Folgers(Secondary Research Paper) Final Essay Example
Folgers Coffee (Secondary Research)
Myra Correa
Jan. 18, 2011
COFFEE INDUSTRY
Coffee is the second largest commodity market next to oil, and growth is expected to continue at a strong pace. The US coffee market is approximately US$40 billion (inclusive of both retail and food services sales). The US ground coffee market is about US$1.9 billion and it is estimated to grow up to 2.8 billion by 2012. Folgers retail sales is 44% of the overall ground coffee market.
B. Target Market: 54% of adults living in the USA drank coffee every day, about 166 million people. Another 29% occasionally consume coffee and 17% do not drink coffee. Regular coffee drinkers in the USA have about three cups daily---that's about 336 million cups of coffee. However, college Students drink far less coffee than their baby boomer parents, and, when they do, it's more likely to be on the go. Only 37% of young American adults 18-to-24 drink coffee, compared with 60% of those 40-to-59 and 74% of those 60 and over. Folgers will focus on College Students because they have the largest potential for growth. Within 5 years they will be married and will have less disposable income but they will want to maintain their premium coffee consumption, but without paying the high price. C. Target Market Growth: College students continue to grow at a steady pace, at nearly 13%, Business workers continue to add value and growing at 5%, Seniors are becoming an important part of consumers, growing at almost 2%. Therefore, college students represent the most lucrative opportunity.
COMPANY OUTLOOK3:
Since Folgers merger with J.M. Smucker Co., the company has been financially successful. Folgers had added 856 million in sale and 241 million in profit during fiscal year 2010.
Our strength is our everyday affordability and trusted name. We now have a first place market share of 44.8% of home brewed coffee market, followed by Maxwell house and Nestlé. However, we realized that our major
Myra Correa
Jan. 18, 2011
COFFEE INDUSTRY
Coffee is the second largest commodity market next to oil, and growth is expected to continue at a strong pace. The US coffee market is approximately US$40 billion (inclusive of both retail and food services sales). The US ground coffee market is about US$1.9 billion and it is estimated to grow up to 2.8 billion by 2012. Folgers retail sales is 44% of the overall ground coffee market.
B. Target Market: 54% of adults living in the USA drank coffee every day, about 166 million people. Another 29% occasionally consume coffee and 17% do not drink coffee. Regular coffee drinkers in the USA have about three cups daily---that's about 336 million cups of coffee. However, college Students drink far less coffee than their baby boomer parents, and, when they do, it's more likely to be on the go. Only 37% of young American adults 18-to-24 drink coffee, compared with 60% of those 40-to-59 and 74% of those 60 and over. Folgers will focus on College Students because they have the largest potential for growth. Within 5 years they will be married and will have less disposable income but they will want to maintain their premium coffee consumption, but without paying the high price. C. Target Market Growth: College students continue to grow at a steady pace, at nearly 13%, Business workers continue to add value and growing at 5%, Seniors are becoming an important part of consumers, growing at almost 2%. Therefore, college students represent the most lucrative opportunity.
COMPANY OUTLOOK3:
Since Folgers merger with J.M. Smucker Co., the company has been financially successful. Folgers had added 856 million in sale and 241 million in profit during fiscal year 2010.
Our strength is our everyday affordability and trusted name. We now have a first place market share of 44.8% of home brewed coffee market, followed by Maxwell house and Nestlé. However, we realized that our major