Brand Segmentation and Positioning - Espresso Coffee Machines

3621 Words Apr 14th, 2008 15 Pages
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BRAND SEGMENTATION AND POSITIONING

Espresso Coffee Machines
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EXECUTIVE SUMMARY

This report was commissioned to examine how customers make purchase decisions for espresso coffee machines, the factors affecting consumer behaviour, and to identify where the leading brands sit in the opinions of a small sample of the population.
The research draws attention to the fact that at the end of financial year 2007 the Australian market for espresso machines totalled almost 87 million dollars, representing an increase of 17% on the previous year. The top five brands competing in this booming industry are DeLonghi, Jura, Krups, Saeco and Sunbeam.

Further
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Both qualitative and quantitative observations, meetings, questions and a survey were undertaken to analyse the culture of consumer behaviour and the effect that advertising, product placement, in store product sampling, point of sale promotions, media communication and sales persuasion had on the decision to buy a particular product of this small sample of approximately 50 qualified buyers.

The report analyses these findings, in particular survey results and identifies some key recommendations, in particular for DeLonghi who hold significant presence in the fully automatic espresso machine market.

Source: ‘Coffee Makers – Australia, GFK Group Australia’

CONSUMER DECISION MAKING PROCESS

Observations

Initial qualitative interviews were undertaken to gather ideas about consumer needs and wants, motivations, perceptions, benefits sought and attitudes towards coffee drinking in general and finally toward specific brand preference. Our studies revealed that consumers made their purchasing decisions intrinsically (taste, temperature and milk froth quality), and extrinsically (brand and store image, in-store service environment, price). Consumers commented that images of retail stores influenced the perceived quality of products they carry.

Key Decision Making Criteria
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