Analysis of Target Market
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Task 5: Undertake a quantitative analysis of the target market for your business Resource: ‘Market analysis resources document’ in the ‘Resources > Team project’ folder (or available electronically via lecturer).

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Analysis of Target Market

Potential size of market

 

Café & Catering Business

Income (mm)Expenses (mm)Profitability (mm)
$13,673$13,108$576

 

Café Business break-up – Smaller Cafes (less than 10 people)

% of Business% of IncomeProfitability (mm)
67.527.7$105

 

Café Business break-up – Larger Cafes (more than 50 people)

% of Business% of IncomeProfitability (mm)
1.521.8$10

 

Catering  Business break-up – Smaller Larger Cafes (less than 10 people)

% of Business% of IncomeProfitability (mm)
57.89.221

 

Catering Business break-up – Larger Cafes (more than 50 people)

% of Business% of IncomeProfitability (mm)
5.277.9160

 

As we can see from the figures the entire café and catering business is a very profitable business with a total profitability of $576mm annually. And the time of business that we want to get into here is the smaller café and catering business which has a profitability of around 125 mm annually which is almost 23% of the total profitability of the café and the catering business.

 

State Distribution

StateBusiness (%)Total Income (%)
New South Wales36.332.2
Victoria27.424.7
Queensland18.418.2
Western Australia6.813.2

 

We will be looking to start out our business from the coastline of Western Australia for the time being , which is the most populated state of Australia and has a majority of the tourist population also coming to visit the place. However we have also identified the other 3 top states where we can look to grow our business in the future. These include the states of New South Wales, Victoria and Queensland (Australia Bureau of Statistics, 2006).

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