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Analysing the Macro-Environment

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Analysing the Macro-Environment
Macro-environment analysis of The Coffee Company for the Chai Latte powder product

The Coffee Company is 100% privately owned and operated company. It has been in operation since 1998 and has over 10 years experience in the coffee manufacturing market. The Coffee Company provides fresh roasted coffee to over 1000 food service customers across Australia and its retail products are available in leading Australian retailers. The Coffee Company plant is based in Moorabbin and uses market leading production methods to deliver consistent quality and flavour. The Coffee Company has sales offices in all the Australian capital cities. The current product range consist of coffee beans, ground coffee and liquid chocolates in a variety of styles and sizes. The purpose of this report is to provide a macro-environment market analysis in relation to the development and manufacturing of a Chai Latte powder product.

The macro-environment consists of six types of forces: demographic, economic, natural, technological, political and cultural. The Coffee Company must take into account the trends and changes in each of these environments, which can both pose challenges and opportunities.

Demographic Environment
As defined by Kotler et al, demographics are the "study of human populations in terms of size, density, location, age, sex, race, occupations and other statistics" (Kotler, 2007). One of the most significant trends in Australian demographics is the ageing population. Australia’s population is projected to age rapidly over the next twenty to forty years. Population ageing is the upward shift in the age structure, in which the proportion of younger people declines as the proportion of older people increases. It is forecasted “Australia's population is set to change substantially over the next 50 years, with around one in four Australians being 65 years or older by 2056” (ABS 2008).

This ageing population in the short term is made up of the generation know as the



References: Text Kotler, Brown, Adam, Burton and Armstrong (2007), Marketing (7th Ed), Prentice Hall of Australia, Sydney.

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