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Rebranding for Maxwell
- 1. Cannon Cooley, Evan Taber, Jacob Erlichman, Oscar Andrade, Yiting Liu
- 2. Equity • Historically low price • Targeted people who drink coffee everyday • “Good to the last drop” slogan • Not changing to high-end, maintain medium quality/low price • “Race to bottom” • New target: millennials who need cheap reliable coffee • Millennial coffee market is expanding
- 3. Our Target • Age Group: 18-34 • Socioeconomic Class: Lower-Middle Class • Geographic: Urban/Suburban • Lifestyle: Student, On-The-Go, Busy, Tight Budget, Debt • Why them? Numbers don’t lie.
- 4. Target’s Current Perceptions •Irrelevant •Stale Benefits •Cost Effective •Convenient •Consistent •Accessible
- 5. To Generation Z and Millennials, Maxwell House is the one cost-effective coffee brand that delivers the most convenient, consistent home brewed coffee.
- 6. Positioning Map Low Price High Quality Low Quality High Price
- 7. Shelf placement • Coffee & Tea • Middle Row • Next to competitors • Tags in bright color to draw attention
- 8. Maxwell House Advertisement Video
- 9. Coffee Talk • What comes to mind when Maxwell House Coffee is mentioned? • What did you think of the ad? • What factors influence your coffee decision? • Is it comparable to other retailer brands? • Starbucks • Peet’s Coffee
- 10. Let’s Make It Work! Before After Effective Changes Target Maturists through Generation X Shift towards Generation Z and millennials Need for cheap coffee for price-sensitive consumers Product Mid-range coffee with unchanging packaging Updated, eye-catching and vibrant packaging Contemporary look, fitting modern home for millennials Place Focus on retail Accessible online, continued retailers/wholesalers access; higher social media presence Easy access to where millennials shop
- 11. Easy On the Wallet Before After Effective Change Price Affordable With changing economic situation, affordability is relevant to a broader, younger audience. Price competitive. Younger individuals are not as economically stable as other generations. Promotion Television ads focused on an older generation market. No direct benefits explicitly stated. Simple and affordable. Much more advertising online. Advertise where our target market is looking, and explicitly stating customer benefits.
- 12. Summary • Outdated brand with good product • Market Development • Repositioning puts product in the eyes of target • New target: Lower middle class millennials
- 13. Appendix • Slide 2 • http://coffees.mobi/best-coffee-in-the-world • Slides 3-4 • http://coffees.mobi/best-coffee-in-the-world • https://studentloanhero.com/student-loan-debt-statistics/ • http://www.millennialmarketing.com/2010/05/millennials-becoming- minimalists/ • http://academic.mintel.com.ezproxy.library.wisc.edu/download/xls/databo ok/747967/ • http://geographicresearch.com/simplymap/2015/02/05/exploring- simplymap-data-americas-coffee-drinkers/ • http://www.thekitchn.com/in-defense-of-simple-brewing-smart-coffee- regular-joes-215001 • http://www.washingtonpost.com/wp- dyn/content/article/2005/06/17/AR2005061701226.html • http://adage.com/article/cmo-strategy/kraft-s-maxwell-house-win- millennials/297177/ • https://smartasset.com/mortgage/the-5-best-cheap-coffee-brands • http://old.seattletimes.com/html/education/2002340825_coffeedebt19.ht ml • http://www.bizjournals.com/chicago/news/2014/04/15/good-to-the-last- drop-kraft-foods-maxwell-house.html • https://smartasset.com/mortgage/the-5-best-cheap-coffee-brands • https://www.usatoday.com/story/money/2017/01/13/millennials-falling- behind-boomer-parents/96530338/ • http://adage.com/article/cmo-strategy/kraft-s-maxwell-house-win- millennials/297177/ • https://smartasset.com/mortgage/the-5-best-cheap-coffee-brands • Slide 7 • http://www.dailymail.co.uk/news/article-2032296/Why-supermarket- shoppers-reach-tempting-treat-middle-shelf.html • Slide 10 • http://www.industrytap.com/technological-change-defines-ethos-device- preferences-generation/34504/generations-chart-full • YouTube: https://www.youtube.com/watch?v=P_2TkDHAtfg
Editor's Notes
- Jacob and Cannon improve skit to open Mention “Coffee Talk” sticker “Fired old marketing team, here is Evan, our new marketing director” 30 seconds
- Evan 45 seconds Historically popular/known brand. Good to the last drop. It’s not that we don’t have a good viable product, it’s that we aren’t communicating/reaching our market. Aren’t changing our product because we have good consistent “okay” product. Historical name recognition, need to translate that message to new customers. http://coffees.mobi/best-coffee-in-the-world
