NESCAFEA PROJECT OF MARKETING MANAGEMENT ON NESCAFE Prepared By Roll no Submitted To Submitted On : : : : Pallavi R. Vats 10116 Prof. Bhavesh Vanparia 12th April , 2011 P.G.D.M 2010-12 Tolani Institute of Management Studies Page 1 3-6 7-9 10 11 12 13 14 15 Tolani Institute of Management Studies Page 2 .NESCAFE Table of contents Sr.No 1 2 3 4 5 6 7 8 Content Introduction Types of NESCAFE Coffees Marketing strategies Market Segmentation Packaging & labeling SWOT Analysis Product Life cycle BRANDING & MARKETING Page No. NESCAFE INTRODUCTION OF COFFEE INDUSTRY The word "coffee" entered English in 1598 via Dutch koffie. smuggled seven coffee beans back home to India. Early in the history of coffee.This word was created via Turkish kahve. The coffee industry of India is the sixth largest producer of coffee in the world. By 1869. However. In the mid-19th century. the Turkish pronunciation Arabic qahwa. To maintain this monopoly on coffee production. liberica. By 1840. an Indian pilgrim to Mecca. Baba Budan. or a rust-tolerant hybrid variety of arabica tree. in doing so avoiding worldwide calamity. establishing the first coffee plantation in India. India is most noted for its Monsooned Malabar Tolani Institute of Management Studies Page 3 . People responded by sliding themselves across lengths of pinapple. As a reaction to this.with the bulk of all production taking place in its Southern states. the Arabians forbade the export of coffee beans that had not been roasted or boiled enough to prevent germination. where the coffee plant originated. accounting for over four percent of world coffee production. India began to grow coffee for export. One possible origin of the name is the Kingdom of Kaffa in Ethiopia. There he planted the beans in the Mysore region. the rust had become an epidemic. in the 17th century. it was cultivated exclusively in the Arabian Peninsula. many of the farmers replaced the Arabica trees with Robusta. a truncation of qahhwat al-bun or wine of the bean. These more resistant trees are still commonly grown in India. under British rule. its name there is bunn or bunna. coffee rust reached India and began infecting the Arabica trees. and the Farine Lactée Henri Nestlé i I stitut t tu i s P 4 . which was established in 1866 by brothers George Page and Charles Page. Kerala. Most coffee in India is grown in three states Karnataka. Exports of off from Indi India exported over 440. slightly less than in 2005 and nearly 5 percent less than 2004. it currently more substantially more Robusta beans. Most coffee production in India is on small farms. with over 90 percent of all farms consisting of 10 acres or fewer. While India has a tradition as one of the earlier growers of Arabica coffee. and Tamilnadu. However due to the higher yields of this tree. These states accounted for over 92 percent of India's coffee production in the 2005-2006 growing season.A: is one of the largest food and nutrition companies in the world. In the 2003-2004 growing season. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company. There are over 170 000 coffee farms in India. Robusta accounted for 64 percent of all coffee produced in India. cultivating nearly 900.000 acres of coffee trees. Switzerland.000 pounds of coffee in the 2005-2006 season. Russia is a distant second place. approximately 52 percent of all coffee acreage was dedicated to Robusta trees. founded and headquartered in Vevey. IN C ION OF NESTLE Nestlé S.NE FE v e y It is be ieve that c ee has bee c tivate in India longe than any he e outside of the Arabian Peninsula. Over a quarter of the India's coffee exports go to Italy. importing nearly 15 percent of India's exports. seasonings. Others include Cereal Partners Worldwide with General Mills. 12% from chocolate.NESCAFE Company. performance and healthcare nutrition. with a wide range of products across a number of markets including coffee (Nescafé). confectionery and pet food. 16% from Asia. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestlé and L'Oréal. other beverages (including Aero (chocolate) & Skinny Cow). the company operates in 86 countries around the world and employs nearly 283. chocolate. 18% from ready-prepared dishes and ready-cooked dishes. bottled water.6 billion and net profit was CHF 10.43 billion. Research and development investment was CHF 2. The company grew significantly during the First World War and following the Second World War.000 brands. consolidated sales were CHF 107. Today. 26% from dairy and food products. 31% from Americas (26% from US). and Galderma a joint venture in dermatology with L'Oréal. The name is a portmanteau of the words "Nestlé" and "café Nestlé's flagship powdered coffee product was introduced in Tolani Institute of Management Studies Page 5 .000 people. infant foods. y y Sales by activity breakdown: 27% from drinks. Sales by geographic area breakdown: 32% from Europe. 