Professional Documents
Culture Documents
SATISFACTION OF CAFÉ
NESCAFE TOWARDS
COIMBATORE
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TABLE OF CONTENTS
SR.N PAGE
TOPIC
O. NO.
1. EXECUTIVE SUMMARY 5
3. INTRODUCTION 8
4. CAFÉ NESCAFE 9
5. KEY FEATURES 11
6. PRODUCTS OFFERED 12
7. CONSUMER PROFILE 13
8. COMPETITORS 14
9. BARISTA 15
19. CONCLUSION 39
20. LIMITATIONS 41
21. RECOMMENDATIONS 42
22. SUMMARY 43
23. QUESTIONNAIRE 44
24. BIBLIOGRAPHY 50
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EXECUTIVE SUMMARY
The research was conducted to find the satisfaction levels of consumers
visiting Cafe nescafeoutlets across Coimbatore. Initially some background
data about the major competitors of Cafe nescafewas collected. The main
sources of information were the internet and British Council Library. This
information proved to be very useful in improving the understanding
about the industry and it also gave an insight on how to go about
preparing the questionnaire. One of the main things that emerged from
the literature review was that Nescafe and coffee and used
interchangeably in our daily lives, and Nescafe is a coffee legend.
The data collected through the questionnaire was analysed using the SPSS
software package. Before analysis the data was converted into a standard
form.
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RESEARCH PROBLEM
To measure the consumer satisfaction of Cafe nescafeacross Coimbatore
RESEARCH OBJECTIVE
1. To understand consumer expectations.
2. To understand the likes and dislikes of consumers among the
present offerings.
3. To identify problem areas in serving the consumers.
DRINKING coffee while hanging out with friends might soon become the
happiest thing to do. Imagine a place where the ambience is comforting
and casual, with some semblance to the legendary European road cafe.
There are trademark white, wooden tables and bright halogens in blue
shades which dot the flaming orange walls. There’s a scrabble board and
books available to keep silent minds busy. The more gregarious are free
to strum the guitar leaning against the corner wall.
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INTRODUCTION
The beginnings of Nescafé can be traced all the way back to 1930, when
the Brazilian government first approached Nestlé. The coffee guru, Max
Morgenthaler, and his team set out immediately to find a way of
producing a quality cup of coffee that could be made simply by adding
water, yet would retain the coffee’s natural flavor. After seven long years
of research in our Swiss laboratories, they found the answer.
The new product was named Nescafé – a combination of Nestlé and café.
We first introduced Nescafé in Switzerland, on April 1st, 1938. For the first
half of the next decade, however, World War II hindered its success in
Europe. Nescafé was soon exported to France, Great Britain and the USA.
Without realising it, American played a key role in re-launching Nescafé on
the continent by virtue of the fact that it was included in their food
rations. Its popularity grew rapidly through the rest of the decade. By the
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1950s, coffee had become the beverage of choice for teenagers, who were
flocking to coffee-houses to hear the new rock ’n’ roll music.
Coffee major Nestle launched its globally popular coffee bars, `Cafe
Nescafe', all over India in the year 1999.
The coffee bars also have a range of cold beverages, including cold coffee,
iced teas and coffee in lemon and strawberry flavours, to begin with.
The first Cafe Nescafe was soft-launched at a hip shopping mall in Pune. It
has for its neighbours, Ms Simone Tata's Westside and the old favourite
shopping spot, Dorabjees. The company’s concept has grown through
franchisees.
Nestle has used the café concept to tap the large `out-of-the-house,
impulse consumption' by urban families that regularly spend time out at
large shopping malls, combining shopping with entertainment. The
company also opened its cafes at places where the hip and the young
crowd hangs out, as also multiplexes.
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Cafe Nescafe is positioned as a premium product by the company. The
company plans to stimulate the coffee market by promoting coffee
drinking as a `with it' thing to do for people across all age groups.
The coffee bars, are also used to increase awareness of Nestle's range of
products with a designated counter which will have on offer its range of
confectionery, tentatively in gift packs.
Globally, the company has a chain of such coffee bars. In the UK, for
instance, they can be found at service stations. The company promotes
the coffee bars through special events and speciality coffee themes.
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KEY FEATURES
To combat the rapid growth in the out of home fresh coffee market, in
1999 Nescafe launched Cafe Nescafe. This builds on the strong loyalty of
the brand which traditionally is viewed as an in-home product.
• Pioneers of the Café
• Essentially a youth oriented brand with majority of its consumers falling
in the 15-29 year age bracket
• Each café, depending upon its size attracts between 400 and 800
consumers daily
• At present it operates 147 cafes across 38 cities
• Plans to operate 200 cafes by March 2020
• It is a place where consumers come to rejuvenate themselves and be
themselves.
