nescafe _ group 5
TRANSCRIPT
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11/17/2011
Abhishek Kumar 010/47
Ankit Kumar 036/47
Navin Yadav 172/47
Vikrant Kamble 339/47
Vivek Kumar 347/47
Arpit Verma 405/17
Avinash Chandra Kishan 406/17
Deepak Patney 408/17
GROUP 5 Integrated Marketing Communication for Nescafe
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ACKNOWLEDGEMENT
We owe a great many thanks to a great many people
who helped and supported us during the writing of this
project.
Our deepest thanks to Lecturer, Prof. D. P . Ghosh, the
Guide of the project for guiding and correcting various
documents with attention and care. He has taken pain to
go through the project and make necessary correction as
and when needed.
We express my thanks to our group mates, for extending
their timely support.
Our deep sense of gratitude to the peers for their support
in data validation.
We would also thank our Institution and our faculty
members without whom this project would have been a
distant reality. We also extend our heartfelt thanks to
our well wishers.
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Industry Analysis:
Steady Volume Growth for Hot Drinks in India
Hot drinks in India recorded a low single-digit growth rate in total volume sales in 2010. Though
growth rates for “other hot drinks” and coffee were higher, the dominance of tea in hot drink sales
served to restrict growth. Certain categories in hot drinks saw exceptional growth, either due to a
health and wellness positioning or convenience of preparation. Off-trade value sales of hot drinks
saw double-digit growth in 2010, highlighting the significant increase in average unit prices.
Unit Prices Escalate Significantly
On the back of consistently increasing commodity prices, hot drinks experienced substantial growth
in off-trade unit prices in 2010. The percentage rise in off-trade unit prices for tea reached low
double digits, as tea manufacturers passed on at least some of the increased costs deriving from the
significant increases in raw material costs. However, major players such as Hindustan Unilever and
Tata Global Beverages chose to absorb much of the increase in input costs in their quest to maintain
volume sales. Several local small players were forced to shut down due to the continuously
increasing input costs over the review period.
Multinational Players Dominate Hot Drinks
Hindustan Unilever, GlaxoSmithKline Consumer Healthcare and Tata Global Beverages together
accounted for more than half of off-trade value sales of hot drinks in 2010. Horlicks retained its
status as the number one hot drinks brand in terms of off-trade value sales, followed by Tata Tea
and Brooke Bond. Innovative product launches by the leading players kept them abreast of changing
consumer preferences, and in some cases even opened up new consumer segments. Both Hindustan
Unilever and GlaxoSmithKline Consumer Healthcare attempted to expand their rural presence by
launching Brooke Bond Sehatmand and Horlicks Asha, respectively.
Kirana Stores Continue To Dominate Retail Sales
Independent small grocers, or kirana stores, accounted for two thirds of off-trade volume sales in
2010. With no significant dip in popularity among consumers, such stores managed to retain the
confidence of all national hot drink manufacturers in selling their respective products. The
traditional appeal of kirana stores reflects that of the most popular hot drink category: black tea.
Though supermarkets/hypermarkets experienced a marginal rise in their share of off-trade volume
sales, they are still far off from competing with kirana stores as the primary retail channel. Declines
in share were experienced by forecourt retailers and convenience stores.
Forecast Period to See Higher Volume Growth
Total volume sales of hot drinks are expected to see a marginally higher CAGR in the forecast period
than that seen in the review period. Exploration of rural consumers as a major target segment will
contribute to this rise.
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The relatively mature tea category will be driven by premium products which offer additional health
benefits, while coffee will increasingly move towards the more expensive but convenient instant
coffee format. On-trade sales through specialist outlets – coffee shops for coffee, and the slowly
upcoming tea lounges for tea – will popularise these beverages further. Other hot drinks will see
continuous growth as parents, especially in urban households, look for the best nutritional benefits
for their children. The inclusion of adults in the age group targeted by other hot drinks also provides
manufacturers with a tool to bolster growth in the forecast period.
