MK400 Agribusiness Marketing Report Sample

MK400 Agribusiness Marketing Report

The marketing plan is an ongoing process throughout the semester (and life of the business). During the semester, you are required to complete the following tasks:

1. Your business

Provide details about your business. This includes your registered business name/proposed business name, registration number, formal structure of your business, location, contact details etc. Consider addressing the following about your business:

• Where does your business operate from?

• When did you begin trading?

• Who are the owners of the business?

• Owner/s experience (a brief summary of your (and other owner’s) experience in the industry and any major achievements/awards.)

• Products or Services (What products and/or services do you sell?)

• Vision, mission and objectives

2. Analyse Industry Structure

Research the industry, (including, if possible, industry associations, statistics and benchmarks) to develop an understanding about how the organisation operates its business compared to others in the industry. Consider the following when researching the industry:

• What size is the industry (number of businesses, volume and value of sales, market share, employment, etc)?

• Is the industry growing or shrinking? At what stage of the product cycle is the product?

• What factors might influence how the industry develops in the future?

• Does the industry have a strong or weak presence domestically or overseas?

• Where does the industry make most of its profit?

• What are the leading businesses in the industry?

• What is the size of the market that these leading businesses hold?

3. Define The Target Market and Customer Profiles

The target market is a group of customers that the agribusiness plans to sell products or services to. The target market is the customers most likely to buy the agribusiness’s products or services.

Carry out market research to gather and organise information about the target market, consumer needs and understand where the business fits within the market.

Questions to answer include:

• Who are the target customers?

• What they are interested in?

• What problem(s) do they need to solve?

• How do competitors meet the needs of the target market?

Information relevant to this assignment can be obtained by:

Secondary research - publicly available information that has already been gathered, such as research reports, government statistics and trade publications. (Primary research is difficult to do in this assignment- new research you can collect first-hand through surveys, interviews and by talking directly to the customer).
By evaluating each segment of the target market, it is feasible to determine whether there are enough customers to make sales viable. This process also ensures resources are not wasted on market segments that do not generate enough sales. Customers into ideal groups sharing the same characteristics such as gender, location, income, family size, preferred media channels and likes and dislikes. Marketing strategies can then be tailored to suit target customer segments.

4. Conduct a SWOT Analysis

Identify the agribusiness's internal strengths and weaknesses, and external opportunities and threats (SWOT). They can have an impact on your business. Developing a SWOT analysis can help analyse where the agribusiness and products fit within the market and identify the unique selling position (USP). It can also help identify areas for business improvement, what the agribusiness excels at and what practices other businesses are using.

• Strengths – What does the business do well? What does the business do better than your competitors?

• Weaknesses – What does the business need to improve to stay competitive? What do competitors do better? What are the constraints on growth??

• Opportunities – What market trends could lead to increased sales? What can be used to your business’s advantage?

• Threats – what are the advantages competitors have over the agribusiness? What could harm the agribusiness?

5. Study The Competition

Who are the competing agribusinesses? By analysing the competition, it is possible to assess what competitors are doing, how they compare and what potential threat they present to the agribusiness.

There are two main groups of competitors:

• Direct competitors – businesses that offer the same products or services.

• Indirect competitors – businesses that sell products or services that are different but may satisfy the same consumer need.

For example, a fish and chip shop competes indirectly with a pizza shop but directly with another fish and chip shop.

Once competitors have been identified their profile can be determined:

• What products or services do they sell?

• Do they offer a similar product or service?

• What do they offer their customers?

• How do they engage with their customers?

• Where are they located?

• How competitive are they?

• How much market share do they have?

• What type of media channels do they use to market their products or services?

• What are their strengths and weaknesses?

The more an agribusiness knows about its competitors the better it will be at identifying where it fits in the market and the potential opportunities available.
Report Structure

Your assignment could be structured as follows:

• Title page
• Executive summary
• The business
• The industry
• The target market
• The customers
• The competition
• Conclusion
• Supporting documents

Solution

1. The Business

Business Name: Dare Espresso

Registration Number: (Provide actual registration number)

Business Structure: Proprietary Limited Company (Pty Ltd)

Location: Melbourne, Australia

Contact Details: (Provide contact details)

Operational Details:

Dare Espresso is based in Melbourne, Australia, and began trading in January 2020. The company For MBA Assignment Help was founded by a group of friends united by an extreme passion for producing specialty coffee blends. Its founding members were John Doe, Jane Smith, and Michael Brown; all these individuals bring together an aggregate work experience of more than 30 years in the industry of coffee (Dare Espresso 2024). The CEO, John Doe, used to work with top coffee brands and has received a couple of awards for his coffee recipes. Their COO is Jane Smith, who brings onboard extensive experience in sustainable packaging solutions, while their CFO is Michael Brown, who hails from a strong food and beverage background in financial management.

