2. PLANT SETUP IN INDIA : PLANT SETUP IN INDIA :
1961 moga (punjab) 1968
TYPE : instant coffee TYPE : instant coffee
OWNER LEVEL : nestle OWNER LEVEL : HUL
COUNTRY : switzerland COUNTRY : india
INTRODUCED : 1938 INTRODUCED : 1961
MARKETS : worldwide MARKETS : worldwide
2
3. TAGLINE/ SLOGAN : One Nescafe TAGLINE/ SLOGAN : Bru se hoti
many coffees ;Good Food Good hain khushiyaan shuru
Life
USP : India’s largest coffee
USP : 100% pure instant coffee Brand
CATEGORY : Beverages CATEGORY : coffee
SECTOR : Food Products SECTOR : Food Products
LOGO : LOGO :
3
4. SEGMENT : People looking SEGMENT : People looking
to make coffee instantly to make coffee instantly
TARGET GROUP : All people TARGET GROUP : All people
in the upper and middle class in the upper and middle class
POSITIONING : 100% pure POSITIONING : Coffee that
coffee made from finest coffee makes special moments of
beans genuine warmth and happiness
4
5. STRENGTH : STRENGTH :
1. Strong Nestle brand name 1. Strong brand name
2.Excellent advertising and 2.Excellent advertising and
visibility visibility
3.Good product distribution and 3.Good product distribution and
availability availability
4.Lots of flavors and varieties 4.Lots of flavors and varieties
available available
5
6. WEAKNESS : WEAKNESS :
1.Health conscious people avoid 1.Coffee as a category still
coffee as it Contains caffeine nascent in many countries like
India.
OPPORTUNITY : OPPORTUNITY :
1. Tie-ups with corporates 1. Tie-ups with corporates
2.Cheaper packets for rural areas 2.Cheaper packets for rural areas
THREATS: 1.Health conscious THREATS: 1.Health conscious
people avoiding coffee people avoiding coffee
6
7. •Bru is a Leader of filter coffee •Despite of capturing 2.6%
whose market share is 3 times market share of Nescafe in
over the instant coffee market . R&G coffee sector bru is still
the no 2.
•Lower prices offered of the
product than Nescafe . •Coffee outlets and vending
machines are missing from the
•Strong distribution channel market unlike Nescafe.
being a product of HUL
S W •Less number or variety of
products
SWOT
•The market of roasted O T
and ground coffee is for
Rs.511 crore so bru can still •In this competitive era bru
do a lot with this market . reduced its prices to an
extend which might reduce
•Now HLL is HUL hence its profits as well.
bru can expand globally
7
8. • Great leap forward in • Agencies, spent all their time
Media,Crm,Pop. fighting each other.
• Domination in instant • Adopted a pricing strategy
coffee market by 55.3% higher than competitors
share
• Nescafe sunrise has no distinct
• Sustained identity
improvement in
customer service levels. S W
SWOT
O T
• India’s growing market
non-traditional coffee
distribution channels by • Amalgamated Bean
Rs.1900 crore. Coffee Trading Company
• Non-trading retailing coming up with R&G
coffee channel by the coffee chains
sale of Rs.600 crore.
