Coffee mate study case Essay

cocoa touch is made up of dried glucose and vegetable fat and it is considered as non-dairy although it contains milk derivatives. Some of them argon liquid, earliest(a)s be reduced-fat and others ar bread free. There argon also seasonal convergences that get out keep you warm during the season, opinions only uncommitted from September through December.The brand is composed by 33 assorted products distributively of them aimed at blood lineive consumers depending on their preferences, this is explained with what is called Product Line plectrum a product croup be offered with varied characteristics, it outset creates a product (in the case of deep brown tree collaborator, its first product, the Coffee check The headmaster, was the starting signal gunpoint). Then, the company adds more(prenominal) features to that product, and that way it endure be more differentiate from its competitors products.There are some(prenominal) reasons why a company exponent regard to add more items to the present range of the line. It may loss to subjoin pro pop offs, purpose the excess capacity it has, satisfying new consumers and that way, to increase the number of buyers Consumers are change magnitudely getting concerned to the highest degree what they are eating and what companies offer them. The trend over the past few eld is consuming products made up of natural ingredients. That is why Coffee couple on has created Natural Bliss, which is made up with only four simple ingredients milk, work, dent and natural flavor. When a company increases the number of products in the brand, sometimes it lowlife adventure itself in a situation of cannibalization (it happens if one place of a company grows by taking gross sales from another(prenominal)).Actual consumers can tack from a variety to the new one so there is no benefit taken from new consumers. The company must focus on potential consumers, hear to answer to the question, why some th rong do not buy our product? And create a new flavor that can deplume new buyers. However when Coffee gent  promiscuous was introduced, the volume of cannibalization was minimal. The brand experienced a growth of 10% during the first 3 years of the Lite version appearance.Another key point to add customer value to the product is throughout the design, the pack, the wrap of the product. At first, the package of the product had only one mission, to hold and protect the product inside, but nowadays packaging has become an important tool in merchandise. Coffee mate has different formats 170 g, 311 g, 450 g, 750g, or 1.4kg. All the flavors can be found in both powder or liquid. Negatives about dried milk (powder) are that it may be bought only for sine qua non when consumers run out of milk and is considered to be inconvenient to prepare. On the other side, burnt umber tree creamers have a discontinue image across non-users as they see it as almost a treat and control hot c hocolate taste so lots better.SWOT ANALYSISIn orderliness to make a good tradeing compendium of the company, we have performed an analysis of advantages and limitations, selected a siteing strategy, performed divisionation and positioning, and analyzed the convenience of the proposed ad. +STRENGTHSConsumers claim that Coffee Mate gives better taste to hot chocolate Coffee Mate is said to unbend and comfort consumers, it gives a good perception of the product. Coffee Mate be abundants to Nestle, which is intimately- crawl inn and prestigious brand -WEAKNESSESSometimes seen as an emergency optionIt contains added sugar in it in some of its versions, which is seen as a bad enclothe for those who care about health +OPPORTUNITIESLite version (has increased sales lately)-THREATSSales of creamers and dried milk are straightway proportional to coffee sales, so in these times the reduction on coffee outgo may result on lower sales. It is considered to be an artificial product, an d this goes against the increasing concern for natural and healthy nutrition and boozingsTARGETING, SEGMENTATION and POSITIONINGTo optimize marketing budget is key to target the market parts that better fit Coffee Mates strengths. The company must decide which and how galore(postnominal) segments it bequeath target. Market targeting can be taken at different levels very broadly (mass marketing), very narrowly (micro marketing) or somewhere in between (differentiated or concentrated marketing). We have decided that Coffee Mate should be aimed at multiple segments and use concentrated marketing.Mass marketing market strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. In this case this strategy volition not fit with coffee equalise fore several reasons 1. It is difficult to develop a product that will satisfy all segments 2. Coffee Mate will have devil competing with more product-focused firms Micro marketing targe t marketing in which companies customize their marketing programs to the needs and wants of narrowly defined segments. Given the recently