1.1 Target Market
With the exception of people allergic to milk and milk products, the target market for Oaks iced coffee flavoured milk is the entire population of Australia and the Asian Pacific region. Wikipedia (2007a) estimated the population of Australia as 20,728,235. As a convenience product, flavoured milk beverage is relatively cheap, frequently used and should be affordable by most segments of the population. Lee (2004) estimated that the average Australian drank about 9.5 litres of flavoured milk in 2004.
1.2 Brief Overview of Australian’s flavoured milk beverage industry The Australian flavoured milk beverage market is currently estimated as 486 million dollars. The market is dominated by five major competing companies, namely National Foods (Fonterra), Dairy farmers, Parmalat Group and Coca cola. In 2005, National foods held 47 percent of the market (Lee, 2004). The major flavored milk beverage brands in Australia are Oak (Dairy Farmer), Big M ( National Foods), Ice Break , predominantly sold in Queensland and Farmers’ Union iced coffee in South Australia. Flavoured milk is distributed in a variety of sizes, most commonly in Tetra Pak cartoons and plastic screw-up bottles (wikipedia, 2007b).
The fortunes of the industry have been boosted in recent times by the café culture (Dairy, 2007a) pioneered by Starbucks in the USA. Other important...