8
10. Milo/ Ovaltine
Energy drink
UHT/Bottle soya milk
RTD Coffee
Iced coffee hawker
Milo Ovaltine
Alcoholic drink except beer Series 2
FEMALE
UHT/Pasteurized / Sterilized Milk
Series 1
MALE
Beer
3 in 1 coffee
UHT/Pasteurized drinking yogurt
Bottle water
CSD
Instant Coffee
0 10 20 30 40 50
10
11. Segment bases Categories(demo)
Geographical Segmentation
Region Ahmedabad
Density Urban
Climate Warm
Demographic Segment
Age 18+
Gender Male, Female
Disposable Income Rs. 1000 and more
Occupation Students, Professional
Education Graduation, Post Graduation
Marital Status Single, Married
11
12. Segment bases Categories
Socio cultural Segmentation
Culture Indian
Race Asian
Nationality Indian
Social Class Upper and Middle Class
Behavior Segmentation
Media Usage TV, Internet
Loyalty Status Intense Loyal
Usage Rate Low
Usage Situation Home, outing
12
13. AGE POPULATION
0-15 24% of population : 15,462,944
People
16-30 21.2% of population :
13,658,934 People
31-45 24.2% of population :
15,591,803 People
45-60 24.8% of population :
15,978,376 People
60 UP 5.8% of population : 3,736,878
People
13
14. Youth : 16-30
(Spend 70% of their time out of home)
KEY INSIGHT
• 19 yrs old is the age of having the first cup of
coffee
• Do not appreciate the taste and Image of
HOME coffee
• New Coffee Shops are changing the way they
look
SCHOOL/OFFICE at coffee. Coffee is becoming more of a social
drink
•Have a nice place
•for lunch Key Need states are
•Shopping at Mall
ENTERTAINMENT •Playing sport Quick/energy boost/kick start,
•Going to cinema
•Hang out with friends
Thirst Quenching
Snacking (Iced coffee)
Key Psychographics
Want to Experience life &
Want to Grow themeselves
Work hard, Play hard 14
15. Family builder : 31-45
KEY INSIGHT
• The age of adapting hot coffee
• Coffee is becoming a part of their
everyday life
• Key Need states are Kick start,
HOME Refreshment during the day
Mental renewal
• Key Psychographics
OFFICE • Key activities :
Career and success are the key focus
Now they have goals that they want to
• Business Dinner
• Going to fitness / sports pursue
• Going to theaters • Coffee ignites their spirit, gets them
• Socializing with friend ; at ready, bring
lunch or drinking In evening
Key activity before go home
their confidence, lets them focus,
• Have a nice place for meal settle their
with family thoughts, initiates social bonding
• Shopping complex with
family
15
16. No time to dream: 46-60
KEY INSIGHT
• Heavy users : More coffee appreciation
• Coffee is a part of their everyday life
HOME • They spend relatively more time at home
with family
OFFICE Key Need states are
Mental renewal
• Business Dinner Relaxing and Rewarding oneself
• Deliver / pickup sons
from schools Key Psychographics
• Going to public park They’ve accomplished certain things and now
Key • Socializing with
friend ; mostly at
looking
lunch for life’s small pleasures.
activity • Have a nice place for
meal with family
Appreciate good things in life
They have much more focus on the family
• More traveling;
personal business
16
17. As breakfast 55 During break 3
With breakfast at home 15 As breakfast 2
Having snacks at home 8 Before breakfast 2
Before breakfast 6 Hanging with friends 2
Watching TV/ VDO /listen 4
music/ radio / reading
After meal 4
17
18. Non-Alcoholic Hot Beverage
Market Segmentation
1%
40% Espresso
46% Instant Coffee
Other
5% Rost and Ground
8%
Tea
18
19. Segment bases Categories(demo)
Geographical Segmentation
Region
Density Urban & rural
Climate Mix
Demographic Segment
Age 18+
Gender Male, Female
Disposable Income Rs. 1000 and more
Occupation Students, Professional
Education Graduation, Post Graduation
Marital Status Single, Married
19
20. Segment bases Categories
Socio cultural Segmentation
Culture Indian
Race Asian
Nationality Indian
Social Class Upper and Middle Class
Behavior Segmentation
Media Usage TV, Internet
Loyalty Status Intense Loyal
Usage Rate Low
Usage Situation Home, outing
20
21. Segment bases Categories(demo)
Geographical Segmentation
Region
Density Urban & rural
Climate Mix
Demographic Segment
Age 18+
Gender Male, Female
Disposable Income Rs. 1000 and more
Occupation Students, Professional
Education Graduation, Post Graduation
Marital Status Single, Married
21
22. Segment bases Categories
Socio cultural Segmentation
Culture Indian
Race Asian
Nationality Indian
Social Class Upper and Middle Class
Behavior Segmentation
Media Usage TV, Internet
Loyalty Status Intense Loyal
Usage Rate Low
Usage Situation Home, outing
22
25. ENVIRONMENT
Advetisement (33.33%), Salesman