Competitive Landscape:
• The two primary coffee brands on a national scale are Bru by Hindustan Unilever and Nescafe by
Nestlé India. Bru Roast & Ground captured 25% of off-trade volume sales of fresh coffee in 2010. In
the absence of any substantial national competition in fresh coffee, it is likely to hold onto its
position as the leader, and possibly increase its share. There are many regional players in fresh
ground coffee, mostly concentrated in South India. Instant standard coffee, priced at three to four
times the unit price of fresh ground coffee, was led by Nestlé in terms of volume sales in 2010.
Nescafe Classic and Sunrise together accounted for around 53% of instant standard coffee volumes
in 2010, with Bru accounting for another 40%.
• Nestlé India and Hindustan Unilever both experienced an upward trend in off-trade coffee value
sales in 2010. Rises in unit prices were, however, the major driver of revenue growth, with Bru
instant coffee seeing 17% value growth in 2010. Growth was also assisted by a strong increase in
instant standard coffee volumes in 2010. Mr Bean (under the Tata Coffee umbrella) on the other
hand, recorded a 36% value sales. This was due to a lack of advertising by the company, which is
looking to focus its attention on the plantation and coffee growing / supplies business in the near
future as opposed to final consumer coffee product. Conversely, Coffee Day saw a notable rise in
retail value sales of 22% in 2010. Fresh & Honest Cafe has launched some 100% fresh ground coffee
brands from the portfolio of the international coffee player Lavazza, but has yet to establish a
significant brand presence in India.
• The international players Nestlé India and Hindustan Unilever maintained their strong presence in
Indian branded coffee in 2010. Some domestic coffee players, like Narasu’s Coffee, Amalgamated
Bean Coffee Trading Co Ltd (ABCTCL) and Tata Coffee, are present in the fresh ground coffee
category, but are still far from threatening the share of Bru Roast & Ground. A notable feature of the
Indian coffee category is the continued popularity of coffee-chicory mix formats in both instant and
fresh ground coffee, due to the lower prices of these products. The largest brand in off-trade value
sales terms in 2010, Nescafe Sunrise, is in this format.
• There were few new product launches in 2010, with Nestlé India and Hindustan Unilever Ltd
concentrating on building their existing brands. Both Nescafe and Bru have recently launched new
advertising campaigns focusing on the Indian youth and the possible use of coffee in the context of
socialising. Both of these companies have used film and television stars to establish brand equity.
The eagerness of these leading brands to connect with young people is indicative of the importance
of the young working population as a target market in India.
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• Instant coffee packaging is changing in India. Previously, the main packaging types used were
pouches and PET bottles. However, Aveon Premium and Royale Coffee are packed in glass jars to
give a premium and classy look. Illy Coffee Ground Roasted Powder is, meanwhile, packed in an
expensive looking metal tin.
• India has a few premium coffee brands, such as Illy and Lavazza. However, coffee is highly
dominated by standard priced brands, such as Bru and Nescafe, along with some low-priced fresh
coffee brands, concentrated in South India. Aditya Birla Retail and Reliance Home have ventured into
private label coffee, but such products are a rarity in coffee in India. Most plantations sell their
produce to major coffee producers, such as Hindustan Unilever and Nestlé, which process, pack and
market the products. The high investment and continuous innovation required in coffee discourage
new entrants from entering the category.
Background
The history of coffee in India dates back to the 17th century, when a pilgrim to Mecca smuggled
coffee beans to India which later went on to become the first coffee plantation in India. But it was
only during the British rule of 1840s that coffee became an important export item. Today, coffee
industry of India is the 6th largest coffee producer of the world, accounting over 4% of the total
world coffee production. There are over 170,000 coffee farms in India, cultivating nearly 900,000
acres of coffee trees. Most coffee production is concentrated in the states of Karnataka, Tamil Nadu
& Kerala.
