1. What are the main variables used by TGI to segment the market? The main variables used by TGI to segment the market are: ? Income ? Age ? Social grade ? Concerning about health and environment ? Shopping activity/budgeting ? Social places (pubs, restaurants, etc. ) ? Brand vs. own label ? Travelling ? Media (TV, radio, newspapers) ( ads ? Number of children at home ? Area where they live ? Level of consumption of Coffee-Mate and creamers ? Occupation 2.
How do you evaluate the market segments originated by the application of the variables you referred in 1.? Which of the segments would target and why? Evaluation criteria (Principles of Marketing, Philip Kotler ??? pages 423 and 424): ? Size and growth potential of the segment: ? Growth: according to the sample and tot the characteristics of each segment (age and social grade) we think that, in the future, people that are ‘Sharon and Tracy’ and ‘Dawn and Lisa’ will become ‘Eileen and May’ and people that are ‘Sarah and Anna’ will become ‘Dorothy and Amy’.
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So, the segment with more potential growth is ‘Eileen and Mary’ follow by ‘Dorothy and Amy’, because people that are ‘Sarah and Anna’ will pass for this segment ? Attractiveness of the segments: ? According to the case, we can see what are the segments that have a higher propensity to consume Coffee-Mate and the segments that buy the products from this brand vs. other brands (e. g. dry milk). ? Company objectives and resources ‘Sharon and Tracy’ |’Eileen |’Sarah |’Dawn |’Dorothy and Amy’ | | |and Mary’ |and Anna’ |and Lisa’ | | |Size* |15,4 % |23,6% |24,4% |13,9% |22,7% | |Growth |++ |++++ |+ |++ |+++ | |Attractiveness |++ |+ |+++ |+ |++++ | |Resources and objectives|+++ |+ |++ |+ |++++ | * According to the sample So, we think that the best target for this company is ‘Dorothy and Amy’ segment, because ‘they are the people most likely to be buying Coffee-Mate’ and in relation to ‘Eileen and Mary’, that have a good growth, ‘Dorothy and Amy’ don’t are health conscious. Other reason to believe that this is a good target is the fact that actually they buy Coffee-Mate and they don’t want to try new things. 3. Which products would you define as competitors of Coffee-Mate? Place each competitors in the perceptual positioning map, with two axes. 4.
Design the positioning statement for Coffee-Mate, identifying the target, frame of reference, point of difference and reason to believe Aspects that characterize the company’s position in the market: ??? Target Market: “Dorothy and Amy” ??? Frame of reference: Coffee-Mate products are liquid, powder, stick packs, concentrated, reduced fat and sugar free creamers to be added with either coffee or tea. ??? Point of difference: Product line with a variety of products and the good taste of the product ??? Reason to believe: Brand’s history; First in the market; Variety and innovation. Our positioning statement: “For traditional people for whom the Coffee time is a special time and like to enjoy this relaxing time with other people. Coffee-Mate gives you a variety of experiences and creamy tastes that are unique” 5.
Propose a brand identity, for Coffee-Mate. Based on that Brand Identity how would you evaluate the proposed ad for the target market and benefits promoted? Based on our new target we propose to focus more on the taste of Coffee-Mate. We like the idea of the ad, friends meeting, because it matches with our target personality. However, we suggest that the people in the TV spot are too young. ———————– We think the main axes that should be used in the positioning map are price and taste of coffee after the mixture because that’s what really differentiates this kind of products in the customers’ minds. Milk Sugar Coffee-mate Dried milk Price Cream Taste