Marketing Case - Coffee Mate
1. What are the main variables used by TGI to segment the market? The main variables used by TGI to segment the market are: ✓ Income ✓ Age ✓ Social grade ✓ Concerning about health and environment ✓ Shopping activity/budgeting ✓ Social places (pubs, restaurants, etc.) ✓ Brand vs. own label ✓ Travelling ✓ Media (TV, radio, newspapers) ( ads ✓ Number of children at home ✓ Area where they live ✓ Level of consumption of Coffee-Mate and creamers ✓ Occupation
2. How do you evaluate the market segments originated by the application of the variables you referred in 1.? Which of the segments would target and why?
Evaluation criteria (Principles of Marketing, Philip Kotler – pages 423 and 424): ✓ Size and growth potential of the segment: ➢ Growth: according to the sample and tot the characteristics of each segment (age and social grade) we think that, in the future, people that are ‘Sharon and Tracy’ and ‘Dawn and Lisa’ will become ‘Eileen and May’ and people that are ‘Sarah and Anna’ will become ‘Dorothy and Amy’. So, the segment with more potential growth is ‘Eileen and Mary’ follow by ‘Dorothy and Amy’, because people that are ‘Sarah and Anna’ will pass for this segment ✓ Attractiveness of the segments: ➢ According to the case, we can see what are the segments that have a higher propensity to consume Coffee-Mate and the segments that buy the products from this brand vs. other brands (e.g. dry milk). ✓ Company objectives and resources
|‘Sharon and Tracy’ |‘Eileen |‘Sarah |‘Dawn |‘Dorothy and Amy’ |
| |and Mary’ |and Anna’ |and Lisa’ | |
|Size* |15,4 % |23,6% |24,4% |13,9% |22,7% |
|Growth |++ |++++ |+
2. How do you evaluate the market segments originated by the application of the variables you referred in 1.? Which of the segments would target and why?
Evaluation criteria (Principles of Marketing, Philip Kotler – pages 423 and 424): ✓ Size and growth potential of the segment: ➢ Growth: according to the sample and tot the characteristics of each segment (age and social grade) we think that, in the future, people that are ‘Sharon and Tracy’ and ‘Dawn and Lisa’ will become ‘Eileen and May’ and people that are ‘Sarah and Anna’ will become ‘Dorothy and Amy’. So, the segment with more potential growth is ‘Eileen and Mary’ follow by ‘Dorothy and Amy’, because people that are ‘Sarah and Anna’ will pass for this segment ✓ Attractiveness of the segments: ➢ According to the case, we can see what are the segments that have a higher propensity to consume Coffee-Mate and the segments that buy the products from this brand vs. other brands (e.g. dry milk). ✓ Company objectives and resources
|‘Sharon and Tracy’ |‘Eileen |‘Sarah |‘Dawn |‘Dorothy and Amy’ |
| |and Mary’ |and Anna’ |and Lisa’ | |
|Size* |15,4 % |23,6% |24,4% |13,9% |22,7% |
|Growth |++ |++++ |+