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EXECUTIVE SUMMARY
Nescafe is looking to attract and retain a young and enthusiastic individuals

Market. Nescafé at the same time is targeting young female market too which it feels

potentially very strong in terms of coffee in Pakistan. These potentialconsumers are

urban based, and are not price sensitive when purchasing coffeebut never the less still

take it into account. They currently favor café coffee and do not frequently purchase

instant coffee. Nescafe is looking to be the leadingbrand of instant coffee within the

supermarket café coffee market. Nescafe aimto encourage potential consumers to buy

our new café menu range throughthe perception of the brand with respect to

competitors within the gourmetsegment.

In the SWOT Analysis We have detailed Nescafe’s strengths weaknesses

and opportunities in the current market using demographic trends, historical

contexts, industry analyses, market analyses, competitor analyses and market

segmentation. Nescafe’s then follows this with the Marketing Objectives and Behavioral

responses of the consumers.

We also identified a completely new segment of innovative consumers who are

willing to have a different feel of the coffee flavor. We introduced 3 different flavors

under the umbrella of Nescafe with the name of Nescafe KappiKottai Coffee with

different SKU’S in Pakistan to attract variety seekers in Pakistan.Coffee under the

name of Nescafe KappiKottai targeting the youth especially the young and exciting

students and those who want to look different, stylish and sexy




                                                                                    1|Page
TABLE OF CONTENTS
 1. History of the company____________________________________________4

 2. Current Market Situation___________________________________________4

 3. Market Description_______________________________________________5

 4. Product Review__________________________________________________5

 5. Competitive Review______________________________________________ 6

 6. Channels and Logistic Review______________________________________ 7

 7. Swot Analysis___________________________________________________ 8

 8. Basic objectives of Nescafe________________________________________ 9
 9. Marketingstrategy_______________________________________________ 9

 10. Product strategy________________________________________________ 10

 11. Postioning____________________________________________________ 10

 12. Price Strategy__________________________________________________11

 13. Place_________________________________________________________12

 14. Promotion Strategy______________________________________________ 13

 15. Marketing Research_____________________________________________ 14

 16. Introduction of new KappiKottaiKold Coffee__________________________ 15

 17. Target Market__________________________________________________ 17

 18. SKU_________________________________________________________ 17

 19. Product_______________________________________________________ 18

 20. Price__________________________________________________________19

 21. Place________________________________________________________ 19

 22. Distribution Scenerio____________________________________________ 20

                                                                     2|Page
23. Promotion___________________________________________________ 20

24. Product______________________________________________________ 21

25. Actions Program_______________________________________________ 21

26. Control______________________________________________________ 22




                                                               3|Page
History of the company

Original of Nescafe was born in Switzerland; it was the largest industrial company. Nescafe was
the top 10 companies of the world. Nescafe got a Flagship Coffee Brand and make income to
Nestle (Thailand) mostly. Nescafe was market share about 80% from total coffee market about
12,000 million bath.

Nescafé, a brand introduced by the Nestlé company, can be traced back to the 1930s. In the United
States, the Nescafé name was used on its products until the 1960s. Later, Nestlé introduced a new brand
in the US called "Taster's Choice", which supplanted Nescafé for many years. Taster's Choice was also
introduced into Canada at the same time, and continues to be sold as a separate product, branded as
superior to Nescafé, and is higher priced.

NESCAFE’s mantra is HUM HAIN JAWAN! Celebrate your youth. Celebrate your individuality.
Enjoy NESCAFE and lead your life your way.
Nescafe products that are available in Pakistan include:
        Nescafe Classic
        Nescafe Frothe
        Nescafe Frappe
        Nescafe Matinal
        Nescafe Gold




Current market situation
        Pakistan’s growing urban population and changing preferences of young consumers
        from tea towards coffee helped total coffee volume sales increase by 7% in 2011. While
        tea remains the more popular drink as compared to coffee, the demand for coffee is
        rising due to a higher social value placed on coffee. This can be seen in the growing
        number of coffee shops in large cities as compared to outlets exclusively serving tea and
        a growing number of young consumers exercising their spending choices in favor of
        coffee.

        Nestlé, with its brand Nescafé, led sales in 2011 with a 47% share in off-trade volume
        terms. Nescafé is considered synonymous with coffee in Pakistan, as it is the oldest and

                                                                                             4|Page
most prominent brand of coffee available in the country. A strong distribution network
        helps its cause as consumers can purchase Nescafé coffee from a wide range of
        distribution channels and any retailer stocking coffee would begin with Nescafé.

        Coffee will continue to gain in prominence and acceptability among consumers over the
        forecast period, leading to strong volume growth. Rising costs, especially costs related
        to importing, will push up unit prices, leading to stronger growth in value sales. This will
        put downward pressure on coffee, but, given the high rate of inflation across the board,
        coffee will not stand out in any way in terms of higher prices.


        Market description
Nescafe currently market to a large and varied segment of the instant coffeemarket, however
some of the obvious target markets are
-The young adult café culture segment who not only drink coffee butconsume it for social
reasons.
-Upscale, quality driven, higher income consumers
-And the middle class consumer
Nescafe already has a strong brand name that gains brand recognition andloyalty with existing
markets however Nescafe needs to build on brand equitytowards the younger generation who
are now distinguishing and generating thedemanding coffee culture.Nescafe Classic is the
dominant seller. It is aimed at large overall market andtactically uses economic benefits. The
low prices make it difficult to find abetter quality brand at such an affordable price.The Decaf,
Fine Blend and Espresso ranges are also inexpensive and are aimedat an older market that
know what they like in terms of drinking instant coffeeand are satisfied with basic coffee.
Nescafe have produced and retained reliableproducts under their brand name.
The strategy is to ultimately generate a segment with an emphasis on the young‘professional’s’
lifestyle. Nescafe have noticed the increase of a coffee culturelifestyle that is being adopted by
students and young professionals and havedecided to focus on the psychographics and lifestyle
dimensions of the intendedmarket.

Nescafe aim to target the innovator and the thinker type consumer; with theintention of
turning them into Believers of the Nescafe brand as they age.


Product Review
NESCAFE CLASSIC

N E S C A F E , N e s t l e ’ s i n t e r n a t i o n a l f l a g s h i p b r a n d , i s l o c a l l y repacked
and marketed in 2gm. and25gm. Sachet, 75gm.bottles and 500gm. Soft
p a c k s . T h e b r a n d e n j o y s a s p e c i a l position in the country's coffee consuming segment.

