Marketing Research

Research Report on Nescafe - Mild

Presented By
VIJAY ANIDA RAY

VISHWANATH

JATIN BARUI

GOPAL YADAV

HARJOT SINGH

GAUTAM ACHARYA

MAYANK KAURA

HARI

Nestle India is interested in doing a market research on their recently launched product Nescafe Mild. They wanted a detailed description about the consumers attitude towards the product. The reasons for the survey will be explained as we move ahead.

A new direction to your business

Company Profile Nestle India

Nestle India is a subsidiary of Nestle S. A. Switzerland. Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestle set up its first factory in 1961 at Moga, Punjab to develop milk economy.

 Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, etc.
Nestle has its head office at Gurgaon, Haryana and its factories located in Tamil Nadu, Karnataka, Goa, etc.

Nestl's Nescafe
Beginnings of NESCAFE NESCAF was first introduced in Switzerland, on April 1st, 1938. In India, Nestle was incorporated at New Delhi on 28th March, 1959. Two years later they invented a new technology to capture more aroma and flavour from every single coffee bean. In 1994 the 'full aroma' process was invented to make the unique quality and character of NESCAF even better.

Variants of Nescafe

Nescafe Gold

Nescafe Classic

Nescafe Espresso

Nescafe Sunrise

Nestle Milo

Nescafe Cappuccino

Product Nescafe - Mild

Nestle Co. recently launched a new coffee product named Nescafe Mild It was introduced in July, 2007 and was successful only in the first two months.

''''Nescafe Mild''' was targeted specifically at the mass market of tea drinkers. It has light roasted flavour
It was available in 1 Re. sachets. Also available in 100 and 500 g.packs Its tagline is, ek cup baaton bhara..

Market Research on Nescafe - Mild

Research Methodology
Why to undertake research?

Research Problem
To find out why the Brand failed? The reasons for declining sales

Research Objectives
To create awareness about the product. To know consumers(users & non-users) reactions towards the product. To know future expectations.

 Limitations: The survey was restricted to only 70 people, including male and female. Sample Size: The sample size consisted of 70 respondents. Sample Frame: All the questionnaires were filled within 2 weeks. Place of survey: Bandra to Borivali Targeted Population: Users, Non-users, adults, working people and housewives. Age Group: 18 40 years.

 Method of Data Collection: Primary Source Survey was conducted with help of a Questionnaire. The questions were based on Consumers buying patterns, Brand Awareness, Brand Preference, General Information. Secondary Data Internet It was observed that an Exploratory as well as Descriptive research would be required.

Break- up of Sample Size We targeted both the sexes of population as coffee is an FMCG product which is preferred by all age groups. Since its the woman who goes for shopping for the household items, here they are a majority. We surveyed 38 females (in nos.) and 32 males

46% 54% Male

Female

Brand Awareness

120%
100%

98%

92%

80%

60%
60%

40%

28%

20%
20% 0% Nescafe Bru Sunrise MR Coffee TATA Tetley

90% 80% 70%

87%

67%

60%
50% 40% 30%

40% 24%

20%
10% 0% Nescafe Classic Nescafe Milo Nescafe Dolce Gusto Nescafe Sunrise

Brand Awareness(nescafe)

Aware of Nescafe Mild

48%
52%

Yes No

1%

12% 4% 31%

Media Family

Friends, colleagues Relatives

Source of Awareness

Frequency of usage
40% 35% 30% 25% 20% 15% 10% 5% 0%

40%
33% 24%

3%

Twice in a day

Thrice in a day

Twice a week

Once a day

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

48%

50%

17% 10%

Quality

Taste

Feels relaxing & energetic

Any other

Reason to drink coffee

Brand Preference
11% 11%

78%
60% 50% 40% 30% 20%

57%

Nescafe

Bru

Sunrise

10% 0%
Nescafe Classic

1%

6%

10%

Nescafe Mild

Nescafe Milo

Nescafe Sunrise

Brand Preference(Nescafe)

Users & Non-users of Mild

20%

80%
Yes No

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Strong Coffee over others

50%

30% 19%

1%

Cold over strong

Espresso or hot choclate

Mild/Light

Preferred coffee types

Most important reason for using the type of coffee specified before

60% 50% 40% 30% 20% 10% 0%

58%

10%

18% 4% 10%

Analysis
What went wrong with the product?

Promotion
Advertisements No outdoor publicity

Place
Campaigns outside Mumbai Distribution Strategy

Sampling of Nescafe Mild at Nasik, Pune, Aurangabad

Nescafe opened small shops in college campus at Nagpur

 Targeting and Focusing small towns & cities.

Introduce the product in Rural Areas.

Publicize the product Distribute free sachets

Conduct more campaigns in Mumbai

Construct Nescafe stalls in College canteens Coffee Business Seminars