Products and Services:

Dare Espresso is offbeat, with its smooth flavor in a blend of Arabica and Robusta coffee. This ranges from simple espresso to cappuccino and americano drinks available in flavors with oat milk and zero sugar alternatives (Dare Espresso 2024). Fresh milk produces each product to bring taste quality and taste consistency to customers.

Vision: To be rated as number one in the Supply of sustainable and High-Quality Coffee Products within Australia and beyond.

Mission: Serving exceptional customer experiences in coffee while keeping the needs of environmental sustainability and innovation at the top of our agenda.

Objectives:

1. Increase market share by 15 percent within one year.

2. Introduce new flavors of coffee and beverages to expand the product line.

3. Enhance brand visibility through targeted marketing campaigns and strategic partnerships.

4. Ensure a culture of sustainability by further continuing the use of 100% recycled plastic for all packaging.

Dare Espresso adaptive, due to the fact that all its bottles are made from 100% recycled plastic since March 2023. This positions itself with the vision of the company to give back to its world by reducing its footprint on the environment and making its brand dear to the environment-friendly consumer. Muscle train: To continue its branding in quality products as it grows nationally and internationally.

2. Industry Structure

Industry Overview: The global coffee industry is one of the most popular beverage sectors, known for its dynamic and competitive nature. Coffee is a staple in many cultures and is consumed in various forms such as espresso, cappuccino, americano, and more. The industry predominantly relies on two main types of coffee beans: Arabica and Robusta. Arabica beans are known for their mild and aromatic flavor, while Robusta beans are stronger and more bitter.

Industry Size and Growth: Globally, the coffee industry generates significant revenue, with the United States being the largest market. The industry is valued at over USD 100 billion and continues to grow steadily. According to Statista, the global coffee market is expected to grow at a CAGR of 4.28% from 2023 to 2028 (Ridder 2024). South America, particularly Brazil, is the leading producer of coffee, followed by Vietnam, Colombia, and Indonesia. The Australian coffee market, though smaller in comparison, is vibrant and rapidly growing, driven by a strong coffee culture and increasing demand for specialty coffee.

Key Drivers of Industry Development: The growth and development of the coffee industry are mainly driven by a number of factors, which include:

• Economic Conditions: Consumer purchase power and the stability of the economy broadly influence consumption of coffee (S&P global, 2024).

• Health Trends: Increasing health awareness in consumers calls for much healthier coffee; sugar-free and plant-based are trending upward.

• Sustainability: The industry is pushed by environmental concerns toward sustainability, including eco-friendly and equable sourcing and fair trade practices relating to packaging.

• Technological Improvements: Advancement in coffee brewing and packaging technologies improves the quality of the products and raises the comfort level in consumption (S&P global, 2024).

Domestic and International Presence: The coffee industry represents itself both at the domestic and international level. However, US and South America dominate, on the other hand, Europe and Asia have prominent contributions as well (International Coffee Organization, 2023). From an Australian perspective, the market becomes highly concentrated with coffee shops and growing demand for premium and specialty coffee.

Leading Businesses and Market Share: The few major players—the likes of Nestle, JAB Holding, and Luigi Lavazza—direct the industry (International Coffee Organization, 2023). They have huge market shares since they are well distributed, can establish brand recognition, and are conversant with innovation to remain competitive in the industry. There also exist many regional and independent coffee brands that target either niche markets or local tastes.

The competitive landscape is constantly evolving, with brands expanding their product portfolios and adopting sustainable practices to meet changing consumer demands. The industry's growth trajectory indicates a positive outlook, with opportunities for new entrants and established players to capitalize on emerging trends and consumer preferences.

3. Target Market and Customer Profiles

Target Market: Dare Espresso's target market comprises coffee enthusiasts across various age groups and demographics. The primary segments include:

Age Groups:

18-24 years: Young adults, often students or early-career professionals, who are looking for convenient, on-the-go coffee options.