                                                                                                    5|Page
NESCAFE FROTHE

NESCAFE Frothe (Original), a premix in 18gm. single servesachet, was
l a u n c h e d i n J a n u a r y 2 0 0 0 . T h e p r o d u c t p r o f i l e Good Food, Good Life w a s
developed through consumer research and
w a s accordingly offered as a sweet, creamy and foamy
coffee.Encouraged by extremely good consumer response to
t h i s c a p p u c c i n o s t y l e c o f f e e , F r e n c h V a n i l l a a n d M o c h a f l a v o r s were
introduced in November to offer a wider choice and to e n h a n c e t h e y o u n g a n d
f a s h i o n a b l e i m a g e o f t h i s m i x e s category.


NESCAFE FRAPPE
T o p r o m o t e s u m m e r c o n s u m p t i o n o f c o f f e e a n d t o c h a n g e consumer
perception that coffee is only a winter beverage, N E S C A F E F r a p p e w a s
launched in June 3000. This iced,cr e a m y, r e a d y - t o - d r i n k
c o f f e e i n 1 8 0 m l s l i m p a c k w a s positioned to appeal to the youth
a n d g a i n a s t r o n g s h a r e from other summer beverages. The launch was
extensivelysupported by promotional programs in major towns and the product is fast
gaining in popularity.



Competitive review

Maxwell
THE MAKERS of Maxwell House coffee and Pepsi-Cola soft drinks have formed a joint venture to
sell ready-to-drink canned coffee. Maxwell is targeting matured drinkers of coffee who want to
feel the strongest of traditional coffee. The high prices of Maxwell indicates that the audience
they look for are high income class people who want to sit back and relax at their home with a
cup of coffee in their hands. Maxwell in Pakistan comes in a 150g jar. The price of the jar is
Rs.525.


Moccona
Targets the main household shopper, aged 25 – 60, mid to high
Disposable income. It is the most expensive instant coffee on the market and
Advertising stresses its rich, European background and flavor. This is potentially

                                                                                                    6|Page
Threatening, as it would appeal to the younger ‘yuppie’ market that is entering
the market. The current market price of Moccona in Pakistan is Rs.750 for a 150g Jar.


Riva
Have a specific target audience who are younger consumers like students.
They are potentially threatening to Nescafe as their intended market develops
Loyalty to brand at young age. Similar pricing structure to Nescafe. Increasing
Market share. Younger brand. Launch of Riva in Australia affected the maturity
And stability of the instant coffee market with respect to Nescafe.Riva price of a 150g jar is
Rs.625.

Lavazza
Lavazza’sstrengths include an excellent international marketing campaign
targeted at younger female gourmet coffee drinkers. Lavazza responded to
rivals by building on their unique advantages; as a national firm with a homefield
advantage; advertising to Italian tastes, culture and lifestyle. With the
claim ‘Italy’s favourite coffee’ and one of the more expensive brands in theircategory it obtains
a high-perceived quality. The price of Lavazza is Rs.650 of a 150g jar. Lavazza is only available in
big supermarkets like Agha’s and Hyperstar in Pakistan.




Channels and logistic review
DISTRIBUTION SCENERIO:


                                    MAIN IMPORTER




                                     DISTRIBUTORS


                                        RETAILERS



                                      CONSUMERS


                                                                                          7|Page
Coffee distribution is two intermediary level, wholesaler and retailers. The company has
Vertical Marketing System. This channel is used to make Nescafe product available in the
market for customers' convenience. It is ensured that Nescafe is convenience and extensively
placed in all super stores and grocery shops of Pakistan.




Swot analysis

                                        SWOT Analysis

                             1. Strong Nestle brand name
                             2.Excellent advertising and visibility
                             3.Good product distribution and availability
                             4.Lots of flavors and varieties available
     Strength                5.Good quality control over the products




                             1.Health conscious people avoid coffee as it Contains caffeine
                               2.People avoid caffeine if they are health conscious
                               3.They have to pay a lot of sales and indirect taxes
                               4.They have a price point portfolio system
        Weakness

                             1. Tie-ups with corporates
                             2.Cheaper packets for rural areas
                             3.They must reduce their price according to the places they are selling
                             their products
                             4.They can expand their business into the rural areas
                             5.They can simplify their taxing schemes
       Opportunity

                             1.Health conscious people avoiding coffee
                             2.Food inflation causes threats to companies like Nestle
                                 3.Competitors in the global market
         Threats             4.Many people avoid coffee due to their health reasons


                                                                                              8|Page
BASIC OBJECTIVE OF NESCAFE
The basic objective of Nescafe is to capture the big hot beverage market of Pakistan, because it
is found that Pakistan is a place where people are big Drinkers of tea and other hot beverages,
so it is a promising factor for the brand like Nescafe to grow rapidly. Plus the Nescafe want full
customer loyalty towards their brand and they are successful in this regard.


Marketing Strategy
Nescafe marketing strategy is based on a positioning of product differentiation. The strategy is
to ultimately generate a segment with an emphasis on the young ‘professional’s’ lifestyle.
Nescafe have noticed the increase of a coffee culture lifestyle that is being adopted by students
and young professionals recently.Nescafe intend to address potential consumers who currently
do not purchase instant coffee, who are students or young professionals, largely female, 18 –29
years old who live in an either an urban or suburban area and have a low to middle
disposable income. They are interested in presenting themselves as sophisticated, sexy and
strong but also fun, exciting and intriguing. They want to obtain a positive perception of
themselves and are looking to differentiate themselves from teens and the younger generation.
These consumers are socially inclined however don’t mind indulging by ones self. There is a
high chance these consumers will be interested in organic and fair trade products.
Nescafe secondary consumer market is to target the innovator and the thinker type consumer;
with the intention of turning them into Believers of the Nescafe brand as they age.Upscale,
quality driven, higher income consumers and the middle class consumer.
New marketing strategies by nescafe

Nescafé Pakistan’s Facebook Page has come up with a brand new Application by the name of
Nescafé Basement. Targeting the Pakistani youth, the application has been branded red which
is a color well associated with Nescafe and has motivated a large audience to attract a large
audience towards their favorite coffee and its social media innovation.

Nescafé basement is an innovative new platform for bathroom singers and striving music stars
alike. It takes into lime light a host of new talent from the local scene. This young talent is then
featured on Nescafé Pakistan’s page, for Nescafé fans to admire and discover.

Talent ranging from a diverse background and all walks of life are being given a chance to
showcase their performances. This gives them a fair amount of publicity and spotlight and an
early boost in their passion for music. You can find interviews and videos of these kids during
their jamming sessions, as well as a brief round-up of their music journey, their life and



                                                                                          9|Page
inspirations. These chosen singers were also aired on television through various channels
including Oxygene, Style 360, Tv One, Metro One and A Plus.




Positioning

The Product positioning strategy includes that how the customer perceive your product in his
mind. Nescafe have a favorable reception from the consumer in terms of attributes, quality,
price, competitor and product use. The logo they use for Nescafe is “Open your mind”.

