This marketing paper focuses on the marketing of Costa Rican Coffee, Mondo Novo, to the Generation Y.  It reviews the target market (generation Y), in terms of purchasing power, consumer behaviour, attitudes, and demographics. In order to understand their consuming behaviour, it is important to look at the theories such as Piaget’s intellectual development, socialization and social learning theories, which provides a background on why members of this group have these behavioural patterns. The paper has also provided information on the Costa Rican coffee, Mondo vono, explaining the reason it is the best coffee. This provides a competitive advantage in the competitive coffee market. To prepare for the market, it is necessary to look at the competitors, their performance and locations. This offers options on the placement, pricing and areas of focus for the new coffee. The global leading coffee companies include Starbucks (SBUX), Smucker’s (SJM), Kraft (KFT), Green Mountain (GMCR), Sara Lee (SLE) and Nestle (NSRGY.PK. The paper also looks at the promotional budget for Mondo Vono. These include the promotional items that will be used together with their expected budget and the total budget expected. These promotional items include Newspapers, magazines, banners and pop up, eNewsletter, social sites, personal selling and coffee blogs.




Costa Rican Coffee

Costa Rica has been a favorable coffee production model, making big brands of Coffee that have done well in the global market. Costa Rica’s coffee is well balanced and perfect, giving it the desired coffee flavor that consumers desire. Coffee from this country sets standards for Central and South America as it the  best wet-processed coffee. Renowned coffees by region include Tres Rios, Tarrazu, Alajuela and Heredia. However, a majority of Costa Rican coffee comes from coffee varietal, catura, and is typified as a full body coffee. Other Costa Rican coffee varieties include Catuai and Mondo Novo. These coffees are best because they come from the best coffee beans, which are described as “strictly hard beans”.


Least developed economies maintain coffee as their most important exports. Coffee’s global export exceeds $ 9 billion. Coffee consumption is approximately 400 million cups yearly, with a ready market of forty percent of the world’s population. The problem with coffee market is its price fluctuations. The volatile coffee prices may be attributed to multiple factors such as politics, pest damage, weather, and economy of the country of production.

Despite the high coffee prices, coffee consumers still take their coffee, with America recording a $ 45 billion consumption worth of coffee yearly. This comes from established coffee shops such as Starbucks (SBUX) as well as grocery stores, supermarkets and food service locations like colleges, offices and restaurants. Despite being price sensitive, members of generation Y are massive coffee consumers. This increases competition in coffee markets among retail brands such as Dunkin Donut, Starbucks, and Peets. The global leading coffee companies include Starbucks (SBUX), Smucker’s (SJM), Kraft (KFT), Green Mountain (GMCR), Sara Lee (SLE), Nestle ( NSRGY.PK). Regional coffee retail shops include peets and supermarket industry brands such as Rowland, Eight O’clock and Zanetti Group (Cappuccinos and Espresso). The coffee market is highly fragmented allowing competition to be increasingly intense. This is also due to the low entry barriers, which encourages new entries into the market. Therefore, competition is tough, facing a number of established brands such as Starbucks and numerous smaller brands. In order to face this competition, Mondo Novo must differentiate itself from competitors.

Most of websites for these coffee companies take little considerations for the Generation Y, as it seems their target audience is generation X. They are formal and offer no interactive interfaces to maintain the interest of this generation. Messages contained in these websites are also long. People in this group rarely have time to read through a lot of information. To maintain healthy competition, Mondo Vono’s website will include more of their areas of interests by including interactive interfaces such as questions and answer tabs, which relates to their preferred coffee tastes, as well as their perceptions of the Mondo Vono coffee. In addition to this, there will be simple “win” games during selected seasons.

Coffee from the Tarrazu is amongst the most famous coffee brands form Costa Rica. Mondo Novo is well fruited with melon and banana fragrances. It contains a combination of caramel sweetness and a bittersweet chocolate taste.  The coffee also has a botanical background making it less acidic. Generation Y, generation next or the millennial generation refers to people within the age bracket of eighteen to twenty nine years. These people grew up in the technological age, where there was cable television, laptop computers, cellular phones, video games, answering machines and pagers. These shaped their personalities and perception. Communication drives as well as real time media advancements have driven the expectation of generation Y for immediacy. Their parents, baby boomers, protected and nurtured them with the provision of every emotional, physical and educational need. In addition to this, their parents praised and rewarded them for any minimal effort towards excellence.  This increased the schools’ and community’s expectation in entertaining, educating and protecting their children. Because of this, this generation seeks approval, protection and nurturing from people they encounter. Most of the generation Y have a short attention span, great demands and a diverse purchase pattern. This is because in the present age, customizing any product to fit one’s lifestyle is possible, with social media applications. In order to market to generation Y, it is important to understand their unique demographics (Anderson 10).

