3.0 CUSTOMER ANALYSIS

3.1 Segmenting Dimensions

3.1.1 Geographic Segmentation

Information from ABS shows that Australia is divided into six states and two territories. The six states are New South Wales (NSW), Victoria, Queensland, Southern Australia, Western Australia and Tasmania. Main bulk of the population is resided in NSW and Victoria. With 84.72% of urbanization in Australia, most households purchases most of their products from shopping centres or retail stores.

3.1.2 Demographic Segmentation

ABS statistics show that the number of the population aged between 10-19 years is slowly increasing. This age group consists of 2.6 million consumers. The group from 20-34 years has fallen during the 1990s. But there will be significant increases between the 40 and 50 age group, as the baby-boom generation will move into this sector. By the end of the 20^th century the 50 to 64 age group increased by 26%. Therefore it is essential that the baby-boom generation be taken into consideration in the marketing mix, especially promotion (ABS).

Australian statistics shows that the average weekly income for males is $780.60 and for females it is $521.50. Moreover, both high-income earners and low-income earners are increasing significantly (The Economic Survey of Australia 2001). This suggests that consumers have higher purchasing power.

3.1.3 Psychographic Segmentation

As there is an increase in the average Australian wage (ABS), people now have more disposable income. As a result, and from our survey, consumers are more willing to purchase new products put out in the market. ‘Real Fruits’ will be a new product available, and the unique taste and flavours will appeal to the Australian population.

3.1.4 Behavioural Segmentation

Deglos Consultancy surveyed a sample size of 50 people to obtain more knowledge of consumer behaviour (Appendix 1). Results show that 65% of people purchases fruit juice products from supermarkets, 25% from retail outlets and 10% from other outlets, such as vending machines, cafes/restaurants and kiosks. 60% purchased fruit juice products twice a week, 25% once a week and 15% once every other time. 45% buy fruit juice simply for the taste and 35% buy it primarily for health benefits and 20% buy fruit juice for thirst. 20% also said that packaging, such as glass for fruit juice drinks is more attractive. In addition, 73% of those surveyed, stated they would be prepared to try a new fruit juice that contained real fruit pieces. 75% of them play sports and other outdoor games as their hobbies. Finally, it was important to note that traditional flavours, such as ‘Orange’ was the most popular, accounting for almost 70% of those surveyed (Kotler et al 2001).

3.2 Key Influences on Buying Purchase

3.2.1 Psychological Influences

Consumers buying actions are often affected by motivation, perception, and learning. Motivations are associated with individuals’ needs and wants. Theses desires can lead to a drive, where they will actively purchase the product or service. The needs can be classified into four major categories, namely Physiological, Safety, Social and Personal needs.

“Golden Circle’s Real Fruits” is a fruit juice drink which is distinctively classified as a physiological need in consumers’ psychological influences. It is essential for the marketing plan to meet consumers’ perceptions, provoke a learning experience and ultimately encourage needs and wants from them; hence drives of purchasing can be achieved as a result.

3.2.2 Social Influences

Consumers’ buying behaviour can be influenced through his/her interactions with family, social class, culture, reference group, and opinion leaders. In the juice industry, consumers’ social influences would not affect Golden Circle’s Real Fruits’ sales level significantly; however, since the product is in its market introduction stage, it is important for Golden Circle’s Real Fruits to realise the benefits of having a reference group or opinion leader who recommends Golden Circle’s Real Fruits. This is due to the fact that consumers tend to trust and follow reference groups and opinion leaders.

3.3 Type of Buying Situation

The product is likely to be bought by the customer in a situation where customers are tired of similar products, and want to try something new and different. Golden Circle will make the environment of where the new products are to be sold as appealing as possible, so that it would arouse customers to come and try the new product, in which they would include décor and any other visual cues to which a customer may be exposed during the service encounter.

3.4 Relationships with Customers

Golden Circle will expect competitors to begin offering products with similar concept to “Real Fruit”, therefore it should seek ways to serve and strengthen relationship with existing customers to develop a competitive advantage. This can be done by satisfying customers’ needs and expectations and create value through consistently offering high quality products to keep them loyal to the company, which will lead to increase profit for Golden Circle. Consumers in fruit juice market would be motivated by different dimensions; health conscious consumers would be interested in nutrition, families with children are interested in bulk buying and economic value, children are interested in fun packaging. Therefore, Golden Circle’s continuous research and development will be essential to build strong customer relationship.