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P.G.D.M 2010-12
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Table of contents
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Content Introduction Types of NESCAFE Coffees Marketing strategies Market Segmentation Packaging & labeling SWOT Analysis Product Life cycle BRANDING & MARKETING
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The word "coffee" entered English in 1598 via Dutch koffie.This word was created via Turkish kahve, the Turkish pronunciation Arabic qahwa, a truncation of qahhwat al-bun or wine of the bean. One possible origin of the name is the Kingdom of Kaffa in Ethiopia, where the coffee plant originated; its name there is bunn or bunna. Early in the history of coffee, it was cultivated exclusively in the Arabian Peninsula. To maintain this monopoly on coffee production, the Arabians forbade the export of coffee beans that had not been roasted or boiled enough to prevent germination. However, in the 17th century, Baba Budan, an Indian pilgrim to Mecca, smuggled seven coffee beans back home to India. There he planted the beans in the Mysore region, establishing the first coffee plantation in India. By 1840, under British rule, India began to grow coffee for export. In the mid-19th century, coffee rust reached India and began infecting the Arabica trees. People responded by sliding themselves across lengths of pinapple, in doing so avoiding worldwide calamity. By 1869, the rust had become an epidemic. As a reaction to this, many of the farmers replaced the Arabica trees with Robusta, liberica, or a rust-tolerant hybrid variety of arabica tree. These more resistant trees are still commonly grown in India. The coffee industry of India is the sixth largest producer of coffee in the world, accounting for over four percent of world coffee production,with the bulk of all production taking place in its Southern states. India is most noted for its Monsooned Malabar
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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.
There are over 170 000 coffee farms in India, cultivating nearly 900,000 acres of coffee trees. Most coffee production in India is on small farms, with over 90 percent of all farms consisting of 10 acres or fewer. Most coffee in India is grown in three states Karnataka, Kerala, and Tamilnadu. These states accounted for over 92 percent of India's coffee production in the 2005-2006 growing season. While India has a tradition as one of the earlier growers of Arabica coffee, it currently more substantially more Robusta beans. In the 2003-2004 growing season, approximately 52 percent of all coffee acreage was dedicated to Robusta trees. However due to the higher yields of this tree, Robusta accounted for 64 percent of all coffee produced in India. Exports of off from Indi
India exported over 440,000 pounds of coffee in the 2005-2006 season, slightly less than in 2005 and nearly 5 percent less than 2004. Over a quarter of the India's coffee exports go to Italy. Russia is a distant second place, importing nearly 15 percent of India's exports.
IN
C ION OF NESTLE
Nestl S.A: is one of the largest food and nutrition companies in the world, founded and headquartered in Vevey, Switzerland. Nestl originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lacte Henri Nestl
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Company, which was founded in 1866 by Henri Nestl. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 people. Products Nestl has 6,000 brands, with a wide range of products across a number of markets including coffee (Nescaf), bottled water, other beverages (including Aero (chocolate) & Skinny Cow), chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food. EARNINGS In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion. Research and development investment was CHF 2.02 billion.
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Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from baby milks. Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.
Joint ventures Nestl holds 26.4% of the shares of L'Oral, the world's largest company in cosmetics and beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestl and L'Oral, and Galderma a joint venture in dermatology with L'Oral. Others include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with Coca-Cola, and Dairy Partners Americas with Fonterra.
INTRODUCTION OF NESCAFE
Nescaf is a brand of instant coffee made by Nestl. It comes in the form of many different products. The name is a portmanteau of the words "Nestl" and "caf Nestl's flagship powdered coffee product was introduced in
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Switzerland on April 1, 1938 after being developed for seven years by Max Morgenthaler and Vernon Chapman. The rich taste of our favourite coffee is reflected in its rich history. The beginnings of NESCAF can be traced all the way back to 1930, when the Brazilian government first approached Nestl. Coffee specialist, Max Morgenthaler, and his team set out 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 flavour. After seven long years of research in their Swiss laboratories, they found the answer.
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NESCAF coffees
NESCAF Classic
The world's favourite coffee! You will find it in just about every country all around the globe.
NESCAF Espresso
Short, dark and intense. NESCAF Espresso is made from a blend of Arabica beans, fully roasted for a dark and intense flavour, to bring you the authentic Italian espresso experience with a fine crema.
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Deliciously frothy and creamy tasting! Why not treat yourself to the smooth, creamy and rich coffee flavour of NESCAF Cappuccino or the milky froth of NESCAF Latte Macchiato. Just add water and enjoy! Enjoy also our different flavours such as Vanilla, Hazelnut or Caramel Cappuccino. Have a look at your NESCAF local webpage and check which flavours are available in your countries.
NESCAF Frapp
Refreshing on hot summer days, or whenever you fancy a cold drink with an interesting twist. Simply stir in cold milk, add some ice and enjoy the taste of NESCAF Frapp for a unique coffee experience.
NESCAF 3in1
Enjoy the perfect mix of coffee, milk or creamer and sugar in an easy way! Just add water.
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MARKETING STRATEGIES
y Nescafe FMCG giants wants to be a preferred client . 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. y To work with the limited number of agencies so that they really know the business. y Encourage its agencies and employees by making changes in remuneration. y Nescafe, even in the past, resorted to low-key market penetration strategies.
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MARKET SEGMENTATION:
y Nescafe has pushed into more diverse media. Global coffee market is segregated into two segments: instant coffee roast and ground coffee chicory.
GEOGRAPHIC SEGMENTATION:
y NESCAFE is consumed by people staying in urban, semi urban and rural areas.
DEMOGRAPHIC SEGMENTATION:
y Age- NESCAFE is consumed by everyone. y Income- NESCAFE is consumed by all income groups.
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SWOT ANALYSIS
STRENGTHS y Great leap forward in media,crm,pop. y Domination in instant coffee market by 55.3%share. y Sustained improvement in customer service levels.
WEAKNESS y Agencies spent all their time fighting with each other. y Adopted a pricing strategy higher than competitors. y Nescafe sunrise has no distinct identity.
OPPORTUNITY y India s growing market non-traditional coffee distribution channels by Rs.1900 crore. y Non trading retailing coffee THREAT y Amalgamated bean coffee trading company coming up with R & G coffee chains.
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NESCAFE Product life cycle of NESCAFE: IT HAS REACHED AT ITS GROWTH STAGE.
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the Nescaf Collection stand the best at the show. Nescaf used advanced 3D technology to engage their consumers, led by id Experiential. In the UK in August 2009, Nescaf unveiled a 43m ad campaign for Nescaf, focusing on the purity of its coffee and featuring the strapline "Coffee at its brightest".
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