4141

INTRODUCTION

BACKGROUND

Our study is all about the size of customers that we could separate depending on

the brand of coffee they prefer. Our group task is to randomly select 100

participants that would represent the whole population of people in Davao City that

would prefer their desired brand and in which of the factors: price, taste, and

packaging has the greatest impact on why people keep on patronizing their desired

brand of coffee. We have included general marketing information that will guide

us throughout the whole market study: age, gender, profession and marital status.

This information will be explained further and we’ll see if how we could relate

each one and compare its effect to the study.

This market study is very interesting, in a sense that we’re comparing well-known

coffee brands by looking and digging deeper to what makes each one unique and

what promotion strategies they use to the consumers, in keeping its interest and

loyalty to the product. Later on, we will show the very important element in this

study, the market demand, to help us sum-up the entirety of the study. In line with

this, we will be dealing with graphs with the help of statistics to support our

findings in this said study.

4141

Moreover, we have chosen these brands of coffee because of their head start in and

because of their competitive advantages, compared to other starting brands. These

brands currently show the best potential impact to the market and have proven its

worth to everyone in every part of the country. But before and until now, they

encountered problems they risk to develop and strengthen their products because

market today is an ever rapidly changing and intensely competitive.

Consequently, to a large degree, the growth of the market is unpredictable

nowadays, and our study is just a piece of everything in the real world. We’re not

saying that it is wrong but this is just an overview of the consumption in coffee

drinkers here in Davao, a sample of the total population. With so many brands of

coffee coming in, the question is, are the consumers taking the same established

brands or the competing brands with capabilities?

Finally, from every detail that we are giving we based it in our findings. The

conclusions that we made are merely related to the outcome of our survey and

we’re not just making stories and senseless ideas. This study is again about the

preferred brand of coffee with a participant of 100 randomly selected citizens in

Davao City, to be the representative of the whole City.

4141

SIGNIFICANCE OF THE STUDY

This study aims to identify what brand/s of coffee are dominating the market, who

of this following brands is well known to the market and what factors greatly affect

the customers choice of purchasing such coffee brand. This would also be helpful

for other future studies to be conducted in any relation to our study.

The report contains the result of a market study about preferred coffee brands and

designed to identify the general characteristics and behaviour of the market based

of coffee consumption. This would benefit marketers who want to know the effects

of these competing brands to the existing market. By understanding the clashing

brands of products readers would learn their history, background and the growth

development where in they are processed and changed through time and evolved

through the needs of the consumers. This would also serve as a future reference to

other group of researchers that wants to widen their ideas on the said study.

And finally, we want to reach to the consumers so that they would assess the

market condition and make some comparison on the real status of the market and

the study conducted, if this holds true because they can tell the real standing of

every products in the market. This would evaluate and inform people in accordance

to the findings that we have they could see the outcomes on what brand that shines

above all.

4141

STATEMENT OF THE PROBLEM

Our study will be focusing on what coffee brand/s is/are dominating the coffee

market in terms of its price, taste, market share, hobby drink and packaging. We

would be studying what specific part of the sample population in Davao City

prefers what coffee brand and what are their bases for patronizing the coffee. We

would also study the demographics of the population to know how the coffee

brands affect the consumption and the popularity of the product. We will also

tackle what amount of cups of coffee do the Filipinos consume per annum. And

lastly, how can the competitors of the dominating coffee brand/s compete with the

promotional strategies and overall techniques of the company producing the coffee

product.

These problems were identified from the gathered information in the survey we

conducted. With this problem, we can create better tactics on how we could

compete with the dominating coffee brand/s if we are to invent new coffee product

in the market. Aside from this, we can use the gathered information to know how

the companies of these coffee brands play in the coffee market to attract consumers

and how they sustain their stability as a big group company producing coffee

products. This study can also be used in future studies about coffees in the market

specifically the people of Davao city who were very fond of drinking coffee. The

future surveyors can use our data to help those who are planning to put up a coffee

business on how they can increase their sales with regards to the coffee they are

about to sell.

4141

OBJECTIVES

In order to conduct this study the group agreed that the overall objective is to

evaluate the answers made by the sample set of 100 respondents we have surveyed

in what coffee brand do they purchase and patronize. This objective may be

segregated into the following sub-objectives that will identify the main objective of

the group.

To examine how the brand of coffee and its factors (price, taste, packaging

and hobby dink) affects the consumption of the product.

To determine how the specific coffee brands behave in the market with the

target consumers with ages 18-65 years old.

To segment a total market patronizing each coffee brands by the socio-

demographics the study has collected.