Demographic trends

The millennials are crucial consumers for all types and sizes of businesses. Census data indicates that this generation includes people born between 1977 and 1994. On a general scale, it includes individuals between the ages of 15 to 32 years. There are sub categories within it. The total population of this generation is 80 million consumers. In all the generational groupings, this group represents the highest internet users, with different psychographic groups. The U.S coffee National Association report an average of 17% adult coffee drinkers, adults between the ages of 25-59 years lead with 19% consumption. There is rising coffee consumption of coffee among people between 18-24years. The coffee consumption trend in the United States indicates coffee popularity in the country. The generation Y is ethnically and racially diverse, most of them having mixed races, living with one parent, hence making them more open minded than baby boomers. Their lifestyle is greatly defined by social media sites such as MySpace, Twitter and Facebook, which defines them digitally. This generation relies on their friends, social media marketing and online research in order to make purchase decisions. Millenials influence their parent’s purchasing decisions, who are also their financial support systems.  Generation Y  also comprises of  informed shoppers due to their quick response and adaptation to social changes. They seek products that express their individuality. In order to attract this generation, a marketer must appeal to their egos, their parents and finally their senses. In this category, marketers must ensure that the products appeal to the generation’s individuality and be able to share these products with their parents. Because this generation grew up with television cable, television advertisements do not capture their attention. They are capable of tuning out advertisement methods and criticize products. In addition to this, most of them do not spend much time watching television adverts. They would respond more to the attachment of these products to social media or celebrities than television advertisements.

Another important factor to consider is that this generation cares about the planet. They are sensitive to “green” products and have a low tolerance for people who do not share the same sentiments. If a company does not sell “green” products, it would be necessary for the company to operate in green through strategies such as packing in recycled material, engage in earth responsible talks through their websites or struggle for paperless operations. Generation Y is aware of their options so if a product fails to satisfy them, they quickly switch to competitors, as their culture is defined by spending and more spending.

Consumer behaviour research

The sub groupings in Generation Y have different consumption habits. Generation Y has sub groups and comprises of those within the age group of 8 to 12, with an approximate consumption of $ 55.7 billion hence influencing the U.S 1999 consumer expenditure of $ 259 billion (Rosenberg 45). This age group also influences a total expenditure of $ 565 billion annually. The older members of the Generation Y have an even stronger power of spending in the United States. In 2000, consumer spending of teenagers was $ 94 billion. The purchasing power of those between the ages of nineteen to twenty five is $ 200 billion, which accounts for one third of the total Generation Y consumption (Gardyn 5). Members of this generation attend colleges and earn an annual income of $6,000 from part or full time jobs. Because of this, they have a $105 billion purchasing power yearly. This knowledge has earned this generation a considerable amount of respect from marketers.


Placement and pricing

This market segment is of about eighty million consumers, whose main shopping location is the malls due to the ambience, design, excitement, variety of shops and layout. Malls also have a social and leisure dimension that appeals to this generation. In order to effectively market Mondo Novo, it is advisable to position the brand in malls. In addition to this, promotions should be price oriented. Generation Y wants products that are inexpensive yet valuable. There are two categories of the Generation Y; the older and the younger Generation Y. the older generation Y depends on objective information about products when purchasing, rather than socially oriented promotions. On the other hand, the younger generation Y puts more emphasis on the image based promotions, depending on their individuality and social popularity of the products. Most members of Generation Y are either in College or employed in full time or part time jobs. In either case, their buying power exceeds $200 billion every year.

The most ideal placement point for this coffee would be the Internet. By creating a website, it will be possible to reach as many youths as possible. Additionally, it is important to enable online purchases of coffee in order to reduce any bottle necks that may arise due to a large number of customers. It is certified that this generation likes speedy services and the computer is most efficient in delivering quick services.

A high percentage of generation Y spend their time online; in social medias, phones or just surfing the internet, where they make their purchases. Therefore online shopping should send warning bells to marketers who rely on shopping malls as their target destinations.  When marketing Mondo Novo, it is necessary to place advertisements in shopping malls. The most strategic point would be next movie theaters where persons of generation Y are likely to frequent.  It would be beneficial to blend their lifestyles with the idea of consuming coffee. However, this realization that the internet is taking over shopping malls makes marketers aware of the need to incorporate internet marketing strategies in their promotions. 90% of consumers in this group use their mobile phones for a variety of purposes including contacting families and friends, sharing information, pictures and music, accessing the internet and making blogs. To market to this group, it would be beneficial to maintain an internet presence that is optimized to be properly exhibited in mobile browsers. In addition to this, it is important to customize advertising messages that are easy to transfer across mobile internet access. These people also like “free things(freebies) ”, are less formal in their communications and lifestyle. They would also be attracted to things that seem “out of place”, so an effective advertisement message for this coffee would include all these considerations. It would say “Mondo Coffee, (insert number), get a free mug today”. This not only their attention and interest to obtain more information about the company and coffee, but also creates an opt-in marketing list. The message should be short but interesting, leaving the illusion that it contains more value than just what it says. It is futile to use newspapers for advertisements for this generation, as they have a sturdy aversion to newspapers. Another way to get this generation drinking this coffee would be branding. Their decision to buy coffee would depend on the coffee store’s design appeal, the design of the cup and the authenticity of the coffee.

