In their daily life coffee is mostly indispensable for people nowadays. Already in the 1980’s in the UK coffee was very popular and well known, even though the English preferred drinking tea. As coffee consumption increased the demand for complementary products like coffee creamers increased also. As coffee creamers gained popularity in the UK Coffee-Mate, Nestlé’s brand of coffee creamer, was faced with the problem that its market was still relatively small with a variety of competitors manufacturing substitutes, e.g. cream and other brands of coffee whitener. Being confronted with this and a decreasing advertising budget the managers of Coffee-Mate were forced to look for new consumers in an attempt to increase sales.
As a first step, they did a survey, to get to know their potential customers better and to have a better general overview of the target market. Because the competition in the coffee creamer sector is relatively strong, it was essential that Coffee-Mate created a strategy with the aim of strengthening their position in the coffee creamer market in Great Britain and surpass their competitors.
To clarify the next steps for the company, it is the aim of this Case Study to investigate and evaluate the segments of the Coffee-Mate in terms of finding a proper recommendation for an effective strategy that Coffee-Mate could use.
Table of Contents
1 Introduction
2 Coffee-Mate Profile
3 Segmentation, Targeting and Profiling
4 Coffee-Mate's Potential Segments and their Evaluation
5 Conclusion
Objectives and Topics
The primary objective of this case study is to analyze the market environment of Nestlé's Coffee-Mate in Great Britain, evaluate potential consumer segments, and provide strategic recommendations to optimize marketing efficiency and increase market share.
- Historical development and market profile of Coffee-Mate in the UK.
- Theoretical application of market segmentation and targeting procedures.
- Detailed evaluation of five distinct consumer segments based on demographic and behavioral data.
- Strategic assessment of target group profitability and communication requirements.
Excerpt from the Book
3 Segmentation, Targeting and Profiling
The intent of targeting, is to pitch the product to the market, concentrating on the specific market segment(s) which increases the efficiency and effectiveness of a campaign. A market segment is defined as "a group of consumers sharing common needs or characteristics which the company has decided to service." All this information about the characteristics is taken together with profiles and selected market segments. This description contains four characteristics: demographic, geographic, psychographic and behavioral aspects.
To increase sales revenue in Great Britain, Coffee-Mate had to choose the most suitable market segment(s) to service, from those discovered through marketing research. The TGI market research company conducted two surveys of consumers who bought coffee and of consumers who bought whiteners. Their research centered on consumer attitudes, purchasing habits, behaviors and motivations. Coffee-Mate instructed TGI to target and identify their key customers so they could reach them in the most cost effective way.
Summary of Chapters
1 Introduction: This chapter outlines the market challenges faced by Coffee-Mate in the UK, including strong competition and budgetary constraints, and defines the scope of the case study.
2 Coffee-Mate Profile: This section provides a historical overview of the brand, describes the competitive landscape, and analyzes the usage habits and consumer perceptions of the product.
3 Segmentation, Targeting and Profiling: This chapter introduces the theoretical framework for identifying and selecting profitable market segments to improve overall marketing performance.
4 Coffee-Mate's Potential Segments and their Evaluation: This chapter presents five specific consumer segments and evaluates their viability, habits, and appropriateness for Coffee-Mate's marketing strategy.
5 Conclusion: The final chapter summarizes the strategic findings and recommends focusing on specific high-potential target groups to stabilize and grow the brand's market share.
Keywords
Coffee-Mate, Market Segmentation, Targeting, Consumer Behavior, Nestlé, Great Britain, Marketing Strategy, Coffee Creamer, Brand Positioning, Sales Revenue, Market Research, Demographic Profiling, Profitability, Competitive Analysis, Consumer Attitudes
Frequently Asked Questions
What is the core focus of this case study?
The study focuses on evaluating the market position of Nestlé's Coffee-Mate in the UK and identifying the most suitable consumer segments for a strategic marketing approach.
What are the central thematic fields?
The main themes include brand profile analysis, market research methodology, consumer segmentation, and strategic targeting within the coffee whitener sector.
What is the primary objective of the work?
The primary objective is to develop a recommendation for management that allows Coffee-Mate to utilize its limited advertising budget effectively to increase sales and market share.
Which scientific method is utilized?
The study applies descriptive analysis based on market research data, specifically utilizing the TGI survey to define and evaluate consumer segments through demographic and behavioral criteria.
What is covered in the main body of the text?
The main body covers the brand's historical context, the theoretical process of market segmentation, a detailed breakdown of five potential consumer segments, and a final strategic evaluation.
Which keywords characterize this work?
The work is characterized by terms such as market segmentation, targeting, consumer behavior, and brand strategy within the context of the British coffee creamer market.
Why are "Dawn and Lisa" considered an unrealistic target group?
They are considered unrealistic because they have very low income, are not brand-conscious, and are largely unwilling to spend money on non-essential products like coffee creamers.
What makes "Sharon and Tracy" an ideal target group for investment?
They are considered ideal because they are open to trying new products, are status-conscious, keep up with trends, and are willing to spend money on premium brands.
Why is "Sarah and Annie" a lucrative, yet challenging, target group?
While they are heavy consumers of coffee and creamers with high purchasing power, they possess low media awareness, making traditional TV advertising less effective to reach them.
- Quote paper
- Anonym (Author), 2017, The contribution of segmentation, profiling and targeting to the successful marketing of Coffee-Mate in Great Britain, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/438046
