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Introduction
Product Type
Instant Cofee
Owner
Nestle
Country
Switzerland
Introduced
1938
Markets
Worldwide
Sales
$9.8 Billion
Brand value
$17.3 Billion
Website
www.nescafe.com
Source: http://www.forbes.com/companies/nescafe
Brand Perception
Nescafe logotype was always the same since its origin. The
logotype borrowed the same Nestl format, and the word Nescafe
is a combination of the first three letters of Nestl and caf which
is coffee in Portuguese.
The symbol added to convey the brand meaning was the red
mug. Most commercials scenes show someone holding the red
mug with the Nescafe logotype written in the vertical position.
Probably the red color of the mug was chosen to emphasize the
energy of the drink, since coffee is a stimulating drink and red is
perfect to describe this state of mind. Therefore, the semiotics
triangle would display on the sign side, the red mug, on the object
side, the granulated instant coffee, or the product itself, and on
the interpretant side, the wellness state of a good cup of coffee.
47%
45%
40%
30%
Market Share
20%
8%
10%
0%
Nescafe
Bru
others
http://business.mapsofindia.com/top-brands-india/top-coffee-brands-in-
22.7
16.3
15.00%
10.00%
5.00%
3.4
1.9
2.5
Market Share
2.3
0.00%
http://www.statista.com/statistics/323254/global-retail-coffee-market-share-bycompany/
NESCAFE
Nes means Miracle caf coffee;
miracle with coffee
Product Range in India:
NESCAFE - INDIA
NESCAF Classic a 100% natural coffee
NESCAF Cappuccino-a range of delicious foaming mixes available in
3 delightful flavors Cappuccino, Vanilla Latte and Choco Mocha.
NESCAF Sunrise Premium-Handpicked Arabica and Robusta beans
that are expertly roasted and granulated to give you richer aroma and a
captivating coffee experience. (Coffee: Chicory = 70:30)
NESCAF Sunrise-A special blend of select Robusta coffee beans are
specially roasted to give you great, stimulating coffee taste and aroma.
(Coffee: Chicory = 60:40)
NESTEA ICED TEA- A special blend of natural tea and natural fruit
flavor enriched with the goodness of Vitamin C. Available in Lemon and
NESCAFE
Nescafes Aim
We meet the needs of the present without
compromising the ability of future generations to
meet their own needs.
NESCAFE
It also comes in varieties such as NESCAF Protect
and NESCAF Green Blend, a new type of coffee,
which contains high levels of naturally occurring
polyphenol antioxidants.
All in all, Nestl is investing CHF 500 million in
coffee projects for the ten years (2011-20).
This includes CHF 350 million for the NESCAF
Plan and builds on the CHF 200 million investment
in coffee projects over the past ten years.
Around 4,600 cups of NESCAF are consumed
every second.
SWOT Analysis
Strengths
Strong brand name as it is associated
with Nestle
Innovation
Ability to penetrate tea loving market
Products diversified into many flavors
Promotion
Weakness
People avoid caffeine if they are
health conscious
Nescafe is known to be the choice of
common man and those pose
attractive to the sophisticated palate
Usage rate low in tea loving country
like India.
Opportunity
Reduce their price according to the
places they are selling their products
Expand their business into the rural
areas
Increase and improvise the
distribution channels in Rural areas
Highlight health benefits of Coffee as
a part of Marketing campaigns to
gain more trust and loyalty in the
brand
Threats
Brus marketing and expansion strategies pose
a threat to the market holding of Nescafe in
India
Competitors may reach the rural Indian market
which is still untapped before Nescafe does.
Competition from beyond hot drinks the
expansion and diversification of soft drinks,
which are effectively targeting trends towards
health and convenience, pose a notable threat
to Nestl's hot drinks products.
Many people avoid coffee due to their health reasons
Market Details
Segmentation (pan
India)
Geographic
Nescafe has divided the country into four segments
Southern, Northern, Eastern and Western
The Southern Segment consumes the most amount of
Coffee and prefers hard and roasted coffee.
In Northern region, Nescafe instant coffee is
consumed in higher quantities.
Demographic
Nescafe has tried to segment every age group, families,
region, gender and different socio-economic.
