Marketing Strategy (CB683)
CASE STUDY--------Coffee-Mate
2011
1. What are the main benefits of Coffee-Mate and what is limiting its sales?
The benefits of Coffee-Mate for customers have been many. To begin with, it can be whitener instead of milk. If users do not get milk nearby, they can put Coffee-Mate into coffee, as the similar taste to milk or cream. Also, Coffee-Mate can sometimes brings benefits of relaxing and fun for loyal creamer users, due to the improvement of taste. Loyal users think coffee’s taste is much better than the one without Coffee-Mate. It offers customers sweet taste, though there is no sugar in it. Besides, various kinds of flavours of Coffee-Mate can be chose by coffee users. They are available in traditional favourites, fat-free and seasonal favourites (Larkin, S 2011). Because of high selective of favourites, Coffee-Mate meets individual customer’s needs. In addition, Coffee-Mate requires no refrigeration for storage, and its powder has a shelf-life of up to 24 months (Nestle Pro, 2011). Last benefit is that various packet sizes are available to coffee users. The volume ranges are from 100g to 1kg, which satisfy the customers’ demands for different size of Coffee-Mate.
The limitations of Coffee-Mate sales are mainly due to the negative aspect of non-users’ perceptions. They regard Coffee-Mate as dried milk that is typically used for an emergency, and the poor taste qualities will be apparent. Beside, non-user insists that coffee already change the taste because of a variety of Coffee-Mate flavours. For people who are extremely careful about their weight, they feel guilt in using Coffee-Mate because it is similar to cream including the sweet taste. Otherwise, non-users consider Coffee-Mate is unhealthy because of increasing creamy association. In views of the foregoing, they can result in the limited volume of Coffee-Mate sales.
2. Should Coffee-Mate be mass