11% from pet products.4% of the shares of L'Oréal. frozen and refrigerated foods. which was founded in 1866 by Henri Nestlé. eventually expanding its offerings beyond its early condensed milk and infant formula products. ice cream.02 billion. EARNINGS In 2009. 6% from pharmaceutical products and 2% from baby milks. Products Nestlé has 6. the world's largest company in cosmetics and beauty. 21% from rest of the world. It comes in the form of many different products. Joint ventures Nestlé holds 26. and Dairy Partners Americas with Fonterra. INTRODUCTION OF NESCAFE Nescafé is a brand of instant coffee made by Nestlé. Beverage Partners Worldwide with Coca-Cola. In 1994 the full aroma process was invented to make the unique quality and character of NESCAFÉ even better. who were flocking to coffee-houses to hear the new rock n roll music. After seven long years of research in their Swiss laboratories. Its popularity grew rapidly through the rest of the decade.Today. By the 1950s. NESCAFÉ now produces many different types Tolani Institute of Management Studies Page 6 . The rich taste of our favourite coffee is reflected in its rich history. World War II hindered its success in Europe. on April 1st. American forces played a key role in re-launching NESCAFÉ in Europe by virtue of the fact that it was included in their food rations. NESCAFÉ was first introduced in Switzerland. however. 1938 after being developed for seven years by Max Morgenthaler and Vernon Chapman. NESCAFÉ was soon exported to France. they found the answer.NESCAFE Switzerland on April 1. when the Brazilian government first approached Nestlé. our NESCAFÉ coffees are available to suit all tastes and in a wide range of packaging. coffee had become the beverage of choice for teenagers. The beginnings of NESCAFÉ can be traced all the way back to 1930. Great Britain and the USA. In 1965 NESCAFÉ continued to bring you the world s best cup of coffee by introducing freezedried soluble coffee with the launch of Gold Blend. Max Morgenthaler. For the first half of the next decade. and his team set out to find a way of producing a quality cup of coffee that could be made simply by adding water. Quality guaranteed since 1938! The new product was named NESCAFÉ a combination of the Nes-root of Nestlé and the word café. 1938. yet would retain the coffee s natural flavour. Coffee specialist. are gently roasted to develop a coffee alive with finesse. NESCAFÉ Gold Range The premium choice from NESCAFÉ for your special cup of coffee every day. to bring you the authentic Italian espresso experience with a fine crema. dark and intense. NESCAFÉ Pre ium Range NESCAFÉ Alta Rica is a special blend of exclusive Latin American Arabicas chosen for their full flavour. chosen for their full depth of refreshing flavours.Gold Mild . and dark roasted to develop the bold. chosen for their aromatic tones and ligh t roasted to retain their aroma while developing the smooth flavour. full-bodied taste. NESCAFÉ Espresso is made from a blend of Arabica beans.Gold . Tolani Institute of Management Studies Page 7 . NESCAFÉ Cap Colombie is made exclusively from Colombian Arabica beans. NESCAFÉ Kenjara . There are three different variations: .NESCAFE NESCAFÉ coffees NESCAFÉ Classic The world's favourite coffee! You will find it in just about every country all around the globe. fully roasted for a dark and intense flavour.Gold Decaf/Decaff NESCAFÉ Espresso Short.Kenyan and Costa Rican Arabica coffee beans. NESCAFE NESCAFÉ Decaf/Decaff NESCAFÉ DECAFDecaff gives you all the great taste and rich aroma you'd expect from NESCAFÉ but without the caffeine. NESCAFÉ 3in1 Enjoy the perfect mix of coffee. or whenever you fancy a cold drink with an interesting twist. Have a look at your NESCAFÉ local webpage and check which flavours are available in your countries. NESCAFÉ Frappé Refreshing on hot summer days. Latte Macchiatos) Deliciously frothy and creamy tasting! Why not treat yourself to the smooth. add some ice and enjoy the taste of NESCAFÉ Frappé for a unique coffee experience. NESCAFÉ Specialities range (Cappuccino. Just add water and enjoy! Enjoy also our different flavours such as Vanilla. milk or creamer and sugar in an easy way! Just add water. Simply stir in cold milk. Hazelnut or Caramel Cappuccino. creamy and rich coffee flavour of NESCAFÉ Cappuccino or the milky froth of NESCAFÉ Latte Macchiato. Tolani Institute of Management Studies Page 8 . NESCAFÉ and KRUPS have joined forces and launched NESCAFÉ Dolce Gusto. multi -beverage system combining a stylish high pressure machine with smart coffee capsules delivering high quality beverages from Espresso to Cappuccino and Latte Macchiato. a unique. Tolani Institute of Management Studies Page 9 .NESCAFE NESCAFÉ Dolce Gusto NESCAFÉ Dolce Gusto available in 15 countries. y Encourage its agencies and employees by making changes in remuneration. y To work with the limited number of agencies so that they really know the business. y Strike a balance between tapping into local knowledge of markets and disseminating global practises. y Communication efforts are directed effectively and with maximum return on investment. Tolani