This is the brief analysis of the current situation of Maxwell House coffee and how we plan to rebrand to attract a younger population.

1. Oscar, Jacob, Yiting, Evan, Cannon
(all sources for claims are cited by hyperlink)

2. Maxwell House Coffee
Maxwell House and their coffee products, primarily ground roast coffee, have been known consistently as a mid-range
brand. Their slogan “good to the last drop” was recognizable in households across America, but now lacks the recognition of
millennials and those in Generation Z. Joel Cheek introduced his line of coffee to the Maxwell House Hotel in 1892, and the
coffee was a hit among guests. Over the next few years the brew became popular among guests and grew as a company,
growing its household name and the scope of their business, with more roasting facilities. In 1942, Maxwell House instant
coffee is chosen to be used in ration kits in World War 2, further exemplifying the brand’s equity in consistency and cost-
effectiveness. While they used to dominate the mid-range market until the 1980’s, they have seen a slow decline in
popularity and now reside at the second highest market share, just behind Folgers.
The two things that have consistently worked to their advantage are their products’ low costs and the consistency in their
quality. However, as seen in many brands, these qualities that work for them are only helpful if they can be marketed in the
right way. The coffee market has changed a lot since Maxwell House entered, and continues to rapidly change. People still
love and consume coffee, but the way they consume, what types they consume, and what they’re willing to spend on coffee
is changing. At the same time, millennials don’t have as much money to spend as their parents did at the same age, spend
less than other generations currently, and their coffee drinking habits are increasing. This creates a market for millennials
that need coffee they can trust that won’t break the bank. Maxwell House fills this niche.

3. Target Description
Max and Jane are brother and sister (families with two children are more likely to have coffee drinking
parents), born just one year apart. Max is now 22 and Jane is 21. They grew up moving amongst the
urban areas of Maryland (we are going after more than just cities in Maryland, this is just one example
of a region with a high percentage of young, urban coffee drinkers). The constant moving, driven by
their parents‘ search for new jobs, taught Max and Jane that packing light and appreciating simplicity is
easier than complicating life with a bunch of unneeded accessories (we are going after the
millennials/genZ that have grown up cost-conscious and don’t value complexity). They grew up lower
to middle-class (although higher income brackets on average drink more coffee, they are more likely to
pay premium prices for added benefits -- Starbucks -- so we are going after the lower middle class
who care more about price). Their father is of hispanic origin and their mother is caucasian, and they
were blue collar workers of who relied on home-brewed coffee every morning -- the aroma was a
constant in the house (kids with parents who regularly drink coffee are more likely to drink coffee
themselves and in a similar fashion, also, hispanic origin is the most coffee oriented ethnicity in the
United States). Both Max and Jane decided to go to college, but in order to do so, they both had to
take out relatively large student loans. That debt is a constant reminder for them to budget their day-to-
day expenses (student debt forces these millennials to be cost-conscious). Like most college students,
Max and Jane are very busy and always “on-the-go.” They often find themselves awake past midnight
studying for their next exam or filling out internship applications, yet awake before 7am heading to
class. This inconsistent sleep schedule has built a reliance on daily coffee in all forms -- morning brew,
“k-cups”, disposable ice coffees, afternoon mugs, etc. However, Max and Jane don’t feel comfortable
paying the premium price for popular coffee shops on campus -- like Starbucks or Colectivo. Instead,
they turn to the low-priced, simple, and consistent Maxwell House coffee selection. Maxwell House
coffee selection offers the variety Sammy and Jane need for their busy schedules. They can drink it
anywhere. It offers the maximum value to serve their simple needs and simple tastes.

4. Support for Target description
"Millennials are looking for ways to get coffee more easily and maybe not spend as much as they'd have to at, say, Starbucks or Dunkin'," says Darren Seifer, a food and beverage analyst at NPD Group, a
consumer research firm. Kraft, he says, "may be able to connect with them on that level—speed and cost."
This digital generation makes up approximately 23 percent of the population, according to the U.S. Census Bureau. It is expected to number over 75 million young adults in 2015, surpassing the Baby Boomers
and becoming the largest living generation.
Based on the National Coffee Association’s 2014 Annual Drinking Trends report, daily coffee consumption among ages 18-24 more than doubled (to 51 percent) in 2014, up from 25 percent in 2000. Daily
consumption among ages 25-39 increased to 62 percent in 2014, up from 42 percent in 2000.
The NCA’s report shows that 21 percent of people ages 18-24 and 25 percent of ages 25-39 drank espresso-based beverages daily (NCA, 2014).
Millennials and younger consumers aren't just driving a trend to gourmet coffee beverages - coffee consumption in general is up for younger generations. Daily coffee consumption among 18 to 24 year olds has
doubled since 2000, from 25 percent to nearly 50 percent. For those 25 to 39, daily coffee consumption increased from 42 percent in 2000 to 60 percent in 2016.
The "Stop Buying Expensive Coffee and Save Calculator" shows that if you made your own coffee and for 30 years refrained from buying a $3 latte, you could save $55,341 (with interest).
We target at the students who have loans for colleges or universities and there are 44.2 million of student loan holders in the United States. Also, the monthly student payment for the loans is $351 for students
aging from 20 to 30 years.
“Total percentage of coffee drinkers who have a cup within the first hour of waking up is 68%.”
“Total percentage of Americans over the age of 18 that drink coffee everyday is 54%.”
People drinking more coffee at home than away from home on average. And they drink 30% more hot coffee at home than away from home. (data on the right)
The median household income in the US has been on the decline, per recent US Census Bureau data.

5. Creative Brief
Perceptions: Currently, the target market perceives the Maxwell House brand as an irrelevant brand of home-brewed “old-
style” coffee. We are shifting this perception to expose the important value Maxwell House can provide this generation. We
want our target market to see Maxwell House as the cost-effective, simple, and tasteful option for on-the-go and debt-ridden
individual. The target market perceives the product category of on-the-go coffee options as useful and providing variety, but
often too expensive for their means. Maxwell House can serve this on-the-go need while also remaining cost-effective.
Target Audience: Price conscious millennial students and young workers who seek simplicity and the benefit of caffeine to
get through the day of studying or of work.
Objective: Our objective is to increase Maxwell House’s market share of home-brewed coffee among millennials by 10%
over 5 years. The driving factors behind this goal are: 1) the declining revenue performance of Maxwell House overall 2) the
large millennial market not being fully served by current providers (Starbucks-39.8%, Dunkin-21.9% etc.) and 3) creating
stable growth for Maxwell House in the future by securing our share of future coffee consumers. Maxwell House currently
has a very small portion of millennial customers (6.8%).
Benefit: The low cost benefit of our homebrewed coffee will provide price sensitive customers with an affordable way to get
through the day at school or at work. Maxwell House is the only coffee company that still provides the quality taste
consumers want while keeping the consumer's wallet in mind, especially in comparison to their main low cost competitor,
Folgers.
Support: Maxwell House has been able to keep a consistent, low cost, home brewed coffee for decades that would ensure
our customers have a reliable brand they can believe in.

6. Attracting New Target Market
To the price conscious Gen Z and Millennial audience, Maxwell House is the one
coffee company that can appeal to the convenience of homebrewed coffee with
maximum value and consistent quality.
Maxwell House has been known as a flagship company for cost-effective and consistent mid-range coffee.
As we attempt to gain market share in the Millennial and Gen Z demographic for homebrewed coffee,
Maxwell House has a unique advantage above their competitors, as they have brand recognition and
historical relevance among older generations. The quality and past brand equity is present, but will require
our effective marketing to translate this to our new audience.