Essay on Marketing Strategy-Coffee Mate

1165 Words Oct 14th, 2012 5 Pages
[pic]

Marketing Strategy (CB683)

CASE STUDY--------Coffee-Mate

2011

1. What are the main benefits of Coffee-Mate and what is limiting its sales?

The benefits of Coffee-Mate for customers have been many. To begin with, it can be whitener instead of milk. If users do not get milk nearby, they can put Coffee-Mate into coffee, as the similar taste to milk or cream. Also, Coffee-Mate can sometimes brings benefits of relaxing and fun for loyal creamer users, due to the improvement of taste. Loyal users think coffee’s taste is much better than the one without Coffee-Mate. It offers customers sweet taste, though there is no sugar in it. Besides, various kinds of flavours of
…show more content…
For mass market, the company should focuses on the whole market and ignore the differences between various customers’ demands (Ferrell&Hartline, 2011). However, it is impossible for Coffee-Mate to face the whole market. According to the case study, Coffee-Mate and Coffee-Mate Lite are relying on the consumption of coffee. So the market can only focus on the coffee-drinkers who prefer coffee-creamer.

Now, Coffee-Mate and Coffee-Mate Lite have separate segment target. Coffee-Mate Lite is more likely for customers who are more concerned fitness and weight. It can be seen that target customers still can be divided into different segments based on the ages, income levels, and social states and so on. In order to satisfy the different customers’ demands, targeting multiple segments is a better choice for Coffee-Mate.

3. Evaluate the segments from TGI’s user survey for target attractiveness and the fit to Coffee-Mate’s strengths. Which of the segments would you target and why?

TGI User Surveys divided Coffee-Mate markets into five potential consumer segments, they are as follow:

1) Experimentalists, ‘Sharon and Tracy’ (15.4%)
The people in this group are younger. They like something new and fresh, and they are heavy users of cream. Therefore, as a substitute of creamer, Coffee-Mate can be accepted easily by experimentalists. Also, increasing brands image can affect the buying behaviour of these people who just focus on brand rather than own labels.
Open Document