Consumption of coffee in India as a hot beverage is not a new trend. According to an estimate [1],
only 35% of the total coffee produced in India is exported to other markets and the rest is consumed
by the local market. Traditionally, Southern India (Tamil Nadu, Karnataka, Andhra Pradesh, & Kerala)
has been the dominant consumer of coffee, about 78% of the total coffee consumption in India [2].
Although a big chunk, South India prefers filter coffee over instant coffee, while the other three
zones prefer the later over the filter coffee.
The background provided a great platform for NESCAFÉ, a brand of Nestlé, which entered the Indian
market in 1963. As of today, NESCAFÉ enjoys a market share of 55% in the Indian coffee industry [3].
Consumer Analysis
According to the Indian Coffee board, the domestic consumption of coffee is rising at a rate of 5-6%
annually, partly due to the introduction of coffee café culture and the widespread acceptance of
coffee as a hot beverage options in the non-traditional markets of the North, East & West. According
to a report published [4] by the board, over 73% of consumption comes from the Urban areas & 27%
from Rural areas in the South.
The coffee consumers are segmented based on the consumption rate: non-drinkers, occasional
drinkers, and regular drinkers. While the cluster of regular drinkers is mostly concentrated in the
Urban cities, mostly in South India, the consumption level has increased significantly, at a rate of
around 13% across other regions [5].
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The primary target segment of Nescafé is the Young urban working population, in the age group of
18-39 years, which is 59% of the total urban population [6] and cumulatively contributes around 51%
of national income. Among the target segment, the penetration of tea is about 90% and that of
coffee is only about 46% according to the Euromonitor report [5]. According to a study conducted
by MTV India Insights Studio, the wallet share of coffee is only about 7% in males and 5% in females [7]. Though the most common sales channel is the hypermarket & modern retail channels.
The structure we have chosen for this report is that we have chosen 3 unique and different brand
variants under nescafe’s umbrella, namely
• Nescafe Classic
• Nescafe Cappucino
• Nescafe Ice Tea(NesTea)
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NESCAFE CLASSIC
Channels used:
TVC, Print Media
Other advertising channels: Product placement in movies, soaps etc. Sampling
TVC
TVC 1: One of the very first commercials of Nescafe classic in India. The TVC hits on every front very
clearly regarding the target segment.
Message: Throughout the advertisement it can be seen that the characters in the ad are sipping
coffee at the start of a day or work, which caters to the most common usage space of coffee in India,
at the morning. The advertisement starts with a recording studio starting the recording with a sip of
coffee, a book store being opened with a coffee, an employee rushing through the traffic, a
photographer clicking pictures, a painter etc. In the background a tone keeps on playing constantly,
“I just need, need to get started and I will be on my way”, symbolizing the start of the day.
Nescafe has a very peculiar tune “Pa PaRaPa Pa Ra Ra”, many brands use such strategies to market
their brand. For example Kingfisher’s “Oo la la la oo le lo” or Brittania. The idea is to make the tone
so catchy that people hum it unconsciously, or in the very recent, use it as ringtones, marketing the
brand to others without knowing. Also the brand recall becomes high as the person is able to
recognize the brand just by the tune used in the ad.
Target Segment: The advertisement clearly features the following characters.
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1. A composer
2. A book store owner
3. A corporate rushing for a meeting
4. A girl waking up to a coffee
5. A photographer
6. A Painter
Thus it clearly defines its target segment as the urban youth.
Why urban youth?
a. The rural class is still in a habit of tea drinking, there are a very few coffee drinkers in the
northern part of India. There is a huge market in the rural south India, but most of them
prefer filtered coffee or local made coffees.
b. The idea was to capture the market in the urban India and inculcating coffee drinking as a
habit in the daily lives of a mobile urban youth.