(33.34%), Family(33.34%),
INTRPRETATION PROCESS
COGNITIVE PROCESS
ATTENTION and COMPREHENSION
Sales promotion(33.33%), Jingle(66.67%) MEMORY
NEW KNOWLEDGE, MEANINGS AND
BELIEF
New Ingredient (33.33%), Bitter Taste
(33.33%), Nice Aroma (33.34%) STORED KNOWLEDGE
MEANING AND BELIEF
INTEGRATION PROCESS
ATTITUDES AND INTENTIONS
DECISION MAKING
Favourable(66.67%) , Experiment (33.33%)
Purchase- 1007% 25
26. RELAX CHEERFUL
CELEBRATION
DELHI TRIP
GET TOGETHER
COLD WINTER DAY
SUCCESSFUL TASK ACTIVATES BRAIN
26
27. Consumer Characteristic
•Young, Self
Confident, Passionate, Socialising, (
100%)
Involvement
•Achiever (33.33%), Strivers
(66.67%) •Affective
Intrinsic Self- responses &
Product Characteristic relevance activated
•Strong Taste knowledge
•Price about
•Strong Aroma attributes, co
•Variants nsequences
•Packaging and values
Situational
Self-relevance
Situational context
•Free samples
•Sales promotion Interpretation
•Celebrations & integration
•Less time to decide process
27
28. S. No. Statements Place of Usage Communities Source
The places where
Businessmen,
People enjoy coffee the coffee is served coffeetea.about.co
1 Youngsters who like
as a cocktail drink. alongwith cocktail m
to hang out at bars
drink
Companies have
started pairing
premium coffee with Locations providing Anyone who enjoys
ineedcoffee.com,
2 individual the customized a customized coffee
gourmetcoffee.com
personality or coffee drink
individual needs
depending on mood
28
29. Any beverage outlet www.positivelycoffe
Messages Athletes, fitness
3 that is positioned to e.org,
pertaining to health conscious people
sell healthy drinks www.nescafe.com
Caffeine supports Any place selling www.positivelycoffe
Athletes, fitness
4 physical healthy beverage e.org,
consicous people
performance products www.nescafe.com
Any place or
Coffee may reduce website where www.positivelycoffe
Women suffering
5 colon cancer risk people with this e.org,
from colon cancer
among women disease can www.nescafe.com
congregate
29
30. Any place or website
Caffeine and exercise may www.positivelycoffe
where people with this population suffering
6 help against sun-induced e.org,
disease can from skin cancer
skin cancer www.nescafe.com
congregate
Any place or website
www.positivelycoffe
Coffee associated with where people with this population suffering
7 e.org,
lower liver cancer risk disease can from liver cancer
www.nescafe.com
congregate
Any place or website
www.positivelycoffe
Coffee may lessen after- where people with this people visiting
8 e.org,
exercise muscle soreness disease can ortheopaedist
www.nescafe.com
congregate
30
31. Any place or website
Coffee drinkers are
where people with this Population suffering www.positivelycoffee.or
9 less likely to develop
disease can from parkinson disease g, www.nescafe.com
Parkinson’s disease
congregate
Any place or website
Coffee consumption where people with this Persons treated for www.positivelycoffee.or
10
lowers diabetes risk disease can diabetes g, www.nescafe.com
congregate
Coffee reduces
www.positivelycoffee.or
11 cognitive decline in age group bove 40
g, www.nescafe.com
elderly men
Coffee can lower the www.positivelycoffee.or
12
risk of serious illnesses g, www.nescafe.com
31
32. Coffee can ease
www.positivelycoffee.or
13 headaches, prevent all classes
g, www.nescafe.com
diseases
Church Goers drink
coffee to keep Café shops located in
14 church goers ineedcoffee.com
themselves awake or around church
during the sermons.
Creation of artistic
Various museums,art
15 centers attracts coffee Tourists, Adults auburncoffee.com
galleries etc.
drinkers.
People drink coffee at Any business
16 the various business conference where lots Business persons
conferences. of people meet together
32
33. Coffee lovers, business
Coffee is consumed at The places where the
people that frequent these
17 International Coffee Festivals. international festival occurs
festivals
classes.bus.oregonstate.edu/
Places located on high street Summer-
High Street locations are Business people, Shoppers,
18 locations where beverages 05/ba469/Elton/Sector%20An
places to which people’s visit. etc.
can be sold alysis/Starbucks_compiled.pp
t
classes.bus.oregonstate.edu/
Summer-
Amphitheaters,community
19 During Public performances Art lovers/Theatre lovers 05/ba469/Elton/Sector%20An
halls, opera houses etc.
alysis/Starbucks_compiled.pp
t
classes.bus.oregonstate.edu/
Summer-
Charitable organisations and Charitable organizations,
20 Charitable places 05/ba469/Elton/Sector%20An
their events Charitable events etc.