4141

SCOPE AND LIMITATIONS

Our study will be focusing on the five selected coffee brands which are known and

are creating names in the coffee market. These coffee brands are Nescafe, San

Miguel Coffee, Kopiko, Jimm's and MX3. We conducted our survey within the

vicinity of Davao City to identify which among the five coffee brands are the

choices of Davaoeños. We have distributed survey questionnaires to 100 stratified

randomly selected respondents from different places in Davao City. We will only

limit our study within Davao City since the group do not have enough resources to

go beyond the area of responsibility. Since Davao City is numbered in terms of its

population; we believe that we could gather enough data and information to finish

our study. We expect to gather concise data from our respondents, regarding which

of the coffee brands they usually purchase or drink. With their answers, we can

tally the results in order to identify which among them is the most numbered in

terms of price, taste, hobby drink, market share and packaging.

4141

COMPETETIVE POSITIONS

NESCAFE

1) Description- is a brand of instant coffee made by Nestlé. It comes in

the form of many different products. Nescafe was not the first to try

their hand at creating instant coffee, but they were the first to do so

successfully. Early attempts date back to 1901, and involved making

extremely concentrated coffee and then collecting the residue after

boiling it dry. This super high heat wiped out the flavor and aroma of

coffee, producing a bitter, foul-smelling drink that could barely be

called coffee. Nescafe created a unique and extremely innovative

process that involved spraying a mist of concentrated coffee into

large, heated towers where the fine drops turned to powder almost

instantly. Carbohydrates were then added to help maintain the flavor

integrity. This instant coffee completely transformed the concept

people had been familiar with and made it not only acceptable to the

taste, but desired!

4141

2) Market Share- Nescafe has a market share of 55.3%, this evidently

shows that Nescafe has dominated the coffee market. This leads to

their expansion of different kinds of varieties that show the way to

invade the market even more.

3) Current Customer - Nescafe is to target the morning person which is

24 upper people as well, which effect to high growing, also they aims

to attract the younger audience that could bring their product into a

wide spread phenomenon. Moreover this target truly meets the

Nescafe by the help of their television advertisement campaign. The

scene shows the aftermath of a party and an awkward exchange

glances between friends, and it’s up to NESCAFE to get the morning

back on track. It also shows the convenient serving of the product by

introducing their different varieties such as, Nescafe 3 in 1, Nescafe

sweet and creamy, Nescafe decaffeinated, etc. this supports to the

growing trend for more convenient coffee formats among the no-

hassle generation and enhances the current NESCAFE offering by

giving audience a wider selection of products.

4141

4) Positioning and Promotion Strategies- Nescafe is a widely known

product that it able to join the prestigious best global brand ranking. In

2009 NESCAFE was ranked 25, but in 2010 it goes down two places

that place NESCAFE into the 27th spot. However, Nescafe maintain

to be part of the top 100 best global brands. Nescafe’s brand value

stays high in 12, 753 ($m) even its value depreciated at -4% at the

2010 survey of top 100 best global brands.

Nescafe has built strong brand equity through the use of aggressive

marketing strategies globally. Each country /region's Nescafe forms

its own strategy to effectively target its audience and generate sales

accordingly for the profitability and growth of the company. It is for

this reason that some variants are designed and marketed to cater to

the needs of that particular segment of the market .It has been noted

that Nescafe as a brand is in a intermediary phase from being an

exclusive utilitarian consumption product when it used to be just an

instant coffee to becoming more of a product with hedonic

consumption when it started to create and sell different blends in

different markets.

4141

The slogan “one moment, one nescafe” of the nestle nescafe made a

big hit all around the world that when people are asked what brand of

coffee comes into their minds, only one answer fits it, Nescafe.

Promotional Strategies:

• Television

• Newspapers

• Internet

• Public relation activity

• Public relation at selling point

The distinctive point of advertising was TV which is special in the

movie style and music marketing strategy. Pull strategy is strategy of

Promotion which pull the consumer to buy the product.

4141

5) Recent News- Over the next five years, Nestle will double the amount of

Nescafe coffee bought directly from farmers and their associations, eventually

purchasing 180,000 tonnes of coffee from around 170,000 farmers every year.

With the support of the Rainforest Alliance and the 4C Association, all directly

purchased green coffee will meet the internationally-recognized 4C sustainability

standards by 2015. In addition, 90,000 tonnes of Nescafe coffee will be sourced

according to the Rainforest Alliance and SustainableAgriculture Network (SAN) principles by 2020. Under the

Nescafe Plan, Nestle will distribute 220 million high-yield, disease-resistant coffee

plantlets to farmers by 2020. This helps farmers to rejuvenate their plantations,

thus multiplying the yield on existing land and increasing farmers’ income.

4141

SAN MIG COFFEE

1) Description-

San Miguel Coffee Co. provides its customers with the freshest

and richest beans. Coffee beans are ordered on a weekly basis to

insure the quality and flavor of the coffee. San Miguel uses a

roasting company located in Mount Olympia, Washingto. Batdorff

and Bronson is known in the coffee industry for their quality and

consistency of coffee around the world that produce high quality

coffee cherries. If you are looking for a great cup of coffee at a

reasonable price, San Miguel Coffee Co. is know for exclusively

producing gourmet coffee.