Positioning: “Morning drink for the spirited soul”, the ad very clearly depicts the usage and the time
of usage for the product. And very successfully was able to do so. One very noticeable thing about
the ad is that most of the jingle in the background is in English, thus ruling out the rural sector
consumers totally.
Slogan: “100% Pure”, an age-old tactic of claiming that their product is pure or safe. This is done
normally to remove any shadow of doubt from the minds of the consumer when they go to purchase
coffee from a local kirana store.
TVC 2: A slight change in the positioning from the previous advertisement. Nescafe released three
slightly different advertisements following the same theme. We have analyzed only one of them.
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Message: After the successful campaign of inculcating the use of Nescafe as a daily schedule. They
tried to appeal to a different side of the consumer, rather than more of a rational appeal which was
visible in the previous advertisement it was more of an emotional connect. To break free from the
clutter of the daily camaraderie and enjoy in the moment. The advertisement shows a couple
enjoying the moment in the rain, a group of friends chatting while enjoying coffee. Thus successful in
communicating the correct use of the product, “To break free..and enjoy the moment”, like a person
does when he drinks coffee by taking a break during his office hours.
Even the background score says, “Come alive to great moments”, emphasizing our previous
viewpoint that this advert was positioned to appeal to the emotional consumer.
Target Segment: The target segment remains the same, “Urban youth”. The characters portrayed in
the advertisement. A couple, and a group of friends both of them falling under the youth segment.
Positioning: “beverage for any moment”, this advertisement can also be seen as a persuasion to
increase the usage of the product. Since the market usage as a morning beverage might have
become stagnant, they tried to position it in the moments of a day.
Slogan: “Coffee at its best”, they do not let go of the 100% pure coffee slogan as the slogan is shown
in the TVC in the middle of the advertisement.
Reference: http://www.youtube.com/watch?v=kmMsyvPiyf4
http://www.nestle.in/images/tvchtm/nescafe3.htm
Other information: “Prime Focus has post produced this Nescafé ad for India, which shows a young
couple waking up in the morning, the man waking his lady love with the aroma of fresh coffee.
Miten Udeshi, who worked on the telecine of the commercial, graded the ad to keep its 'coffee' tone
throughout the film. The same look is kept across all Nescafé commercials, keeping the ad's brand
recall value high.”
Taken from the website of McCann Erickson, the agency which produced this ad
http://www.primefocusworld.com/work/portfolio/nescaf-classic-mccann-erickson
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TVC-3: This advertisement is a continuation of the TVC-2 described in this report, as it follows the
same background score throughout.
Message: If the market is stagnant there are three ways in which you can increase your sales.
1. Increase usage of the product amongst the current users
2. Convert non users to users
3. Convert the competitor’s consumers to your own consumer
Nescafe achieved the first step with TVC -2; the second step was achieved by this advert.
Who were the non users?
1. People belonging to lower half of the pyramid who cannot afford a Nescafe pack of 250 gm.
2. People who are not willing to purchase a 250 gm bottle to try out Nescafe as a product.
This objective of this advertisement was to generate awareness about a 1 rupee sachet of Nescafe
being available.
Target segment: As mentioned previously, the target segment will be mainly Sec B consumers or the
lower half of the pyramid. Also, people who occasionally drink coffee, and are reluctant to purchase
the bigger pack.
Slogan: “Behtereen Coffee, Behtereen Daam”, which means excellent coffee at excellent price. Also
notice that this slogan is in hindi compared to the previous adverts, thus again emphasizing on our
viewpoints on the target segment for the product.
Other information: The sachet also helped Nescafe in sales promotion by distributing samples of the
product or by giving it free with other products.
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TVC-4: After six advertisements they finally signed a celebrity to endorse their brand. Deepika
Padukone was signed to endorse the brand. The advertisement was released in three parts each
stage in continuation to keep up the curiosity quotient of the consumer.
