An Inquiry Into Micro Marketing Strategy as Implemented by the Coffee Industry: Is the Industry Fracturing the Market?

The diversity created in our society during the eighties has brought forth many new challenges for marketers. During that time established market segments subdivided themselves into micro segments. This has forced marketers to further target their marketing programs to reach the ever elusive consumer. Micro Marketing brings with it an abundance of product choices, especially in coffee. Currently, there exists a great deal of uncertainty as to the benefits of this wave of product proliferation. In this study, first, an attempt is made to identify and define Micro Marketing and the events which lead to its evolution. Substantial support is given which identifies the foundation of Micro Marketing as a natural extension of Market Segmentation. However, a review of current product offerings by the coffee industry may lead toward a return to product orientation. Which could imply further problems for a industry with flat or declining volumes. In order to access the condition of Micro Marketing, as it applies to the coffee industry, a questionnaire was developed. The primary information was gathered in grocery stores in the Jacksonville area. Data was gathered on the coffee drinking habits, brand awareness, brand loyalty, purchase influences, purchase patterns, psycographic and demographic data of consumers. This data is used to establish if any segments exist which identify with specific coffee brands. Market fracturing Consumers seems Jacksonville. show patterns to specific brands, evident, at least in hardly any segmentation while the level of brand awareness dissipates as the number of brands increase. Furthermore, the level of brand switching is extremely high indicating that market segmentation, for the most part, is non existent. Continuing to pursue market negative long term gains to the fracturing may provide firm due to its cost ineffectiveness. However, fracturing may be reversed with proper segmentation strategy. Further studies will indicate proper marketing strategies as well as provide possible avenues for growth in coffee consumption