- 1 min Our target market consists of cost-conscious millennials who value simplicity and function. Specifically, we are targeting 18-34 year olds with a “student lifestyle”, which means staying up late irregularly, a busy daily schedule, and a tight budget, most likely constrained by student debt. In general, these lifestyle types are found in urban/suburban settings. Our reasoning for choosing this target market is driven by market statistics and economic conditions. First and foremost, the decision to target younger consumers is driven by Maxwell’s vision of future growth. For too long Maxwell has relied on its history of success to hold onto its loyal customers, who have now either passed away, or switched brands. The only way to ensure long-term growth for Maxwell to is penetrate the younger market. In addition, that younger market is experiencing more debt than any previous generation (mostly driven by student loans), creating a unique opportunity for Maxwell to present itself as the cost-saving coffee on the market. This economical reasoning is also why we are targeting the lower-middle class. The higher socioeconomic classes markets have already been saturated by the luxury coffee brands, such as Starbucks. Instead of trying to enter that uphill battle, Maxwell should focus on what it’s good at: being the simple, consistent, and financially responsible choice of coffee. There is also a trend growing among millennials of valuing simplicity. Maxwell wants to capitalize on this shift in thinking. Maxwell does not present itself as a “flashy” or “premium” brand -- and it shouldn’t try to. Our target market is starting to believe that simple is cool, which will drive Maxwell’s marketing mix moving forward. That simplicity also appeals to people with a busy lifestyle. These people need a coffee routine that is easy and consistent so that they can rely on it day-in and day-out, and at a low cost. Maxwell offers the perfect solution to their needs. Below is a target-description story that exposes even more specific characteristics of our target market. 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.
- Oscar 45s COMPLETE 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.
- Is the category relevant and specific? Gen Z & Millennials 1 min USP (reason why?) leverages benefit in CB (consumer behavior). Cost Effective Simple Consistent Flavorful is there solid support for the USP? 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. Format followed? Yes
- Do the endpoints support the new positioning? All competitors relevant? Only 2 competitors in that same quadrant Position location for all brands appropriate? 30 s Position Map: is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a company's product, product line, or brand is displayed relative to their competition. 2 Closest Competitors in Quality, Price, and Consumer Perception: Folgers Nestle Their Position Location? All 3 brands are known for their low prices While not afraid to admit that their coffee is is “not Great” they realize their products are “good” for a low price Competition is growing with retail who preach higher quality for higher price and also manufacturer brands who produce their own close substitutes with more profitable margins.
- Yiting Liu P.S.: there are three more pictures behind the front picture. 20s Does the proposed shelf placement fit the new positioning? Is at least one competitor from the positioning map visible Placed on the middle row of the shelf. A study has shown that consumers are more inclined to reach for the products in the middle shelf. Competitors included in the picture above are Folgers Nestle Market share is quite low related to the young population “Premium” degree of category is quite low as well -- depends on the
- 40s YouTube: https://www.youtube.com/watch?v=P_2TkDHAtfg Was the purpose clear (what the target should do and why?) Was the USP clear? Is the message memorable? Was the idea fresh/new/innovative? Was the product identification clear? Was the dialogue/action clear/understandable? 30 seconds +/- 1 sec.
- 3 min
- 45 s Target: the millennials and other young price-sensitive consumers have. Product – mainly focusing on the presentation Accessible online, continued access to retailers and wholesalers. Higher presence on social media.
- 1min Affordable to the everyday consumer; not advertised as such. Price: effective change describes why a focus on price would be an effective change; economic situation has changed. Price: Younger individuals are not as economically stable as other generations, it can be noted to decrease in house and car ownership.
- 30s 4P’s table Should explain
- multiple sourced citations and backup information included