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).
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 Income | Profitability (mm) |
| 67.5 | 27.7 | $105 |
Café Business break-up – Larger Cafes (more than 50 people)
| % of Business | % of Income | Profitability (mm) |
| 1.5 | 21.8 | $10 |
Catering Business break-up – Smaller Larger Cafes (less than 10 people)
| % of Business | % of Income | Profitability (mm) |
| 57.8 | 9.2 | 21 |
Catering Business break-up – Larger Cafes (more than 50 people)
| % of Business | % of Income | Profitability (mm) |
| 5.2 | 77.9 | 160 |
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
| State | Business (%) | Total Income (%) |
| New South Wales | 36.3 | 32.2 |
| Victoria | 27.4 | 24.7 |
| Queensland | 18.4 | 18.2 |
| Western Australia | 6.8 | 13.2 |
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).