alysis/Starbucks_compiled.pp
t
classes.bus.oregonstate.edu/
Places on rural and off Summer-
Rural and off highway
21 highway location selling youngsters,tourists 05/ba469/Elton/Sector%20An
locations
beverages alysis/Starbucks_compiled.pp
t
At places that have kids Any place with a secure kids Married Couple…Persons in
22 kimboal.ba.ttu.edu
playing area. playing area Parenthood
23 At opera theaters. Opera theatres Opera goers
33
34. EFFECT OF INVOLVEMENT AND PRODUCT
KNOWLEDGE ON CONSUMERS’ PROBLEM
SOLVING PROCESSES
Basic Motivation • Choose best product: optimize satisfaction
End Goal • Obtain desired value satisfaction
• Complex Hierarchy, Clear, well-defined sub goals,
Goal Hierarchy
• Certainty about goals
Consideration Set • Several alternatives known and considered
• Wide range of product knowledge is available for
Choice Criteria
use
Decision Process • Limited (moderate) Problem Solving
34
36. Measure Consumer Behavior
Consumption stage Types of behavior Example of behaviors
Sales Promotion
Information contact WOM
Pre purchase Advertisement
Funds Cash in Hand
Locate outlet
Store contact Enter Outlet
Purchase Product contact Obtain Product
Transaction Take product at home
Consumption &
Consumption
Disposition
Post purchase
Communication Tell others about product
36
42. 3
6. Packaging
bi= 7
t ei= 3
Ingredient Variety
Total= 21
bi= 9 bi= 7
bi ei= 2 ei= 2
Total= 27 Total= 14
hi
Strong taste Price
x bi= 9 NESCAFE bi= 7
E ei= 3 A0 = 103 ei= 2
Total= 27 Total= 14
42
43. helps reinforce the message and the
recognition of the brand
the little stroke above
the letter E suddenly
The words “NESTLE” N’s stroke covers makes the word café
combines with the sense all the rest of the be seen as one
of fun and warmth of a letters to create separated word
“CAFÉ” unity
white on a contrast background letter style is strong and bold, thus
color which can be slightly represents the strength of its quality, but
altered to suit the packaging of yet also implies sophistication of its taste
any product through the use of Serif font.
43
44. 1. Nescafe FMCG giants wants to be a “preferred client”.
2. Strike a balance between tapping into local knowledge of markets and
disseminating global practice.
3. Communication efforts are directed effectively and with maximum
return on investment.
4. To work with the limited number of agencies so that they really know
the business.
5. Encourage its agencies and employees by making changes in
remuneration.
6. Nescafe has even in the past, resorted to low-key market penetration
strategies.
44
45. • NESCAFÉ coffee mate 3 in 1- 50g, 100g, 200g
• NESCAFÉ Blend 43 - 50g, 100g, 150g, 250g, 300g, 500g, 1kg
• NESCAFÉ Espresso - 50g, 150g, 250g, 300g
• NESCAFÉ Cafe Menu Frothy Coffee - Box of 10
sachets (Caramel & Vanilla, Mocha & Latte, Cappuccino, Hazelnut &
Cinnamon)
• NESCAFÉ Cafe Menu Iced Frappe - Box of 10 sachets (Latte, Mocha,
Caramel)
• Nescafe instant coffee classic
Best Product: instant coffee
Nescafe has a wide range of products (Espresso, Cappuccino,
frappe etc.)
Nescafe launched a new product -Nescafe 3in1 which is a blend
of coffee, dairy creamer & sugar.
45
46. •Available: Nescafe coffee corners, Nestle consumption zone,
vending machines - in offices, colleges , Departmental stores and places
where footfalls are higher.
•Nescafe 3in1a milder version of coffee was firstly launched in Delhi
and now being introduced to northern and western markets also.
46
47. Nescafe is playing a price game in coffee
Weight: price:
classic 300gms Rs.315
200gms Rs.230
50gms(mostly consumed) Rs.65
13gms Rs.10
sunrise 50 gm Rs.33.50
choco café 50gms Rs.19
•Nescafe has been doing 360 degree promotional activities like
Crm, pop, vending machine network etc.
The top companies markets spend 40% of their budget on TV
47