Coffee Marketing Analysis

Coffee appeared in the IX century and now it is present everyday in the menu of the majority of the population, in the whole world being consumed over 400 billiard cups of coffee.

This means that in average a citizen drinks annually around 67 cups filled with coffee. And this is not all, at the moment if we look at things from a different point of view we can see that related to the total sales volume of the business, coffee industry is the 2nd in the world, being overcome by the oil industry.Thereby, in this area work over 20 million people and country’s that economically specking is dependent by the way this industry performs. On the global market coffee aside with oil, vinegar and cereals are among the raw materials for export of high value, many coffee manufacturer country’s economic situation depend almost entirely on coffee export for their national well-being.

The most important coffee markets are in New York and London, where there are sold and bought Arabica coffee specialties more exactly Robusta.Coffee’s price depends a lot on the demand and supply and on factors like: climate changes, political movements and quality, as well as the volume of production. Market area In Romania coffee consumption began its growth after the year 1990 and now it is consumed daily by more than a half of the mature population. Coffee is commercialized at the level of the entire country but the highest sales are being recorded in city area. Unfortunately because at the lack of information at the moment it is possible only a detailed market analysis of coffee at national level, a thing that forbids a regional analysis.

All studies made until now were performed only in the urban arias reveling that 76% of the urban population consumes coffee. The lack of data about coffee consumption in rural areas may be because coffee manufacturers are not interested to invest in that direction due to the fact that their revenues may be smaller than the expenditures. Market structure Geographically: During XIX century until present,the croping and export of the coffe has grown now in an amaizing degree.Nowadays coffe is consumed virtually in any country,and it’s very important for both consumers and producers.

On global market coffe is situated next to oil,steel and grain,between the raw materials export of high value ,the economic situation of many coffee producing countries first depending almost entirely on coffee exports for their national wealth. Demographic: According to the study realized by the companyISRA Center Marketing Research in May 2007,follows that only 9% of the urban population don’t drink coffe.The study is focussed on the consumption of coffe,cappucino and ness. The results of the study showed that 76% of them drink coffe,21% capuccino and 17% drink ness. According to the study women drinks coffe in a greater proportion than men,and the biggest difference was recorded in cappucino(24%women and 18%men).

It was noticed that young people between 15 and 19years old consume coffee on a much smaller amount, 45%, compared with average urban level of 76% .. In terms of quality and price, can be splited in five segments of the market sharing coffee sold in Romania.These are bulk (paid coffee), the economic segment in which coffee brand come packaged like Fort and the Nova Brasilia, the medium category (Mainstream), with brands like Elite, Jacobs and flavor, the premium - with Selected and Kronung Jacobs - and super, with Lavazza, Illy, etc.

. "Certainly, the largest consumer segments are recorded in bulk coffee, and the mainstream economy, mainly due to low purchasing power of Romanians. Packaged coffee brand in the market, there is a segmentation in terms of quality / price, as follows: Economy - 19% Mainstream - 34% premium - 45% and super - 25.According to Romanian Coffe Association 83,6% of adults have consumed coffee at least once last week. Women drink coffee in a greater proportion than men (86.

0% women vs. 80. 6% men) and older people consume coffee in a greater proportion than young people(86. 1%. those over 30 years old 77.

7% people between 18 and 30 years). Among the types of coffee available on the market, holds the leu side of natural coffee. Thus, 74. 3% of the adult population consumes coffee, 13.

7% cappuccino and 12. 8% use instant coffee.Cafeaua instant si cappuccino sunt consumate intr-o proportie mai mare de tineri (sub 30 de ani), in timp ce cafeaua naturala este consumata intr-o proportie mai mare de persoanele cu peste 30 de ani. Prin comparatie cu celelalte categorii, cappuccino este consumat intr-o proportie mai mare de femei, in timp ce cafeaua instant este consumata intr-o proportie mai mare de persoanele cu studii superioare. Instant coffee and cappuccino are consumed in a greater proportion of youth (under 30 years), while natural coffee is consumed in a greater proportion of people over 30 years.

Compared with other categories, cappuccino is consumed in a greater proportion of women, while instant coffee is consumed in a greater proportion of people with higher education. If natural coffe is being drunk daily,for 80. 3% of consumers, not the same can be said about instant coffee or cappuccino. Thus, these are consumed daily only for 35. 3% (instant coffe) and 22. 4% (cappuccino) of the persons which consume this type of coffe.

Highest frequency of consumption of natural coffee is encounted at women, people with average age (31-45 years) and middle and high income people.Instant coffee and cappuccino are consumed with greater frequency, especially for older people (over 45 years). Natural coffee consumers drink an average of 1. 9 cups per day, while consumers of instant coffee and cappuccino that consume on average 1.

4 ,1. 3 cups per day. While natural coffee is drunk with morning predilection (93. 4% of consumers of natural coffee), cappuccino consumption is relatively balanced throughout the day (morning 44. 7%, 30. 9% for lunch, afternoon 30.

2% and 14. 6% in the evening. Instant coffee is dealing from this point of view with an intermediate position with a relatively high consumption in the morning (68. 6%) but significantly lunch and afternoon(28. 1% and 21.

7).Compared with the others age categories, the consumption of natural coffee morning is polarized in the morning on older people (over 45 years) and is higher in the afternoon on people with an average age (31-45 years) and in the evening at young people (aged under 30 years). Coffee - be it natural coffee, instant or appuccino - is preferred either be hard for most average consumers.Only about 11% of consumers prefer coffee (any kind) weak. Young people under 30 years old have a greater inclination to strong coffee while older people consume coffee weaker. 18.

6% and 14. 5% of people drink instant coffee and natural coffee without sugar. Interesting is that 50. 2% of the consumers of cappuccino add sugar to it. Most people who add sugar to coffee are using a teaspoon or less of sugar. On average we add more sugar to the to the instant coffe than the natural coffe.

As a general trend, people with higher education and middle and high income people consume more in a higher quantity coffee without sugar, compared to other groups of people. Following a study realised by Isra Center Marketing Research company in May 2007, it follows that only 9% of city people consume coffe. Studiul focused on consumption of coffee,ness and cappuccino , was conducted in urban areas, a sample representative on national level, consisting of 1,200 persons aged over 15 years.