In order to perform a more precise and efficient market targeting, Coffee-mate should target its Coffee-mate and Coffee-mate Lite into separate market segment. The National Food Survey (N/A) stated that there is a slightly skew of heavy Coffee-mate buyers towards the characteristics of: lower social class, aged 45+ and 2-3 person households with children.
Whereas, the Coffee-mate Lite users have a slight bias towards 45-64 year-olds, full-time working housewives and households without children. Health concern like fat intake has been raising the awareness of customers. Consequently, some customers might be reluctant to add creamer to coffee. Therefore, Coffee-mate Lite can be segmented for customers who are most likely yo be concerned with their health levels. From all information and observations, it is concluded that Coffee-mate should aim at multiple segment.
3.0 Evaluation of TGI’s user survey TGI的用户调查评价
TGI’s User Survey covered instant/ground coffee and powdered milk/coffee creamer, market yielded five potential consumer groups for Coffee-mate. As aforementioned, Coffee-mate should choose to aim to serve multiple segments. Hence, this part of the report will aim to evaluate the attractiveness of these 5 potential segments that TGI surveyed. It is also aim to recommend the best segment for Coffee-mate to target.
Total Sample Proportion of TGI’s User Survey
3.1 Segment 1 – Experimentalists
The experimentalists can be considered as younger group which are keen to pay for luxurious products. In fact, Coffee-mate positions itself as ‘Indulgence’. Therefore, the strong branding of Coffee-mate through Nestle could help it to gain brand loyalty, by changing the buying behaviour of the experimentalists towards Coffee-mate. Additionally, users of creamer like the experimentalists are likely to replace their consumption from cream to Coffee-mate because they are considered as substitute goods.
3.2 Segment 2 - Cost Constrained, Older, Conservative
People in the cost constrained, older and conservative group are more sensitive to the variation of the price. When come to purchasing, the demand would be more price elastic, they would ignore the brand and price will be their first concern. In result, they would buy cheaper competitor brands. Furthermore, they are not really a user of Coffee-mate. Consequently, for Coffee-mate, this segment is not worth targeting due to a low brand loyalty and high possibility of substitution effect.
3.3 Segment 3 – Affluent, Young Foodies
The affluent, young foodies are the people who prefer healthier diet; they are willing and affordable to pay more for that. These people claimed to use Coffee-mate often and also cream consumers. Consequently, the Sarah and Anna group would be the potential customer based for Coffee-mate. In