2) Market Share- even when it just started way back in June of 2005 a

remarkable journey for it is by San Mig coffee to be on the top list

of Filipino’s favourite instant coffees. The San Mig Coffee brand

has gained considerable share of the instant coffee market with the

introduction of Sugar Free variants in the 3-in-1 segment and San

Mig Super Coffee Instant Black Coffee in the mainstream.

4141

3) Current Customer-

adult coffee drinkers

people who want pure, unadulterated black coffee, without

creamers, milks, or flavorings

4) Positioning and Promotion Strategies-

‘Bagay sa Taste Mo!’

Television

News Papers

Internet

Billboard Commercials

5) Recent news-

San Mig Coffee Pro-Health sponsored this year's Metro

Magazine's 'Metrowear YDG / FDCP Show'. The first 'defile de

mode' shared by Young Designers' Guild and Fashion and Design

Council of the Philippines was held last July 30 at NBC Tent

wherein the designers presented their fashion forecasts for the

coming holiday 2009 season such as Techno Folk, inspired by

Shakespeare, Guggenheim, Enchantment and House on the

Prairie.

4141

San Mig Coffee Pro-Health supported Metro Magazine because

they have the same objective -to set the bar on fashion and

beauty. San Mig Coffee Pro-Health variants - Pro-Power, Pro-

Beauty, Pro-Slim and Pro-Fiber, have health components that can

actually improve and enhance digestion, energy, figure and

beauty. A perfect coffee drink that gives you something more

than the usual cup of coffee.

6) Strengths- Compare it to the instant coffees you grew up with, the

coffee taste is stronger, the aroma is richer, and the aftertaste is

smoother & cleaner. Combine these three attributes and you get

the perfect black coffee, good enough to stand on its own without

creamer or milk.” (refer to page 19)

4141

KOPIKO

1. Description- The aroma and the taste in every coffee are

determined by their beans quality and the way the beans are being

processed and blended. Kopiko 3 in 1 instant coffee is made from best

selected coffee beans, blended and processed in the finest way. Kopiko

3 in 1 instant coffee. Experience the difference, taste the greatness.

2. Market Share- market share of Kopiko in terms of being a

coffee candy gained an outstanding market share in Philippines

market and other countries. Though no specific figures were shown

about their market share.

3. Current Customer-

The mass, the Filipino people who desires a real

taste of coffee combined with brown sugar.

4141

4. Positioning and Promotion Strategies-

“Astig na Kape!”

TV commercials

Newspapers

Public Relations Activity

5. Strengths- Kopiko is known for being a candy with a true taste

of coffee. Since the launch of kopiko brown coffee, it made a big hit in the

market. Capturing the taste of most people around Asia looks for; we can

surely say they are a success in the making.

4141

MARKET DEMAND

Q= n x q x p

97,976,603- Total population of Philippines

1,366,153 - Total population of Davao city

1.39% - percentage of Davao city’s population in Philippines

49 % - total population of 18-65 years old as potential buyers in Davao city

(1,366,153 * 49%) = 670,986 - Total population of 18-65 years old as potential buyers

63,600 - metric tons of total coffee consumption in Philippines

To convert in Litres:

(63,600 tonne x 1000 Kg/tonne) = 63,600,000 Kg

(63,600,00 Kg x 0.850 L/ Kg) = 74, 823, 529 L

74,823,529-litres of consumed coffee per annum in Philippines

(74,823,529 x 1.39%)= 1,043,318.28

(1,043,318.28 x 49%) = 512,423.77 -litres of consumed coffee per annum in Davao city

with the potential consumers of ages 18-65 years of age

To get the Market Demand:

Q= 670,986 x 512,423.77 x 10

= 3,438,291,767,544.91 Litres

The Total Market Demand of coffee in the Philippines given that n is 670,986 as the potential consumers of

coffee, q is 512,423.77 litres of coffee consumed per annum in Davao city with their potential consumers of 18-65 years old and p for the price that consumers usual purchased price.

4141

REVIEW OF RELATED LITERATURE

NESCAFE

The history of Nescafé can be traced back as far as the 1930's. Its coffee guru, Max

Morgenthaler, together with his team thought of the need to produce high quality

coffee that could be prepared by simply adding hot water while still being able to

retain the coffee's natural aroma. It took them seven years of research in their

Swiss laboratories until finally, they found the solution.

The new generation of instant coffee was first introduced on April 1, 1938 in

Switzerland. It was called Nescafé as a combination of Nestlé and café. Although it

has been a huge breakthrough in the coffee industry, it didn't become a big success

in Europe due to World War II. Shortly after its release in the market, it was

exported to other countries like France, Great Britain and the USA. It became a

huge success in America and because of this Nescafé was able to re-launch itself in

Europe. It rapidly grew in popularity and by the 1950's, teenagers were already

flocking in to coffee-houses. In 1965, Nescafé unveiled its Gold Blend which

introduced freeze-dried soluble coffee. The invention of new technology made it

possible for Nescafé to make the ‘full aroma' process which captured more aroma

and flavor in every single coffee bean. This is what made the unique quality and

character of Nescafé even better.