At this moment Nescafe is following the multiple brand strategy because now they are
targeting the different segments in the market, for rapid expansion in market share, and they
doing it with the help of Nescafe frothe, Nescafe gold, Nescafe instant and Nescafe classic.




Product Strategy

Nescafe following the strategy of producing Standardized products, they believe that with little
modification in offering and style, its look to be little customized but actually it is a standardized
product.Nestle includes the product improvement, product imitation and product innovation.
In the perspective of Nescafe the product innovation strategy play role, because the
introduction of the Nescafe vanilla might change the taste of consumer and styled Nescafe a
product innovation follower.In this particular strategy, the emphasis on the Quality, because in
hot beverage business the quality is also needed with taste. The ultimate objective of Nescafe
in terms of quality should be delight the customer in every way possible providing level of
service, product quality, product performance, and support that are beyond his or her
expectations. It is found that Nescafe is maintaining quality with vending machines installing in
institutions and other places.


                                                                                          10 | P a g e
Pricing Strategy
MARKET ENTRY STRATEGY

This company is using marketing Skimming strategy when they enter into the market of
Pakistan, because at that time they believe that their target customer for coffee belonged to
upper class, after that with the success of this strategy they reduce their prices and target the
upper middle class, but that strategy doesn’t form into penetration.

PRICING STRATEGY FOR ESTABLISHING PRODUCTS

For Nescafe, the focus is focus on the maintaining prices because in circumstances where a
price change may be desirable, but the magnitude of change is undeterminable. It is found the
competitors of Nescafe are very week in terms of having market share, so it give company a
edge on competitors to maintain prices while introducing new product.

PRICE LEADERSHIP STRATEGY

Nescafe is at the moment having a price leadership strategy and it is because it fulfills all the
requirements of a successful price leadership.




FLEXIBILITY IN PRICING STRATEGY

Yes they have flexibility in their pricing strategy but only for the Institutional businesses,
otherwise they stick on with same prices in market. And this is because their competitors are
not powerful and not in a position to dictate Nescafe to create flexibility in pricing.




                                                                                          11 | P a g e
PRODUCT LINE PRICING STRATEGIES

The pricing for the Nescafe product line with lead competitoris :

For 50g bottle Rs.75/- compared with Maxwell Rs. 80/-

For 100g bottle Rs.135/- compared with Maxwell Rs. 150/-

For 200g bottle Rs. 265/- compared with Maxwell Rs. 265/-

For Sachet of Frothe Rs.8/-




Place Strategy
FOR PROMOTION

For the promotion purposes Nescafe is using single channel strategy, which includes the only
wholesaler, which help the company to reach the optimal number of customers in a timely
manner at the lowest possible cost while maintaining the desired level of control. Company is
also providing product direct to retailers as well

CONFLICT AMONG CHANNELS

We find that there is no conflict among distributors in Pakistan because the company actually
divided Pakistan into region and areas are assigned different regions for the distribution of the
product. But the real problem is this that the smuggled coffee is actually sold by the retailers
through some wholesalersthat creates a huge problem.

SOLUTION

The company is trying to solve this problem by employing ban on the smuggled coffee, and they
restricted that if anyone found selling the smuggled coffee he would be sued by all means.




                                                                                     12 | P a g e
Marketing Promotion Strategy
Nescafe management concentrated on promotion, but emphasis is mostly on print media,
which includes Banners, Newspapers, Articles, Broachers, and Handouts.

They are tried advertised their product also through electronic media, but it is not used to
project the local culture of Pakistan and you see that the advertisement on the television
project the International cultural environment.

They also advertised their product through events like giving sponsor cricket matches, held
cultural nights at Basant festival and Valentine day.

The company is not using personal selling for the promotion of their product, because they
believe that they are capturing their target customer at the percentage of more than 80%.

So in our opinion they are using only advertisement for their promotion.




STRATEGY OF MEDIA SELECTION

The selection of the media in case of Nescafe is very different as compared to others. Nescafe
believes that their competitors are not retaliating in terms of advertisement on television, so it
is better for the company to stay with advertisement on print media, so in this way they can
save their cost to great extent.

VENDING OPERATIONS

Nescafe is adopting tool of vending operations helps the company to promote their product in
institution and offices, it involves 100% investment from the Nescafe and 0% in investment
from that institution. Vending machines are coffee machines.




                                                                                      13 | P a g e
Marketing Research
Using research Nescafe is identifying the specific features and benefits that the target market
segments value. Feedback from market tests,surveys,and focus group will help Nescafe to
develop more variation and innovation in the product along with product quality improvement.
The reesearch will also enable Nescafe to know the taste and preferances of the target market.




                                                                                   14 | P a g e
Introduction of a new Cold Coffee flavor named
KAPPI KOTTAIKOld by Nestle for the first time in
Pakistan

                           "Nescafe KAPI-KOTTAI KOLD"


KAPI KOTTAI KOLD – A unique and identifiable symbol association, name or trademark which
serves to differentiate competing products, both a physical and emotional trigger to create a
relationship between consumer and product.

   Our new product name is KapiKottaiKold. It is taken from TAMIL (SRI LANKAN) language
   which means cold coffee. It is very unique and attractive name. We are launching for the
   first time ever in Pakistan in good packaged form. A brand is much more than just a logo. It
   is a set of ideas, a measure of behaviors and a way of doing things.

   Our product is different than the other brands. Because we are putting some mints and
   cooling crystals in this coffee.This coffee will be in a glass and it will expired after six
   months. After purchase our coffee, you only have to put that glass in the freezer or put
   some ice then after having it, you will be fresh or cool.

   Our brand is truly for customers. We believe in customer orientation and providing them a
   want satisfaction driving us to continuously innovative in our product. We assume that the
   product will have different flavors however, at very initial stage only three flavors-
   combinations

       1) White chocolate and dry fruits so the name of the flavor is suggested as "ICE WHITE
           CHOCOLATE".


                                                                                   15 | P a g e
2) Vanilla and dry fruits so the name of the flavor is suggested as “VANILLA ICE
   COFFEE”.
3) Oreo biscuits and ice so the name of the flavor is suggested as “OREO ICE COFFEE”.




SLOGAN: “REFRESH YOUR MIND"
Concept:

Our slogan is “REFRESH YOUR MIND”. Our main idea of giving this slogan is that it talks
about the refresh (cool). As we know cold coffee energize us but the specialty of our
coffee is its taste, breezy, refreshes and smell which you can enjoy anywhere anytime.
We want consumer’s life to refresh and chill with unique taste and flavor. This is the
reason of giving this slogan to our product. Our product will definitely refresh mind of
the customer with unique taste in their life as soon as they start using it.
We mean what we are saying in our slogan it will refresh your mind and you will feel
cool after using it and we are keeping our promise by giving unique flavors in cold
coffee. What basically we are doing is refreshing our customer’s life and releasing his
tensions with strong taste, cooling crystals and unique flavors.
The unique selling proposition (USP) is providing the quality coffee with the taste of
coffee at value based pricing i.e. providing good quality and unique flavor (dry fruits)
with the taste of white chocolate.So if you want to refresh yourself and be cool in your
life then have “KAPI KOTTAI KOLD” which will “REFRESH YOUR MIND”.




