Marketing Strategy Coffee-Mate

Marketing Strategy Coffee-Mate 1.0 Introduction Aim Coffee-mate, a popular retailed non-dairy creamer manufactured and owned by Nestle (A Swiss multinational food and beverage company). Being part of Nestle is one of the reason behind the successful branding of Coffee-mate, Nestle provide value-added advantages that differs Coffee-mate from its peers. Coffee-Mate has developed 29 flavours of creamers, customers can enjoy them in different forms in the wide range of: Powder, Liquid, Sugar-free and reduced fat (Coffee-mate, 2014). These comprehensive varieties of flavours offer Coffee-mate unrivalled product options which satisfy their customers’ expectations. ‘Coffee-mate kind of lifts the flavour. It makes a richer, better-tasting cup of coffee, whether it be an instant or a real one.’ (Coffee-mate article, 2014). The huge customer base could be an opportunity for Coffee-mate to target and capture their market; or a thread if Coffee-mate targeted the market wrongly. This report will be presented according to the ma rket segmentation of Coffee-mate, following by evaluating and analysing the TGI’s consumer survey in terms of target market attractiveness of Coffee-mate. 2.0 Market Segmentation Broad Narrow (Figure 1) Market segmentation is a process of dividing the whole market for a product or service into segments with different and unique characteristics (Hartline F, 2011). By referring to Figure 1, Market targeting can be implemented at different stages: Broad (Mass-marketing), Narrow (Micro-marketing) or in between (Concentrated marketing). In this subtitle will evaluate the market targeting strategies and recommend the best strategy according to Coffee-mate current situation. 2.1 Mass-marketing (Targeting one segment) If Coffee-mate chooses to use mass-marketing, which means it will be ignoring the entire market segments’ characteristics and choose to target the whole market with only one product type (Hartline F, 2011). If so, Coffee-mate will lose the market share generated by their extended product, Coffee-mate Lite (Article, 2014). It is most likely to be impossible for Coffee-mate to develop a product to fit into all the segments because each segments has their own unique characteristics. Also, Coffee-mate might be facing more competitive peers with a more product-focused and tailored marketing strategy (Micro-marketing). Micro-marketing only aims at one segment where the company will try to customize its product to fit the customer perfectly, which can be considered as a thread for Coffee-mate if it is implementing the mass-marketing strategy which aims the market segments broadly. Consequently, Coffee-mate will lose its competitiveness; relatively lose its market dominance. 2.2 Concentrated Marketing (Targeting multiple segments) Differentiated marketing allows Coffee-mate to target few large and potential sub segments with one or more than one product (Hartline F, 2011). Coffee-mate should choose to target multiple segments by implementing differentiated marketing strategy, in order to increase their profitability and its possible for them to gain more market dominance it’s achieved in previous times (55%). In details, Coffee-mate and Coffee-mate Lite should have targeted different segments according to to customers age, income level, social status etc. It was given that the coffee-mate and coffee-mate lite act as a complement goods to coffee, they both are undergoing a change in parallel. Through observation wise, National Food Survey (N/A) suggested that households will keen to spend more on coffee if they are earning high income and old pensioners spent most among the customers (Exhibit 10.3). Additionally, childless households are the most intense coffee drinkers (Exhibit 10.4). Therefore, Coffee- mate should target the high income, old pensioners and childless segment. In order to perform a more precise and efficient market targeting, Coffee-mate should target its Coffee-mate and Coffee-mate Lite into separate market segment. The National Food Survey (N/A) stated that there is a slightly skew of heavy Coffee-mate buyers towards the characteristics of: lower social class, aged 45+ and 2-3 person households with children. Whereas, the Coffee-mate Lite users have a slight bias towards 45-64 year-olds, full-time working housewives and households without children. Health concern like fat intake has been raising the awareness of customers. Consequently, some customers might be reluctant to add creamer to coffee. Therefore, Coffee-mate Lite can be segmented for customers who are most likely yo be concerned with their health levels. From all information and observations, it is concluded that Coffee-mate should aim at multiple segment. 