Tuesday, April 2, 2019
Analyses Proposals The Coffeemate Brand Uk Marketing Essay
Analyses Proposals The Coffeemate Brand Uk trade EssayFirstly, this report bequeath analyse the genuine pose of the Coffee-Mate on the foodstuff place in the UK and secondly, give be given proposals for incoming strategical developing of the Coffee-Mate brand in the UK.There should non be mass targeting in the skitter gunpowder foodstuffplace, however the partitioning of the merchandise will help to identify potential buyers or buyers and will discriminate them into clusters at bottom parallel buyers pattern. The important role plays the trade place placeing mix such the refine harvesting, the right place, the right furtherance at the right time. The Coffee-mate should sort of maintain and improve the commercialize prep are, however it whoremonger be tolly and non very often damage sure-fire. The procession which should be design for the Coffee-mate should be more(prenominal) determined on the product distinguishableiation. It should show wh erefore the Coffee-Mate is contrastive from the ordinary powder thrash pitcher and why the consumers should enforce the Coffee-Mate and zero point else. Also it should be considered a recent distri thoion plan and the saturation of products to offer. There should be a high concentration on the segments which ar targeted and choice of the right product to this segment. The right merchandise mix is a crucial for a successful and profitable product.ContentsIntroductionIn this report it will be firstbornly analysed the Coffee-Mate brand and flowing position on the market place in the UK based on the culture from bailiwick of study the Coffee-Mate (Kotler at al, 2008). Secondly, it will be given proposals for future(a) strategic development of the Coffee-mate brand in the UK.Firstly, thither should be asked the let on questions in strategic marketing management (Wilson and Gilligan, 2005).Where are we now?Where do we want to be?How might we get on that point?Which way is the outmatch?How john we ensure arrival?The hold tight Coffee-Mate brand backgroundThe Coffee-mate was first introduced in 1961 as first non-diary disintegrate creamer in US by near. In 1989 was introduced Nestle Coffee mate liquid, which was number wholeness of non- dairy product on the market. Nestle Coffee-Mate developed a different flavours of powdered cream to keep their customer interesting in and buy their products. Nestle changed the view of kitchen burnt umber tree to cafe drinking chocolate made in the kitchen (http//www. java-mate.com/Faq.aspx). Customers of Coffee-mate can enjoy the different flavours as well seasonal flavours (Gingerbread and Eggnog) and special edition, what is more Coffee-mate can be piece in fat free, reduced fat and sugar free in powdered and liquid products. The brand is compete important role for the Coffee-Mate. The Coffee-Mate is part of the Nestle, well cognise brand which will add value to the product and will differentiate Co ffee-Mate from its competitors. The Nestle is exploitation corporate comprehensive branding where the companys name is attached to the entire product portfolio (Wilson and Gilligan, 2005). For Heinz the umbrella is covering a wide range of products drinks (NESCAF Gold Blend), eat cereals, and chocolate full Nestle portfolio ( appendage 1). There are advantages of corporate umbrella branding. Firstly, in Nestle case it can be reduced cost for a new campaign (promoting only the new product non the brand) and the brand name of Nestle is already well- bopn and established. McDonald at al (2008) believed that using corporate umbrella branding can be a disadvantage the brand name to not be as potently identified with any one product also it can be argued that Nestle will mislay the name as a hot chocolate and chocolate brand. McDonald at al (2008) agreed that the brand dilution occurs when consumers no perennial associate a brand with a specific product or highly similar produc ts and start thinking little of the brand.Market and environmental psychoanalysisWhere are we now?Wilson and Gilligan (2005) believed that the importance of organizations performance in the market place is defined by three key factorsThe organizations current market positionThe nature of environmental opportunities and threatsThe organizations ability to cope with environmental demands.The Nestle Coffee-Mate current position on the market is seen by managers of Nestle as less harvest-feast potential than for example Nestle food products. In the result, the cypher for marketing campaigns was minimized, however the budget for ground coffee berry increased 43 million campaign aimed at reminding people that instant coffee is one C% real coffee made from pure and natural coffee beans and null else (Nestle press releases,2009).The coffee creamer market has advantages and disadvantages. Coffee creamer products give birth a better whitener use than dried or powdered take out, howe ver consumers sees coffee creamer as something for special occasions but not for their daily coffee. The market for coffee creamer is complicated with different types of consumers behaviour. Firstly, there are consumers who will not use powdered milk or cream at all. Secondly, there are users who will use powdered milk into their coffee but will not use cream (the judgment is changed). Thirdly, users will use Coffee-Mate only in case of emergency (run out of milk or cream). Fourthly, there are users who are using coffee cream daily however consider creamer as a treat. The use of Coffee-Mate correlates with consumption of coffee in UK. The second-rate consumption of coffee is about 3kg per head in the UK, which is about 1.5 cups per daylight which is low compare to Italy, France or Germany (5kg) and in the Scandinavian or Benelux component (11-13kg)(Kotler at al, 2008). The national Food Survey suggests that there is correlation mingled with from each one week income and consu mption of coffee (the higher income the higher consumption of coffee). The UK coffee