                                                                               16 | P a g e
TARGET MARKET
SEGMENTING AND TARGETING: YOUTH AND PROFESSIONALS

Our target market all those who want innovation, who want to be cool in their life, who want to
have varieties for e.g. youth around 18-29 and young energetic professionals.

We understand that the target market is youth and professionals. As youth is future so, we
have kept our more focus towards youth because they are the one who always want be cool,
releases their tensions and innovative.

They observe a healthy, fresh and stylish lifestyle. They always want innovation in their lives.
They are outgoing and there exist a cultural change. From typical Pakistani to Americanized
Pakistani influenced by western culture and media.

POSITIONING:

Nescafe Kappi Kota Kold places itself very unique in the mind of consumers by targeting the
young energetic youth and making them perceive KappiKottaKold brand as an energetic and
enthusiastic drink which is completely different if we look at the traditional concept of
coffe.KappiKotta transformed the perception by introducing completely the new segment in
coffe by developing new taste and innovative flavors which any one could even think of that
these flavors can too come in to the coffee.


SKU
We are offering different SKU’s in KappiKottaiKold Coffee. All these SKU’s are in 3 flavors as
mentioned previously. Looking at the current status and target market of KappiKottaiKold
Coffee we are introducing different SKU’s which are as below:



       Coffee bags (50 coffee bags per packet)
       150 ml Can (liquid)

                                                                                    17 | P a g e
250 ml Can (liquid)
     5 grams sachet (powder)
     50 grams bottle (powder)
     150 gram jar(powder)

     300 gram family pack(powder)




Product:
  Our product is different than the other brands. Because we are putting some mints and
  cooling crystals in this coffee.This coffee will be in a coffee bag , can and powder form.

  Our brand is truly for customers. We believe in customer orientation and providing them a
  want satisfaction and driving us to continuously bring innovativion in our product through
  offering different flavors. We assume that the product will have different flavors however,
  at very initial stage only three flavors-combinations

      1) White chocolate and dry fruits so the name of the flavor is suggested as "ICE WHITE
          CHOCOLATE".
      2) Vanilla and dry fruits so the name of the flavor is suggested as “VANILLA ICE
          COFFEE”.
      3) Oreo biscuits and ice so the name of the flavor is suggested as “OREO ICE COFFEE”.




                                                                                      18 | P a g e
Price:
We are initially focusing on cost plus pricing strategy as our product is in the introduction stage.
By being cheap and providing innovative flavors in our coffewe are looking to seek good chunk
of market. At the same time we will also be encouraging bundle pricing strategies in big
supermarkets like macro and hyperstar to promote our brand.

The introductory prices for KappiKottaiKold Coffee are:



       Coffee bags (50 coffee bags per packet)-------------------------------------Rs. 250
       150 ml Can (liquid)----------------------------------------------------------------RS. 30
       250 ml Can (liquid)..............................................................................RS. 40
       2 grams sachet (powder).....................................................................Rs.6
       50 grams bottle (powder).....................................................................Rs. 250
       200 gram jar(powder)...........................................................................Rs.375

       300 gram family pack(powder)..............................................................Rs.500




Place:
Distribution refers to the step taken to move and store a product from the supplier stage to a
customer stage in the supply chain. Distribution is a key driver of the overall profitability of a
firm because it directly impacts both the supply chain cost and the customer experience.
Distribution creates time and place utility.
Since it is a convenient product, Exotic uses intensive distribution to make sure that the product
is widely available everywhere. The product will be imported from Switzerland and will be
distributed to the 2 main lead distributors of pakistan:
        Pakistan commodities importers association


                                                                                                                 19 | P a g e
Jawed Iqbal Enterprises
        These distributor will further distribute to the locals distributor province city wise



DISTRIBUTION SCENERIO:
                               MAIN IMPORTERS


                                  LOCAL DISTRIBUTORS




                                     WHOLESALERS


                                       RETAILERS



                                      CONSUMERS




Coffee distribution is two intermediary level, wholesaler and retailers. The company has
Vertical Marketing System. This channel will be used to make our product available in the
market for customers' convenience. It will be ensured that our product is convenience and
extensively placed in all super stores and grocery shops of Pakistan.




Promotion:
PRINT ADVERTISEMENT



Our print advertisement covers the concept of Innovation. KapiKottaiKold (Coffee) is showing
that it has the best and unique flavors then other coffee brands. Our print advertisement consists
of the following features:


                                                                                         20 | P a g e
Innovators a new brand of taste   :
The print advertisement is giving the message that innovators have launched new cold coffee
with mint and cool crystals. It is a new and innovative brand which fulfills the consumer’s wants
and needs. So if you want a cup of pure cold coffee and with some flavors and want to refresh
your mind then have a “NESCAFE KAPI KOTTAI KOLD” coffee which REFRESH YOUR
MIND and you will “BE COOL”!!!


TV ADVERTISEMENT :




As everyone knows that TV advertising or marketing is an essential ingredient of success. Any
product or service which is not advertised on the TV tend to be less competitive and can even
give up in front of its rivals. We have planned to promote our product through TV advertising
also, we will not only advertise on one channel rather we have a complete contingency plan of
advertising it on different channels. Although we will be promoting our coffee powder through
radio but TV marketing and advertising is the most powerful tool used for this purpose as it
always brings in positive and prompt results.

RADIO ADVERTISEMENT :


Our radio advertisement is showing the concept that how much we care for our customers as we
think them as a part of our family. So, “Nescafe” is introducing a new cold coffee “KAPI
KOTTAI KOLD” with some UNIQUE flavors available in all the well known supermarkets in
packaged form rather than any other coffee brands in Pakistan.




Action Programs :
The Nestle kappikotai coffee will be introduced in October. Following are summaries of the
action programwe will use forfirst 5 month of next to achieve our stated objectives
                                                                                      21 | P a g e
January We will launch a Rs.0.5 million trade sales promotion campaign and exhibit at the
major industry to educate dealers and generate channel support for the product launch in
October.

Febuary We will start an integrated print/radio/tv/Internet campaign targeting youth and
middle upper class group including professionals. The campaign will show the 3 newly
introduced Nescafe Koppi Kota flavourswhich will add a new variety and taste in the coffee.

March Increase up internet marketing campaign as it is the hub of youngsters that we are
targeting. Target colleges and universities and distributing free samples of kappikotacofee to
the youngsters.