3.0 Evaluation of TGI’s user survey TGI’s User Survey covered instant/ground coffee and powdered milk/coffee creamer, market yielded five potential consumer groups for Coffee-mate. As aforementioned, Coffee-mate should choose to aim to serve multiple segments. Hence, this part of the report will aim to evaluate the attractiveness of these 5 potential segments that TGI surveyed. It is also aim to recommend the best segment for Coffee-mate to target. Total Sample Proportion of TGI’s User Survey 3.1 Segment 1 – Experimentalists The experimentalists can be considered as younger group which are keen to pay for luxurious products. In fact, Coffee-mate positions itself as ‘Indulgence’. Therefore, the strong branding of Coffee-mate through Nestle could help it to gain brand loyalty, by changing the buying behaviour of the experimentalists towards Coffee-mate. Additionally, users of creamer like the experimentalists are likely to replace their consumption from cream to Coffee-mate because they are considered as substitute goods. 3.2 Segment 2 Cost Constrained, Older, Conservative People in the cost constrained, older and conservative group are more sensitive to the variation of the price. When come to purchasing, the demand would be more price elastic, they would ignore the brand and price will be their first concern. In result, they would buy cheaper competitor brands. Furthermore, they are not really a user of Coffee-mate. Consequently, for Coffee-mate, this segment is not worth targeting due to a low brand loyalty and high possibility of substitution effect. 3.3 Segment 3 – Affluent, Young Foodies The affluent, young foodies are the people who prefer healthier diet; they are willing and affordable to pay more for that. These people claimed to use Coffee-mate often and also cream consumers. Consequently, the Sarah and Anna group would be the potential customer based for Coffee-mate. In addition, Coffee-mate Lite would be the best product to sell them since it is healthier and lower fat. 3.4 Segment 4 – Cost Constrained, Young Families ‘Dawn and Lisa’ group is severely constrained by their low income. They are not health conscious, indeed they have a mind-set of frozen food is as nutritious as fresh foods. Hence, they tend to buy own-label goods cause of the cheaper price they offer. Cost Constrained, young families never use cream. Thus, Coffee-mate should not set them as a targeted segment because they are improbable to use its product. 3.5 Segment 5 – Affluent The ‘Dorothy and Amy’ group of consumer has been considered as the people that are most likely to buy Coffee-mate’s product. However, advertising of Coffee-mate could be hard to reach them as they have low media awareness and they found ads are not entertaining. If Coffee-mate wants to aim this segment, Coffee-mate Lite would be the best product to serve them. Yet, they are fairly traditional, might tend to use milk or real cream as a complement to their coffee. 4.0 Recommendations Based on the TGI’s User Survey, the ‘Affluent, young foodies’ and ‘Experimentalists’ are the most potential group for Coffee-mate to target and they all fit into Coffee-mate’s strengths. The reasons behind the targeted segment are because they have interesting characteristics: Affluent, young foodies fit into Coffee-mate strengths: Middle Social Class Light Media awareness High Grocery expenditure High Income level (Afford to pay) According to the study, ‘Affluent, young foodies’ shared a sample proportion of 24.4% throughout the survey. They could be the potential customers for Coffee-mate because they are heavy users of instant coffee and cream. Coffee-mate has to use some traditional advertising to reach these customers because they are light users of media, in this sense, Coffee-mate could save some advertising cost in this segment. Affluent, young foodies tend to try new products, this push Coffee-mate a better position. However, the only drawback is they are very health conscious. Chealth (2014) stated that calling a ‘non-dairy’ creamer is not always true and non-dairy creamers makers tend to add extra ingredients to mimic the qualities of milk which will boost consumers’ calorie count. Marketing means persuading, Coffee-mate needs advertise their product in a healthier aspect to give Coffee-mate a healthier image. After all, the ‘Sarah and Anna – Affluent, y oung foodies’ still the most potential and lucrative segment to target by considering all the characteristics. Experimentalist fit into Coffee-mate strengths: High Media Awareness Middle income Heavy User of Coffee Experimentalist shared a 15.4% of sample proportion of the survey. They are considered as the same age group as the ‘Affluent, young foodies’, but they have some unique characteristics of: Materialistic, Fashionable and stylish. Experimentalist has high media awareness; therefore Coffee-mate could advertise their product by using celebrity. In result, it could be more reachable to this segment of customers because they will just buy it because the popular celebrity does. Advertising could take place by using multimedia advertising like Twitter, Facebook, Youtube ads and so on. 5.0 Summary This report was formed to evaluate the market segmentation of Coffee-mate with a further analysis and evaluation of the TGI’s User Survey for Coffee-mate. The report draws attention to the consumer behaviour from different groups, and how Coffee-mate should target it and which marketing strategies should Coffee-mate implemented. Furthermore, an evaluation of the TGI’s User Survey was taken into consideration to understand each and every different group of consumers’ behaviour. Last but not least, recommendations of the best segment to target were given to Coffee-mate: This will conclude that Coffee-mate should aim for the Experimentalist and Affluent, young foodies. 