squeezed denote budget, choosing only one segment will result in little profitability.Concentrated marketing (or niche marketing) market strategy in which a firm goes after a large share of few submarkets. By doing this Coffee Mate could achieve a stronger market position that its veridical 55% market share. It can market more effectively targeting each(prenominal) product toward those consumers segments that it can serve best. Having decided that Coffee Mate products should be aimed at multiple segments we need now to evaluate the attractiveness of each segment and their fit to Coffee Mates strengths. TGI Users Surveys covering coffee and creamers markets came up with five potential groups of consumers for Coffee Mate 1. Experimentalists (15.4%)Like to refine new things enthrall spending money enceinte users of instant coffeeBelow-average u sers of creamers BUT average users of Coffee Mate. 15-44 years oculus income intemperate users of mediaKeep up with the fashion, are stylish and will try anything new. socialise often and holiday abroadLike to treat themselvesnot really using Coffee Mate, as one would have expected.2. be constrained, older, conservative (23.6%)Budget when shopping, price cognisant, looking at for lowest pricesVery handed-downWorry about foodLight users of instant coffee neer use creamAverage users of dried milk BUT not really users of Coffee Mate 55+ yearsNot working or retiredLow household incomeVery conservative, same routineSocialize rarely3. Affluent, vernal foodies (24.4%)Light users of mediaHeavy users of coffee and ground coffeeAbove-average users of creamers and most often buy Coffee Mate and Marvel Users of cream35-54 yearsAbove-average income and work full-timeHigh uptake on groceries store.Enjoy cooking and assay out new foodLike socializeHealth consciousCan afford to treat the mselves4. Cost constrained, teenage families (13.9%)Low incomesNot concerned about health or milieuHeavy users of instant coffee but do not use ground coffeeBelow-average users of creamers and never use cream15-34 yearsHeavy users of mediaLow expenditure on grocery storeRarely go out (cant afford to)5. Affluent (22.7%)Not price conscious, well offOld (55+)Not health consciousNot media awareThe tribe most probably to be buying Coffee-MateDo not want to try new things.After evaluating the different segments, we have reason that the segment most likely to buy our product will be the EXPERIMENTALISTS and AFFLUENT YOUNG FOODIES. EXPERIMENTALISTS fit into Coffee Mates strengths (specially for Original Coffee Mate) in various ways a) Social class (lower)b) kinsfolk type (2-3 people with children)Besides this, they are heavy users of media and are likely to consume instant coffee and cream. AFFLUENT YOUNG FOODIES fit into Coffee Mates average consumer for Coffee Mate Lite because of se veral reasons a) Age segmentb) Income levelc) Working timeThe ad intelligibly pictures affluent young foodies with their After Eights and tea with another couple of the corresponding group. It tries to compare both cream and CoffeeMate while stating that the latter is so much better when Jane runs out of cream and the guests praise her for their second cup of coffe more than the first one.The ad makes two clear statements The first one, that the consumer always has a backup plan for when milk/cream runs out, since CoffeeMate is easy to store and lasts long enough. After universe served the second cup, the guests show their enthusiasm for it because of the taste. This implies that while be a backup plan for cream lovers, it also turns out to be a much better embossment good for cream or even milk. Whether this ad is effective or not depends on the segment that we focus on.The biggest segment, the affluent young foodies -24.4% market share according to the study- can only grow w ith this ad. Even if theyve never tried it before, the ad will make the product appealing to them by insisting on the spacious flavor and the convenience of it, which is what most of this group looks for. Furthermore, it seems that the experimentalists are affluent young foodie wannabes. They are the same age group, they are really materialistic but they have a much smaller income than the former segment. This is why it looks like the ad could have this group as potential customers.They accompany the ad, they want to act like those affluent people and they buy the product so they can reach that status at least in one aspect. They just follow suit in everything that has to do with the gamy and hip. This is where we see the biggest increase in share due to their consumerism and pretentiousness.Lastly, we could squeeze another segment that this ad could reach the affluent. The affluent segment has also got a big market share, although they are older than the two studied groups. CoffeeMate is trying to show in this ad that it is reliable and that its always a good backup plan, and older people can be concerned in the product since they have people home for meals, and they would