Nescafé made its grand debut in the Philippines during the 1960's. It captured the

attention of the Filipinos due to its huge multimedia exposure. During that time,

Nescafé can be seen in prints, TV commercials, and heard on the radio. There

signature jingle, originally sung by ZsaZsa Padilla, is still being used today.;

4141

Let's sit and talk awhile, in the one world of Nescafé. Although the lyrics have

been slightly altered, this catchy phrase means that coffee isn't just something that

you drink during breakfast or when you're tires; rather, Nescafé coffee can be used

to socialize and catch up with the people whom you haven't had time to talk to for

awhile. You drink coffee when you want to patch up things with your wife, when

you want to take a rest, or even when you just want to have fun.

Since Nescafé has a vast and diversified target market, they had to launch different

varieties of their instant coffee to suit the needs of their customers. Starting from

their Nescafé Classic, they now have 15 different variants of instant coffee which

come in different sizes. Before, they used to sell Nescafé coffee in a diamond glass

which acts as a drinking cup once all the coffee powder was consumed. Now, they

sell it in jars and aluminum packs. Their consumers can buy it in different sizes

like the family pack, economic pack, sulit pack and gift set.

Its closest competition is San Miguel Corporation. Nescafe and San Miguel coffee

products dominate supermarket stalls as they have more space dedicated to their

different coffee variants. Kopiko is also becoming a serious contender in the social

worker department mainly due to the price. Other contenders are Café Puro and

Great Taste Coffee.

There are various reasons for why Nescafe is the leading brand. First of all, they

have more variants. Different variants attract different kinds of customers which

just widens their market share. Next is its huge multimedia exposure. Nescafe is

the biggest in terms of advertising with tons of TV commercials, newspaper ads,

billboard ads and etc. Since they're also using celebrity endorsers, people

remember their advertisements more. This boosts brand awareness and is also one

of the main reasons why everyone is aware of Nescafe. Lastly,

4141

Nescafe has credibility and a lot of people are already loyal with the product. As

long as they continue maintaining their quality, for sure Nescafe will continue with

its frontrunner status for a long time.

Nescafe is very popular in the Philippines and according to the service worker we

interviewed majority of them prefer Nescafe because according to them Nescafe is

the first coffee introduced to them. We have also found that most service workers

like their coffee creamy and Nescafe 3in 1 is the best choice of coffee because

Nescafe 3in1 contains sugar, cream and coffee of course. If they prefer a much

creamier coffee why not try the Nescafe Sweet and Creamy it will surely satisfy

them. There are also variety flavours of Nescafe which they can choose from if

they want to try something else. If they prefer bitter coffee then Nescafe Classic is

the perfect choice.

Nescafe 3in1 is made up of high quality coffee that will surely to suit your taste.

The aroma of the coffee would make you crave for it. We prefer Nescafe because it

has a good and high quality coffee and it's from a good brand, Nestle and the price

is affordable. Coffee isn't really healthy but Nestlé’s Nescafe will guarantee that it

is good for the health because their tag line is “wellness choose nestle” unless you

drink too much it will be bad because too much of anything is bad. Coffee also

helps delay signs of aging so it doesn't just keep you awake or suit your

taste/cravings it's also good for the body and mind.

4141

VARIANTS:

The different variants of Nescafé instant coffee are:

Nescafé Classic

Nescafé Decaf

Nescafé Gold Blend

Nescafé First Pick

Nescafé Choco Fudge

Nescafé Viva Vanilla

Nescafé Intense 3-in-1

Nescafé Hazalnut

Nescafé Original 3-in-1

Nescafé Sweet ‘n Creamy

Nescafé Sugar Free 3-in-1

Nescafé Decaf 3-in-1

Nescafé Fit with Teavigo

Nescafé Lingzhi with Ganoderma Extract

Nescafé Relax Decaffenaited Coffee with Chamomile

Nescafé Protect

Nescafé 3-in-1

PRICES

Price varies depending on the flavor and size. Their price range estimate is from

P25.00 to P450.00 depending on the amount of coffee bought.

