.
- Evaluation of macro-environmental influences using PEST analysis.
- Identification of target customer segments and their specific needs.
- Assessment of industry competition and development of critical success factors.
- Strategic mapping using Porter’s model of market profitability.
Excerpt from the Book
Product life cycle
Australia’s market for bakery products is fairly mature and sales are often stagnant (Downey, S 2003, pers.comm., 2 January). Due to the fact that expenditure on food, as a proportion of total household expenditure is declining, industrial producers, in-store bakeries, independents and retail bakery chains fight for the same share of stomach. The slow growth of food consumption has been due to a number of factors including the long-term decline in expenditure by households on food/grocery items which is typical in any developed country's economy, the rate of population growth, the extreme price competition in the baking and food industry and increased expenditure on fast food sales rather than traditional baking goods (IBIS World Pty Ltd 2003).
Nevertheless, growth opportunities still exist especially in niche markets. Product innovation in terms of the launch of novelty foods such as organic and functional foods is expected to keep the industry healthy. So far innovation was based on high quality and branding as main focal points (Euromonitor International 2002), ignoring the possible gain in market share through delivering the product. This is considered as a competitive advantage for the introduction of the breakfast delivery service. Figure 3.1 illustrates the traditional product life cycle for baked goods.
Summary of Chapters
1. Introduction: This chapter outlines the research objectives and the rationale behind creating a hypothetical eBusiness model for fresh breakfast bread delivery in the Australian market.
2. Environment analysis: This section provides a modified PEST analysis, examining economic, demographic, political, technological, and environmental factors affecting the breakfast delivery service.
3. Industry analysis: This chapter reviews the Australian baking industry, including market size, key players, and customer identification to establish a framework for the new business concept.
4. Competition analysis: This section evaluates direct and indirect competition and categorizes the business’s opportunities and threats to establish a competitive niche.
5. Critical success factors: This chapter identifies the essential requirements for performance, such as effective marketing, automated systems, and quality supply chains for eBusiness success.
6. Summary: This section utilizes Porter’s model of market profitability to synthesize the findings and evaluate the overall attractiveness of the business opportunity.
7. Conclusion: The final chapter summarizes the market study findings and assesses the feasibility and potential investment value of the proposed eBusiness model.
Keywords
Market Analysis, Australian Baking Industry, eBusiness Model, Breakfast Delivery, PEST Analysis, Consumer Behavior, Online Grocery Shopping, Supply Chain Management, Strategic Marketing, Competitive Advantage, Porter’s Five Forces, Industry Trends, E-commerce, Customer Identification, Critical Success Factors.
Frequently Asked Questions
What is the primary purpose of this market analysis?
The document is designed to conduct a sound market analysis for a self-selected hypothetical business segment, specifically an eBusiness model for daily breakfast delivery in Australia, to test its potential profitability and feasibility.
What are the main thematic areas covered?
The work covers environmental factors (PEST), industry structure, customer behavior in the baking sector, competition analysis, and the identification of critical success factors for virtual businesses.
What is the core research question or objective?
The primary objective is to justify the viability and profitability of a hypothetical eBusiness concept that connects consumers with bakeries for daily, fresh breakfast delivery.
Which scientific methods were applied in the analysis?
The report utilizes standard strategic marketing frameworks, including PEST analysis for macro-environmental factors, industry trend review, Porter’s model of market profitability, and customer profiling.
What does the main body of the work focus on?
The main body evaluates the external environment, identifies specific industry players and customer segments, analyzes the supply/selling chain, and compares the model against direct and indirect competition.
Which keywords best characterize this publication?
Key terms include Market Analysis, E-commerce, Baking Industry, Breakfast Delivery, Strategic Marketing, and Consumer Behavior.
How does the author categorize different customers for the breakfast delivery service?
The author segments customers into specific groups such as "Bread lovers," "Breakfast skippers," "Children," "Foreigners," "People interested in foreign cultures," "Elderly," and "Snobs," tailoring a unique value proposition for each.
Why is the "first mover advantage" emphasized in this report?
The author identifies that there is currently no established online delivery service for fresh, everyday breakfast bread in the target area, creating a niche market opportunity that the proposed business aims to occupy.
- Quote paper
- Dipl. Betriebswirtin, MBA Sandra Burgemeister (Author), 2003, Market analysis, Munich, GRIN Verlag, https://www.grin.com/document/9698