6.0 References BritishCoffeeAssociation (2014). British Coffee Association – Coffee Facts. [online] Available at: http://www.britishcoffeeassociation.org/about_coffee/coffee_facts/ [Accessed 15 November 2014]. CHealth (2014) CHealth: 7 Things You Need To Know About Non-dairy Coffee Creamer. [Online] Available at: http://chealth.canoe.ca/channel_section_details.asp?text_id=5709channel_id=44relation_id=48473 [Last Accessed 14 November 2014]. Coffee-mate. (2014). Products – All Flavours/Coffee-mate. [Online] Available at: https://www.coffee-mate.com/Products/Default.aspx#f1d167d0-4141-4bf8-9ee5-b09a8b15e76e [Last Accessed 10 November 2014] Hartline, F. (2011) Marketing Management Strategies. 5th ed. South –Western, Cengage Learning. Moodle. (2014). Coffee-Mate case study. [Online] Available at: https://moodle.kent.ac.uk/2014/pluginfile.php/196771/mod_resource/content/1/coffee_mate_case_study.pdf [Last accessed 14 November 2014].

Competitor analysis Essay

IKEA is an internationally known home furnishing retailer. It has grown fast since it was founded in 1943. Today it is the world’s largest furniture retailer, recognized for its Scandinavian style and the low priced high quality furniture items. Most of IKEA’S furniture is flat-pack. This allows a reduction in costs and packaging. IKEA has around 9500 products, including home furniture and accessories. The products are available in all IKEA stores and customers can order them as well online through IKEA’S website. There are about 140 IKEA stores in the world in 30 different countries. IKEA stores include restaurants and cafà ©Ã¢â‚¬â„¢s serving typical Swedish food. They also have small food shops selling Swedish groceries, everything from the famous meatballs to jam. 2. Analysis of current situation Current mission: IKEA’S mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them. They aim to attract customers who are looking for quality products at reasonable prices, but who are willing to assemble their furniture themselves and participate in a self-service culture. The typical target customers are young families with a low to middle low income. – Goals: Their recent goals is that all new stores will be built to a certified green building standard and sell more organic goods. And to encourage their customers to travel with public transport to visit their store. They want to be more recognized as an eco-friendly business. Strategies: The basis of IKEA’S strategy is a mixture of innovate their own modular designs, mass produced components and a dedicated supplier network all geared towards serving price conscious customers while still maintaining a to high standard of goods and workmanship. They design their own furniture and it’s a self-service, that is a big part of their strategy. They also have a lot of facilities to offer. For instance they offer paper and pencils, computers so you can look certain things up, they have a playground for children and a restaurant with delicious and payable food. Since IKEA was founded it always had concern for people and the environment. The IKEA vision is â€Å"to create a better everyday life for many people†. IKEA’S concern for people and the environment encourages it to make better use of both raw materials and energy. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment. 4 3. Internal environment -Strengths: Strengths could include a company’s specialist marketing expertise or its location. They are any aspect of the business that adds value to its product or service. IKEA’S strengths include: It’s a worldwide brand which attracts a lot of consumer groups, they also offer the same quality and range in their stores. its vision ‘to create a better everyday life for many people’ A strong concept based on offering a wide range of well designed, functional product at low prices. A positive Human Resource Management approach towards its staff, which leads to a positive attitude among the staff and increased performance for the company. This makes the staff happy with their jobs. The staff has an equal treatment, no matter which background they have. This makes them adapt to the consumers in different countries en within different cultures. They adapt