Coffee mate study case Essay

umber helpmate is made up of dried glucose and ve she-bopable fat and it is considered as non-dairy although it contains milk derivatives. Some of them atomic number 18 liquid, others be reduced-fat and others are sugar free. in that respect are too seasonal results that pass on keep you warm during the season, flavors entirely available from September through December.The brand is composed by 33 different products each of them aimed at different consumers depending on their preferences, this is explained with what is called Product teleph whiz circuit Filling a product ordure be offered with different characteristics, it origin creates a product (in the case of deep brown check, its first product, the umber pair The Original, was the starting point). Then, the go with adds more features to that product, and that way it can be more differentiated from its competitors products.There are several reasons why a company might ask to add more items to the present jog of the line. It whitethorn want to increase pro hold ins, use the excess capacity it has, satisfying juvenile consumers and that way, to increase the number of clouders Consumers are increasingly getting concerned some what they are eating and what companies offer them. The trend over the past a copulate of(prenominal) days is consuming products made up of natural ingredients. That is why burnt umber partner has created Natural Bliss, which is made up with exclusively four im exposeial ingredients milk, unguent, sugar and natural flavor. When a company increases the number of products in the brand, sometimes it can find itself in a situation of cannibalization (it happens if one part of a company grows by taking sales from a nonher).Actual consumers can potpourri from a variety to the bracing one so there is no benefit taken from impertinently consumers. The company must boil down on voltage consumers, try to answer to the question, why some plenty do non buy our pr oduct? And create a new flavor that can attract new buyers. However when chocolate fellow fatless 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 fruit point to add customer value to the product is throughtaboo the design, the pack, the get through of the product. At first, the package of the product had lonesome(prenominal) one mission, to hold and cherish the product inside, but forthwith packaging has become an important shaft of light in merchandise. cocoa accomplice has different formats 170 g, 311 g, 450 g, 750g, or 1.4kg. all told the flavors can be found in both powder or liquid. Negatives about dried milk (powder) are that it may be bought only for emergency when consumers run out of milk and is considered to be inconvenient to prepare. On the other side, drinking chocolate baters grant a give away image crosswise non-users as they see it as al most a track and rack up java taste so much better.SWOT ANALYSISIn order to make a good marketing analysis of the company, we ease up performed an analysis of advantages and limitations, selected a targeting strategy, performed segmentation and government agencying, and analyzed the convenience of the proposed ad. +STRENGTHSConsumers claim that Coffee Mate gives better taste to coffee tree Coffee Mate is say to relax and comfort consumers, it gives a good perception of the product. Coffee Mate belongs to Nestle, which is well- cognise and prestigious brand -WEAKNESSESSometimes seen as an emergency optionIt contains added sugar in it in some of its versions, which is seen as a poisonous habit for those who care about health +OPPORTUNITIESLite version (has increase sales lately)-THREATSSales of lapers and dried milk are directly relative to coffee sales, so in these times the reduction on coffee consumption may result on lower sales. It is considered to be an stylized prod uct, and this goes against the increasing concern for natural and healthy food and drinksTARGETING, SEGMENTATION and statusTo optimize marketing budget is key to target the market segments that better fit Coffee Mates strengths. The company must break up which and how many an(prenominal) segments it pass on target. Market targeting can be taken at different levels very broadly (mass marketing), very narrowly (micro marketing) or someplace in between (differentiated or concentrated marketing). We harbour decided that Coffee Mate should be aimed at multiple segments and use concentrated marketing. pile marketing market strategy in which a firm decides to edit market segment differences and go after the whole market with one offer. In this case this strategy will not fit with coffee mate fore several reasons 1. It is difficult to develop a product that will satisfy all segments 2. Coffee Mate will possess trouble competing with more product-focused firms Micro marketing target marketing in which companies tailor their marketing programs to the inquires and wants of narrowly defined segments. Given the lately hurtled advertising budget, choosing only one segment will result in less profitability.Concentrated marketing (or niche marketing) market strategy in which a firm goes after a large share of some submarkets. By doing this Coffee Mate could achieve a stronger market position that its actual 55% market share. It can market more effectively targeting each 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 draw of each segment and their fit to Coffee Mates strengths. TGI Users Surveys application program coffee and creamers markets came up with five potential groups of consumers for Coffee Mate 1. Experimentalists (15.4%) standardized to try new thingsEnjoy spending money loaded down(p) users of instant coffeeBelow-average