(NAME SIZE and PRICE)

Nescafe Classic Refill

110g P 71.50

4141

50g P 35.95

25g P 18.10

Nescafe Classic

Jar 50g P 54.90

200g P 216.25

Sulit Pack 12g x 12 pcs. P 114

Nescafe Classic Sticks

26g x 84 pcs P153.50

Nescafe Decaf Jar

200g P 303.50

Nescafe Gold Blend

100g P 262.20

200g P 449.50

Nescafe Gold Jar

100g P249.50

200g P424.50

Nescafe Decaf Refill

25g P 25.15

50g P 49.50

100g P 100.40

Nescafe Protect

100g P 130

50g P 70.50

Nescafe Classic First Pick (limited edition)

100g P 110

50g P 57.25

4141

Nescafe Choco Fudge

15g x 10 pcs. P 67.70

Nescafe Viva Vanilla

15g x 10 pcs. P 67.70

Nescafe Intense 3 in 1

14g x 10 pcs. P 52.30

Nescafe Hazelnut

15g x 10 pcs. P 67.70

Nescafe Original 3 in 1

14g x 10 pcs. P 46.50

Nescafe Sweet n' Creamy

14g x 10 pcs. P 52.30

Nescafe Sugar Free 3 in 1

6g x 10 pcs. P 57.10

Nescafe Decaf 3 in 1

14g x 10 pcs. P 67.70

Nescafe Fit w/ Teavigo

32.5g P 39.25

Nescafe Lingzhi w/ Ganoderma Extract

70g P 49.50

Nescafe Relax Decaffinated Coffee w/ Chamomile

70g P 39.25

Nescafe Taster's Choice Decaf

12g P57.50

Nescafe Taster's Choice Hazelnut

6.10 oz/ 172g P449.50

Nescafe Taster's Choice Regular

4141

4 oz/ 113g P311.50

Nescafe Taster's Choice Orig. Blend

4 oz/ 113g P429.00

Nescafe Taster's Choice Vanilla

172g P419.50

(http://reviewessays.com/print.html?essay=44)

MANUFACTURING PROCESS

Only 100% pure coffee goes into NESCAFÉ but have you wondered just how it

gets from the tree to your cup?

ON THE PLANT

Your coffee starts life on a small, evergreen tree that grows across South and

Central America, Africa and Asia. The young coffee tree needs exactly the right

amount of shaded sunlight, regular watering, fertilising, and pest and weed control,

as well as constant attention, and it will be four years before its’ productive. Well

managed, it will carry on producing for another 40.

4141

WHICH BEAN?

There are about 60 species of coffee but Arabica and Robusta are the main two

grown commercially. Robusta is characterized by strong flavour and low acidity

and grows mainly in Vietnam, Brazil and Indonesia. Arabica boasts a delicate

aroma and pleasant acidity and is grown in Brazil, Colombia, Ethiopia, Central

America, Mexico, India and Eastern Africa. To guarantee consistent quality of

flavour and aroma, the experts at NESCAFÉ blend Arabica and Robusta beans

from the world over.

THE PICK OF THE BEANS

The red coffee ‘cherries’ (with the coffee bean inside) take about nine months to

ripen. They are then picked by hand. After drying and preparation, the ‘green

beans’ , with almost no coffee aroma or taste, are sorted, graded and checked for

quality. Imperfect beans (called stinkers, blacks, sours and foxes amongst other

names) are rejected and the quality beans are packed and shipped.

MAKING THE PERFECT CUP OF COFFEE

Roasting, to release that familiar coffee aroma and flavour, can take from three to 12 minutes, depending on the desired flavour. The roasted coffee is then ground to make it easier for the full flavour to be unlocked in the brewing process.Finally, the fresh coffee brew is specially dried to leave 100% pure, soluble coffee. Just waiting for you to add freshly boiled water, for the perfect cup of NESCAFÉ.

4141

SAN MIG COFFEE

San Miguel Coffee Co. provides its customers with the freshest and richest beans.

Coffee beans are ordered on a weekly basis to insure the quality and flavor of the

coffee. San Miguel uses a roasting company located in Mount Olympia,

Washington, Batdorff and Bronson is known in the coffee industry for their

quality and consistency of coffee around the world that produce high quality coffee

cherries. If you are looking for a great cup of coffee at a reasonable price, San

Miguel Coffee Co. is known for exclusively producing gourmet coffee.

A new standard to discover in black coffee

San Mig Coffee 100% Premium launched

12/6/2006

True to the San Mig Coffee tradition of creating coffee that’s ‘Bagay sa Taste

Mo!’, ‘San Mig Coffee 100% Premium’ is specially formulated to suit the tastes of

no-frills adult coffee drinkers. These individuals are the purist types who want

pure, unadulterated black coffee, without creamers, milks, or flavorings.

 

“This is how instant coffee is supposed to be,” says Vince de la Cruz, San Mig

Coffee Brand Manager. “What’s exciting about ‘San Mig Coffee 100% Premium’

is that if you compare it to the instant coffees you grew up with, the coffee taste is

stronger, the aroma is richer, and the aftertaste is smoother & cleaner. Combine

these three attributes and you get the perfect black coffee, good enough to stand on

its own without creamer or milk.”

4141

Cholesterol-free and Halal-certified, San Mig Coffee 100% Premium is available

in 20 and 40 gram pouches. The latter makes approximately 10-12 cups while the

former, about 20-23 cups.

