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As coffee consumption increased the demand for complementary products like coffee creamers increased also. Being confronted with this and a decreasing advertising budget the managers of Coffee-Mate were forced to look for new consumers in an attempt to increase sales. As a first step, they did a survey, to get to know their potential customers better and to have a better general overview of the target market.
Because the competition in the coffee creamer sector is relatively strong, it was essential that Coffee-Mate created a strategy with the aim of strengthening their position in the coffee creamer market in Great Britain and surpass their competitors.
To clarify the next steps for the company, it is the aim of this Case Study to investigate and evaluate the segments Marketing and coffee mate the Coffee-Mate in terms of finding a proper recommendation for an effective strategy that Coffee-Mate could use.
To complete this strategy, Coffee-Mate and its market segments are presented first in theoretical part, then the process of targeting will be outlined. Moreover, the sections of the company are defined and evaluated, regarding to their profitability for the company.
Finally, a recommendation for the managers will be made. This recommendation will assist Coffee-Mate to use their minimal budget as effectively and efficiently as possible and select the best option for the company.
Additionally, increase its sales and gain more stability in the creamers market. In order to do so it is important to have an overview of the brand and its sales environment.
Therefore, the use of Coffee-Mate correlates with consumption of coffee. In comparison to other countries e. Italy, the average consumption of coffee in the UK was quite low, only about 3 kg per head annually which was about 1.
Customers of Coffee-Mate bought an average of 1. Besides that, the national Food Survey suggested that there was a correlation between weekly income and consumption of coffee: Furthermore, the survey revealed as well that coffee consumption tended to be higher in childless households.
There were many competing whiteners on the market which made it quite difficult for Coffee-Mate to increase sales. People normally used milk in different variations such as whole milk, semi-skimmed or skimmed milk. Moreover, dried milk was also used as an emergency replacement.
There were consumers who did not use dried milk or creamers at all because they changed the taste, some were using than just in case of emergency when they ran out of milk or cream and others considered creamer as a treat.
With its special ingredients, Coffee-Mate could distinguish itself from the competitors. It contains a mix of vegetable fat and dried glucose, but as it also has milk derivatives, which legally cannot be sold as non-dairy or used by people who are lactose intolerant.
The lite version is a low-fat alternative.
Lastly people that were not consumers of the products claimed that the product had a high sugar content and therefore made the taste of the coffee too sweet. One of the main advantages of Coffee-Mate for the British users was the reported improved taste. British consumers claimed that it improved the flavor of their coffee by providing a thicker creamier taste.
This was very important because no matter what the taste might be, in the end the perception of the consumer is all that counts. Another disadvantage of the product was that it was only used as a complement to coffee and it was used by some only as an emergency solution in case one had run out of milk.
Once obtaining an understanding of the brand and its market environment, it is important to understand the procedure of targeting a market segment. This description contains four characteristics: The TGI market research company conducted two surveys of consumers who bought coffee and of consumers who bought whiteners.
Their research centered on consumer attitudes, purchasing habits, behaviors and motivations. Coffee-Mate instructed TGI to target and identify their key customers so they could reach them in the most cost effective way. In order to do so, each of the market segments first has to be evaluated along three major aspects: The starting point is usually the examination of the segment size and potential growth.
The marketer has to find the most suitably sized market segment. It is essential to clarify the number of customers and units to service. Besides that, the structural attractiveness has to be taken into account which values the profitability of a market segment.
Furthermore, the marketer needs to consider that the previous criteria is not mutually exclusive with their own organizational objectives and resources.
Abbildung in dieser Leseprobe nicht enthalten Source:Nestlé Reports Good Results for First Half of Nestlé’s Coffee-mate maintains its growth in North America due to its new packaging and flavor extensions, Positive results were also noticed in North America with the success of the Vertuoline system and an increased marketing investment.
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Coffee pharmacology is significantly more established than yerba mate pharmacology, as mate is a relatively unknown herb in the United States, Europe, and countries familiar with traditional tea and coffee.
But, although Mate is considered the official national beverage, coffee is one of the other drinks that takes a central role in Argentinian life. In Argentina, coffee is not only an enjoyable drink, it is is an important part of the Argentinian social life.
View Ieva Bivainienė’s profile on LinkedIn, the world's largest professional community. Ieva has 2 jobs listed on their profile. See the complete profile on LinkedIn and discover Ieva’s connections and jobs at similar schwenkreis.com: Head Of Marketing at The Coffee .
Coffee-mate has so many different flavors to get my creative juices flowing in the morning.
And, Coffee-mate is not just for coffee. It can be used in recipes to add a level of flavor and richness that you just can’t get from other ingredients.