In
the creation of any marketing campaign an understanding of the market, market
size and consumer consideration is important.
Many
coffee-producing countries have carried out market measurement studies of
coffee consumption over the past 10 years. However, there are many countries
where coffee market size methodology may be based on the apparent consumption
model rather than on research-based measurement methodologies across the supply
chain.
The
apparent consumption model, an example of a top-down analysis estimates market
size using the equation – Apparent Consumption = Domestic Production – Exports
+ Imports. The values for the
calculation can be gotten from reliable coffee industry statistics.
Other methods
for determining market size include
The apparent consumption method and the production census, peg market size to the amount of product available in the market. This however does not account for unserved segments. This must be borne in mind if either of these two methods are used in establishing market size.
To ensure continued applicability of the chosen marketing strategy, it is recommended that a framework that seeks to evaluate and adjust is adopted. The following framework employing the Deming Cycle approach is presented.
We have all heard the saying “What is not measured is not done and cannot be effectively managed”. It is therefore important to know what the important consumer indicators are thereby enabling the development of strategic plans.
As we plan and in turn execute it is important to assess and analyse what is important to the consumer and in turn to understand the level of consumer satisfaction and loyalty and segment strategies. This will lead to an understanding of detractors, liabilities, and promoters allowing one to develop appropriate promotional plans and manage resources more effectively and with fewer risks.
As we create marketing strategies and plans, we must ensure that all plans, activities and tactics be integrated under a cohesive or national consumer strategy. The activities must be fully aligned to the individual or brand architecture.
Changes in market trends and consumer habits have accelerated over the past decade. Monitoring and in turn evaluating the impact of executed campaigns and measurement against objectives must be continuously executed.
Understanding
your target market means being able to define the profile of the coffee
consumer. Building the coffee consumer
profile requires establishing where corelations with coffee consumption
exists. Corelations that can be explored
include
This consumer profile can be expanded to include the type and amount of coffee consumed, where that consumption takes place, where the consumer gets information and a host of other information. The more information that the profile captures, the greater the understanding of the consumer and the greater the ability to target appropriate messages.
The Customer Loyalty Index (CLI) is a standardized tool that enables tracking of the customer loyalty over time, that is, a measurement of how loyal the customer is to the brand and how much they may tend to abandon it. Customer loyalty is different from customer satisfaction!
For the Customer Loyalty Index (CLI) you will collect attitudinal data by executing Voice of the Customer (VoC) surveys which enquire about the customer's satisfaction, likelihood to repurchase, or willingness to recommend. Here, behavioural measures are used to measure if customers are acting based on their feelings of loyalty.
Analysing the attitude of consumer loyalty allows one to identify key elements to understand how to increase elements of satisfaction for their consumption with lower risk of rejection and a greater return on investment in promotional activities.