April We will arrange a best movie contest on our facebook official page. The best movie will
win a prize of Rs.500,000. The movie should reflect the theme of KappiKotta Coffee and any of
the 3 flavor of Kappi Kota Coffee shall be visible in that videao.

May We plan to move our advertising campaign to an extensive level. Radio and television add
will feature some young celebrities and sportsman mainly cricketers showing what they feel
after experiencing Nescafe Kappi Kota coffee.The add will feature the enthusiasm and energy
created after having Nescafe Kappi Kota.




Controls:
To ensure proper implementation and control for our action plan we will conduct audit
internally to closely monitor the goals and objectives. This will enable us to react very quickly in
correcting any problems that may occur.




                                                                                        22 | P a g e

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Term report marketing

  • 1. EXECUTIVE SUMMARY Nescafe is looking to attract and retain a young and enthusiastic individuals Market. Nescafé at the same time is targeting young female market too which it feels potentially very strong in terms of coffee in Pakistan. These potentialconsumers are urban based, and are not price sensitive when purchasing coffeebut never the less still take it into account. They currently favor café coffee and do not frequently purchase instant coffee. Nescafe is looking to be the leadingbrand of instant coffee within the supermarket café coffee market. Nescafe aimto encourage potential consumers to buy our new café menu range throughthe perception of the brand with respect to competitors within the gourmetsegment. In the SWOT Analysis We have detailed Nescafe’s strengths weaknesses and opportunities in the current market using demographic trends, historical contexts, industry analyses, market analyses, competitor analyses and market segmentation. Nescafe’s then follows this with the Marketing Objectives and Behavioral responses of the consumers. We also identified a completely new segment of innovative consumers who are willing to have a different feel of the coffee flavor. We introduced 3 different flavors under the umbrella of Nescafe with the name of Nescafe KappiKottai Coffee with different SKU’S in Pakistan to attract variety seekers in Pakistan.Coffee under the name of Nescafe KappiKottai targeting the youth especially the young and exciting students and those who want to look different, stylish and sexy 1|Page
  • 2. TABLE OF CONTENTS 1. History of the company____________________________________________4 2. Current Market Situation___________________________________________4 3. Market Description_______________________________________________5 4. Product Review__________________________________________________5 5. Competitive Review______________________________________________ 6 6. Channels and Logistic Review______________________________________ 7 7. Swot Analysis___________________________________________________ 8 8. Basic objectives of Nescafe________________________________________ 9 9. Marketingstrategy_______________________________________________ 9 10. Product strategy________________________________________________ 10 11. Postioning____________________________________________________ 10 12. Price Strategy__________________________________________________11 13. Place_________________________________________________________12 14. Promotion Strategy______________________________________________ 13 15. Marketing Research_____________________________________________ 14 16. Introduction of new KappiKottaiKold Coffee__________________________ 15 17. Target Market__________________________________________________ 17 18. SKU_________________________________________________________ 17 19. Product_______________________________________________________ 18 20. Price__________________________________________________________19 21. Place________________________________________________________ 19 22. Distribution Scenerio____________________________________________ 20 2|Page
  • 3. 23. Promotion___________________________________________________ 20 24. Product______________________________________________________ 21 25. Actions Program_______________________________________________ 21 26. Control______________________________________________________ 22 3|Page
  • 4. History of the company Original of Nescafe was born in Switzerland; it was the largest industrial company. Nescafe was the top 10 companies of the world. Nescafe got a Flagship Coffee Brand and make income to Nestle (Thailand) mostly. Nescafe was market share about 80% from total coffee market about 12,000 million bath. Nescafé, a brand introduced by the Nestlé company, can be traced back to the 1930s. In the United States, the Nescafé name was used on its products until the 1960s. Later, Nestlé introduced a new brand in the US called "Taster's Choice", which supplanted Nescafé for many years. Taster's Choice was also introduced into Canada at the same time, and continues to be sold as a separate product, branded as superior to Nescafé, and is higher priced. NESCAFE’s mantra is HUM HAIN JAWAN! Celebrate your youth. Celebrate your individuality. Enjoy NESCAFE and lead your life your way. Nescafe products that are available in Pakistan include: Nescafe Classic Nescafe Frothe Nescafe Frappe Nescafe Matinal Nescafe Gold Current market situation Pakistan’s growing urban population and changing preferences of young consumers from tea towards coffee helped total coffee volume sales increase by 7% in 2011. While tea remains the more popular drink as compared to coffee, the demand for coffee is rising due to a higher social value placed on coffee. This can be seen in the growing number of coffee shops in large cities as compared to outlets exclusively serving tea and a growing number of young consumers exercising their spending choices in favor of coffee. Nestlé, with its brand Nescafé, led sales in 2011 with a 47% share in off-trade volume terms. Nescafé is considered synonymous with coffee in Pakistan, as it is the oldest and 4|Page
  • 5. most prominent brand of coffee available in the country. A strong distribution network helps its cause as consumers can purchase Nescafé coffee from a wide range of distribution channels and any retailer stocking coffee would begin with Nescafé. Coffee will continue to gain in prominence and acceptability among consumers over the forecast period, leading to strong volume growth. Rising costs, especially costs related to importing, will push up unit prices, leading to stronger growth in value sales. This will put downward pressure on coffee, but, given the high rate of inflation across the board, coffee will not stand out in any way in terms of higher prices. Market description Nescafe currently market to a large and varied segment of the instant coffeemarket, however some of the obvious target markets are -The young adult café culture segment who not only drink coffee butconsume it for social reasons. -Upscale, quality driven, higher income consumers -And the middle class consumer Nescafe already has a strong brand name that gains brand recognition andloyalty with existing markets however Nescafe needs to build on brand equitytowards the younger generation who are now distinguishing and generating thedemanding coffee culture.Nescafe Classic is the dominant seller. It is aimed at large overall market andtactically uses economic benefits. The low prices make it difficult to find abetter quality brand at such an affordable price.The Decaf, Fine Blend and Espresso ranges are also inexpensive and are aimedat an older market that know what they like in terms of drinking instant coffeeand are satisfied with basic coffee. Nescafe have produced and retained reliableproducts under their brand name. The strategy is to ultimately generate a segment with an emphasis on the young‘professional’s’ lifestyle. Nescafe have noticed the increase of a coffee culturelifestyle that is being adopted by students and young professionals and havedecided to focus on the psychographics and lifestyle dimensions of the intendedmarket. Nescafe aim to target the innovator and the thinker type consumer; with theintention of turning them into Believers of the Nescafe brand as they age. Product Review NESCAFE CLASSIC N E S C A F E , N e s t l e ’ s i n t e r n a t i o n a l f l a g s h i p b r a n d , i s l o c a l l y repacked and marketed in 2gm. and25gm. Sachet, 75gm.bottles and 500gm. Soft p a c k s . T h e b r a n d e n j o y s a s p e c i a l position in the country's coffee consuming segment. 5|Page