Message: Nescafe started the “know your neighbours” campaign and signed Deepika Padunkone for
the advertisement. Unlike other advertisements which use big stars to just recommend the usage of
product plainly. This advertisement involved the celebrity very cleverly within the advertisement.
The ad was featured as a series of three ads each in continuation with a “to be continued …”
displayed at the end of the first two advertisements.
This was to generate curiosity amongst the consumers. The message was very plain and simple. The
ad shows a young teenager who is pondering over whether to approach a celebrity who has come to
live as his next door neighbor.
The first ad shows Deepika pondering over the same fact whether she should ask his next door
neighbor for a game of badminton or not.
The product is shown as being an “ice-breaker or a conversation-starter”, for the two characters. The
final ad shows the two characters talking when the second celebrity enters, Karan Johar.
Initially, the common teenager ‘Purab’ feels low on confidence as the two celebrities engage in
conversation. He feels outcast amongst the two big names.
Then enters our product, Nescafe. The character takes a sip while in the background a voice recites
the slogan “Switch on the best in you”. And the character regains his confidence.
This advertisement is on a different track in comparison to the previous advertisements. We believe
that this was just a celebrity endorsement with the celebrities cleverly weaved into a story. The
advertisement has a humorous touch to it.
Positioning: The advertisement positioned the product as “the drink that gives strength for any
challenge”. The coffee that instills confidence in you.
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Slogan: “Switch on the best in you”, daring one to take on challenges and discover one’s new self
References:
http://www.nestle.in/images/tvchtm/nescafe8a.htm
http://www.nestle.in/images/tvchtm/nescafe8.htm
http://www.nestle.in/images/tvchtm/nescafe_new.htm
PRINT MEDIA:
PRINT AD: Good Morning.
Analysis:
� Identification: The brand logo is clearly visible in the small pack of Nescafe.
� Description: Use of a splendid backdrop to show a chill & relaxing day with a person sitting
with his coffee mug and the Nescafe pack to show that he uses Nescafe product.
� Association:
o The print ads are used to show an urban lifestyle, where a person is relaxing and
chilling out with a cup of coffee.
o The person in the print ad seems to belong to the target audience age group to
resonate with the targeting strategy.
� Aesthetics:
o The splendid black-&-white background signifies a ‘calming’ & ‘soothing’ feeling.
o The bright red color of coffee cup/mug connotes ‘excitement’ & ‘stimulation’.
Objective: Inducing trial.
Positioning: The advertisement positioned the product as “the drink for every morning”, inducing
people to trust in a brand which many people trust.
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Slogan: “So many ways to say ‘Good Morning’ …one common factor”, saying that there are so many
people who believe to start their day with a coffee, that too Nescafe.
PRINT AD: Rain advertisements.
Analysis:
� Identification: The brand logo is clearly visible in the bottom left and the mug being passed
on.
� Description: The ad was released to make Nescafe a choice of drink during rainy season. The
print ad shows a girl drenched in the rain and enjoying it and a coffee cup being passed
between two people.
� Association:
o The print ad shows a girl drenched in the rain and enjoying it, and this signifies the
joy of drenching in rain and trying to associate that feeling with Nescafe.
o The person in the print ad seems to belong to the target audience age group to
resonate with the targeting strategy.
o The passing of the cup states that there are more than one person, i.e. Nescafe is
associated with friendship & hanging out with friends. Warmth of sharing with
friends is enhanced with a cup of Nescafe.
� Aesthetics:
o The bright red color connotes ‘excitement’ & ‘stimulation’.
o The umbrella above Nescafe in the left corner shows the vibe of the excitement &
joy.
o The use of two different pictures symbolizes the fun of rain and the warmth of
sharing.
Objective: Increasing consumption occasion.
Positioning: The advertisement positioned the product as “the drink for rainy days”, encouraging
people to increase the occasion of consumption of Nescafe.
Slogan: “Warm up to the Rains with Nescafe”, saying that the warmth of the rain is enhanced with
the Nescafe.