San Mig Super Coffeemix Co. Inc popularized the 3-in-1 coffee mix concept in the

country with its hugely popular variants of original, mild, strong, extra strong and

sugar-free. The introduction of the San Mig Coffee 100% Premium will surely be

an added boost for the company, not only in terms of its position in the Philippine

coffee market, but in its place in the hearts and minds of Filipino consumers as

well.

Piolo’s San Mig Coffee billboards a welcome sight

April 30, 2009, 9:30am

Piolo Pascual’s bronzed and well-chiseled body as shown by the San Mig Coffee Sugar Free billboards along EDSA and Katipunan are a welcome sight for motorists who brave the usual Metro Manila traffic everyday.

Pascual remains in tip-top shape despite his many engagements, including the taping of the remake of hit Korean television series “Lovers in Paris” over ABS-CBN set to be shown in July.

“I’m in the process of taping the remake of ‘Lovers in Paris.’ We stayed in Paris for almost a month. I’m pretty excited about this new series since it’s filmed at the Romance Capital of the World and it’s been a while since my last series, ‘Lobo.’ Of course, there’s still the ‘ASAP’ every Sunday and I’ve also been making indie films on the side,” he said.

San Mig Coffee put up the billboards at these busy thoroughfares to announce that it remains to be the No.1 Sugar Free Coffee mix in the country today, with much of the credit going to Piolo’s effective endorsement. He is joined by Fil-Am commercial model Michelle Paloma.

4141

“That’s right, the billboard says ‘Be # 1 in hotness with the # 1 sugar free coffeemix’ and I have to say that it’s really true – San Mig Coffee Sugar Free is the perfect product not just for me, but for anyone who wants to look good this summer. The 3-in-1 Sugar Free line, for example, has only half the calories than regular coffee mixes while the 2-in-1 Sugar Free products have zero fat and only 10 calories.”

“Besides drinking San Mig Coffee Sugar Free to keep down the calorie intake, just keep in mind that there’s no ‘magic’ or ‘instant’ formula when it comes to looking good – it’s all about making healthy food and beverage choices everyday and making sure that you do some sort of workout weekly. If you do these things consistently, then you’ll get a great-looking body in no time,” he said.And what better proof there is than Piolo’s physique itself.

(http://mb.com.ph/articles/204276/piolo-s-san-mig-coffee-billboards-a-welcome-sight)

VARIANTS:

San Mig Coffee Instant 3-in-1 Regular Coffeemix

Mild

Original

Strong

Extra Strong

San Mig Coffee Instant 3-in-1 Sugar-Free Coffeemix

Mild

Original

Strong

Extra Strong

4141

San Mig Coffee Instant 2-in-1 Regular Coffeemix

Mild

Original

Strong

San Mig Coffee Instant 2-in-1 Sugar-Free Coffeemix

Mild

Original

Strong

San Mig Coffee Pro-Health

San Mig Coffee Pro-Beauty

San Mig Coffee Pro-Fiber

San Mig Coffee Pro-Power

San Mig Coffee Pro-Slim

4141

KOPIKO

Monday, December 27, 2010

Kopiko Brown Coffee

Contrary to old belief, coffee-drinking has a lot of health benefits. Studies claim

that it provides anti-oxidant to the body and even prevent heart disease. One thing

is certain, I can assure, coffee is delicious. And it is divine to drink. Kopiko Brown

Coffee. I just love this coffee.  It is a coffee mix with brown sugar.  It is so tasty.  I

gave up Starbucks coffee and have this cheap and delicious alternative instead. It is

only P6 per sachet.

Kopiko Brown Coffee

By: grecy

I am a fan of Nescafe Trio Coffee. I bought a box that contains 6 sachets of 25g

every week. I usually have my coffee at work in the afternoon because it is less

pressure during afternoon. Coffee keeps me awake and alert. Just recently I shifted

on drinking Kopiko because of their new flavor, Kopiko Brown Coffee.

It is just a regular coffee with cream but the difference is it uses brown sugar

instead of white. I believe brown sugar is better compare to white sugar as the

latter is refined and re produced so many times. White sugar in turn is bad for our

health. That is the reason I shifted on Kopiko Brown Coffee.

4141

Kopiko is first on this one, as recently Nescafe launched this kind of flavor;

however, Kopiko is much better. It tastes like pure coffee, with slight taste of

mocha, but there is no mocha flavor in it. The aroma is not that strong but as you

zip it while it is hot the aroma enters your nostril. It makes you smell how slightly

strong the coffee is.

Actually, the taste is not strong, it is creamy and the taste of brown sugar is well

tasted. It is not sweet either. It only contain right amount of sugar. Once it enters

my mouth, the first thing that I got to taste is the coffee and second is its

creaminess and last is the little amount of sweetness.

This one is a perfect blend of coffee for me. I do not care about Starbucks coffee

now that I got to taste it. It only cost $ 0.16 for 25g sachet, very affordable and

always available from small store to groceries. I prefer to drink it while it is hot

because I do not enjoy the less sweetness when it is cold already. In the afternoon,

even if I only have this coffee, I do not feel any hunger. For me this one is enough

to ease my hunger. This coffee is perfect to drink any time, but I prefer the hot mix

rather than cold.

