Consumer behavior of Nescafe

Presented by Abdul Mohit Chowdhury

2005-2-13-002 Md. Imran

2005-1-10-149 Sadia Tabassum

2006-2-10-229 Kayema Alam

2006-2-10-232 Lut. Md. Fida Hassan 2005-1-10-124 Shahariar Arifeen

2005-2-10-154

The Brand

“Nescafe” is one of the most popular brand of coffee all around the world over decades. Its rich flavor, aroma and test makes it different from the other coffee brands. Over the years, NESCAFÉ developed in many ways. Its brand image has had various expressions over time. NESCAFÉ - being enjoyed all around the world... comforting, stimulating, relaxing. Youthfulness, refreshing and fun with friends with a cup of “Nescafe” is a trend loved by the young generation.

Coffee today

Today, coffee is one of the world’s largest trading commodities – second only to oil. It is worth more than $12 billion dollars in trade every year, mainly between developing countries, where it is grown, and industrialized countries, where it is consumed.The price of coffee remains highly volatile. Being an agricultural commodity, coffee suffers from sharp variations in supply as a result of changes in environmental conditions. Most of the world’s coffee crop is produced in Southern and Central America, Asia and Africa.

Marketing Mix

The NESCAFÉ Gold Range: The premium choice from NESCAFÉ for your special cup of coffee every day.

Marketing Mix

NESCAFÉ Classic: The world's favourite coffee! You will find it in just about every country all around the globe.

Marketing Mix

NESCAFÉ Cappuccino: Deliciously frothy and creamy tasting! Why not treat yourself to the smooth, creamy flavour and rich, milky froth of NESCAFÉ Cappuccino. Just add water and enjoy! Enjoy also different flavoured cappuccinos such as Vanilla, Hazelnut or Caramel Cappuccino.

Marketing Mix

NESCAFÉ Espresso - Short, dark and intense. NESCAFÉ Espresso is made from a blend of Latin American Arabica beans, fully roasted for a dark and intense flavour, to bring you the authentic Italian espresso experience.

Marketing Mix

NESCAFÉ Decaff : NESCAFÉ Decaff gives you all the great taste and rich aroma you'd expect from NESCAFÉ but without the caffeine.

Marketing Mix

NESCAFÉ Frappé - 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 NESCAFÉ Frappé for a unique coffee experience.

Marketing Mix

The NESCAFÉ Premium Range offers you the best of coffee:NESCAFÉ Cap Colombie is made exclusively from Colombian Arabica beans, chosen for their aromatic tones and light roasted to retain their aroma while developing the smooth flavour. NESCAFÉ Alta Rica is a special blend of exclusive Latin American Arabicas chosen for their full flavour, and dark roasted to develop the bold, full-bodied taste.NESCAFÉ Kenjara  - Kenyan and Costa Rican Arabica coffee beans, chosen for their full depth of refreshing flavours, are gently roasted to develop a coffee alive with finesse.

Target MarketDemographic Factors

Here we are going to determine the age, sex and the income of the consumers that we targeted based on the survey we have done.

1. Age: Generally our main customer of Nescafe are the younger generation, about 45% of the consumers are below 18, student who busy with studies or spend time with friends, 40% of the consumers age is 18 to 28 which means university student or new executives. Maybe at the off time or between the work they prefer coffee instead of tea because of the caffeine that feels them waking up. From our survey we also found that over 38 people usually prefer tea instead of coffee.

Age Analysis

less then 1845%

18-2840%

28-3811%

38-484%

more then480%

less then 18

18-28

28-38

38-48

more then48

Target Market 2. Gender: Majority of the

coffee customer are male. They purchase more because they go outside more.

We basically survey on more customer male then female, so the female coffee drinker may be slightly more then the analysis here.

Gender Analysis

Male62%

Female38%

Male

Female

Target MarketSocial factors

The social status that we are considering Social class and leisure activity etc. Social class: it identifies the family income of the participants who involved in this

survey. From the survey we find that

From the above chart we can see that about 50% (25% from 20<>30 and 25% from 30<>40) of the coffee consumers income is between 20,000 to 40,000. they are the middle class and the upper middle class section of the society. So we can say that the main target of Nescafe is the middle and upper middle class.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

%

>10 10<>20 20<>30 30<>40 40<>50 50<

Range of Income

Family Income

Classical Conditioning This condition refers that using an established relationship between

a stimulus and response with a neutral stimulus for desired response. For example: the Nescafe’s theme music reminds about the brand Nescafe which is fun and youthful.

UCR Positive Response/ Emotion

CSNescafe

CRPositive Response

UCSNescafe music

Figure: Classical conditioning

Operant Conditions:

Operant conditioning is the use of consequences to modify the occurrence and form of behavior. For example: giving free sample of Nescafe on the colleges and universities makes the users more addictive about the Nescafe.

Later those users reinforced to buy the same product again and again because of the test and aroma of the brand.