• USP of the Brand
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- Affordable Price
- Best Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the
India Barista Championship 2002
- World Class Coffee Experience
Espresso
Strong black coffee ...no frills.
Espresso Americano
Lighter espresso for mellow moods.
Macchiato
Expresso topped with milk foam.
Cappuccino
The hottest selling item,prepared in true Italian style.
Cafe Latte
Espresso with milk. A light coffee.
Chococinno
A sinful combo of chocolate ice & hot coffee.
Cafe Mocha
Hot coffee with a swirl of chocolate.
Irish Coffee
Whipped cream tops the flavour of your choice.
Plunge deeper and discover light espresso.
Nestea (lemon/peach)
Lipton iced tea flavoured with lemon or peach
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Rich strawberry shake. With whipped cream
CONSUMER PROFILE
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Consumers describe Sunrise Coffeeas the place they frequent
most after “home and workplace/college”. It is a place where
they meet friends and colleagues, in groups of 3 or more.
The prices here are perceived to be reasonable and it is a place
where consumers come to rejuvenate themselves and be
themselves rather than a place to be “seen at” vis a vis other
cafes.
MAJOR
COMPETITORS
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BARISTA
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In 2001,the company, had 60 coffee bars in 12 urban centres,
which went up to 80 by March 2002 in 14 cities. The number of
Barista outlets reached 150 by March 2003, in 25 cities - that's a lot
of coffee swirling around!
HOT
COFFEE
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to these countries and, for the second time in its short career of
7 years retained the position as the largest coffee exporter of
India.
Café Coffee Day currently owns and operates 147 cafes in all
major cities in India. It is a part of India's largest coffee
conglomerate named Coffee Day, Rs. 200 crore ISO 9002
certified company. Coffee Day's most unique aspect is that it
grows the coffee it serves in its cafes.
RESEARCH METHODOLOGY
An exploratory research was conducted in order the study the consumer
satisfaction about CAFÉ NESCAFE.
Sample Size
A sample size of 80 respondents was taken for the consumer based
Questionnaire.
The sample selected for consumer-based questionnaire is of 60
respondents.
Research Area
The research was carried out at some of the consumers of CAFE
NESCAFEwithin Coimbatore.
Sources of Data
Primary source: Questionnaire.
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Secondary Sources: Data was collected from the various websites from
the Internet as well Journals of Marketing.
Importance
DATA ANALYSIS
The dominant recalls for the word ‘coffee shop’ is as follows-
24
20
Count
20
14
10 11
3
0 2
Café hanging out chat with friends missing
nescafe coffee others ambience
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The above graph shows that Cafe nescafehas attained enough share in the
mind of the consumers to make Cafe nescafeas the dominant for coffee
shop.
40
39
Percent
35
30
25
20
10
0
once once a week once a fort night missing
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Time of visiting
70
65
60
50
ce
er
nt
P
40
30
20 24
10
11
0
afternoon evening night
Time of visiting
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People accompanying
Cumulative
Frequency Percent Valid Percent Percent
Valid family 5 6.3 6.3 6.3
friends 75 93.8 93.8 100.0
Total 80 100.0 100.0
People consider cafe Nescafe as a place more for fun than for place to
have coffee as a result most of the respondents consider visiting the shop
38
30
Percent
20 21 21
20
10
0
1 person 2 people 3 people more than 3 people
It can be seen from the above graph that most often people come in
groups of 4 or more, but there are considerable respondents coming
alone, as couples and in groups of 3 too.
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Time spend
60
55
50
40
Percent
39
30
20
10
6
0
less than 30 mins 30 mins - 1 hr more than 1 hr
Time spend
The graph depicts that most of the people prefer to spend quite a lot of
time at the store ranging from 30 mins to more than an hour.
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Purpose of visiting
50
40
40
Percent
30 33
20
20
10
0
drinking coffee spending time relaxation others
Purpose of visiting
The graph shows, that the purpose of visiting Sunrise Coffeeis more often
to spend time as compared to drinking coffee. Relaxation, as a purpose,
comes a close second.
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Products consumed in the coffee shop
Snacks
10.8%
Coffee
Cold Beverages
39.2%
19.9%
Pastries
Ice cream
19.3%
10.8%
Coffee is the product consumed most often among the products being
offered followed by cold beverages.
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Freshness of café Nescafe‘s coffee
30
20
20
yes
10 11
10 10
3 3
0 2
4 5 6 7 8 9 10 missing
Freshness of coffee
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Additional product required
missing
1.3%
yes
35.0%
no
63.7%
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First specification of additional product
70
60 61
50
Percent
40
30
20 23
10 13
0 4
more variety in snac others
heavy meals missing
Majority of the respondents did not want additional products, other than
the ones being already offered, to be offered. And those who did want
them primarily wished for more variety in the products.