  • 6. NESCAFE FROTHE NESCAFE Frothe (Original), a premix in 18gm. single servesachet, was l a u n c h e d i n J a n u a r y 2 0 0 0 . T h e p r o d u c t p r o f i l e Good Food, Good Life w a s developed through consumer research and w a s accordingly offered as a sweet, creamy and foamy coffee.Encouraged by extremely good consumer response to t h i s c a p p u c c i n o s t y l e c o f f e e , F r e n c h V a n i l l a a n d M o c h a f l a v o r s were introduced in November to offer a wider choice and to e n h a n c e t h e y o u n g a n d f a s h i o n a b l e i m a g e o f t h i s m i x e s category. NESCAFE FRAPPE T o p r o m o t e s u m m e r c o n s u m p t i o n o f c o f f e e a n d t o c h a n g e consumer perception that coffee is only a winter beverage, N E S C A F E F r a p p e w a s launched in June 3000. This iced,cr e a m y, r e a d y - t o - d r i n k c o f f e e i n 1 8 0 m l s l i m p a c k w a s positioned to appeal to the youth a n d g a i n a s t r o n g s h a r e from other summer beverages. The launch was extensivelysupported by promotional programs in major towns and the product is fast gaining in popularity. Competitive review Maxwell THE MAKERS of Maxwell House coffee and Pepsi-Cola soft drinks have formed a joint venture to sell ready-to-drink canned coffee. Maxwell is targeting matured drinkers of coffee who want to feel the strongest of traditional coffee. The high prices of Maxwell indicates that the audience they look for are high income class people who want to sit back and relax at their home with a cup of coffee in their hands. Maxwell in Pakistan comes in a 150g jar. The price of the jar is Rs.525. Moccona Targets the main household shopper, aged 25 – 60, mid to high Disposable income. It is the most expensive instant coffee on the market and Advertising stresses its rich, European background and flavor. This is potentially 6|Page
  • 7. Threatening, as it would appeal to the younger ‘yuppie’ market that is entering the market. The current market price of Moccona in Pakistan is Rs.750 for a 150g Jar. Riva Have a specific target audience who are younger consumers like students. They are potentially threatening to Nescafe as their intended market develops Loyalty to brand at young age. Similar pricing structure to Nescafe. Increasing Market share. Younger brand. Launch of Riva in Australia affected the maturity And stability of the instant coffee market with respect to Nescafe.Riva price of a 150g jar is Rs.625. Lavazza Lavazza’sstrengths include an excellent international marketing campaign targeted at younger female gourmet coffee drinkers. Lavazza responded to rivals by building on their unique advantages; as a national firm with a homefield advantage; advertising to Italian tastes, culture and lifestyle. With the claim ‘Italy’s favourite coffee’ and one of the more expensive brands in theircategory it obtains a high-perceived quality. The price of Lavazza is Rs.650 of a 150g jar. Lavazza is only available in big supermarkets like Agha’s and Hyperstar in Pakistan. Channels and logistic review DISTRIBUTION SCENERIO: MAIN IMPORTER DISTRIBUTORS RETAILERS CONSUMERS 7|Page
  • 8. Coffee distribution is two intermediary level, wholesaler and retailers. The company has Vertical Marketing System. This channel is used to make Nescafe product available in the market for customers' convenience. It is ensured that Nescafe is convenience and extensively placed in all super stores and grocery shops of Pakistan. Swot analysis SWOT Analysis 1. Strong Nestle brand name 2.Excellent advertising and visibility 3.Good product distribution and availability 4.Lots of flavors and varieties available Strength 5.Good quality control over the products 1.Health conscious people avoid coffee as it Contains caffeine 2.People avoid caffeine if they are health conscious 3.They have to pay a lot of sales and indirect taxes 4.They have a price point portfolio system Weakness 1. Tie-ups with corporates 2.Cheaper packets for rural areas 3.They must reduce their price according to the places they are selling their products 4.They can expand their business into the rural areas 5.They can simplify their taxing schemes Opportunity 1.Health conscious people avoiding coffee 2.Food inflation causes threats to companies like Nestle 3.Competitors in the global market Threats 4.Many people avoid coffee due to their health reasons 8|Page
  • 9. BASIC OBJECTIVE OF NESCAFE The basic objective of Nescafe is to capture the big hot beverage market of Pakistan, because it is found that Pakistan is a place where people are big Drinkers of tea and other hot beverages, so it is a promising factor for the brand like Nescafe to grow rapidly. Plus the Nescafe want full customer loyalty towards their brand and they are successful in this regard. Marketing Strategy Nescafe marketing strategy is based on a positioning of product differentiation. The strategy is to ultimately generate a segment with an emphasis on the young ‘professional’s’ lifestyle. Nescafe have noticed the increase of a coffee culture lifestyle that is being adopted by students and young professionals recently.Nescafe intend to address potential consumers who currently do not purchase instant coffee, who are students or young professionals, largely female, 18 –29 years old who live in an either an urban or suburban area and have a low to middle disposable income. They are interested in presenting themselves as sophisticated, sexy and strong but also fun, exciting and intriguing. They want to obtain a positive perception of themselves and are looking to differentiate themselves from teens and the younger generation. These consumers are socially inclined however don’t mind indulging by ones self. There is a high chance these consumers will be interested in organic and fair trade products. Nescafe secondary consumer market is to target the innovator and the thinker type consumer; with the intention of turning them into Believers of the Nescafe brand as they age.Upscale, quality driven, higher income consumers and the middle class consumer. New marketing strategies by nescafe Nescafé Pakistan’s Facebook Page has come up with a brand new Application by the name of Nescafé Basement. Targeting the Pakistani youth, the application has been branded red which is a color well associated with Nescafe and has motivated a large audience to attract a large audience towards their favorite coffee and its social media innovation. Nescafé basement is an innovative new platform for bathroom singers and striving music stars alike. It takes into lime light a host of new talent from the local scene. This young talent is then featured on Nescafé Pakistan’s page, for Nescafé fans to admire and discover. Talent ranging from a diverse background and all walks of life are being given a chance to showcase their performances. This gives them a fair amount of publicity and spotlight and an early boost in their passion for music. You can find interviews and videos of these kids during their jamming sessions, as well as a brief round-up of their music journey, their life and 9|Page