Rating: 10

VARIANTS:

Kopiko 3 in 1

20gX10pcs P41.00

Kopiko Brown Coffee more in 125gX10 pcs. P 50.45

4141

METHODOLOGY

In conducting our study, we asked our respondents to answer our survey in the best

way that they can. Our sampling plan was to use stratified random sampling to be

used. We also used survey questionnaire as means for obtaining the answers we

would want to get in order to attain our desired outcome with our respondents and

from Davao City who were the primary source of our data in our market study. Our

group agreed to release 100 survey questionnaires to be answered by 100

respondents with the age of 18 to 65 years old and with the age group of 18-24, 25-

29, 30-34, 35-44, and 45-65. With the age limit of our study, we can be sure that

the respondents were in their mature thinking to answer every question in our

survey. These age groups will represent a sample population in their said age

groups. We asked them to choose which among of the five coffee brands they

drink or purchase and how often do they do it. We also asked them to rate the

following factors from 1 to 5; price, hobby drink, taste, market share and

packaging. We also included in our survey their civil status, occupation, gender

and price they are willing to pay for a cup of coffee. To tally the results on which

among the gender drinks more coffee, which among the prices listed they are

willing to pay, which among those who are Upon the collection of the data

gathered, we used the IBM SPSS Statistics v19.0 program for an error free output

on our desired outcome of report.

4141

FINDINGS

Based on the information we gathered from our respondents, Nescafe is the brand

leading the market. It is dominating the market in terms of brand consciousness

(which every age group prefers Nescafe above all other brands) and brand rating

(where it got the highest rates there is for the four factors taste, price, packaging,

and even as a hobby drink we have given to our respondents). It dominates all the

four attributes in determining the brand's place in the market. Its closest

competition is Kopiko. Nescafe and Kopiko instant coffee products dominate

supermarket stalls though Kopiko is known for being a coffee candy it didn’t stop

consumers to buy their coffee products. Though it didn’t have as many variants

there is compared to Nescafe but because of the very affordable price offered to the

mass Kopiko made a hit. San Miguel Coffee is also becoming a contender of the

two leading coffee brand. The coffee itself is costly but Piolo Pascuals’s

advertisement (see reference pp.21-22) the people were convince to purchase their

product. San Miguel coffee is making a name for itself and also this brand has

many variants that could readily compete with the leading brands, though they

have a problem on their pricing that consumers are not appreciating. On the other

hand, MX3 and Jimm’s Coffee an all natural organic coffee drink made of

Mangosteen and herbs are becoming a brand contender of Nescafe. Since coffee

drinkers are getting old by the minute, more and more coffee drinkers are getting

health conscious. Looking for benefits that will give them the needs of the aging

people, these two coffee brands are surely making a great triumph in the market.

4141

Though not that well known, these brands need to be more wide-open more in the

market to have their fair stake of the market share.

There are several reasons why Nescafe stays to be the leading brand. First is their

wide set of coffee variants (see reference pp.14-15). Different variants would most

likely to attract different kinds of costumers which widens their industries market

share (see market share graph p. 29). Next in line is the company’s huge

multimedia exposure. Nescafe is the biggest in terms of advertising with loads of

TV commercials, newspaper ads, and billboard ads. Since they're also using

celebrity endorsers and regular people in their commercials, people will most

likely remember their advertisements more than its competitors. Also, their very

catchy tagline “let’s sit let’s talk one moment, one Nescafe” sinks in to the souls of

each and every one of their consumers as they sip a cup of Nescafe. This is one of

the main reasons why everyone is aware of Nescafe. Lastly, Nescafe already has

many loyal customers. As long as the quality of their product is maintained, no

doubt Nescafe will continue to be the leading coffee brand in the long run.

4141

This chart illustrates the break down of our respondents based on what age group

they belong to. As we can see that almost half of our respondents are in the ages of

18-24 years old. This indicates that coffee drinkers are by far getting younger and

younger. Also the older the people get the less coffee they consume. This is

because the older people get the less sleeping hours they have so older people do

not take coffee anymore because it will only interrupt their sleeping hours.

4141

This illustration shows the market share of each coffee brands based on what

brand of coffee consumers usually purchase. As we can see the highest share in

the market is Nescafe with a topping spot in the market share of 70%. The 14% of

the share goes to Kopiko. Though it did not made any big of a share compared to

Nescafe, for a starting brand to have such success, is good. The 6% of the market

share was given to San Miguel coffee who ranks 3rd in the market share. The 5% of

never in this chart represents the number of people in this age group that does

not take part in the coffee consumption. This illustration also shows the

percentage of the coffee brands based on the consumers choice in terms of taste,

price, packaging and hobby drink.