Despite having discovered the opportunities that this generation brings, retailers are still unaware of the generation’s consumption patterns, behaviours and attitudes in the market place. The most basic approach to understanding how this generation obtained their consumption-related perceptions is by looking at the consumer socialization theory. Researchers define consumer socialization as the process of acquiring knowledge, skills and attitudes that are relevant to the consumer’s functioning in the marketplace. This theory is traced to Piaget’s cognitive development approach, which assumes a slow intellectual growth and development throughout childhood and adolescence. In addition to this, the social learning theory also complements an understanding of how consumers pass on information, as well as how they influence each other’s purchasing habits. Communication between a child and a parent about consumption would predict the child’s purchasing behaviours as this improves the child’s product knowledge. Similar to this is peer communication, which influences the materialistic values of this generation. In addition to these, research has indicated that the most influential socialization agent that influences the consumption outcomes of any consumer is their motivation to consume. This refers to the driving forces behind the generation’s purchases, which include economic and objective factors.

Promotional budget

Depending on the factors highlighted above, Mondo Vono’s promotional strategies would include social media sites such as facebook and Twitter, customized phone messages, coffee blogs, Newspapers, Magazines, Personal selling, banners and online ads, Magazines, and pop up. Creating a Facebook and twitter Mondo Vono profile on the social media sites can be done for  free. This will attract many Generation Y consumers because most of them spend time in the social sites.  However, creating a website for Mondo Vono would be costly. This is required in order to provide online information. It has been noted that this generation spends a lot of time online. In this category, the budget would include money paid to the Service providers for web hosting and website developers as well as designers. It would be easy to post the eNewsletters in the website, as well as attach it to other sites. Marketers will also be able to send the eNewsletters through emails.  It has also been documented that this generation is close to their parents, so in order to reach their parents, Newspaper and magazine ads are necessary. These will also cost the marketing team a considerable amount of money. Media houses charge newspaper and Magazine advertisements depending on the number of words, their sizes and positioning in the newspaper.  To remain within the budget yet achieve promotional goals, it would be advisable to use short, attractive but informative advertisements in these sections. Banners and pop up will be customized online through the website for free. However, it will be necessary to employ sales people to promote sales in supermarkets, malls, colleges and other social centers such as at the movies. This will cost a considerable amount of money as wages.









Table 1. Marketing Budget for Mondo Vono Coffee

Promotional item Budget
Magazines (Boston and New York)


$ 100
Newspapers (Boston and New York based $ 100
banner, pop up’s, online ads Nil

Social sites (Twitter and Facebook)

$ 50
Coffee blogs Nil
Personal selling $ 80000
Sales promotion $ 5000
TOTAL $ 130, 250



In order to reach generation Y through marketing, marketers must understand their psychographics, purchasing behaviour, attitudes and ideas about life. Generation Y are friend and family oriented. This makes them attach more meaning to their phones as these are their immediate communication modes. So to market to them effectively, marketers should emphasize on cell phone and paging marketing. Related to family orientation is this generation’s willingness to pay attention to their peers and parents. Word of mouth is an effective way to attract their attention to a product. Generation Y is also environment safety conscious, therefore, making attaching coffee consumption with environment safety would appeal to their ideals about environment has improves sales. They also respond well to non-profit causes and sponsorships. To attract their attention, a company may need to get involved in such causes and maintain their involvement. Because this generation maintains a close relationship with their parents, it is important to device strategies that appeal to their parents as well. Generally, people in this age group place high value on civic activities, connection, diversity, environmental care, friendship, living first, authenticity, career development, quality and access to information. Marketer must know many outlets to advertise their products. It is advisable to create effectual communication through blogs, billboards, the instant messaging, sponsorships and social media sites such as facebook, MySpace and Twitter. The four areas of this generation’s concerns when it comes to marketing are fast service, good quality, cheap costs and the ‘experience’. The likely places of accessibility include hiking events, movies, music concerts, video games, competitions and extreme sporting events. The promotional tools included in the paper include social sites, newspapers, magazines, coffee blogs, personal selling, eNewsletters and online adverts.










Works Cited

Anderson, C.  “Survey: The Young: Youth, Inc.,” The Economist, 357 (2000): 9-16. Print.

Gardyn, R.  “Educated Consumers,” American Demographics, 24.2(2002): 18-19.Print.

Null,J. Generation Y Prefers Mobile Internet, RINF NEWS.

Rosenberg, J.  “Tweens Mesh Latest Fads, Moms & Dads,” Advertising Age, 71.7(2000):

40-53. Print.