Nescafe

Nescafe Instant Coffee-Consumption Pattern

By:Khushbu BhojwaniPankhuri Gupta

Sumeet ParikMohd. Ghazi

Introduction

Nescafe= Nestle(company name) + Café(the product). Nestle introduced its Nescafe

brand in India in late 1990s. In 2003 the company reintroduced

the Nescafe brand and the product is now known as Nescafe Taster’s Choice.

Consumption Pattern

When Nescafe started its operations in India “CHAI” was the major hot drink sold throughout the country.

Coffee was sold by unorganized players with no major brand.

The South remains the largest consumer of fresh ground coffee; tea was more popular in rural areas.

Nescafe Instant Coffee wanted to create a different market for coffee drinking among urban market.

The main aim was to target the urban segment as they will be willing to accept and ready to pay extra money.

Consumer Perception

• Refreshing Agent• Stylish, Fashion and Modern• Exertion Reducer• “Coffee Break”• A friend

Myths About Coffee Drinking

• Addictive Agent• Health Issues• Traditional Bondage

Major Competitors

Unorganized players / Regional Players:

• Organized Players: Cheap coffee and snacks

Major player in instant coffee

Ambience and class

Ambience and Local

touch

Other hot drinks backed by health consciousness: Malt – based drinks:

Healthier in nutrient content so is preferred by health conscious consumers .

Better choices through the development of retail culture in India: Many brands available under one roof. Freedom of choice.

Marketing Strategies

• Nescafe Cup: Nescafe coffee cup is positioned as a

friend while a person feels lonely. Nescafe is always sold in Nescafe

Coffee Cup which puts it closer to the consumer.

Consumer communication: Global campaign with local tie- INS ,

cinemas etc. Global Spot Campaign Clearly establish the “recruiter

product” in the range Add new , specifically youth – focused

products. One brand plan.

Health Issues: Nestle conducted heavy research on

the advantages of consuming coffee. Researches proved that consuming

coffee keeps diseases like – liver disease , Parkinson disease , heart disease , skin cancer etc at bay.

Due to this it was bale to establish credibility among consumers.

Anytime and Everywhere campaign: The idea is to reach to customers esp. at places where they would like to spend good moments. Public outlets -CAFÉ NESCAFE- with

strong coverage. Perfect ambience. Outlets also in shops , fairs , tourist places

, hill station , and amusement parks.

• Vending Machines: Helped promoting sales in urban

area for both fresh and instant coffee.

• Additional Products: – It has come up with peripheral

products made out of coffee. – It sells over 20 recipes of coffee

and has come with concepts like cold coffee , coffee with ice cream to serve youth and children

• Advertisement and Brand Endorsement:– It prefers using common youth

figures instead of celebrities. – Extensive media usage.The perfect Coffee

moment.

• New products and websites: Instant coffee: A ready to make

product that can be prepared anytime and anywhere.

Nestea: This product captures the leftover segment that is inclined towards tea.

Small pouch : Small pouches @ Re 1 are available for coffee and tea both to tap rural market.

Website: Provides information regarding new product launch, recipes , Nescafe outlets etc.

Recommendations to increase the customer base for instant

coffee-Nescafe Promote coffee with a local touch –

Customized promotion plan to suit different areas accordingly.

Removing the inhibition that coffee is a part of Western culture.

Promote the advantage of having a quick to make beverage as compared to time consuming tea and lassi , fruit juices etc.

Breaking the Price barrier by introducing cheap sachets.

Introducing different ranges of instant coffee like Nescafe has Nescafe premium and classic.

Increasing availability so that consumers find it dependable.

Promoting the health benefits of drinking coffee as compared to other beverages available.

How to change the values, beliefs and customs regarding coffee

drinking in India.

Organize health workshops in which people should be educated regarding benefits of coffee like:

1.Cough destroying, wind reliever 2.Coffee is consumed to relieve fatigue, both mental and physical.

3.Coffee gives warmth and energy to the body.

4.Coffee removes lethargy and alerts the mind also

• Making advertisements which shows the benefits of consuming coffee.

• Emphasizing on the National Coffee Day on 29 Sept.

Role opinion leader play to increase popularity of drinking

instant coffee among the teenagers and college student

• Promote there brand product through the branded celebrity like Sachin or other..and they prefer more discovery and sports channel.

• They show in there advertisement that coffee is more related to styles and sense of modernity.

• They tell the benefits of it like IT companies have mentally exhausting job consume coffee 4 to 5 times a day to keep themselves awake and active so that they work longer.

• They tells about that the Nescafe coffee keeps many diseases away like liver diseases, diabetes and skin cancer.

Anytime and Everywhere campaign

• The campaign got pretty successful and helped the brand expand its wings.

• It led to opening of various Nescafe outlets at various spots like malls, picnic & hangout spots etc starting from Gurgaon. Vending machines also added to come nearer to the people.

• The coffee started becoming a every purpose and all-time drink instead of any particular purpose.

• As a result, domestic sales increased by 11.7% to Rs 2022.7 crores.

New segment penetration

• Product-New products can be launched such as “Coffee for kids” or “Greentea” .

• Place-Made available right from convenience stores to supermarkets or on the way in form of vending machines.

• Price-Right from Rs. 1 sachets to Rs. 360

jarcan available.• Promotion-Mainly can be promoted on

social sites such as facebook, twitter, youtube etc. Roadshows can be conducted and print & tele media can be used for advertising.

THANK YOU!!