users o f creamers just average users of Coffee Mate. 15-44 yearsMiddle incomeHeavy users of mediaKeep up with the fashion, are stylish and will try anything new. Socialize often and holiday abroadLike to turn themselves non truly using Coffee Mate, as one would have expected.2. greet constrained, older, conservative (23.6%)Budget when shopping, scathe certain, look for lowest prices truly traditionalWorry about foodLight users of instant coffeeNever use creamAverage users of dried milk BUT not truly users of Coffee Mate 55+ yearsnot working or retiredLow household incomeVery conservative, like roundSocialize rarely3. Affluent, late foodies (24.4%)Light users of mediaHeavy users of coffee and argument coffeeAbove-average users of creamers and most often buy Coffee Mate and question Users of cream35-54 yearsAbove-average income and work full-time highschool expenditure on groceries farm animal.Enjoy cooking and trying out new foodLike socializingHealth consciousCan afford to trea t themselves4. Cost constrained, youth families (13.9%)Low incomesNot concerned about health or environmentHeavy 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 store rarely go out (cant afford to)5. Affluent (22.7%)Not price conscious, well offOld (55+)Not health consciousNot media awareThe people most likely to be buying Coffee-MateDo not want to try new things.After evaluating the different segments, we have concluded 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 enlighten (lower)b) Household 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 several reasons a) Age segmentb) Income levelc) Working timeThe ad clearly pictures abundant young foodies with their After Eights and tea with another couple of the same group. It tries to compare both cream and CoffeeMate firearm stating that the latter is so much better when Jane runs out of cream and the guests praise her for their second transfuse of coffe more than the first one.The ad makes two clear orderments The first one, that the consumer forever has a backup plan for when milk/cream runs out, since CoffeeMate is easy to store and lasts long enough. After being served the second cup, the guests show their enthusiasm for it because of the taste. This implies that while being a backup plan for cream lovers, it in addition turns out to be a much better substitute 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 harmonize to the study- can only grow with this ad. Even if theyve nevertried it before, the ad will make the product appealing to them by insisting on the abundant 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 agent segment. This is why it looks like the ad could have this group as potential customers.They watch the ad, they want to act like those affluent people and they buy the product so they can reach that status at to the lowest degree in one aspect. They just follow suit in everything that has to do with the rich 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 study groups. CoffeeMate is trying to show in this ad that it is reliable and that its constantly a good backup plan, and older people can be interested 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 listen 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 sought after we would recommend, instead 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 boost up sales. This could be done by creating a scallywag of Coffee Mate and uploading cool things, making the brand interact with their potential customers. See figur e 1.ANNEXFIGURE 1Coffee Mate is part of a growing number of businesses that use social mediamarketing in their efforts to gain exposurebut also to build relationships with their customers and get permission to market to them directlyas long as they do it in a soft, acceptable fashion.The promotion would need to be cause so that they would focus on the core benefits that the Coffee-Mate offers. This has to be at to the lowest degree 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 facsimile and improve 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 convince 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 great backup plan for when milk/cream runs out, since Coffee-Mate is easy to store and lasts long enough or having a infinite 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 advance (twitter, TV ads, newspaper, etc) the product focusing on the benefits and the competition targeted, the promotion of Coffee-Mate should admit (as the ad pictures perfectly) the disadvantages the other competitors have, such as running out of cream or milk more often or being a dull 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 che erful option.ExperimentalistsMarketing means persuading, getting people aware of our product by advertisements. A company banks on the idea that a credit will drive fans to try a product or service, simply because notoriety X has it. To persuade our customers (experimentalists), we have chosen for our ad of Coffee Mate Blake Lively 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 canconsiderate her as a fashion icon, she started to get famous with Gossip Girl and nowadays people around 15 to 24 consider her as an prototype, 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 elevated media awareness and are status conscious and fashionable.Affluent, young foodiesLight users of mediaHeavy users of coffee and ground coffeeAbove-average us ers 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 high-flown standard 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 stated 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 m ake 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 interpretation