Overview of the Nescafe brand,SWOT Analysis and BCG Matrix of nescafe. Case Study to expand the market base for instant coffee

2. N E S C A F E
Bring out the best in you

3. IntroductionIntroduction
The beginnings of Nescafe is been traced in 1930.
 The coffee guru , Max Mergenthaler and his teamproduceda
cup of coffee.
 Nescafe combination of two words– nestle(the company name)
and café(the product).
 Nestle introduced a Nescafe brand in India in late 1990.

4. Nescafe Product Range in India

5. Consumption pattern
• At the time of launching Nescafe in India,Chai was the major
hot drink sold.
• Coffee was sold by unorganized players withno major brand
in place.
• South remains largest consumer of fresh ground coffee.
• Increasing urbanization, changing demographics and life style
are expected to bringmore growth in coffee market.

6. Consumer perception
• Instant coffeeis mainly treated as the drinkfor urban customers.
• Otherthan coffee, people attach different meanings to coffeethey are-
- Refreshing agents
- Exertionreducer
- Coffee break
- Style, fashion, modern
- A friend.

7. Myths
• They believe that coffee is a muchstronger drinkand drinking coffee is
harmful to health.
• The popular misconceptions about coffee are :
- Addictive agent
- Healthissues
- Traditional bondage.

8. Segmentation
Geographical Segmentation:
• Nescafe has divided the country into four segments i.e. Southern,
Northern,Eastern and Western.
• The Southern Segment consumes the most amount of Coffee and
prefershard and roastedcoffee.
• Where was in Northern region, Nescafe instant coffee is consumed
in higher quantities.
Demographical Segmentation:
• Nescafe has tried to segment every age group, families, region,
genderand different socio-economic.

9. Targeting
Past:
Nescafewas targetedto morning people.
Present:
• Nescafeis nowtargetingthe Youth.
• Eg: Premiumurbanconsumers,Coreaudience aged17-30and Concentrateson thetheme
of “The magicworldof endlesspleasure”.

10. Positioning
 Nescafe’s positioning is “1 coffeecup, 1 good feeling ”.
 The TVCs and all Promotional Messages focus on passing love between
two person.
 The Red Nescafe mug is another popular symbol which associates the
BrandNescafe withthe concept sharing happiness.
 Nescafe Classicis positioned as “100%Pure Instant Coffee”.
 Nescafe Cappuccino is being positionedas “A true Café”.

11. Meaning of logo

12. Major competitors
• The growing competitionin the market whichaffected the market share
of thecompany.
• Otherfactors that contributedto competitionfor Nescafe were:
- threat fromthe unorganizedplayers
- threat fromorganizedplayers
- otherhot drinks backedby healthconsciousness
- range of products available in retail stores

13. Marketing strategies
• Nescafe coffee cup
• Consumer communication.
• Health issues
• Any time and Every where
campaign.
• Vending machines
• Additional products
• Advertisements and brand
endorsement
• New products and website

14. Marketing initiatives
• Traditional- TVC, POP’s, Radio.
• Digital – Know your Neighbor- Facebook page, Twitter page.
• On ground initial promotions- Rs. 2 packets for MFC (Trial pack).

15. Marketing mix
Place
Product • Nescafe cape colombie
• Nescafe gold blend
• Nescafe cappuccino
• Nescafe espresso
• Nescafe black gold
• Nescafe frappe
• Company focuses on placing its product in every market.
• It is trying to capture even the rural area by supplying
low price packs.
• Company has opened it's coffee shops at a different
places targeting every segment of market.
a) Low income group
b) Middle income group
c) Highincome group

16. Price
Product Nescafe Barista CCD
Cappuccino Rs . 35 Rs . 56 Rs . 52
Café viennois Rs. 38 Rs . 64 Rs . 61
Esppresso Rs. 42 Rs . 62 Rs . 59
Small packet of 1 rupee ,5 rupees, 10 rupees.
Jar or Bottle for 54 rupees.
Nescafemildis nowalso available in small sachetof 1 rupee.
Offers qualityproduct at a reasonable price:
( A comparative price analysis of different brands.)

17. Promotion

18. Great leap forward in Media,Crm,Pop.
Domination in instant coffee market by
55.3% share.
Celebrity endorsements.
Agencies, spent all their time fighting
each other.
Bitter in taste.
sunrise has no distinct identity.
Introducing cafeteria’s.
Expansion of business into rural areas.
Competitors in the global market
Many people avoid coffee due to their
health reasons
SWOT
S W
O T

19. Integrated Marketing Communication
• In the year 2005-Nescafe targetedthe group age of 25-28 years;
they are considered as “spirit seekers”.
• In year 2006, its target group was younger than the previous year;
they were “life seeker”.
• In the year 2007,Target to “ambition flirters”; they are successful
people.
•In the year 2008, The target group is more specific,
“YoungCosmopolitans” with contemporary lifestyle.

20. Stars
Nescafe
Ceralac
Question marks
Nescafe Decaf
Nescafe Nestum
Smarties
Nesquik
Cash Cows
Maggie Noodles
Kit Kat
Dogs
Neastea
Milky bar
Nestle Dahi
Nestle Munch
Nestle Crunch

21. Questions for discussion
• What are the recommendations to expandthe market base for instant
coffee?
• How will you try to change the misconceptions regarding coffee drinking in
India?
• What role shouldopinion leaders play to increase popularity of drinking
instant coffee among teenagers and college students?
• How to penetrate intonew segments through newproductendorsements?

22. How will you try to change the misconceptions regarding
coffee drinking in India?
• Introducing new products in coffee segment for healthconscious people.
For Eg : Herbal coffee with low calorie and zerocaffeine.
• Promoting the benefits of theseproducts among the people through various
print media.

23. How to penetrate into new segments through new product
endorsements?
• A written or public statement made by celebrities extolling the virtues of the
product and recommending its use to the public.
• It is a key elementin businessadvertising and marketing campaigns.

24. What role shouldopinionleaders play to increase popularity of drinking
instant coffee among teenagers and college students?
• The processby which one person(opinion leader) informally influences the
action or attitudes of others who may be opinion seekers.
• One influential persons word of mouthtends to affect the buying attitude of
two other people on an average.

25. What are the recommendations to expandthe market base
for instant coffee?
• Creating awareness among the people regarding the benefits of coffee
drinking.
• Market penetrationthrough easy availability of coffeethrough vending
machines and carrying out promotional activities.

26. Conclusion
• In orderto penetrate into the Indian market, Nescafe needto
overcome the misconceptions regarding coffee drinkingamong
people.
• Instead of competingwith others, Nescafe sunrise should come up
with effective promotional strategies to create a distinct brand
image.
• It should adopt penetration pricing in order to increase the sales
and market share of Nescafe Sunrise.

27. Thank you