Several Potential
Target
Segments
Segment-1
Geographic
Density: Urban
Demographic
Occupation: Students
Age: 15-23 years
Psychographic
Lifestyle: Busy
Personality: Ambitious, outgoing
Occasion: Seasonal (at exam times)
Benefits: Convenience
User Status: Potential user, regular user, first-time user
User rate: Light user
Loyalty Status: Medium
Segment-2
Geographic
Density: Urban
Demographic
Occupation: Professionals
Age: 23-31 years
Psychographic
Lifestyle: Western
Personality: Inspired, outgoing
Occasion: In the mornings
Benefits: Quality
User Status: Regular user
User rate: Medium user
Loyalty Status: None, medium, strong
Segment-3
Geographic
Density: Urban
Demographic
Occupation: Managers
Age: 46-60 years
Psychographic
Lifestyle: Hard-worker
Personality: Ambitious
Occasion: Regular
Benefits: Speed
User Status: Regular user
User Rate: Heavy user
Attitude toward product: Indifferent
Target Market
When these segments are examined,
it is seen that the second oneis the
best potential target market.
Whose focus is on urban young
professional cosmopolitans with
contemporary lifestyles.
Taste, aroma of the coffee and quality is
the important element for them.
Nescaf emphasizes on keeping them
active throughout the day.
Target
NESCAF is available around the
world in different blends and
flavours, which are adapted to local
taste.
NESCAF comes in different sizes
and at different price points
From our affordably priced products
to premium products such as
NESCAF Gold or NESCAF Dolce
Gusto
Nescafe Classic is
positioned as 100%
Pure Instant Coffee
Nescafe Cappuccino is
being positioned as A true
Caf
The Nescafe
Moments
Part-2
Featuring: Deepika Padukone , Karan Johar and
Purab Kohli
Tagline: One Nescafe Many coffee
Part-2
TG: Coffee drinking youth/caf goers
Positioning: One can do wonders with
coffee and prepare caf like coffee at home
Competitors: Cafes/coffee lounges
My First Cup
My First cup
Featuring: Deepika Padukone , Karan Johar ,
Vir Das and Purab Kohli
Product: Nescafe My First Cup
Tagline: Its time you started
TG: Non Coffee drinkers/ occasional drinkers
Positioning:Urging consumers to try coffee
by positioning it as the preferred drink of
urban India
Competitor: primarily tea drinkers/ beverage
consumers.
Communication
Slogan:
100% Pure
Remove any shadow of doubt fromthe minds of
the consumer when they go to purchase coffee
from a local Kirana store.
Positioning:
Morning drink for the spirited soul
The ad very clearly depicts the usage and the
time of usage for the product
One very noticeable thing about the ad is that
most of the jingle in the background is in
English, thus ruling out the rural sector
consumers totally
Slogan:
Coffee at its best
This advertisement can also be seen as
persuasion to increase the usage of
the product
Positioning:
Beverage for any moment
Use Nescafe anytime in your daily
schedule
Slogan:
Behtereen Coffee, Behtereen Daam
Which means excellent coffee at
excellent price
This slogan is in Hindi compared to the
previous ads
Positioning:
This objective of this advertisement was
to generate awareness about a 1
rupee sachet of Nescafe being
available.
Slogan:
Switch on the best in you
Daring one to take on challenges and
discover ones new self
Positioning:
The advertisement positioned the
product as the drink that gives
strength for anychallenge
The coffee that instills confidence in you.
Social Media
Objective
The main objective of the campaign is TO IMPROVE
THE ONLINE PRESENCE OF THE NESCAFE.
Facebook
Facebook page: 15,226,512 likes with
2,80,142 people talking about it
High engagement rate
Presence of a lot of fake fans
No emotional connection with the brand in terms
of engagement
Lack of content that holds Share value
Lack on campaigns infusing people to
participate
Spammy: Too many posts around like it , hit it ,
tag your friends
Pinterest
With more than 509 followers,Nescafe is
doing a average job on Pinterest
Filled with visually stimulating images, the
page is a treat for any coffee fan.
Item level Promotions
No emotional connection with the brand in
terms of engagement
Lack on campaigns infusing people to
participate
Twitter
Cant imagine a brand not utilizing the the
power of twitter. More so when they have a
good following of 27,100.
It seems their goal is to copy-paste certain
tweets between 9 AM to 2 PM and nothing
else.
There are no conversations.
Apart from regret tweets addressing
complaints from contest winners who have
not received their prizes even after 45
days!
And there are so many coffee lovers but
YouTube
Some of their latest videos have got some
good number of views
High engagement rate
Emotional connection with the brand in terms
of engagement
Frequent Postings of videos
Use of contents that holds Share value
HD videos
Videos of 1-2 min time duration