25-40 years: Mid-career professionals who value high-quality, artisanal coffee and are willing to pay a premium for unique flavors and sustainable products.

41 years and above: Mature adults who appreciate a classic coffee experience and are increasingly concerned with health and sustainability.

Gender: Both male and female consumers.

Geographical Focus: Urban areas with a high density of coffee shops and cafes, such as Melbourne, Sydney, and Brisbane.

Customer Needs and Preferences:

• Consumption Frequency: The target customers tend to consume coffee over two times each week, with many of them using it in their daily routine.

• Product Preferences: Have a high affinity for espresso-based drinks without sugar, fresh milk, or oat milk.

• Sustainability: Consumers are fast discovering what has sustainable packaging. Dare Espresso has 100% recycled plastic bottle use, which is a big selling point.

• Health Consciousness: A rising segment of the market is willing to pay for healthier options, such as zero-sugar beverages and milk alternatives made from plants.

Competitor Analysis:

• Direct Competitors: They are other premium coffee brands offering identical types of products, e.g. Nestle and Vittoria.

• Indirect Competitors: This includes other beverages, such as tea and energy drinks, that evoke similar consumer needs— perhaps for a caffeine surge or refreshment.

Dare Espresso assesses each segment in the target market and focuses on attention in the subgroups diluted to the customer groups that will prove to be viable by customizing marketing strategies to capture them based on their likes and behaviors. This way, it minimizes the opportunities likely to be waste to a less positive result and maximizes penetration as wide as there could have been doubt.

Customer Segmentation:

• Demographics: age, gender, income levels, family size.

• Geographics: Urban vs. rural locations, with an initial focus on urban centers.

• Psychographics: Style of life, health consciousness, and environment awareness.

• Behavioral: Frequency of coffee consumption, brand loyalty, and preferred channels for buying, for example, online versus in physical stores.

4. Conduct a SWOT Analysis

Strengths:

• Unique Product Offering: Dare Espresso's blend of Arabica and Robusta coffee beans offers unique tastes that set them from the rest.

• Sustainability Commitment: Using 100% recycled plastic bottles since March 2023 helps to appeal to the green consumer and works like an image booster for the brand.

• High-Quality Ingredients: Fresh milk is used, and oat milk options are available for health-conscious customers and those with dietary preferences.

• Strong Domestic Presence: Dare Espresso has a huge market presence throughout the length and breadth of Australia, more so in metropolitan areas.
Weaknesses:

• Limited Product Range: The current product line may not be diversified enough to meet the majority of consumer preferences, thus limiting its market appeal.

• Lack of International Market Presence: The operations of the brand are currently limited to Australia. This makes its potential growth prospects in an international market dim.

• Brand Visibility: Dare Espresso is relatively very low in brand visibility as compared to global coffee brands.
Opportunities:

• Market Expansion: This is a very good potential for expansion to international markets, especially within those regions indicating a rapid growth in demand for premium and sustainable types of coffee.

• Diversification of Product Offerings: Add more flavors of coffees and beverages. These include cold brew, specialty lattes, and other drinks that attract a sizable customer demographics.

• Health Trends: The emerging interest of consumers in health and wellness will henceforth present an opportunity for a greater push in zero-sugar and plant-based milk options.

• Technological Innovations: Leverage technology for online sales, subscription services, and personalized marketing. This can be done to bring novelty in customer engagement and convenience.

Threats

• Highly Competitive: The coffee market is really competitive, having many such established brands and new entrants jostling for market share.

• Shifting Consumer Preferences: Dare Espresso could experience a slump due to sudden changes in consumer preference, particularly those based on health trends and lifestyle changes.

• Economic Uncertainty: Economic downturns and fluctuations can have a bearing on consumer spending power, illustrating that current low discretionary expenditures on premium coffee products could fall further.

• Supply Chain Disruptions: Its reliance on specific sets of suppliers for its coffee bean supply and sustainable packaging materials makes it very vulnerable to supply chain or price volatilities.

5. Competition

Direct Competitors: There are a number of well-established brands in the Australian coffee market with which Dare Espresso will have to compete. These include:

•️ Nestle: Considering the diversified portfolio of coffee brands, Nestle has a strong brand name and market presence. With its huge distribution network coupled with the capability to innovate new products, it becomes a strong competitor.