Institute of Management Studies Page 10 . even in the past.NESCAFE MARKETING STRATEGIES y Nescafe FMCG giants wants to be a preferred client . resorted to low-key market penetration strategies. y Nescafe. DEMOGRAPHIC SEGMENTATION: y Age.NESCAFE is consumed by all income groups. Global coffee market is segregated into two segments: instant coffee roast and ground coffee chicory.NESCAFE is consumed by everyone.NESCAFE MARKET SEGMENTATION: y Nescafe has pushed into more diverse media. semi urban and rural areas. y Income. Tolani Institute of Management Studies Page 11 . GEOGRAPHIC SEGMENTATION: y NESCAFE is consumed by people staying in urban. Labeling: Consumers are becoming increasingly health conscious. For some it's the best SUBSTITUE for chai While for some it's a way of getting charged whenever they are low on energy. from the rich to the poor. for others it is a complete wholesome Meal. nutrition facts. Every packet of NESCAFE has information about the ingredients used. living In cities & in villages. both packaging & labeling play an important role in attracting customers both visually & psychologically. mailing & emailing addresses asking for feedback.NESCAFE PACKAGING AND LABELING Packaging: The time spent by a customer for picking up a product from a retail outlet is a few seconds. phone number. Many competitors have tried to sell their lower quality products by copying the packaging. In this. All this along with the brand name and directions are printed in Hindi too. For NESCAFE: NESCAFE was initially recognized by its COFFEE MUG WITH BROWN COLOUR. therefore a package should appeal to a customer within such a small interval of time. Due to increasing competition . packaging date etc. Tolani Institute of Management Studies Page 12 . While some have it for breakfast. So it is essential to display the contents of every product. Consumer psyche and NESCAFE NESCAFE is consumed by people of all ages. NESCAFE is available in small sachets comes in different sizes. Tolani Institute of Management Studies Page 13 . y Sustained improvement in customer service levels.crm. y Non trading retailing coffee THREAT y Amalgamated bean coffee trading company coming up with R & G coffee chains. OPPORTUNITY y India s growing market non-traditional coffee distribution channels by Rs. y Nescafe sunrise has no distinct identity.3%share. WEAKNESS y Agencies spent all their time fighting with each other. y Adopted a pricing strategy higher than competitors.NESCAFE SWOT ANALYSIS STRENGTHS y Great leap forward in media.pop. y Domination in instant coffee market by 55.1900 crore. Nestlé (owners of the Nescafé brand) introduced a new brand in the United States called Taster's Choice. etc. The machines are now sold in more than 15 countries worldwide.NESCAFE Product life cycle of NESCAFE: IT HAS REACHED AT ITS GROWTH STAGE. Gold Blend and Blend 37 freeze-dried coffees. which supplanted Nescafé for many years. The system allows consumers to make various styles of coffees themselves (Cappuccino. Later. in the UK. Latte Macchiato. instead of instant coffee.). It is sold in US supermarkets such as Safeway in both glass and plastic packaging. In 2006. In the United Kingdom. Espresso. Other marketing activity included Experiential Marketing/Relationship Marketing. hot chocolate and cold drinks can be prepared with the machine. Lungo. BRANDING AND MARKETING Nescafé is a brand within Nestlé. While the Nescafé brand was created for soluble coffee. it has subsequently been used as an umbrella brand on a number of instant coffee products. Unlike other Nescafé products. Additionally. Nescafé launched the new coffee machine system "Dolce Gusto" ("sweet taste" in Italian). the Nescafé name was used on its products up until the 1960s. In the US. the company reintroduced the Nescafé brand in the US. A novelisation of the same name written by Susan Moody (under the pseudonym Susannah James) was released in the same year. a television advertisement campaign starring Anthony Head and Sharon Maughan ran in 12 instalments between 1987 and 1993. In 2003. most Dolce Gusto beverages use roasted and ground coffee. Nescafé can be traced back to the 1930s. which led Nescafé to become the headline sponsor of Good Food show 2008 at Birmingham NEC as part of their campaign to drive awareness of the increased Nescafé collection. including. and the product is now known as Nescafé Taster's Choice. 95% of consumers at this popular event rated Tolani Institute of Management Studies Page 1 . The first 11 episodes were released as a promotional compilation video called Love Over Gold in 1993. NESCAFE the Nescafé Collection stand the best at the show. Tolani Institute of Management Studies Page 15 . In the UK in August 2009. led by id Experiential. Nescafé unveiled a £43m ad campaign for Nescafé. focusing on the purity of its coffee and featuring the strapline "Coffee at its brightest". Nescafé used advanced 3D technology to engage their consumers.
Report "Project of Marketing Management on Nescafe"