Download - Nescafe Report (collected)
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INTRODUCING COFFEECULTURE IN BANGLADESH:THE
TEAM OFFLINEFableeha BushraRubyat Tasfia RaNishadul Haque N Aanisha Mahmoo WAY
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Mother Company Starin B994
Factory
located in GAZPeo dire65
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Bangladesh has never been kind tothe coffee industry as far as
popularity or sales are concerned
Since the British rhas been predomitaste of tea as the required for manybreakfast, with the
as the beverage fo
“The ‘real taste’ of coffee is rather appalling” - Sanjeeda Nusrat, Brand Man
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’
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2. industry and
competitor analysis
“ ”
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2. industry and
competitor analysis
Bru, MacCoffee, Coffee CrMaxwell House and Bean C
94%
6%MARKET SHARE
Nescafé
Others
Currently, Nescafé has a busaround 3 tons annuall
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DEGREE OF BUYERINVOLVEMENT
INEXPENSIVE therefore, habi
BUBEHA
shelve stocking
reminder ads
MARKETINGSTRATEGY
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WHILE BUYING
perceived brand difference…
Since coffee consumers do not makeheavy decisions about what brand tobuy, non-stop ads serve the purposeof creating
BRAND FAMILIARITYrather than BRAND CONVICTION.
Accordingly, if this pfollowed by a purcha
is likely to turn into adue to the reason thatsuitable to have an adtowards it.
As a result, consumeto habitual buying bthey keep buying Neowing to habit form familiarization or a r
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WHILE CONSUMING
perceived brand difference…
Significant perceived branddifferences: Consumers could buyNescafé without much evaluationbut they evaluate the quality of coffee while consumption.
According to product’s strength ortaste, next time, a consumer mayswitch his/her brand prefer andcan purchase one of thecompetitors of Nescafe Classic.
they may switch branNescafé Classic andswitching occurs becseek variety and wandifferent coffee. Ther
consumers act accord seeking buying beha
For instance,
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TARGETTING A SEGMENT
The focus is urban yocosmopolitans withlifestyles.
Taste and aroma of the coquality is the important eNescafé emphasizes keepthroughout the day.
ND SEGMENT is
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…
The introduction of coffee in a j
initially a failure in Bangladesh. Pricpremium and sold in only familyformerly, the jar coffee had almost no mshare during the times of introduction Bangladeshi market. A handful of conswho were passionate about coffee
purchased the jars and the company clisted the launching of Nescafé as venture.
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…
Nescafé gained some of the expectedmarket after the launching of the mini-jars,but yet it lacked a strong customer base toensure a good prospect for the future of thecompany. The target market of coffee wasnever the low income groups, as thepositioning of coffee is to the youth or to theupper societal class. In order to penetratethe market, the primary objective of Nescaféwas to get the people used to the taste of coffee. Because tea is the main competitor of coffee and the prevalent beverage, theobjective could not be accomplishedovernight.
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The taste of ‘real’ coffee is rathnormally practiced tea drinks uand drunk all over the counvending-machine idea was astrategy for Nescafé, the taste olightened with a lot of milk andrecipe to deem acceptable bypublic.
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Otherwise known as the on-the-go coffeepack, the recipe of this pack is also exactlythe same as of the vending-machines. Theonly value migration that occurs here is theidea of do-it-yourself for the customers, tohave a significant increase in theirinvolvement.. The target population agesfrom 17 to 20 years, which is the adaptiveage for tea/coffee drinking as considered byNescafé. This market is desirable in order tobe tapped by Nescafé as it is believed thatonce a customer becomes brand loyal toNescafé, s/he provides a lifetime of revenuesto the company.
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Nescafé uses a premium pricing strategy tosignal its quality and strong brand attributes.The pricing strategy is different for each packsize.
Package pricing is done for Nescafé ClassicJar, Nescafé “Bondhu” Classic Sachet andNescafé 3 in 1 Coffee.
Other than these three products, Nescafé has
some other products like Coffee mate,Nescafé 200 gm pillow pouch etc. Theseproducts are imported and are available in bigchain stores.
Nes460Tk
Nes260Tk
Nes135Tk
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Nesca8
Tk
Nescafé 1.8 gm Bondhu Pa5
Tk
Nescafé 0.9 gm sachet 2Tk
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pricing strategies…
VALUE ADDED PRICING
This involves attracting value-added service to differentiate thecompany’s offers and to supportcharging higher prices.
The price of Nescaféhigher/cup price thanNescafé pack.
Yet people tend to buy i1 pack is very populyoung generation as it i
without any hassle, andvalue to that product asis mixed with the classic
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pricing strategies…
COST BASED PRICING
It is setting prices based on thecosts of production, distribution,and selling the product with a fairrate for effort and risk.
As Nescafé imports theirand raw materials mainlabroad, they cannot sell it aprice. So, they sell theirbased on expenses they nbear after the import
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PLACE AND SALES POINT
Nescafe products, in most cases, are found oshelves of various departmental stores and
the smaller packs are found even on roadsidtea stalls.
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PLACE AND SALES POINTPack Size Target Users
Out of home pack mostly serving the bulk users, irestaurants etc.
In- home pack, mainly for the relatively frequent coffee
In-home pack, meeting the daily usage need of hoaffordable way.
Containing right mix of coffee, creamer and sugar to hcoffee just by adding hot water , convenient pack size o the consumers to carry it with them and have coffee an
For 2 persons, affordable pack with broader consum
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PROMOTIONS - TVC
Cholo shobai
Anytime, Anywhere
Get, S
Jaago
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PROMOTIONS– Print Media
NESCAFÉ has been advertising inProthom Alo, The Daily Star, StarWeekend Magazine etc. togenerate awareness among theconsumers.
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PROMOTIONS– In Store Communication
Trade posters, Shelf talkers, Bunting, Danglthe main elements used for in-store
communication. Nestlé appoints merchandisinstalling these materials. These are also calle
of Sales Materials (POSM).
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PROMOTIONS– Outdoor Activities
NESCAFÉ is currently using shop signagoutdoor promotion. These help shoppersremember the brand while they are makin
purchases.
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PROMOTIONS– Sampling
Sampling is a very useful tool to ensure tricoffee. Wet sampling is basically providing sto consumers in ready to drink form. It is d
through vending machines and also throudifferent agencies. NESCAFÉ has yearly bufree sampling and is actively utilizing it with
to familiarizing people with coffee taste
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PROMOTIONS– Consumer Promotions
Till now NESCAFÉ has adopted two ways of cpromotion. 1. Through sponsoring different
related to the target consumers, i.e. NESUnplugged, NESCAFÉ Campus Carnival and NBattle of the Giants. 2. Through providing sincentives with the pack, i.e. NESCAFÉ mug, Nbranded spoons, T-shirts, Caps etc. Besides, the cohas also tried out some cross brand promotactivities like promoting NESCAFÉ and Cotogether in the NESCAFÉ dream couples contest.
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TO END WITH…
Nescafe has seen a steady growth in market demand for its products.It has successfully been able to change customers’ attitude towards
coffee and has been able to convert tea drinkers to coffee drinkers…
with the entry of international coffeehouse franchises in to the market that Nescafe has worked so hard to build, the future of Nescafeproducts are at stake
however,
as such,Nescafe has resort to even more creative means to compete andgain market share or even retain its current turnover..
Will this be the start of a new era of marketing for Nescafe?