Segmentation of coffee market

1055 Words5 Pages
Segmentation, Targeting and Positioning Product: Coffee For the course: Marketing Management Dated: 13th August 2008 Dinesh Pradeep - MS08A018 K. Ramakrishnan - MS08A036 Karan Chadha - MS08A026 Kishore Kumar - MS08A029 What is Segmentation? Dividing the market into segments based on geographical, demographical, psychological or behavioural variations is referred to as segmentation. As a marketer can rarely satisfy everyone with the same product, it becomes important for him to divide the markets into segments so as to choose one or multiple segments and then deliver tailor made products depending on the needs and wants of the people of a segment. Segmentation of the coffee market: Geographic Segmentation: Geographically, Coffee market can be segmented by the following variables: 1. Region: Table: State/Region wise Per capita per year Consumption of Coffee in India (Kg) 1985 1995 2005 Tamil Nadu 0.633 0.425 0.493 Karnataka 0.498 0.37 0.35 Kerala 0.179 0.07 0.143 AP 0.109 0.062 0.077 Total South 0.362 0.237 0.267 Total for Non-South 0.009 0.004 0.005 Total for all States 0.094 0.076 0.062 The above table reveals that coffee consumption is more in the southern region of India than the rest. • In 2005, about 64,405 MT is consumed in South India, which is 80% share of all India consumption of 80,200 MT. In the South, Tamil Nadu is the largest coffee consuming state with an estimated volume of about 22,000 MT (34%) closely followed by Karnataka with 19,000 MT (30%). Andhra Pradesh & Kerala account for about 13,000 MT (20%) and 10,000 MT (16%) respectively. • In South zone, instant and filter coffee almost have an equal share. In other zones, instant coffee is more predominant. • When we compare the large towns, the North & West zones show a clear increase in penetration of Filter Coffee. This increase in

More about Segmentation of coffee market

Open Document