Stimulus(Nescafe)

Desired Response(consumption)

Reinforcement(Pleasant from)

Increasing Probability of response of stimulus

Figure: Operant Conditioning

Perceptual MappingPrestigious, Expensive

Common, Economical Figure: Perceptual Mapping

Based on the perceptual mapping, Mac coffee is much prestigious but Nescafe is more Non-Traditional and consumers conception about Bru is too traditional and economical.

Non- T

raditional, Fun

Traditional, D

ull

☼Nescafe

☼ Mac

coffee

☼ Bru

Leisure activity

Thought our survey we found that, most of the participants- 38% usually watch TV in their leisure time, 31% listen to music, 11% play outdoor games, 8% says they read storybooks and only 5% said they regularly goes to concerts, it shows the people are not so active at their leisure.

Leisure Activity

COM game7%

TV38%

music31%

story8%

game11%

concert5%

COM game

TV

music

story

game

concert

Perception about Nescafe

During the survey we ask people about what do they think about the brand Nescafe and what comes to their mind each time they heard of the brand, about 47% participants told they feel refresh, 16% says youthful and only 11% thought they feel stylish and 10% Friends, 9% cost and 3% portability.

youth16%

refresh47%

creative4%

friend10%

cost9%

portable3%

stylish11%

youth

refresh

creative

friend

cost

portable

stylish

Tea VS Coffee

Still majority of Bangladeshi consumer believes that tea is better then the coffee. About 43% of the survey participants told they think tea is a better option comparing to coffee.

One of the reason maybe the climate and the other is the habit of preferring tea rather then coffee.

Tea VS Coffee

yes43%

no57%

yes

no

Nescafe VS Ideal Coffee

On the two charts shows what people think about the ideal coffee and the brand Nescafe from our survey.

Our basis was the test, price, status, calorie and caffeine.

The caffeine and the calorie are the same but people have different perception about the status, test and price

0 0.5 1 1.5 2 2.5 3

Price

Taste

Status

Calorie

caffeine

Nescafe

Series1

0 0.5 1 1.5 2 2.5 3

Price

Taste

Status

Calorie

caffeine

Ideal Coffee

Series1

Cognitive Component

The cognitive component consists of the belief that people have towards different coffee brands.

We try to measure peoples attitude comparison to Nescafe with the main competitor Mac Coffee and the Ideal Coffee.

ATTITUDE COMPERISION

2.95

2.02

2.37

2.93

2.682.9

2.7

3.173.03 2.97

2.65

1.58

1.95

2.852.7

0

0.5

1

1.5

2

2.5

3

3.5

Price Taste Status Calorie caffeine

Attributes

Ra

ng

e

Nescafe Mac coffee Ideal coffee

Affective Component

It is the emotional and feelings of the consumer to the product. They express their likings and perception about Nescafe in the survey given below.

Figure: Affective component

0

0.5

1

1.5

2

2.5

3

3.5

NON T

RADITIO

NAL & Y

OUTHFUL

OVER PRIS

ED

CONVENIE

NT TO P

URCHASE

REFREASH

LIKEIN

G

RA

NG

E

Series1

Behavioral componentLast time consumption

About 96% of the participants said their last consumption was Nescafe and only 4% said Mac coffee and 0% Bru.

Although our survey shows that Mac coffee has the higher status but people usually prefer Nescafe because of the price and the availability.

Behavirol component

nescafe96%

mac 4%

bru0%

nescafe

mac

bru

Behavioral component

Future consumptionAbout 92% said they want to buy Nescafe in the future, 6% said Mac Coffee and 2% told they would like to try bru.

Behaviroral component

nescafe92%

mac 6%

bru2%

nescafe

mac

bru

Self-Concept

Rugged ____ ____ 3.06 ____ ____ Delicate Excitable ____ ____ _3.20 ____ ____ Calm Dominating ____ ____2.86___ ____ ____ Submissive Thrifty ____ ____ _3.23 ____ ____ Indulgent Organized ____ _2.3 ____ ____ ____ Unorganized Rational ____ ____ 3.00 ____ ____ Emotional Formal ____ ____2.81___ ____ ____ Informal Traditional ____ ____ ___3.48___ ____ Changing Colorless ____ ____ ____ 4.00 ____ Colorful

Recommendations Majority of our the consumers are below 18. so Nescafe should focus

more on that segment. Also we find that 40% of the consumers are 18 to 28 years old, consumers

who maybe the university students or the new executives so also this is a potential segment for the Nescafe.

Based on the perpetual mapping, our product falls under the non traditional, fun criteria, and people think preferring Mac Coffee is prestigious so it can be a threat for us, so we should more consider on the expensive, prestigious section.

By using high profile celebrities Nescafe should build up a status. As from the Ideal coffee survey we find that people want economical

product then the test and status, but reducing the price may be a risky decision because of the status of Mac coffee. Giving 20% extra as a promotion may good decision.

The possible new threat is Mac coffee for the Nescafe, recently we see the immerging advertising on the university and college campuses which may harm the market share of the product. So our recommendation is to set a bigger campaign against our competitor where they are targeting.

Thank you