market is up 19% from 2002 (720 million in 2007). Instant coffee contributes 81% of market share however it can be seen reposition from instant coffee into premium non-instant coffee (Mintel, 2008). On the separate hand, Mintel researchers found that one in v consumers agree that it is too much labor to make ground coffee at home (Mintel, 2008).The strengths and weaknesses (strategic and marketing analysis)The main strengths of the Coffee-mate are its capability to replace the real cream or milk and the length of the life time storage, however legally it cannot be defined as non-diary because it contains ingredients such vegetable fat and dried glucose which contains a real milk derivates. The weaknesses of the Coffee-mate are firstly its limitation in sales. Secondly, the Coffee-mate it is not weekly shop item and preferably consumers are buying fresh cream or milk instead of the powdered. Con sumers see using powdered cream or milk just in emergency situation and moreover not all the coffees are made with milk or cream. Thirdly, the Coffee-mate is not independent product and can be consumed only with coffee.Customer analysisThe customers of the Coffee-mate are consumers who are buying instant or ground coffee and using powdered milk or coffee creamer. The survey was do by TGI and divided consumers into five potential groups for Coffee-Mate. The key variables used by TGI to segment the market are income, age, social grade, concerning about health and environment, shopping activity and budgeting, social places (pubs, restaurants), brand versus own label, travelling, media (TV, radio, reports), number of children at home, force field where they live, level of consumption of Coffee-Mate and creamers and occupation. TGI user survey divided consumers into five clusters Appendix 2. cluster 1 Sharon and Tracy Experimentalists (Sample proportion 15.4 %) stud 2 Eileen and Mar y bell constrained, older, and conservative (Sample proportion 23.6 %)Cluster 3 Sarah and Anna Affluent, Young foodies (Sample proportion 24.4 %)Cluster 4 cluck and Lisa Cost constrained, Young families (Sample proportion 13.9 %)Cluster 5 Dorothy and Amy Affluent (Sample proportion 22.7 %)Market shareCluster 1 Sharon and Tracy 15, 4 %Cluster 2 Eileen and Anna 23, 6%Cluster 3 Sarah and Lisa 24, 4%Cluster 4 Dawn 13, 9%Cluster 5 Dorothy and Amy 22, 7% pedigree TGIs user surveyCompetitor analysisThe main competitors of the Coffee-Mate on the market place are fresh milk and cream (Appendix 3). For the coffee creamer market the main competitors are Compliment, Kenco, Compleat, own label and others (Appendix). Coffee-Mate has about 55% market share on the coffee creamer market. To be successful and better than competitors Coffee-mate has to concentrate on advantage for example a subject matter to replace the milk which the Coffee-Mate has. To be better than competition it has to be known how the competition markets their products. The four main questions pick out to be asked What is each competitors current strategy? How are competitors performing? What are their strengths and weaknesses? What can we expect from each competitor in the future? (Wilson and Gilligan, 2005).Strategic direction and strategic verbalismWhere do we want to be? Market part, targeting and positioningIt can be argued that the market for cream powder is segmented, however not mass targeted. The segmentation of market helps to identify group of buyers or potential buyers and divide them into groups within similar buyers pattern (Wilson and Gilligan, 2005). It is advantage for vender to segment the market because the marketer then decides which segments present the greatest opportunity which are its target markets (McDonald at al, 2008). Not everyone wants the milk or cream into their coffee. Therefore, the marketers will divide up the market into the segments by exploring behavioural , demographic and psychographic differences within buyers (McDonald at a, 2008). The Coffee-Mate developed strategic marketing to target the market segment. The particular segment cannot be at rest with only one product. If the Coffee-Mate was targeting only one segment 41% of the 55% (McDonald at al, 2008) the current market share however it will lose 14.5% which is owned by Coffee-Mate Lite. The Coffee-Mate has to use multiple segments and obtain a great market share of coffee cream market.How might we get there Strategic choice which way is the trump?The American Marketing experience (AMA) in 1985 said Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that contact individual and organizational objectives. To happen upon the needs of the target segments the right marketing mix must be developed. The product (Coffee-Mate) has to be accessible in the right place (distribution ), at the right price and in the right time (McCarthy, 1960). Thomas (1987) also believed that the product or services offering of a company or organization ultimately determines the nature of the business and the marketplace perception of the business. In this sense it is the core of the marketing management function. The product Coffee-Mate will sire to satisfy the target segment. In this case, it will be difficult to satisfy many segments for this reason the preference segments will be identified cluster preferences (natural market segments). TGI user Surveys identified five potential consumers for Coffee-Mate. Based on the Appendix 3 it can be seen and argued who are potentially the intimately profitable group and which should be targeted. It can be said that Dawn and Lisa (young families, 13.9% sample proportion) and Sharon and Tracy (experimentalist, 15.4% sample proportion) will become Eileen and Mary (older and conservative, 23.6% sample proportion) and Sarah and Hannah will lose attractiveness for this segment (Kotler, 2008).The Coffee-Mate marketing unifyProduct archimandrite (1995) highlighted about product What people really desire are not the products but satisfying experience, however Levitt (1976) argued that the products engender to be seen