Cultural environment
The cultural environment consists of the "institutions and forces that affect society's basic values, perceptions and behaviours" (Kotler et al 1998, p882). Changes in Australian culture, and the emergence of varied sub-cultures can have a large impact on the instant coffee market in Australia. As Hugh Mackay, chairman of Mackay Research Pty Ltd stated: "Anyone who is serious about communicating with contemporary Australians...needs to understand the most contemporary trends in attitudes and behaviour." (Bradmore et al 1997, p62)
Recent trends in Australia that are having a particular affect on the instant coffee market are the redefinition of health and associated anxieties about diet, fitness and stress, and the recent emergence of a young Australian coffee culture.
Australians are, more than ever, concerned about their health. There is a wealth of research linking caffeine to many ailments, and thus, this is increasing demand for the 'healthy' alternative - decaffeinated products. There is also the threat the consumers could boycott coffee products all together, and switch to another beverage, such as tea, which is well known for its positive health benefits.
In addition, the market for all types of coffee is benefiting from an "era of coffee in Australia...A real coffee culture is growing." (Miller 2000, p3) People are not only drinking more coffee, but becoming coffee connoisseurs. Coffee is no longer just a product, but a means of self-expression. As a society we are placing the emphasis on quality, not quantity, and as such consumers are buying more "exotic" instant coffees (Bannister 2000, p17).
There has also been an emergence of many different subcultures. A subculture is a "group of people with shared value systems based on common life experiences or situations (Kotler et al 1998, p123). Today, there is wide range of subcultures, particularly those based on nationalities, which is leading to demand for a wider variety of products.

Segmentation
According to (Kotler 2007, p. 334), Marketing segmentation is about “dividing a market into distinct groups of buyers with different needs, characteristics or behaviour who might require separate products or marketing mixes.”

To segment the market effectively, four factors must be looked at. They are Measurability, Actionability, Accessibility and Substantiality measures (MASA). (Kotler 2007, p. 350 - 357)

Measurability is “the degree to which size and purchasing power of segments can be measured.”

Substantiality is “the degree to which segments are large and/or profitable enough.”

Accessibility is “the degree to which segments can be effectively reached and served.”

Actionability is “the degree to which effective programs can be formulated for attracting and serving the segments.”

The four major bases to segment a market are Geographic, Demographic, Psychographic and Behavioural segmentations. These provide opportunities from the customers groups that they want to serve in the industry. Trends in these groups may result in a huge impact on the demand for the product, therefore monitoring their needs is important. (Kotler 2007, p. 347 - 350)
Geographic Segmentation is “dividing a market into different geographic units such as nations, regions, states, municipalities, cities or neighborhoods.”

Demographic Segmentation is “dividing a market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion and nationality.”

Demographic factors which influence segmentation include, for example, age, family size, income and occupation. No These variables are very important to Ford when determining a target market as they are factors which are very closely linked to the specific needs and wants of customers.No Age is an important factor taken into consideration by Ford in determining target markets. YES The Falcon is typically targeted at middle-aged men and women with children. YES

Demography may be defined as the "statistical study of human population and its distribution" (Stanton, Miller and Layton, 1991, p. 23), measured in terms of age, sex, density, location, race, occupation, etc. If the baking industry is to prosper, they must be able to identify the changes and trends in their demographic environment and cater their services to meet or respond to these changes...

Psychographic Segmentation is “dividing a market into different groups based on social class, lifestyle or personality characteristics.”

Behavioural Segmentation is “dividing a market into groups based on consumers’ knowledge of attitude towards, uses for and responses to a product.”

I have chosen the Demographic Segmentation, as it is the most popular base to divide because the factors influencing purchasing are closely related to demographic variables. Blah blah