CB683 Coffee Mate
Marketing Strategy
M.R. Hasan
Module Code: CB683
Seminar Group: 8
Surname: Lambert
First Name: Stéphane
Login: sl434
Student Number: 14914818
Declaration: I confirm the work submitted is entirely my own and have fully referenced my sources as appropriate. I am aware of the penalties for plagiarism. Date: 13.11.2014
CB683 INDIVIDUAL ASSESSMENT – COFFEE MATE
I / Description of the product
Coffee-Mate is a non-dairy creamer launched by Nestlé in 1961. Coffee-Mate is available in powdered and liquid forms. Today there are more than 25 flavours. It can stay in the fridge 2 years but once it is open it should be consumed within 2 weeks. (Urban, S, 2011)
Coffee-Mate contains dried glucose and vegetable fat. It can’t be legally considered a non-dairy product since it also contains milk derivatives.
II / Should coffee-mate be mass marketed, aimed at one segment or aimed at multiple segments?
Some details about the Coffee-Mate’s market
The creamer’s market is small and its size is only 25 million pounds with a household penetration of only 18%. Coffee-Mate is the market leader with 55% of the market share, following a major advertising campaign. The creamer’s market is distinct from the declining instant dry milk market because of its poor mixing qualities. The dried milk is seen as a distress product while the creamers are considered as an indulgence. However, there is still a large polarization between the creamer users and the non-users and these ones still consider the creamers as an emergency product and a poor alternative to cream.
Why not Mass Marketed?
Mass marketing is to target the entire market with a particular product without any market segmentation. A company that applies the mass marketing has an undifferentiated approach and considers that all the customers in the market have homogeneous needs that can be satisfied with a single marketing campaign. Although mass marketing allows for advantages in the production efficiency and
M.R. Hasan
Module Code: CB683
Seminar Group: 8
Surname: Lambert
First Name: Stéphane
Login: sl434
Student Number: 14914818
Declaration: I confirm the work submitted is entirely my own and have fully referenced my sources as appropriate. I am aware of the penalties for plagiarism. Date: 13.11.2014
CB683 INDIVIDUAL ASSESSMENT – COFFEE MATE
I / Description of the product
Coffee-Mate is a non-dairy creamer launched by Nestlé in 1961. Coffee-Mate is available in powdered and liquid forms. Today there are more than 25 flavours. It can stay in the fridge 2 years but once it is open it should be consumed within 2 weeks. (Urban, S, 2011)
Coffee-Mate contains dried glucose and vegetable fat. It can’t be legally considered a non-dairy product since it also contains milk derivatives.
II / Should coffee-mate be mass marketed, aimed at one segment or aimed at multiple segments?
Some details about the Coffee-Mate’s market
The creamer’s market is small and its size is only 25 million pounds with a household penetration of only 18%. Coffee-Mate is the market leader with 55% of the market share, following a major advertising campaign. The creamer’s market is distinct from the declining instant dry milk market because of its poor mixing qualities. The dried milk is seen as a distress product while the creamers are considered as an indulgence. However, there is still a large polarization between the creamer users and the non-users and these ones still consider the creamers as an emergency product and a poor alternative to cream.
Why not Mass Marketed?
Mass marketing is to target the entire market with a particular product without any market segmentation. A company that applies the mass marketing has an undifferentiated approach and considers that all the customers in the market have homogeneous needs that can be satisfied with a single marketing campaign. Although mass marketing allows for advantages in the production efficiency and
Bibliography: Coffee-Mate case study Ferrell, O. and Hartline, M. (2011). Marketing management strategies. Australia: South-Western, Cengage Learning, pp.167-170. Urban, S. (2011). What the heck is COFFEE-MATE, anyway? - Organic Authority. [online] Organic Authority. Available at: http://www.organicauthority.com/health/what-the-heck-is-coffee-mate-creamer.html [Accessed 13 Nov. 2014].