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1.25% 1.25% 3.75%
1% 1% 4% Flavour offered
extremely dissatisfied
16.25% somewhat dissatisfied
26.25%
16% neither satisfied nor dissatisfied
26%
somewhat satisfied
extremely satisfied
missing
51.25%
51%
5000 - 10000 pm
13.8%
nil
35.0%
above 10000 pm
28.7%
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Taste of coffee
8.75%
18.75% 9%
5.00% extremely dissatisfied
19% 5% somewhat dissatisfied
neither satisfied nor dissatisfied
8.75% somewhat satisfied
9% extremely satisfied
58.75%
59%
The taste of coffee has also found favour with the consumers as has been
reflected by the above graph.
Aroma of coffee
1.25%
2.50%
4%
extremely dissatisfied
15.00% somewhat dissatisfied
neither satisfied nor dissatisfied
31.25% 3.75% somewhat satisfied
extremely satisfied
15% missing
46.25%
46%
The aroma of coffee is in line with the flavour and is positively rated.
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Looks of coffee
3.75%
5.00% 1.25%
5% 1%
extremely dissatisfied
16.25% somewhat dissatisfied
4%
16% neither satisfied nor dissatisfied
somewhat satisfied
extremely satisfied
36.25%
missing
36%
37.50%
38%
The appearance of coffee has also been liked by the consumers and
thus carries a positive image.
64
60
50
Count
40
30
20
16
10
yes no
Time between order and receiving the product
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Break Up of percieved time taken
in service delivery
5-10 mins
15.0%
10-15 mins
7.5%
Most of the respondents feel that the service is quick and efficient as is
evident from above two graphs. Most of the respondents feel that the time
lag is between 5 and 10 mins.
15.0%
40.0%
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Respondents experience about
responsiveness of sales person
extremely satisfied
38.7% somew hat dissa
neither satisfie
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Respondents experience about
appearance and neatness of sales person
extremely satisf ied
extremely dissatisf i
40.0%
3.8%
11.2%
45.0%
1.3%
22.5%
40.0%
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Respondents experience about
courtesy of sales person
extremely satisf ied
33.8%
neither satisfied no
13.8%
The salesmen have come across as being very courteous to all the
consumers.
40
40
Count
30
24
20
9
10 7
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Respondents experience about
complaints handled by the shop
somewhat satisfied
somewhat dissatisfie
17.5%
17.5%
neither satisfied no
37.5%
probably not
11.2%
definitely
47.5%
probably
30.0%
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Respondents probability of recommending
the shop to others
missing
1.3%
definitely
35.0%
definity not
7.5%
probably not
21.3%
probably
35.0%
The probability of the next visit is extremely high among most of the
respondents reflecting a positive over all experience of the consumers
with CAFÉ NESCAFE. This is also seen through the data of the above
graph where the respondents show a positive bend towards
recommending this place to others.
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Ambience * Age Crosstabulation
Count
Age
34 yrs &
16-21yrs 22-27 yrs 28-33 yrs above Total
Ambience much more than i
6 16 22
expected
somewhat more than
10 8 1 19
i expected
about what i expected 7 14 1 4 26
somewhat less than i
2 5 1 8
expected
much less than i
5 5
expected
Total 25 48 2 5 80
Count
Age
34 yrs &
16-21yrs 22-27 yrs 28-33 yrs above Total
Product much more than i
10 9 2 21
quality expected
somewhat more than
6 13 1 20
i expected
about what i expected 7 14 1 2 24
somewhat less than i
2 8 1 11
expected
much less than i
4 4
expected
Total 25 48 2 5 80
People across all age groups are generally satisfied with the product
quality.
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Service quality * Age Crosstabulation
Count
Age
34 yrs &
16-21yrs 22-27 yrs 28-33 yrs above Total
Service much more than i
2 8 1 11
quality expected
somewhat more than
11 8 3 22
i expected
about what i expected 7 23 2 1 33
somewhat less than i
4 7 11
expected
much less than i
1 2 3
expected
Total 25 48 2 5 80
Count
Age
34 yrs &
16-21yrs 22-27 yrs 28-33 yrs above Total
Privacy much more than i
4 6 10
expected
somewhat more than
4 10 3 17
i expected
about what i expected 6 11 1 18
somewhat less than i
4 15 2 21
expected
much less than i
7 6 1 14
expected
Total 25 48 2 5 80
Majority of the respondents in the age group of 22-27 yrs for whom
privacy is one of the attractions are slightly dissatisfied and expect more
on this front.