  • 10. inspirations. These chosen singers were also aired on television through various channels including Oxygene, Style 360, Tv One, Metro One and A Plus. Positioning The Product positioning strategy includes that how the customer perceive your product in his mind. Nescafe have a favorable reception from the consumer in terms of attributes, quality, price, competitor and product use. The logo they use for Nescafe is “Open your mind”. At this moment Nescafe is following the multiple brand strategy because now they are targeting the different segments in the market, for rapid expansion in market share, and they doing it with the help of Nescafe frothe, Nescafe gold, Nescafe instant and Nescafe classic. Product Strategy Nescafe following the strategy of producing Standardized products, they believe that with little modification in offering and style, its look to be little customized but actually it is a standardized product.Nestle includes the product improvement, product imitation and product innovation. In the perspective of Nescafe the product innovation strategy play role, because the introduction of the Nescafe vanilla might change the taste of consumer and styled Nescafe a product innovation follower.In this particular strategy, the emphasis on the Quality, because in hot beverage business the quality is also needed with taste. The ultimate objective of Nescafe in terms of quality should be delight the customer in every way possible providing level of service, product quality, product performance, and support that are beyond his or her expectations. It is found that Nescafe is maintaining quality with vending machines installing in institutions and other places. 10 | P a g e
  • 11. Pricing Strategy MARKET ENTRY STRATEGY This company is using marketing Skimming strategy when they enter into the market of Pakistan, because at that time they believe that their target customer for coffee belonged to upper class, after that with the success of this strategy they reduce their prices and target the upper middle class, but that strategy doesn’t form into penetration. PRICING STRATEGY FOR ESTABLISHING PRODUCTS For Nescafe, the focus is focus on the maintaining prices because in circumstances where a price change may be desirable, but the magnitude of change is undeterminable. It is found the competitors of Nescafe are very week in terms of having market share, so it give company a edge on competitors to maintain prices while introducing new product. PRICE LEADERSHIP STRATEGY Nescafe is at the moment having a price leadership strategy and it is because it fulfills all the requirements of a successful price leadership. FLEXIBILITY IN PRICING STRATEGY Yes they have flexibility in their pricing strategy but only for the Institutional businesses, otherwise they stick on with same prices in market. And this is because their competitors are not powerful and not in a position to dictate Nescafe to create flexibility in pricing. 11 | P a g e
  • 12. PRODUCT LINE PRICING STRATEGIES The pricing for the Nescafe product line with lead competitoris : For 50g bottle Rs.75/- compared with Maxwell Rs. 80/- For 100g bottle Rs.135/- compared with Maxwell Rs. 150/- For 200g bottle Rs. 265/- compared with Maxwell Rs. 265/- For Sachet of Frothe Rs.8/- Place Strategy FOR PROMOTION For the promotion purposes Nescafe is using single channel strategy, which includes the only wholesaler, which help the company to reach the optimal number of customers in a timely manner at the lowest possible cost while maintaining the desired level of control. Company is also providing product direct to retailers as well CONFLICT AMONG CHANNELS We find that there is no conflict among distributors in Pakistan because the company actually divided Pakistan into region and areas are assigned different regions for the distribution of the product. But the real problem is this that the smuggled coffee is actually sold by the retailers through some wholesalersthat creates a huge problem. SOLUTION The company is trying to solve this problem by employing ban on the smuggled coffee, and they restricted that if anyone found selling the smuggled coffee he would be sued by all means. 12 | P a g e
  • 13. Marketing Promotion Strategy Nescafe management concentrated on promotion, but emphasis is mostly on print media, which includes Banners, Newspapers, Articles, Broachers, and Handouts. They are tried advertised their product also through electronic media, but it is not used to project the local culture of Pakistan and you see that the advertisement on the television project the International cultural environment. They also advertised their product through events like giving sponsor cricket matches, held cultural nights at Basant festival and Valentine day. The company is not using personal selling for the promotion of their product, because they believe that they are capturing their target customer at the percentage of more than 80%. So in our opinion they are using only advertisement for their promotion. STRATEGY OF MEDIA SELECTION The selection of the media in case of Nescafe is very different as compared to others. Nescafe believes that their competitors are not retaliating in terms of advertisement on television, so it is better for the company to stay with advertisement on print media, so in this way they can save their cost to great extent. VENDING OPERATIONS Nescafe is adopting tool of vending operations helps the company to promote their product in institution and offices, it involves 100% investment from the Nescafe and 0% in investment from that institution. Vending machines are coffee machines. 13 | P a g e
  • 14. Marketing Research Using research Nescafe is identifying the specific features and benefits that the target market segments value. Feedback from market tests,surveys,and focus group will help Nescafe to develop more variation and innovation in the product along with product quality improvement. The reesearch will also enable Nescafe to know the taste and preferances of the target market. 14 | P a g e
  • 15. Introduction of a new Cold Coffee flavor named KAPPI KOTTAIKOld by Nestle for the first time in Pakistan "Nescafe KAPI-KOTTAI KOLD" KAPI KOTTAI KOLD – A unique and identifiable symbol association, name or trademark which serves to differentiate competing products, both a physical and emotional trigger to create a relationship between consumer and product. Our new product name is KapiKottaiKold. It is taken from TAMIL (SRI LANKAN) language which means cold coffee. It is very unique and attractive name. We are launching for the first time ever in Pakistan in good packaged form. A brand is much more than just a logo. It is a set of ideas, a measure of behaviors and a way of doing things. Our product is different than the other brands. Because we are putting some mints and cooling crystals in this coffee.This coffee will be in a glass and it will expired after six months. After purchase our coffee, you only have to put that glass in the freezer or put some ice then after having it, you will be fresh or cool. Our brand is truly for customers. We believe in customer orientation and providing them a want satisfaction driving us to continuously innovative in our product. We assume that the product will have different flavors however, at very initial stage only three flavors- combinations 1) White chocolate and dry fruits so the name of the flavor is suggested as "ICE WHITE CHOCOLATE". 15 | P a g e
  • 16. 2) Vanilla and dry fruits so the name of the flavor is suggested as “VANILLA ICE COFFEE”. 3) Oreo biscuits and ice so the name of the flavor is suggested as “OREO ICE COFFEE”. SLOGAN: “REFRESH YOUR MIND" Concept: Our slogan is “REFRESH YOUR MIND”. Our main idea of giving this slogan is that it talks about the refresh (cool). As we know cold coffee energize us but the specialty of our coffee is its taste, breezy, refreshes and smell which you can enjoy anywhere anytime. We want consumer’s life to refresh and chill with unique taste and flavor. This is the reason of giving this slogan to our product. Our product will definitely refresh mind of the customer with unique taste in their life as soon as they start using it. We mean what we are saying in our slogan it will refresh your mind and you will feel cool after using it and we are keeping our promise by giving unique flavors in cold coffee. What basically we are doing is refreshing our customer’s life and releasing his tensions with strong taste, cooling crystals and unique flavors. The unique selling proposition (USP) is providing the quality coffee with the taste of coffee at value based pricing i.e. providing good quality and unique flavor (dry fruits) with the taste of white chocolate.So if you want to refresh yourself and be cool in your life then have “KAPI KOTTAI KOLD” which will “REFRESH YOUR MIND”. 16 | P a g e
