Marketing - Teology Australia

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Teaology Australia ®

Teaology Australia® was first established in 1983 in the Tweed Valley in Australia. Tweed Valley was chosen for the tea plantation location for its similarities in climate and topography to those of North East India. The tea material for establishing the plantation was purchased from Tanzania. Teaology Australia’s production line includes; Premium Blend, English Breakfast, Earl Grey, Green Tea, Green Tea with Mint, Green Tea with Lemon, and Herbal Infusion Tea’s. Recently Teaology Australia has begun development of Chai Latte. Chai Latte is a spiced tea drink with milk, which will be packaged in sachets and available for Australians to purchase at their local supermarket. However, in order to establish the target market for chai latte and introduce it into the Australian market, a situational analysis is to be conducted.

Marketing and the Macroenvironment

According to Kotler, Brown, Adam, Burton and Armstrong (2007, p. 7) marketing is defined as an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. The marketing environment is highly competitive, dynamic and complex. It consists of both the actors and forces that affect marketing management’s ability to develop and maintain successful transactions with its target audience (Kotler et al., 2007, p. 162). The marketing environment consists of a microenvironment and a macroenvironment. The microenvironment consists of the forces close to the organization that affect its ability to serve its customers (Kotler et al., 2007, p. 162). The macroenvironment consists of the larger societal forces that affect the whole microenvironment (Kotler et al., 2007, p. 162). The macroenvironment consists of six major forces; demographic environment, economic environment, natural environment, technological environment, political environment, and cultural environment. This research analysis will focus on the macroenvironment. A close analysis of each of the six macroenvironments will help reveal the current trends and how they may affect the chai latte market in Australia.

Demographic Environment
Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics (Kotler et al., 2007, p. 169). The demographic environment is tremendously important to marketers because it consists of people, and people are what make up markets and have the ability to affect the Australian chai latte market. According to Kotler et al. (2007, p. 180) demographic developments have transformed the Australian marketplace from a mass market into more fragmented micromarkets differentiated by age, sex, geography, lifestyle, ethnic background, education and other factors. Companies need to design products and marketing campaigns that appeal to the specific micromarkets they are targeting.

All demographic variables have the ability to affect chai latte’s market in Australia. For example, more women are participating in the workforce and according to Kotler et al. (2007, p. 176) women’s incomes contribute to over 40% of their household income, therefore influencing the purchase of higher quality goods. Women also look for a product that is convenient and able to keep up with their fast paced lifestyle. Teaology Australia’s chai latte should be readily available in all leading supermarkets for convenience. Also it would be a strong marketing opportunity for Teaology Australia to create a separate chai latte shake with an added women’s vitamin supplement to cater to women and take advantage of this trend.

Economic Environment
The economic environment consists of factors that affect consumer buying power and spending patterns. Markets require buying power as well as people. Total buying power depends on current income, prices, savings and credit...
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