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FINDINGS/CONCLUSION
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Although quality in terms of taste, aroma & appearance is not an
issue, a majority feel that quantity offered is not commensurate
with the price they pay and hence is not value for money. Because
today consumers have a chance to make comparisons in the
industry the general feeling is that Sunrise Coffeecharges
unnecessary premium for its brand.
Although consumers are fairly satisfied with the present level of the
service there is still scope for improvement to ensure complete
consumer satisfaction. Apart from the products offered consumers
also foresee a coffee shop providing services like free internet, bill
payment through credit cards, more working hrs. And quiet corners
and in turn offering privacy.
Consumers who frequent Sunrise Coffeefor the pleasant
atmosphere if offers, are satisfied with the ambience at the coffee
shop especially because of the hygiene and cleanliness maintained
at the shop.
As in service industry repeated visits and referrals to the shop are
considered as an instrument for measuring satisfaction, it can be
safely concluded that consumers, on the whole, are fairly satisfied
with the Sunrise Coffeecoffee shop.
SUNRISE COFFEEso far has been delivering at the expected service
levels. But they have not been successful in offering beyond
expectations which in fact is a key to consumer delight.
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LIMITATIONS OF THE
PROJECT
Limited Sample Size
Coimbatore
Time constraint
Respondent biasness
RECOMMENDATIONS
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Cabin type sitting arrangement could be provided to offer more
privacy
Prices of items with less food cost and more margins could be
lowered slightly, to make them fast moving items.
Ambience of most outlets needs to be worked upon.
Service time to be reduced by doing maximum mis-en-place.
Offer more discounts and offers to attract consumer.
Start concept of economeals or “buy two get one free”
SUMMARY
Having coffee while freaking out with friends has become a fad. The
concept has come to India from Europe where road side café’s are a part
of day to day life. Coffee shops in India were pioneered by Barista Coffee
house, followed by café coffee day and café Nescafe. Sunrise
Coffeeopened in India in 1999. The project was undertaken to find the
consumer satisfaction levels for Sunrise Coffeeacross the city of
Coimbatore.
After conducting a pilot study, the opinion was that Sunrise Coffeehas top
mind share amongst coffee lovers in Coimbatore. But after completion of
the project some startling facts were unearthed. For example respondents
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who preferred Sunrise Coffeepreferred its coffee more for its quality and
freshness and came to visit the coffee shop for passing time with friends
rather than consuming coffee. It was observed that majority of the
consumers were in the age group of 22-27yrs who prefer spending their
days off from their daily schedules with friends.
QUESTIONNAIRE
CONCEPT OF COFFEE
1. Do you like the coffee?
□ Yes □ No
_______________________________________________________________________
_____________________________________________________________________
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□ Once □ Once a week □ Once a fort-night
7. On an average how much time do you spend in the coffee shop in one visit:-
PRODUCT RELATED
9. Which products do you consume in a coffee shop?
10. If it’s coffee, then on a scale of 10 how would you rate the freshness associated
after consuming coffee.
10
ٱYes ٱNo
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_
13. How much satisfied are you with various properties / qualities of the products
14. Do you feel that the quantity provided is value for money?
□ Yes □ No
SERVICE RELATED
15. Do you think the time between placing the order and receiving the product/service
is too long?
□ Yes □ No
18. Do you want any additional service to be offered? (if any, please specify)
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___________________________________________________________________
_
19. Rate the following products/services according to your preference for them, if they
are offered by Barista (1=most important, 5=least important)
1 2 3 4 5
a) Free internet
b) Tea
c) More outlets
d) 24 hrs working
e) Quiet corners
f) Payment through
Credit cards
SALES PERSONNEL
20. Rate your experience about the sales services in the coffee shop
a) Friendliness of sales
reps.
b) Responsiveness
d) Communication skills
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e) Courtesy
a) fixtures / furniture
b) display
d) store timing
e) seating arrangement
22. How was your experience during your first visit (on the following factors)?
a) Product Quality
b) Service Quality
c) Ambience
d) Privacy
23. Are you satisfied with the way the complaints are handled by the coffee shop?
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coffee shop in next
one month
b) your recommending
the coffee shop
to others.
CONSUMER PROFILE
25. Age :
□ 16- 21 yrs
□ 22 - 27yrs
□ 28 -33 yrs
□ 34 & above
26. Income
27. Gender
□ Male □ Female
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BIBLIOGRAPHY
INTERNET:
www.indiainfoline.com
www.economictimes.com
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www.nescafe.co.in
www.cafecoffeeday.com
www.barista.co.in
www.google.com
www.businessline.com
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