2 VOLUME BRAND SHARES (%) BRAND SHARE Coffee­Mate ­ total: 55.5

EXHIBIT 9.2 VOLUME BRAND SHARES (%) BRAND SHARE Coffee­Mate ­ total: 55.5

Standard 41.0 Lite 14.5

Compliment 2.6 Kenco 3.0 Compleat 1.4 Own label 37.3 All others 0.3

Competition in the Coffee ("reamer Market The coffee creamer market is distinct from the instant dry milk market, which includes brands such as Marvel, St Ivel Five Pints and Pint Size, which, although worth £43 million, has seen a 25 per cent decline since

1988. Dried or powdered milk had been associated with slimming (e.g. Marvel adopted this positioning). The availability of low­fat, skimmed and semi­skimmed milks has had a substantial impact upon sales in this sector.

Dried/instant milk, used for its convenience and low COSE, has shown a 6 per cent decline in value sales in real terms consequent upon the increased

availability of skimmed milk. Dried or powdered milk is not a direct substi­ tute for coffee creamers because of its poor mixing qualities. It is used as a whitener in tea or coffee only in emergency situations in which the house­ hold has run out or run low on supplies of milk.

The dynamics of the coffee creamer market appear to be undergoing a change in parallel with consumers' developing tastes for skimmed and semi­ skimmed milk in their coffee. Milk is the most popular whitener for coffee. Although cream is thought to be the best whitener, it represents an aspir­

ational flavour goal only for some. Most consumers perceive cream as a reserved, ritualistic practice, whose taste, while appropriate for an occasion, is not to be replicated on a daily basis.

Powdered or dried milk is a distress product, used only in emergency situations. As such, the brands are bought, but the product is only tolerated. Creamers are regarded more as an indulgence and treat by users, although

422 Chapter 9 Market Segmentation nnd Targeting

non­users did not see creamers as anything like a substitute for cream and were generally highly negative and suspicious of the product (consumers'

and non­users' perceptions of the product category 1 will be described in a later section). Coffee­Mate is a blend of dried glucose and vegetable fat, but cannot be legally defined as non­dairy, since it also contains milk derivatives. Recent improvements to the product include the relaunch of Coffee­Mate 100 g and 200 £ in straight­sided glass jars with paper labels, and a 'Nidoll­con toured'

jar with shrink­wrapped label. Packs of 500 g and 1 kg are available in cartons with an inner bag. At the end of 1990, Coffee­Mate Lite, a low­fat alternative to Coffee­Mate, was introduced. Cannibalization of volume has been minimal. The volume generated by Lite has been a key feature in the development of the brand, which has experienced a 10 per cent growth in sales volume in the first three years following Lite's launch.

Coffee­Mate Consumer The demographic profile of Coffee­Mate and Lite buyers is summarized in Exhibit 9.3. The average Coffee­Mate consumer buys 1.5 kg annually. AGE iSuperpanel data suggest that buyers of Coffee­Mate tend to use all brands

and types of coffee. The market is characterized by its low interest level, since most buyers do not see it as a weekly shopping item. The main reason given by respondents for not purchasing Coffee­Mate is preference tor milk

in their coffee: as many as one­third of non­users gave this as their reason for rejecting the product. An equally high proportion of the non­users

simply have no reason to purchase, because they don't drink coffee, drink it black, or simply have no need to use the creamer. Reasons given sponta­

neously for lapsed usage were very similar to the main ones articulated by non­users: 50 per cent of respondents stated that they preferred milk in coffee, while around 21 per cent said that they don't drink coffee, drink it black or don't think to buy creamers (Exhibit 9.4).