quickly to change. They use the latest technology such as IKEA IT (information technology), this provides IKEA with all its system requirements such as common business solutions, architecture, infrastructure, service and support. Such as KPI (Key performance indicators) it helps IKEA to measure the progress of its vision and long-term goals by setting targets and monitoring progress towards it. Environmentally friendly policy. Volume commitments IKEA believes in creating long-term partnerships with its suppliers in order to achieve this. By committing to buying large volumes over a number of years IKEA can negotiate lower prices. This also benefits the suppliers because they enjoy the greater security of having guaranteed orders. Economies of scale for instance, bulk buying at cheaper unit costs. Good marketing. Weaknesses: IKEA has to acknowledge its weaknesses in order to improve and manage them. This can play a key role in helping it to set objectives and develop new strategies. The size and scale of its world wide business. This could makes it difficult to control all the stores, the staff and the standards. The need for low cost products. This needs to be balanced against producing good quality. That is hard to do, sometimes they do have low quality. IKEA also needs to be different from competitors. IKEA needs to keep good communication with its consumers and other stakeholders about its environmental activities. The scale of the business makes this a difficult task. 5 4. External environment: – Opportunities: A business uses its strengths to take advantage of the opportunities. a growing demand for greener products a growing demand for low priced products. Low economy makes low priced furniture even more appealing. demand for reduced water usage and lower carbon footprints – Threats Porter’s 5 forces model: 6 ââ€"  Threat of buyers growing bargaining power: – there is a little power because of the existing low price options. – IKEA ensure that their customers in all aspects will be satisfied for quality service they provide – Focused their marketing approach on demands and needs of the buyer. – IKEA uses their corporate responsibility as a good public image to their customers. – IKEA family card as a membership. ââ€" Threat of suppliers growing bargaining power: – Because of the low-pricing, IKEA’s profit margin also affects the prices in raw materials than by prices in labour. – IKEA has a wide network of 1300 suppliers. They carefully select the manufacturer of its products. The company has own production factories and designers which makes it less dependent on others. – Bargaining power of supplier could be threat for the profit of the company. ââ€" Threat of substitute products or services: – There is no specific product that can be a substitute for the furniture but IKEA at least, have to keep up with the latest trends, to avoid becoming out of style. – Problems faced due to distribution channels. ââ€" Rivalry among existing firms: – The IKEA’s furniture competitors’ offers different styles and functionality – IKEA is the most successful in delivering the complete package for the customers that reflect in weak rivalries. – There will always be substitutes for furniture’s but IKEA competes with price and there isn’t competitors in the same price range. ââ€" Threat of new Entrants: – IKEA stores do not reach many small towns and this is an opportunity for the new competitors to move into small and midsize cities with smaller stores and less selection. But not easier in city because new entrants have to establish a vast supply chain and create an unique brand name. – The furniture market is already highly competitive, the risk of new entrants is not extremely high. 7 5. Conclusion. IKEA is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. Through this, IKEA is able to generate the strong growth it needs to retain a strong identity in the market. 6. SWOT-analysis Internal Environment SWOT Analysis External Environment Strength Opportunities ââ€" ¦Adapt quickly ââ€" ¦Worldwide brand ââ€" ¦ Low price – high quality ââ€" ¦ Positive Human Resource Management ââ€" ¦ Environmentally friendly policy ââ€" ¦ Good marketing ââ€" ¦ A growing demand for greener products ââ€" ¦ A growing demand for low priced products. ââ€" ¦Low economy makes low priced furniture even more appealing. ââ€" ¦ Demand for reduced water usage and lower carbon footprints Weaknesses Threats ââ€" ¦ Low communication of environmental activities ââ€" ¦ The size of their worldwide business ââ€" ¦ The need for low cost products ââ€" ¦ The IKEA’s furniture competitors ââ€" ¦ New trends ââ€" ¦ IKEA family card ââ€" ¦ Bargaining power of supplier 8 Foreword This assessment is about the company IKEA. I will discuss several issues including an introduction of the company, an analysis of the current situation within the internal (Strengths and Weaknesses) and external environment (Opportunities and threats) . The treats are described in Porter’s 5 forces model. The answers of my research can be found in the conclusion and SWOT analysis. 3 Index: Page numbers 1. Introduction4 2. Analysis of current situation4 3. Internal environment5 4. External Environment6,7 5. Conclusion8 6. Swot-Analyses8 7. Bibliography9 2 7. Bibliography ââ€" Continuing Case by Alan Hogarth ââ€"  http://businesscasestudies.co.uk/swot-analysis-and-sustainable-business-planning/swot-analysis.html#axzz2eJ2NvcnR ââ€"  http://www.slideshare.net/FenellaAndrade/ikea-9167089 ââ€"  http://www.strategicmanagementinsight.com/swot-analyses/swot-analysis.html ââ€"  http://research-methodology.net/porters-five-forces-analysis/ 9 IKEA

