Coffee Mate Case Study

2159 words 9 pages
1. What are the main benefits of Coffee-Mate and what is limiting its sales?

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 competitive
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Then I thought this wasn’t the most indicated group to choose for the long run well being of Coffee-Mate. Firstly they already have a certain age. Secondly, their children have already left the nest, meaning the ¨tradition¨ of incubating them loyalty to Coffee-Mate wouldn’t be passed down. Thirdly elderly people tend to be the least social age group, they rather be in relax at home, therefore promotion opportunities such as ¨mouth to mouth¨ advertising would be lost. For the short run, it might be the best segment to target, but when looking at the long run of the company it has a lot of disadvantages. In order for Coffee Mate to position itself well in the market it should carefully consider consequences to its future business.

Consequently, in my opinion they should chose group 3 because it has the biggest sample proportion with 24.4 % and they are the heavy users of instant coffee and cream. Due to their light media awareness they are most likely to fall for the traditional advertising. They enjoy food and cooking and are not afraid of trying out new things. The drawbacks of this segment, would be the light media awareness which would make it hard to reach out to them. However age is quite specific compared to other segments, thus narrowing the design of the promotion as well as the messages to be transmitted. It is clearly not the same to promote towards a teen than to a young

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