• Vittoria Coffee: This veteran of coffee brands from Australia sports a broad portfolio of premium coffee products in the marketplace and commands an enormous following among customers (Vitoria coffee 2024). They are well positioned in the marketplace, with a strong focus on quality and heritage.

• JAB Holding Company: With the ownership of a diversified portfolio, including Peet's Coffee, Stumptown, and Jacobs Douwe Egberts, JAB Holding offers products across consumer segments. The form benefits from scale and market penetration (JDE 2019).

• Luigi Lavazza: This Italian brand, known the world over for its quality espresso and blends, is quite a tough competitor due to its sterling brand reputation and global reach (Lavazza 2024).
Indirect Competitors: Apart from the direct competitors, Dare Espresso also competes with indirect competitors who offer substitute beverages and, hence, satisfy the same need of the consumer.

• Tea Brands: The likes of Twinings and T2 offer a range or version of tea products, playing in competition with coffee in vying for the attention of the customer, more so health-conscious ones.

• Energy Drinks: Brands like Red Bull and Monster Energy provide an alternative source of quick energy when consumers reach out for it.
Competitor Profiles:

• Product Offerings: Direct competitors, such as Nestle and Lavazza, offer the same number of coffee products, including ground coffee, coffee pods, and ready-to-drink beverages. Other indirect players offer tea and energy drinks.

• Customer Engagement: The competitors engage customers through various strategies, including loyalty programs, bespoke marketing, and active use of social media. Nespresso and Vittoria have very established customer loyalty programs.

• Market Share: High market shares are seen among the top competitors, like Nestle and JAB Holding supervise, owing to their diversified product portfolios and worldliness of distribution networks.

• Media Channels: Competitors are engaged in a combination of media channels towards marketing, such as TV ads, digital marketing, campaigns on social media, and partnering up with influencers. All these serve to keep them highly visible and interactive with consumers.

• Strengths and Weaknesses: Well-established rivals boast high brand recognition, large distribution channels, and wide product portfolios. Still, they may struggle to adapt at breakneck speeds to emerging consumer trends—mainly on sustainability and health awareness.

Conclusion

With its superior combination of Arabica and Robusta beans, coupled with its commitment to sustainability through 100% recycled plastic bottles and focusing on high-quality ingredients, Dare Espresso is in a very strong position to service the increasing demand for premium sustainable coffee products within the Australian marketplace.

The in-depth analysis of industry structure points to the high growth potential arising from both international and domestic businesses. Such a strategy in the market will involve an increase in the product line and brand visibility by getting specific with regard to the audience, formulating effective campaigns, and promoting them aggressively.

In Dare Espresso's thorough SWOT analysis, the company has: on one hand, product quality and sustainability; on the other, there are lists for improvement—for example, diversification in products offered and expanding to foreign markets. It will therefore be imperative to sort out such weak points and use opportunities to the best of opportunities for success in this brand.

References

Dare Espresso. (2024). Home. Retrieved from Dare Espresso

International Coffee Organization (2023). Coffee report and outlook. [online] Available at: https://icocoffee.org/documents/cy2023-24/Coffee_Report_and_Outlook_December_2023_ICO.pdf.

JDE (2019). JDE and Peet’s Coffee to combine and explore IPO. [online] www.jacobsdouweegberts.com. Available at: https://www.jacobsdouweegberts.com/company-news/jde-and-peets-coffee-to-combine-and-explore-ipo/.

Lavazza Coffee (2024). Lavazza Coffee: A Journey Through History, Flavor, and Prestige – Taste of Paris Creperie. [online] Available at: https://tasteofpariscreperie.com/lavazza-coffee-a-journey-through-history-flavor-and-prestige/ [Accessed 1 Aug. 2024].

Ridder, M. (2024). Coffee market worldwide - statistics & facts. Retrieved from Statista
S&P global (2024). Sharing insights elevates their impact. [online] S&P Global. Available at: https://www.spglobal.com/commodityinsights/en/ci/products/food-commodities-food-manufacturing-softs-coffee.html.

Vittoria coffee (2024). Vittoria Coffee Australia | Home. [online] Vittoria Coffee Australia. Available at: https://www.vittoriacoffee.com/.