Country’s economy Essay

These are goods that cannot be provided by the private sector but are very essential to the development of a country’s economy. They are usually very expensive undertakings with fewer returns or take a long time for the investors to recoup their money back. This makes them to be less attractive to the private sector investors who are mainly driven by the profit motive and would thus be unwilling to invest their resources in such projects. The government has the mandate of providing such goods that are very essential which have indivisible cost with a marginal cost of zero (Kaul, 2006). It is not possible to practically charge the public for the utilizing such goods. The government can therefore, only collect taxes from the public to enable it provide public goods. Public goods in this category include roads and state security provided by the policemen who are paid by the government. There are other public goods that even though, they have high returns and the private sector can be able to invest in them, they cannot be allowed to do so by the government due to the amount of risk involved. Manufacturing or trading of weapons is a risky activity that no government can be willing to allow it to be done by the private sector as it would put the public into a lot of risk since the private sector investors in such an industry would mostly be guided by the profit motive and not whether or not ammunitions will be on the wrong hands or the right ones (Kaul, 2006). The public goods are very important to everyone, including the private investors who shy away from investing their resources in such ventures. It is this importance that makes the government to be under obligation of providing such goods to its people since they are very essential and it is only the government that is best placed to provide them (Kaul, 2006). Reference: Kaul, I. (2006): What is a public good? Retrieved on 17th June 2009 from, http://mondediplo. com/2000/06/15publicgood.

Gun Control Is A Decent Answer For The United States

Throughout the years there have been numerous of debate confrontations about regardless of whether weapon control is a decent answer for the United States. Therefore, two extremely particular sides have shaped: one for gun control and one against it. As of late, the pro weapon control side has contended that the numerous school shootings were halfway an aftereffect of our nation s negligible firearm control. To numerous this might appear like a sensible contention, however in actuality it is an over-speculation; there are numerous different variables that have impact in horrendous occasions like school shootings. Those against firearm control have contended that weapon control laws are an infringement of subject s protected rights†¦show more content†¦Those supporting firearm control contend that in the event that we confine weapons then murder and wrongdoing rates will drop. Be that as it may, until we tackle the disdain on the planet there will dependably be wrongdoing and murdering. Hoodlums will discover different weapons or figure out how to get firearms wrongfully. Contemplates demonstrate that in ranges with more weapon laws, wrongdoing is higher. Until we can begin getting serious about the individuals who perpetrate violations, firearm laws can do nothing to offer assistance. It is not the weapon that executes, but rather the individual pulling the trigger. Samuel Jackson said, â€Å"I don’t think it’s about more gun control, I grew up in the south with guns everywhere and we never shot anyone. This [shooting] is about people who aren’t taught the value of life.† The individuals who advocate weapon control have contended that 66% of murders are conferred with a gun (Zimring 1978). Be that as it may, even with weapon control, manslaughters would assuredly proceed with in light of human instinct (Zimring 1978). Killers would simply swing to another weapon and we would see more manslaughters conferred with blades, tomahawks, clubs, or different weapons (Zimring 1978). In the event that somebody needs to execute sufficiently gravely for all intents and purposes anything can be transformed into a weapon. This can be demonstrated by insights that