UK Coffee Industry Case Study Example | Topics and Well Written Essays - 1500 words

UK Coffee Industry - Case Study ExampleDominance of instant coffee is attributed to a combination of aggressive marketing and stigmatization campaigns by brand manufacturers, as well as the price awareness and brand loyalty characteristic of coffee drinkers. However, instant coffee growth evaluate lag behind dry land and roast, increasing only by 11.1% from 2003-2005, compared to 13.6% for the latter, which can be attributed to the development of new pod technologies and the decreasing prices of coffee machines, which allows consumers greater toilet facility in home brewing and the prevalence of repertoire drinkers2, indicating an increase in consumers imbibition both instant and ground coffee.The market is also highly segmental with distinct divisions in terms of age groups, geography, and consumer behaviour. Demographically, consumption increases with age as majority of heavy coffee drinkers in both sectors found among the 35-64 groups, with 76% drinking instant coffee and a bout 43% drinking instant exclusively. With respect to ground coffee, consumption is concentrated in more affluent regions of the country, indicating price consciousness among drinkers.Only a few manufacturers do... Base adults aged 15+All users%Heavy users%Medium users% brighten users%Non-users%All76.137.125.113.223.9Men75.638.024.412.624.4Women76.636.325.813.723.415-2452.220.220.011.547.825-3473.135.122.714.826.935-4478.342.821.114.021.745-5481.743.923.713.418.355-6485.144.925.713.714.965+84.435.835.811.915.6Taken from the TGI stick to of around 25,000 adults(Source Mintel 2006)table 3 Usage of fresh ground coffee, by demographic sub-group, 2005Base adults aged 15+All users%Heavy users%Medium users%Light users%Non-users%All36.48.211.216.163.6Men36.59.510.915.363.5Women36.37.011.616.963.715-2423.83.67.611.176.225-3434.57.210.816.065.535-4440.08.912.418.060.045-5442.710.113.119.257.355-6441.510.613.017.458.565+35.68.810.515.164.4Taken from the TGI survey of around 25,000 adults(Sou rce Mintel 2006)Only a few manufacturers dominate the coffee market. For instant coffee, the market is dominated by Nestl (56%) through its Nescaf Original Blend (33%) and Gold Blend (15%) - the two highest-selling brands - followed by Kraft (22%), and Own-label products (11%), while other manufacturers made up the remaining 11% in 2005. There are no dominant suppliers for ground and roast. However one company, Douwe Egberts, had the highest market share at 12%, followed by Cafdirect, Taylors, and Lavazza, with 8% market shares each. Own-label manufacturers for ground and roast coffee, however, possess 40% of the total market. table 4 Market share of instant coffee, by producer, by value, 2003 and 200520032005 (est)%