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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
When they shop, price is the first consideration. They do not like to try the new things, and they are routine and traditional. There is no attraction for them to buy the Coffee-Mate.

3) Affluent, young foodies, ‘Sarah and Anna’(24.4)
People in this group enjoy quality life and afford it. They entertain themselves by travelling and cooking. They claim to buy Coffee-Mate, also use cream. They prefer a heath-conscious diet, and they pay for eco-friendly products. Coffee-Mate Lite is more suitable for them because of its key feature that is good taste without fat and hurt.

4) Cost constrained, young families, ‘Dawn and Lisa’(13.9)
Unlike ‘Eileen and Mary’, Dawn and Lisa are so young, although they do not have enough money to buy something they want. They buy own-label goods because it is cheaper. Like Dawn and Lisa, most people would like to buy fresh milk as whitener, instead of Coffee-Mate.

5) Affluent, ‘ Dorothy and Amy’ (22.7)
This group are older and have disposable income. They do not want to try new things, and they often use creamers. They would not try Coffee-Mate because they seem not to be indulgent about this.

From these evaluations, it can be seen that the experimentalists and young foodies are most likely to be the target groups. Personally, I would target the previous one. Because experimentalists are heavy users of commercial terrestrial TV and some pop radio channel, it is easy for a company to advertise; thereby it