The dried milk is seen as a distress product while the creamers are considered as an indulgence. However, there is still a large popularization between the creamer users and the non-users and these ones still consider the creamers as an emergency product and a poor alternative to cream. Why not Mass Marketed? Mass marketing is to target the entire market with a particular product without any market segmentation. A company that applies the mass racketing has an undifferentiated approach and considers that all the customers in the market have homogeneous needs that can be satisfied with a single marketing campaign.
Although mass marketing allows for advantages in the production efficiency and reduces the costs of marketing, it is a risky approach because competitors could better match customer’s needs with a specialized offer. (Farrell, O. And Hairline, M. , 201 1) The market for creamers is not homogeneous as shown byte TGIF user survey. We distinguish five different segments for this market It would be a mistake to consider this rake as homogeneous and have an undifferentiated approach.
In addition, we note that the introduction of Coffee-Mate Elite caused only minimal centralization of sales volume and has achieved a growth in the first three years. It implies that the needs of the market aren’t similar and that the Coffee-Mates products match the needs of different segments. If we considered that Coffee-Mate should be mass marketed, it would imply that Coffee-Mate’s marketing program would focus on a single product, which might result in the loss of Coffee-Mate Elite’s market shares. It would be a asset of money and effort to want to try to target the entire market.
Coffee- Mate must have a differentiated marketing strategy and offer products adapted to different needs. Why should Coffee-Mate aim at multiple segments? Assuming that the creamer’s market isn’t homogeneous, Coffee-Mate must choose which segments to target and if he wants to target one or more segments. Given the low centralization of sales volumes by Coffee-Mate Elite, the Coffee-Mates products cover more than one segment. It is therefore in the interests of Coffee-Mate to cover several segments to have a larger rake share.
Furthermore, it is riskier to target only one segment, as it boils down to “putting all of its eggs in one basket’. Coffee-Mate would be more vulnerable to market changes, such as economic downturns and demographic shifts. (Farrell, O. And Hairline, M. , 2011) Coffee-Mate should aim at multiple segments in order to meet the diverse needs of the market and increase its presence in the creamers market. II / Evaluate the segments from Tic’s user survey for target attractiveness and their fit to coffee-mates strength. Which of the segments would you argue and why?
The explanations of the different segments The TGIF User surveys have found five potential consumer segments for Coffee-Mate. ; The experimentalists (15. 4%) ; The cost constrained, older, conservative (23. 6%) ; The affluent, young bodies (24. 4%) ; The cost constrained, young families (13. 9%) ; The affluent (22. 7%) The segment of experimentalists are more liable to try Coffee-Mate if they are non-users. They like to try new things and shop for anything. However they pay attention to their image and how they are perceived by other people. They are fashionable and believe they are stylish.
The fact that creamers are considered as an indulgence and appreciated by most people who have used the product can help to attract the experimentalists. Furthermore, they are heavy users of many media and they are responsive to ads. Thus, they are more easily reachable by an advertisement campaign. They are heavy users of instant coffee and cream, but only average users of Coffee-Mate. This implies that Coffee-Mate has expansion opportunities in targeting this segment. The cost constrained, older and conservative segment are very rotational in their habits.
It would be difficult to attract them to use Coffee- Mate if they are non-users. In addition, Coffee-Mate is seen by them as fast food, which they do not appreciate. Although they are heavy users Of media and are easily exposed to advertisements, they are light users of instant coffee, do not consume much Coffee-Mate and never consume cream. This implies that this segment is not very attractive for Coffee-Mate. The affluent and young bodies are heavy consumers of coffee. They are not encumbered by children and are above-average income.
Consequently, they eave the typical profile of major consumers of creamers and claim to buy Coffee-Mate and Marvel most often. They like to cook and are open to trying new food. However, they are health conscious and Coffee-Mate light might thus be more suitable for this segment. In addition, they are low users of media and it would therefore be difficult to aim at them with ads. However, it is a second potential segment that Coffee-Mate could target. The cost constrained and young families are big coffee drinkers but are severely constrained by their low incomes and tend to have larger families.
Consequently, they have the profile of creamer low-users. Although they are heavy users of media, this segment isn’t a very interesting target for Coffee- Mate. The affluent segment have good incomes and their children have left home. They are also likely to use Coffee-Mate. However, they are traditional and don’t want to try new things. In addition, they are low users of media and it might prove difficult to turn them from non-users to users.