4141

4141

This chart represents the price that consumers are willing to pay for their

consumption. 62% of the consumers want to spent less 10 pesos on coffee as much

as possible and 27% said that they can afford a much higher price og Php11-70 for

their coffee consumption. 10% said that they buy coffee above the range of other

consumers and only 1% said that he/she is willing to pay Php101-150 worth of

coffee.

4141

RECOMMENDATION

Nescafe is very popular in the Philippines specifically Davao city where we

conducted our study. According to the data we have gathered majority of them

preferred Nescafe may it be single or married, female or male, teens or adults and

even by profession, may it be a student, employed worker, unemployed, or self

employed people, not only because of its taste but also of its affordable and very

reasonable prices (see pp.15-17) and the name itself. Nescafe is already an

established brand and is also well-known around the globe with its mother brand,

Nestle. Nescafe has already proven its quality and name in its long years of

existence. Aside from this, it has a taste preferred by many.

With these facts about Nescafe, we would like to recommend Kopiko, San Miguel,

MX3 and Jimms coffee to have a Differentiated strategy.This is also referred to

multi-segment or selective specialization plan. In this way, more than one target

market is offered the product and service. The product may be the same or it might

be different. But the branding, advertising campaign and even promotional

message will be different for each target customer group. For other coffees they

could sell different kinds of coffee to different set of customers. In this way more

products is introduced and customers can pick different kinds of variants on one

brand.

Coffe

e Br

and

ratin

gs fr

om 1

-5 b

ased

on

Tast

e

Coffe

e Br

and

ratin

gs fr

om 1

-5 b

ased

on

Pric

eCo

ffee

Bran

d ra

tings

from

1-5

bas

ed o

n Pa

ckag

ing

Coffe

e Br

and

ratin

gs fr

om 1

-5 b

ased

on

bein

g a

Hob

by D

rink

4141

APPENDIX

Name (optional): ___________________________________

Gender: __ Male __ Female

Marital status:__ Single __ Married

Q1: How often do you drink coffee? __ Everyday __ Every other day

__ Occasionally __Sometimes

__ Never*

*If you have answered never, please do not answer the remaining

questions. Thank you for your time.

Q2: What brand of coffee do you usually drink?

__ Nescafe __ MX3 __ San Mig

__ Kopiko __ Jimm’s Others(Please

specify):______

Q3: Concerning on your answer to Q2. How would

you rate the 4 factors given below? Rate it

from 1-5. 1 is lowest and 5 is the highest.

(Please circle the number)

Age: __18-24 __ 35-44__25-29 __45-64__ 30-34__65-and over

Profession:__ Employee __ Student__Self Employed __ Unemployed

Q4: Where do you usually drink Coffee?

__Sari-Sari Stores __Super Markets

Q5: Do you drink the same type of coffee every

time?

__ Yes __ No

Q6: At what price is coffee affordable?

__ Less than P10.00 __ P101.00- P150.00

__ P 11.00 – P70.00 Others: _____

__ P 71.00 – P100.00

Thank you very much! ^_^

We are students of Ateneo de Davao University 2 nd year Business Management. We are conducting a survey regarding which coffee brands customers usually purchase. This market study will take part in the

partial fulfillment of our Marketing 310.

Price 1 2 3 4 5

Strength (taste) 1 2 3 4 5

Packaging 1 2 3 4 5

Great as hobby drink 1 2 3 4 5

Very ImportantNot Important

4141

BIBLIOGRAPHY

(http://ezinearticles.com/?Nescafe-Coffee&id=5799162) (http://www.interbrand.com/en/best-global-brands/best-global-brands-

2008/best-global-brands-2010.aspx) http://www.mightystudents.com/essay/global.promotion.strategies.164615 (http://kwiniepooh.blogspot.com/2009_07_26_archive.html) (http://foodanddrinkbusiness.com/?tag=nescafe) (Best Global Brands Ranking for 2010 www.interbrand.com) Best Global

Brands Ranking for 2010 (http://sanmigcoffee.blogspot.com/feeds/posts/default?orderby=updated) (http://www.sanmiguel.com.ph/Articles.aspx?MID=1&ID=1&a_id=427) (http://bs-ba.facebook.com/topic.php?uid=2378668741&topic=3728)

(http://www.reviewstream.com/reviews/?p=143155)

(http://www.indexmundi.com/g/r.aspx?c=rp&v=21) (http://www.zappafly.com/zapaframe.php?

url=aHR0cDovL3d3dy5pbmRleG11bmRpLmNvbS9waGlsaXBwaW5lcy9wb3B1bGF0aW9uLmh0bWw=&title=UGhpbGlwcGluZXMgUG9wdWxhdGlvbiAtIERlbW9ncmFwaGljcw==&searchid=997020&zapurl=latest+total+population+of+the+philippines+2009)

( http://chartsbin.com/view/581 )

( http://caryle.blogspot.com/2010/12/kopiko-brown-coffee.html )

4141

EXAM

PERMITS

4141