not want to run out of anything and not make their guests fully happy.The only downside for this segment is that they dont usually watch TV or see to the radio, so the ad would have to be in the newspapers or find a way to sneak into their radar.Alternatively, if the focus on experimentalists is desired we would recommend, kinda of making a conventional ad, promoting the product and the brand via Twitter or Facebook. These are such powerful tools for targeting this segment since they are young and they are really influenced by what they see in others that social media could really cost increase up sales. This could be done by creating a page of Coffee Mate and uploading cool things, making the brand interact with their potential customers. protrude figure 1.ANNEXFIGURE 1Coffee M ate is part of a growing number of businesses that use social media marketing in their efforts to gain exposurebut also to build relationships with their customers and get authorization to market to them directlyas long as they do it in a soft, acceptable fashion.The promotion would need to be shaped so that they would focus on the core benefits that the Coffee-Mate offers. This has to be at least as good as the targeted competitor. They also have to be aware of how the competitor currently markets his product. By knowing how he operates they could either copy and change the existing one or then completely change and try a more radical approach. If the Coffee-Mate would want to succeed they would need to coax the consumer how he can benefit from our product better in contrast to the competitor.As we have seen before, for example in the ad, Coffee-Mate has a range of benefits which are focused on different necessities of coffee drinkers such as being a enceinte backup plan fo r when milk/cream runs out, since Coffee-Mate is easy to store and lasts long enough or having a myriad of different flavors which can in many occasions be a better substitute for milk or cream, which are the immediate competitors of Coffee-Mate.When having to advertise (twitter, TV ads, newspaper, etc) the product focusing on the benefits and the competition targeted, the promotion of Coffee-Mate should include (as the ad pictures perfectly) the disadvantages the other competitors have, such as running out of cream or milk more often or being a leaden boring flavor and on the other hand state the great range of flavors Coffee-Mate offers coffee lovers which will certainly attract experimentalists as they look forward to try new experiences and insist that it is a great substitute when cream or milk run out, which for affluent young foodies as they are more likely to socialize and serve coffee to their guests, will be a much more suitable and comfortable option.Experimentalists mar ket means persuading, getting people aware of our product by advertisements. A company banks on the idea that a celebrity will fetch fans to try a product or service, simply because Celebrity X has it. To persuade our customers (experimentalists), we have chosen for our ad of Coffee Mate Blake spruce drinking a cup of coffee.We have chosen this celebrity to attract the experimentalists due to the fact that is a Hollywood personality known by almost all the young people, we can considerate her as a fashion icon, she started to get famous with Gossip Girl and nowadays people around 15 to 24 consider her as an substitution class, This ad goes directly directed to the experimentalist, as their name suggest, experimentalists are easy targeting as they would like to try out new products. They also have high media cognizance and are status conscious and fashionable.Affluent, young foodiesLight users of mediaHeavy users of coffee and ground coffeeAbove-average users of creamers and most often buy Coffee Mate and Marvel Users of cream35-54 yearsAbove-average income and work full-timeHigh expenditure on groceries store.Enjoy cooking and trying out new foodLike socializingHealth conscious, can afford to treat themselvesRichard GereRichard Gere is a well-known actor, even though he is now in his early sixties he is an icon for many men as the prototype of an attractive, handsome man which may enter in the ideal standardized of living of anyone, taking into account his films and social apparitions.Many women also know him for the same reasons and may see him as the perfect man. As the target market here are affluent young foodies, whose characteristics are express above, a middle-high standard of living, the possibility of affording to treat themselves and the age group make it perfect for him to help position Coffee-Mate in this segment, as many of these people would like to copy his lifestyle. Noticing Richard Gere prefers Coffee-Mate might make this group want to drink coffee as he does.BibliographyCoffee Mate Offical website http//www.coffee-mate.comNon Dairy Creamers info http//en.wikipedia.org/wiki/Non-dairy_creamerCoffee Mate twitter https//twitter.com/Coffee_matePrinciples of Marketing, Fifth European Edition