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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
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
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
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
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
•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
• 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
Instant Coffee                       39
CSD                                  38
Bottle water                         28
UHT/Pasteurized drinking yogurt      20
3 in 1 coffee                        17
Beer                                 15
UHT/Pasteurized / Sterilized Milk    15
Alcoholic drink except beer          14
Milo Ovaltine                        12
Iced coffee hawker                   8
RTD Coffee                           8
UHT/Bottle soya milk                 7
Energy drink                         7
Milo/ Ovaltine                       6
UHT/Bottle/Can branded fruit juice   4
                                          9
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
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
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
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
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
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
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
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
Non-Alcoholic Hot Beverage
  Market Segmentation

               1%

   40%                    Espresso
                    46%   Instant Coffee
                          Other

         5%               Rost and Ground
              8%
                          Tea




                                            18
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
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
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
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
TYPES OF AFFECTIVE RESPONSES




 Relax                Alert
 33%                  34%




            Love
            33%
                               23
Cognitive Processes In Consumer
        Decision Making




                                  24
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
RELAX                      CHEERFUL



                                                CELEBRATION




        DELHI TRIP
                                         GET TOGETHER

                     COLD WINTER DAY




SUCCESSFUL TASK                             ACTIVATES BRAIN
                                                              26
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
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
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
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
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
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
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
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
ADOPTION/PURCHASE PROCESS

          Awareness



           Interest



          Evaluation



            Trial



          Adoption


                            35
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
37
38
        Exhibit 3.6
     CURRENT SCHEMA
39
40
     DESIRED SCHEMA
Packaging
                            bi= 9
                            ei= 3
           Ingredient                  Variety
                          Total= 27
               bi= 6                    bi= 7
               ei= 2                    ei= 3
             Total= 12                Total= 21



Strong taste                                        Price
   bi= 8                 BRU                        bi= 7
   ei= 2
 Total= 16               A0 = 90                    ei= 2
                                                  Total= 14




                                                              41
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
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
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
• 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
•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
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
48

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nescafe vs bru

  • 1. 1
  • 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
  • 9. Instant Coffee 39 CSD 38 Bottle water 28 UHT/Pasteurized drinking yogurt 20 3 in 1 coffee 17 Beer 15 UHT/Pasteurized / Sterilized Milk 15 Alcoholic drink except beer 14 Milo Ovaltine 12 Iced coffee hawker 8 RTD Coffee 8 UHT/Bottle soya milk 7 Energy drink 7 Milo/ Ovaltine 6 UHT/Bottle/Can branded fruit juice 4 9
  • 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
  • 23. TYPES OF AFFECTIVE RESPONSES Relax Alert 33% 34% Love 33% 23
  • 24. Cognitive Processes In Consumer Decision Making 24
  • 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
  • 35. ADOPTION/PURCHASE PROCESS Awareness Interest Evaluation Trial Adoption 35
  • 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
  • 37. 37
  • 38. 38 Exhibit 3.6 CURRENT SCHEMA
  • 39. 39
  • 40. 40 DESIRED SCHEMA
  • 41. Packaging bi= 9 ei= 3 Ingredient Variety Total= 27 bi= 6 bi= 7 ei= 2 ei= 3 Total= 12 Total= 21 Strong taste Price bi= 8 BRU bi= 7 ei= 2 Total= 16 A0 = 90 ei= 2 Total= 14 41
  • 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
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Notes de l'éditeur

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