Market Estimates and Methods
Coffee consumption is a significant market aspect that allows people to make life easier and consume a drink without leaving home. The size and volume of the available home espresso machine market in Australia and its key segments must be estimated using several important concepts. First, the market assessment methodology includes a research report as one of its main components (Cakranegara, 2021). This report can provide insightful data analysis regarding the size of the market and the trends currently prevailing in the area. In addition, important indicators in this category are growth rates, market value, and segmentation, which allow for extrapolation to create a value judgment.
Demographic analysis is a mandatory methodological component that allows for a more accurate description of the study’s target audience for the home espresso machine market in Australia. For this analysis, population numbers, age groups, income levels, and beverage preferences were used (Mansuy et al., 2020). The collection of such data helped to analyze the market’s potential size, considering all the parameters described above. In addition, an essential factor was taking into account the available social surveys and interviews conducted in Australia, which helped to determine the demand for home espresso machines in the country.
The next step is benchmarking, which was necessary to assess the market’s growth rate and compare it with similar markets in other countries. This allowed us to develop results based on data obtained by comparing results from different countries to assess credibility. At the same time, it is crucial to compare markets in countries where a similar coffee culture prevails with Australia, since this way the most accurate data can be obtained.
Arriving at Estimation
The evaluation process synthesizes the listed methods for collecting statistics and analyzing the results. The definition of segmentation played an essential role as it identified the key divisions in the market that made it possible to categorize espresso machines. They were based on several parameters: price, product features, and manufacturing brands. At the same time, the assessment’s further achievement was to determine the size of each of the identified segments due to their growth rates and previously collected demographic indicators (Mengist et al., 2020). The sizes of all market segments were then summed up to determine the size of the Australian espresso machine market.
Difference in Estimations
Several factors could influence market size estimates. One of the main ones is the reliability and availability of the data used (Baker et al., 2022). Different sociologists’ reports could provide different data with a small margin of error. In addition, external factors such as changes in people’s preferences, financial situation, or other competitive environments could also influence the size estimate.
Validation of Estimation
Several factors contribute to the credibility of this estimate of Australia’s domestic espresso coffee machine market size. First, the work used accurate and reliable data, considering potential variables that could affect people’s moods about coffee. They include the financial condition, the definition of needs, and the environment in which people from the target audience are located (Baker et al., 2022).
All data were processed using a robust methodology developed for this work, which ultimately positively impacted the study results and accuracy. Reviewing primary interviews and surveys of the population regarding attitudes toward coffee and espresso machines is a reliable method of verifying data. In this regard, further reasoning received substantial empirical support.
Segment in the Market
Detailed segmentation made it possible to get a more accurate idea of each market aspect and analyze it separately. One segment of the espresso machine market in Australia is the price range, which divides products by value. It includes some categories that separate all coffee machines into the budget segment, mid-range, and flagship models.
The next segment represents the geographic location of the people who most often bought or serviced espresso machines. Large cities are most often characterized by this, as people drink coffee more often than in villages. Segmentation by brand included a division that was not useful for the study since all the brands of espresso machines sold were equally popular.
Segmenting the Market
Concepts and structures were used based on external factors and people’s personal beliefs to conduct detailed and competent segmentation. Behavioral segmentation is the first and main method used to study consumer behavior and analyze their usual coffee habits (Sitorus et al., 2021). This helped explain why people buy coffee machines and why they like the taste of coffee.
Preferences for different coffee machines also helped identify the primary coffee consumers. For a complete background, it was also important to consider the psychological factors that affect buyers. These include lifestyle preferences, personal values, and attitudes toward coffee. Analyzing such data helped to understand the reasons for choosing certain coffee machines more deeply.
Another way of market segmentation used in the work is the division according to the advantages and strengths of brands. This is based on what consumers want in an espresso machine in the Australian market. Consumer trust and special attitudes, both negative and positive, towards certain brands could play a decisive role in people making their choice in favor of a particular model. In addition, it was also important to consider the use cases in which buyers expose their devices. Specific market segments could be divided in such cases, depending on what coffee people prefer.
Future Revenue Growth Potential
Analyzing the Australian espresso machine market segments can help predict future revenue growth. There is a growing demand for premium coffee machines, which aligns with the figures given in various sources (Papadakis et al., 2022). Thus, we can say that the segment of flagship devices is very popular.
This, in turn, means that people are willing to buy more expensive coffee machines. Therefore, manufacturers will first focus on them to get more benefits. Thus, the coffee machine market will grow due to higher prices. This is consonant with the focus on innovative and unusual directions (Nab & Maslin, 2020).
Machines from niche segments performed much better, which indicates that consumers would like to get something new and unusual in the usual coffee machine market. Consumer behavior has become another category that tends to change as it is influenced by various factors that change people’s perceptions of standard coffee machines. Future potential earnings growth in an industry can be determined by how people stick to their tastes or look for something new.
References
Baker, A. C., Larcker, D. F., & Wang, C. C. (2022). How much should we trust staggered difference-in-differences estimates?. Journal of Financial Economics, 144(2), 370-395. Web.
Cakranegara, P. A. (2021). Analysis of the Development of Home Scale Machines in the Food and Beverage Industry. Journal of Applied Science, Engineering, Technology, and Education, 3(2), 324-331. Web.
Mansuy, J., Verlinde, S., & Macharis, C. (2020). Understanding preferences for EEE collection services: A choice-based conjoint analysis. Resources, Conservation and Recycling, 161, 104899. Web.
Mengist, W., Soromessa, T., & Legese, G. (2020). Method for conducting systematic literature review and meta-analysis for environmental science research. MethodsX, 7, 100777. Web.
Nab, C., & Maslin, M. (2020). Life cycle assessment synthesis of the carbon footprint of Arabica coffee: Case study of Brazil and Vietnam conventional and sustainable coffee production and export to the United Kingdom. Geo: Geography and Environment, 7(2), e00096. Web.
Papadakis, N. M., Zantzas, A., Lafazanis, K., & Stavroulakis, G. E. (2022). Influence of Color on Loudness Perception of Household Appliances: Case of a coffee maker. Designs, 6(6), 101. Web.
Sitorus, N. B., Juliana, J., Maleachi, S., Djakasaputra, A., & Prabowo, G. (2021). Café marketing strategy analysis in the COVID-19 pandemic. International Journal of Social and Management Studies, 2(5), 44-53. Web.