Essay on Marketing Strategy-Coffee Mate

A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey).

The Starbucks former strategy was centered in offering a high quality product to a narrow consumer segment (coffee lovers), therefore, a

Nowadays people tend to follow the trend from the western culture. Compare to tea, coffee is more famous among the Malaysian. According to the reader’s poll conducted by I.M. Magazine in year 2012, they found out that 81.2% of Malaysians consider themselves as a coffee person. Almost 44% of them guzzle 2 to 3 cups per day, 25% drink 1 cup per day and 19% consume less than 1 cup per day but more than 1 cup per week.6.3%will sip less than 1 cup per week. When the surveyor are ask if they could survive without coffee for a week, 43.8% of Malaysians said no, 37.5% said yes and 18.8% were unsure about the answer.

The caffeine in coffee become an ethical increase over alcohol and have become a fashionable social beverage. It was interesting to see how it started off as this very exotic drink only for the upper class and then turned into what it is now. Coffee is a very fashionable drink that does not cost much that many have led their days with in today’s society.

This Essay will deal with the Four P’s of marketing as it relates to Folgers Coffee. It will be demonstrated how the marketing function is visible in these four areas. It will also be shown how the coffee giant had lost its lead in market share and then recovered it in the mid 1990’s. We will explore how now that Folgers is being operated by Smuckers, the coffee giant has used some clever marketing schemes.

Every human being having to start the morning with a cup of coffee or tea with hot and delicious breakfast, and mid-morning or afternoon. The great hot coffee or tea is sharing with family, friends and co-workers. Some people are like to drink coffees or teas as taste bold to medium and mild with any types of products. In 19th centuries to now, there are so many food businesses open in the market such as coffee stores, food restaurants, retail grocery stores and food industries. There are different country’s coffees or teas with flavors find in the coffee or cafe stores. The coffee businesses are open such as Starbucks coffee, Dunkin Donut, McDonald, Panera, Caribou café etc. All these coffee businesses have the own corporate stores,

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

One major concern is that the participants used were not necessarily current Starbucks customers. The purpose for this was to increase and promote Starbucks to non-customers. Questions regarding the current Starbucks menu and ambiance does not solicit a true response if the individual surveyed is not a customer. Furthermore, competition coffee retailers are also a large concern. Surveying a

Coffee consumption is expected to increase through 2015 at an average annual rate of 2.7%, while tea consumption is expected to increase through 2015 at an average annual rate of 3.1%. Positive expectations for continued growth in coffee sales, despite its “mature” product position in the market, are due to the innovations in premium coffee products (pods, single-serving instants, etc.)

Following the introduction of the new flavored coffee, there is need for coming up with a sales strategy for increasing the sales of the new product. The strategy gives details on how the product will reach the customers, and in the end, making them aware of the difference between the new product-line with the other products from the company. These strategies are necessary for improving the total company sales, consequently increasing the profitability of the company. The strategy is also necessary for the coming up with sales activities that position the flavored coffee to a state where it can gain a competitive advantage in the market. The most appropriate sales strategy of choice for meeting the sales objective of the company is the triple-tiered sales strategy (Frain, 2009).

Coffee is considered as being the most favorite hot beverage that is consumed within the United States. Coffee is consumed by over 60% of the U.S. population. The accessibility and expenses of coffee substitutes such as tea, cocoa, and coffee complements (sugar or creamer) in addition plays a major role in which sets the coffee prices. During the 1957-87 era, the cost of coffee had beyond tripled, the per capita of US consumption of coffee declined to 44.3%, and actual disposable personal earning expanded to 246%. With the reduction of per capita US coffee demand could have possibly been associated with the increasing expenses of coffee, modifications within the taste changes that were made due to dietary concerns and the variety of transformations

As for other coffee consumption facts, brewing coffee at home declined from 2006-2011 with 75% of total coffee sales made “away from home” (High Beam Business, 2012). Furthermore, an interesting study revealed the growth in this target market: “another new and large growing target market within the coffee industry is college-age students and post graduate individuals residing in urban areas. These two segments account for the largest portion of coffee drinkers” (Scribd, 2012, Marketing

The second major flaw in the coffee taste studies is the existence of external variables. It is evident that the first and third studies had underlying variables that may have significantly affected their outcomes. The first study notes that “the author of this study personally purchased coffee to go at four places, took them to his office, tasted them, made notes and drew conclusions” (pg. 63). This indicates a major flaw of this particular study because the time frames for which each cup of coffee was obtained and then consumed are inconsistent.

The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social

First of all, Coffee-Mate´s main benefit is its ability to replace cream or real milk. Furthermore, it can be stored for a much longer time than milk or cream making it a good substitute. People who cannot drink coffee without milk don’t need to carry around or look for milk since coffee mate will do the same job. In addition it is made of health promoting ingredients such as dried glucose and vegetable fat. However it cannot be legally defined as non-diary since it also contains milk derivatives. This can be considered a benefit to Coffee-Mate when it comes to customers who like the flavour and thus also makes them use less sugar for sure. Another