Dasda

Company case 9

Coffee-Mate

Greg, category manager for coffee creamers, was evaluating his ad agency's proposal fsr Coffm-Mate [Exhibit 9.11. The E25m K37m1 a year coffee creamer market was small with a household penetration of only 18 per cent. Despite the gt-owth of private labels to rake 37 per cent of the market. Coffee-Mate's El .5m advertising budget had enabled it to hold a 55 per cent market share and squeeze both private Label and other brands (Carnplement, Kenca and Compleat]. Howaver, bu&g@swere k i n g squeezed, so unless the advertising campaign could show some selas gain, there was a danger that the category could be mitked to pnrvi$e income to invest in faad p~aducCs with more growth potential.

been associated with slimming 1e.g. Marvel adopted this positioning]. Dried or powdered milk is not a direct

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C~rnpetition the coffee creamer market in

The cotfee e r m e r markat b distinst from the declimq W m imstatst dqmlilk m*et [Marwek, St I d F i e Pints and Pint Sirel. BM ar ppm&e& milk h d

." substitute for coffee creamers because of its poor mixing qualities. It is used as a whitener in tea or . coffee only in 'emergencies' when the household has run out of milk. The coffee creamer market is undergoing a change in o parallel with consumers' developing tastes t r skimmed; and semi-skimmed milk in their coffee. Milk is the mostA popular whitemr for coffee. Although cream is tlrought to be the best whitener, consumers perceive cream as resewed, ritualistic and appropriate for special accasions but not for daily nsa. Powdered or dried milk is a &stress- product; creamers are regarded as an indulgertee, although non u%an not see creamers as anything like a substitute did for cream and were generally suspicious of the product. Csfke-Mate is a bllsnd sf dried glurms and ~a.atgetable bwtcanmt be legally defined a non-dairy Eat, s

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Jane and John, an altluent tM%y+omethinpm~le,...