Coffee lovers target market


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Consumer Behavior target market assignment

Coffee lovers target market

  1. 1. Jehrica Marini
  2. 2.  Origins of the Coffee Market  US Coffee Consumption Facts  Global Consumption Facts  Coffee Health Benefits  Social Media Marketing  Green Marketing  Coffee Market Ethics  Causal Marketing  Conclusion
  3. 3.  The coffee bean began on the plateaus of central Ethiopia and somehow must have been brought to Yemen where it was cultivated since the 6th century  After the establishing of the first coffee houses in Cairo and Mecca-coffee became a passion rather than just a stimulant  A 15th century Turkish law made it legal for a woman to divorce her husband if he failed to provide her with her daily quota of coffee
  4. 4.  Coffee ranked number one out of the top ten fastest-growing consumer goods categories in 2012 • According to Retailing Today‟s annual analysis of the top 100 retailers and categories, using Nielsen data
  5. 5.  An estimated 100 million Americans drink a total of 350 million cups of coffee a day  Coffee represents 75% of all the caffeine consumed in the US  2.8 billion cups of coffee served at Dunkin' Donuts shops every year  About half of all American adults have a cup of coffee to start their day  The average American coffee drinker enjoys around 3.4 cups of coffee per day  Coffee represents three-quarters of all the caffeine consumed in the US  The US is the world‟s largest consumer of coffee importing 16-20 million bags annually, which represents one-third of all exported coffee
  6. 6.  Specialty coffee is the term commonly used to refer to "gourmet" or "premium" coffee  According to the Specialty Coffee Association of America (SCAA), coffee which scores 80 points or above on a 100-point scale is graded "specialty"  Specialty coffees are grown in special and ideal climates, and are distinctive because of their full cup taste and little to no defects  Specialty coffee sales are rising by 20%
  7. 7.  Coffee is the most popular beverage worldwide with over 400 billion cups consumed each year  Coffee is the second most widely used product in the world after oil  World coffee production is estimated at 110-120 million bags per year  Coffee is the world‟s second most popular drink after water  Café bars average sales of 230 cups per day  14 billion espresso coffees are consumed each year in Italy, reaching over 200,000 coffee bars  Japan ranks number 3 in the world for coffee consumption  Coffee shops make up the FASTEST GROWING part of the restaurant business with a 7% annual growth rate
  8. 8.  Coffee lovers do not just drink coffee for the boost in energy from the caffeine but also for the taste and social application • Coffee is frequently labeled the “ultimate social drink”  They commonly drink coffee throughout the day but the cup in the morning is the most habitual • 60% of U.S. coffee drinkers claim to need a cup of coffee to start their day
  9. 9.  A study in the New England Journal of Medicine claimed that coffee could decrease the risk of dying from chronic diseases such as diabetes and heart disease
  10. 10.  Relationship marketing is an effective strategy to get to know who your customers are and to promote brand loyalty  Offer unique products (specialized roasts, local ingredients, locally themed or named drinks, custom drinks by your „star‟ barista, etc.)  Try leaving out games, puzzles, mind benders and other activities that encourage customers to linger over their coffee  Host or sponsor local events (entertainment, readings, book clubs, etc.)  Use technology to creatively compete in marketing with the big chains — services like FourSquare, Yelp, and Google Places can increase your visibility in your local market.  Deliver amazing service from knowledgeable baristas — spend lots of time training your staff and consider using online services like the American Coffee & Barista School  Develop fun and interesting customer loyalty programs (consider going beyond the “buy 10, get 1 free” approach: create unique levels or ranks with different benefits, link offerings with other local merchants, etc.)  Be sure to sell coffee-related items (and track down any co-marketing opportunities with a local community college or other student-related group in the area)
  11. 11.  Starbucks has over 34 million likes on Facebook  Peet‟s Coffee & Tea Facebook has over 250,000 likes
  12. 12.  Keurig is the leading manufacturer of single cup coffee and brewer • Grounds contained inside the K-cup sit within a paper filter and the measured quantity of hot water is forced through the K-Cup, passing through the grounds and through the filter into the waiting cup or mug below • In North America, Keurig claims a significant market presence with 2.5 million beverages dispensed per day, 200,000 office installations and 6% of all coffee brewed every day
  13. 13.   On September 15, 2011, Fair Trade USA announced its resignation from Fair Trade International • The resignation took effect on December 31, 2011, so Fair Trade USA has now embarked on a different course from the rest of the world's fair trade organizations In the US, Fair Trade certification is granted by Fair Trade USA • A non-profit organization that started certifying coffee in 1998 and has since included many other products, ranging from tea to chocolate to fruits and spices • The Fair Trade certification model is designed and audited to ensure equitable trade practices at every level of the supply chain • The organization uses their logo, which was redesigned in 2012, to identify certified products
  14. 14. Coffee lovers are attracted to causes that help societies  Land of a Thousand Hills Coffee Company  • In 2005, Jonathan Golden, founder of Land of a Thousand Hills, recognized a simple and tangible opportunity to make a difference in the reconciliation of the Rwandan people • This realization led Golden to start a coffee company that pays a fair wage to the farmers of Rwanda, helps them with their basic needs, and brings a quality product to coffee lovers • The introduction of specialty coffee to the healing fields of Rwanda proved to be an uncommon opportunity for once warring countrymen to not only rebuild their homesteads, but to work together toward lasting peace
  15. 15.  Company motto: “Drink Coffee. Do Good.”  How they we do good? • Start by paying their coffee growers in Rwanda higher than Fair Trade prices • Using the profits to invest in sustainable village projects in Rwanda such as a sustenance farm for orphans, a soccer field and more! 
  16. 16.  According to the US National Coffee Drinking Association forecast for 2013 • Coffee Consumption Jumps by 5%, 83% of Americans Say They Drink Coffee on a Past Year Basis • Hispanic-Americans consume Espresso-based Beverages at twice the rate of other groups on a Past Day Basis • Single-cup segment builds on growth, ownership of single-cup brewers increases to 12%
  17. 17. Coffee market has been steadily growing  New opportunities for marketers  • Promote the possible health benefits Specialty coffee  Specialty coffee is the term commonly used to refer to "gourmet" or "premium" coffee  According to the Specialty Coffee Association of America (SCAA), coffee which scores 80 points or above on a 100-point scale is graded "specialty" Specialty coffees are grown in special and ideal climates, and are distinctive because of their full cup taste and little to no defects 
  18. 18. Thank You Questions?