Consumer Behavior target market assignment

1. Jehrica Marini

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.  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. 
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

7. 
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

8. 
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%

9. 
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

10. 
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

15. 
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

17. 
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)

18.  Starbucks
has over 34
million likes on
Facebook
 Peet‟s Coffee & Tea
Facebook has over
250,000 likes

20.  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

22. 

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

23. 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

24.  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!
 www.landofathousandhills.com

26.  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%

27. 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


28. Thank You
Questions?