  • 17. TARGET MARKET SEGMENTING AND TARGETING: YOUTH AND PROFESSIONALS Our target market all those who want innovation, who want to be cool in their life, who want to have varieties for e.g. youth around 18-29 and young energetic professionals. We understand that the target market is youth and professionals. As youth is future so, we have kept our more focus towards youth because they are the one who always want be cool, releases their tensions and innovative. They observe a healthy, fresh and stylish lifestyle. They always want innovation in their lives. They are outgoing and there exist a cultural change. From typical Pakistani to Americanized Pakistani influenced by western culture and media. POSITIONING: Nescafe Kappi Kota Kold places itself very unique in the mind of consumers by targeting the young energetic youth and making them perceive KappiKottaKold brand as an energetic and enthusiastic drink which is completely different if we look at the traditional concept of coffe.KappiKotta transformed the perception by introducing completely the new segment in coffe by developing new taste and innovative flavors which any one could even think of that these flavors can too come in to the coffee. SKU We are offering different SKU’s in KappiKottaiKold Coffee. All these SKU’s are in 3 flavors as mentioned previously. Looking at the current status and target market of KappiKottaiKold Coffee we are introducing different SKU’s which are as below: Coffee bags (50 coffee bags per packet) 150 ml Can (liquid) 17 | P a g e
  • 18. 250 ml Can (liquid) 5 grams sachet (powder) 50 grams bottle (powder) 150 gram jar(powder) 300 gram family pack(powder) Product: Our product is different than the other brands. Because we are putting some mints and cooling crystals in this coffee.This coffee will be in a coffee bag , can and powder form. Our brand is truly for customers. We believe in customer orientation and providing them a want satisfaction and driving us to continuously bring innovativion in our product through offering different flavors. We assume that the product will have different flavors however, at very initial stage only three flavors-combinations 1) White chocolate and dry fruits so the name of the flavor is suggested as "ICE WHITE CHOCOLATE". 2) Vanilla and dry fruits so the name of the flavor is suggested as “VANILLA ICE COFFEE”. 3) Oreo biscuits and ice so the name of the flavor is suggested as “OREO ICE COFFEE”. 18 | P a g e
  • 19. Price: We are initially focusing on cost plus pricing strategy as our product is in the introduction stage. By being cheap and providing innovative flavors in our coffewe are looking to seek good chunk of market. At the same time we will also be encouraging bundle pricing strategies in big supermarkets like macro and hyperstar to promote our brand. The introductory prices for KappiKottaiKold Coffee are: Coffee bags (50 coffee bags per packet)-------------------------------------Rs. 250 150 ml Can (liquid)----------------------------------------------------------------RS. 30 250 ml Can (liquid)..............................................................................RS. 40 2 grams sachet (powder).....................................................................Rs.6 50 grams bottle (powder).....................................................................Rs. 250 200 gram jar(powder)...........................................................................Rs.375 300 gram family pack(powder)..............................................................Rs.500 Place: Distribution refers to the step taken to move and store a product from the supplier stage to a customer stage in the supply chain. Distribution is a key driver of the overall profitability of a firm because it directly impacts both the supply chain cost and the customer experience. Distribution creates time and place utility. Since it is a convenient product, Exotic uses intensive distribution to make sure that the product is widely available everywhere. The product will be imported from Switzerland and will be distributed to the 2 main lead distributors of pakistan: Pakistan commodities importers association 19 | P a g e
  • 20. Jawed Iqbal Enterprises These distributor will further distribute to the locals distributor province city wise DISTRIBUTION SCENERIO: MAIN IMPORTERS LOCAL DISTRIBUTORS WHOLESALERS RETAILERS CONSUMERS Coffee distribution is two intermediary level, wholesaler and retailers. The company has Vertical Marketing System. This channel will be used to make our product available in the market for customers' convenience. It will be ensured that our product is convenience and extensively placed in all super stores and grocery shops of Pakistan. Promotion: PRINT ADVERTISEMENT Our print advertisement covers the concept of Innovation. KapiKottaiKold (Coffee) is showing that it has the best and unique flavors then other coffee brands. Our print advertisement consists of the following features: 20 | P a g e
  • 21. Innovators a new brand of taste : The print advertisement is giving the message that innovators have launched new cold coffee with mint and cool crystals. It is a new and innovative brand which fulfills the consumer’s wants and needs. So if you want a cup of pure cold coffee and with some flavors and want to refresh your mind then have a “NESCAFE KAPI KOTTAI KOLD” coffee which REFRESH YOUR MIND and you will “BE COOL”!!! TV ADVERTISEMENT : As everyone knows that TV advertising or marketing is an essential ingredient of success. Any product or service which is not advertised on the TV tend to be less competitive and can even give up in front of its rivals. We have planned to promote our product through TV advertising also, we will not only advertise on one channel rather we have a complete contingency plan of advertising it on different channels. Although we will be promoting our coffee powder through radio but TV marketing and advertising is the most powerful tool used for this purpose as it always brings in positive and prompt results. RADIO ADVERTISEMENT : Our radio advertisement is showing the concept that how much we care for our customers as we think them as a part of our family. So, “Nescafe” is introducing a new cold coffee “KAPI KOTTAI KOLD” with some UNIQUE flavors available in all the well known supermarkets in packaged form rather than any other coffee brands in Pakistan. Action Programs : The Nestle kappikotai coffee will be introduced in October. Following are summaries of the action programwe will use forfirst 5 month of next to achieve our stated objectives 21 | P a g e
  • 22. January We will launch a Rs.0.5 million trade sales promotion campaign and exhibit at the major industry to educate dealers and generate channel support for the product launch in October. Febuary We will start an integrated print/radio/tv/Internet campaign targeting youth and middle upper class group including professionals. The campaign will show the 3 newly introduced Nescafe Koppi Kota flavourswhich will add a new variety and taste in the coffee. March Increase up internet marketing campaign as it is the hub of youngsters that we are targeting. Target colleges and universities and distributing free samples of kappikotacofee to the youngsters. April We will arrange a best movie contest on our facebook official page. The best movie will win a prize of Rs.500,000. The movie should reflect the theme of KappiKotta Coffee and any of the 3 flavor of Kappi Kota Coffee shall be visible in that videao. May We plan to move our advertising campaign to an extensive level. Radio and television add will feature some young celebrities and sportsman mainly cricketers showing what they feel after experiencing Nescafe Kappi Kota coffee.The add will feature the enthusiasm and energy created after having Nescafe Kappi Kota. Controls: To ensure proper implementation and control for our action plan we will conduct audit internally to closely monitor the goals and objectives. This will enable us to react very quickly in correcting any problems that may occur. 22 | P a g e