Marketing and Coffee-mate
Marketing case 9: Coffee-Mate
Thomas Tallberg E4 Kristian Sällström E4 Christian Westermark E4
1. What are the main benefits of Coffee-Mate and what is limiting its sales?
The main benefits of Coffee-Mate are its ability to substitute for real milk or cream and it can be stored for a longer time. It is made of health promoting ingredients such as dried glucose and vegetable fat (cannot be legally defined as non-diary, since it also contains milk derivatives) and it comes in various packet sizes. The sales are limited by the market which is characterized by its low interest level, since most buyers do not see it as a weekly shopping item. Another factor that affects the sales is that the consumers prefer ordinary milk or cream instead of powder milk. It is used as a whitener in tea or coffee only in emergency situations in which the household has run out or run low on supplies of milk. Not everybody is using milk with their coffee.
2. How would the promotion of Coffee-Mate change with the benefits promoted and the competition targeted?
The promotion would need to be shaped so that they would focus on the core benefits that the Coffee-Mate offers. This has to be at least as good as the targeted competitor. They also have to be aware of how the competitor currently markets his product. By knowing how he operates they could either copy and improve the existing one or then completely change and try a more radical approach. If the Coffee-Mate would want to succeed they would need to convince the consumer how he can benefit from our product better in contrast to the competitor.
3. Should Coffee-Mate be mass marketed, aimed at one segment or aimed at multiple segments
In mass marketing you are trying to serve the whole market with the same product. Companies have not always practiced target
Thomas Tallberg E4 Kristian Sällström E4 Christian Westermark E4
1. What are the main benefits of Coffee-Mate and what is limiting its sales?
The main benefits of Coffee-Mate are its ability to substitute for real milk or cream and it can be stored for a longer time. It is made of health promoting ingredients such as dried glucose and vegetable fat (cannot be legally defined as non-diary, since it also contains milk derivatives) and it comes in various packet sizes. The sales are limited by the market which is characterized by its low interest level, since most buyers do not see it as a weekly shopping item. Another factor that affects the sales is that the consumers prefer ordinary milk or cream instead of powder milk. It is used as a whitener in tea or coffee only in emergency situations in which the household has run out or run low on supplies of milk. Not everybody is using milk with their coffee.
2. How would the promotion of Coffee-Mate change with the benefits promoted and the competition targeted?
The promotion would need to be shaped so that they would focus on the core benefits that the Coffee-Mate offers. This has to be at least as good as the targeted competitor. They also have to be aware of how the competitor currently markets his product. By knowing how he operates they could either copy and improve the existing one or then completely change and try a more radical approach. If the Coffee-Mate would want to succeed they would need to convince the consumer how he can benefit from our product better in contrast to the competitor.
3. Should Coffee-Mate be mass marketed, aimed at one segment or aimed at multiple segments
In mass marketing you are trying to serve the whole market with the same product. Companies have not always practiced target