as the benefits not the functions. The Coffee-Mate is the product with a strong position (55% market share) on the market place, however it can be argued that one of the important aspects is brand name. Nestle is a strong, well -known brand and instead of creating, developing and maintaining a new one the Coffee-Mate become part of it. Wilson and Gilligan (2005) also agree that it is only in this way that the organization is able to promise and continue to deliver to the consumer a superior value than that offered by competitors. The importance of the coffee-mate product is in which sort of the product cycle is. The Coffee-mate cream powder is probably in the senesce stadium. There is not a rapid gro wth on the UK market also there is not a sign of the new entries on the market or decline in demand for the Coffee-Mate.PriceThe price is one of the important factors of the marketing mix. If there is wrong pricing last the competitors will win and Nestle will lose their customers. Managers have to know the pricing strategies of their competitors and how big are their financial resources to cope with their competition. The Coffee-Mate should concentrate on the maintenance and improvement of market position (Wilson and Gilligan, 2005). Advantage of this objective is the improvements of the market share however it can be very costly and not often cost effective. Coffee-mate is already in leading position (55% market share) but there is danger that they will lose it. One the factors can be the lack of finance for campaign and promotion.PromotionPromotion is also important aspect of the marketing mix. It can be said that promotion is the visible face (Wilson and Gilligan, 2005) which s ymbolize the product and communicate with customers. In 2002 Nestle spent 1m on the Coffee-Mate campaign to change customers opinion on the coffee whitener from coffee whitener to coffee enhancers with main slogan Coffee-mate does it for coffee so deliciously creamy tasting its almost improper (http//www.campaignlive.co.uk, 2002). In 2007 there was marketing campaign which promoted the Coffee-Mate Even when there is milk almost (Appendix 5). It was previously discussed that young families, experimentalist, older and conservatives are the market which should be targeted. The tools which can be used to target the market can be the TV, newspaper and a new medium Facebook and Twiter (Appendix 6). The new campaign should be more concentrated on the product differentiation. There are not other competitors who are producing powder cream or liquid with different taste (Appendix 7) and sticks pad which can be used on the go. The Coffee-Mate should have distanced more from other in the mark et and create a major warring advantage. To create competitive advantage there have to be apprehension of particular segment, however the disadvantage of product differentiation can be limited opportunities for the sector growth and creating differences that customers do not value (Wilson and Gilligan, 2005). Furthermore, they have to incline the customer that the Coffee-mate is better than competitors products.PlaceThe distribution plan is final and also important part of marketing mix. The right choice of distributors and playscript distributed can make huge impact on the volume of products interchange. To pass on the competitive advantage the right distribution channel has to be recognized. The Coffee-mate is sold by retailers (Morrison, Tesco, Sainsbury,), Internet and through other channels however there should be considered other options workplace, universities and hospitals. There is a huge opportunity to be a successful. Full-time working women agreed first thing in the morning I tend to have coffee with semi-skimmed milk, but towards 11 oclock I want something which is more relaxing, more substantial, so I have coffee with Coffee-Mate. It seems to be comforting. (Kotler at al, 2008). The distribution of the Coffee-Mate into the coffee machine which are in the workplace, universities or hospital will bring benefits, improve a market share and bring a new customers. To select a right channel of distribution the plan has to be considered (Wilson, 1983).Marketing MIX in useThe different option (Coffee- Mate Lite, Gingerbread, Pumpkin) will influence the marketing mix of the Coffee-Mate. There have to be concentration on the segment which is targeted and the product which is offering to this segment. The product has to convince the segment market which is for example colour of packaging, the size and quality. It will be impossible to convince a lot of segment markets with only one product like the Coffee-Mate. The price will be influenced by the co st production, consumer demand and advert cost. The launch of the new favour such Lite, Mocha or latte there have to be research that there will be high consumers demand for this products.ConclusionIn this report the current marketing positions of the Coffee-Mate brand was analyzed and after were given proposals for future strategic development of the Coffee-mate brand in the UK. The Coffee-Mate is currently in the leading position, however the managers do not see the potential growth in the future. Despite this believe, the Coffee-Mate has a benefit of the length storage compare to fresh milk or cream, however powder cream is still seen as the treat by users and as the emergency by non-users. The market was divided by TGI into five clusters and the most profitable group was chosen and will be targeted. The best way how to achieve the success such as market growth and profitability can be done by better segmentation of the market and better clustered preferences. The Coffee-Mate is not just cream powder and the campaign has to say it to the potential costumers. The Coffee-Mate should create the competitive advantage from the differentiation. The Coffee-Mate has to contain the consumers that they are better than their competitors. The crucial is the concentration on the segments which are targeted and chose the right product for this segment.