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PRINT AD: Deepika & Purab Advertisements.
Analysis:
The series of print ads show a chic-modern appeal, to give a feel of the urban lifestyle.
� Identification: The brand logo is clearly visible at the top corner along with the logo in the
coffee mug.
� Description: In most of the ads, the coffee cup/mug is shown tilted to give a look of
consumption. The aesthetics of the ad shows a relaxing day with a cup of coffee to induce
the time of consumption, any time that you feel like relaxing. Some of the ads in this series
show an urban lifestyle of the housing, clean room with technically placed items. The choice
of costumes used in the ads is modern and connects with the consumer segment.
� Association:
o The print ads are used to show a lifestyle that resonates with the urban areas.
o The use of Deepika & Purab is to fill the shoes of urban youngsters, who can connect
with the celebrities in terms of age.
o The depiction of the print ads symbolizes a situation of hanging out and relaxing.
� Aesthetics:
o The cool blue or light pink background signifies a ‘calming’ & ‘soothing’ feeling.
o The bright red color of coffee cup/mug connotes ‘excitement’ & ‘stimulation’.
o Symbolisms are used in the background to depict the urban way of living. Like in the
case of the first picture, the background has some picture scribed in white color
which signifies the modern lifestyle of running and living in an urban area. The
chalkish-picture is used to depict a ‘youth’ & ‘vibrant’ imagery.
Objective: Increasing brand recall.
Positioning: The advertisement positioned the product as “the drink that gives strength for any
challenge”, the coffee that gives confidence to face any challenges.
Slogan: “Switch on the best in you”, daring one to take on challenges and discover one’s new self
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OOH
Out-of-home: The Nescafe marketing team has also roped in the BEST (BrihanMumbai Electric
Supply & Transport), Mumbai for their advertising campaign. The bus service is famous in Mumbai
and carries around 45 lacs passengers daily. Although there is no data on the customer of the
services, there is a widespread believe that about 50% of the travelers fall into the target audience
category of Nescafe, i.e. young working between the age of 18-39 years. The amount of time spent
in the bus shed waiting for bus is significant and averages to around 17 minutes, which is much less
than the real waiting time [9]. The bus shed are a place of bonding and hanging out with friends and
that provides the connect with the brand identity of Nescafe.
Aesthetics: The OOH print ads are used to appeal to the rational of consumers. Get more of the
same pack.
Objective: The only rational objective that comes out of this campaign is the increase in
consumption. They are trying to push the consumption by selling bigger packs. At the same time, the
brand visibility to keep reminding the consumer about the product since it is a low-involvement
product.
Slogan: ‘One Nescafe, Many Coffees’, saying that you would get more number of drinks in this pack
of Nescafe.
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PACKAGING:
The main attributes of packaging described taking the packaging of Nescafe Classic into
consideration.
Information: A package must successfully deliver all the information about the product. This
includes the ingredients, the logo, the slogan etc. A bottle of Nescafe Classic contains
a. The brand promise: A message saying “100% coffee”,
which is the promise that Nescafe always delivers the
best and the purest form of coffee.
b. Ingredients: The compulsory norm for packaging of p
roducts is to display the ingredients used in the
product.
c. Brand Logo: To form a connect with the consumer over
the brand image that has been build over the years via
marketing.
Use convenience: Nescafe Classic comes in different forms,
namely glass packaging, air-sealed plastic wrappers, cartons
and sachets. All have different forms of use convenience while the glass jar packaging is used for
repeat use while keeping the coffee fresh for a long time, the air-tight sealed packets are
comparatively low on price and are used as a refill pack, or are purchased to be stored in an air tight
container. The sachets on the other hand are used for one-time use, i.e. use-and-throw.
Market and brand appeal: This mainly includes the look and feel of the package. The color of
Nescafe’s packets are normally of “Coffee” color, so the user can distinguish this product on a shelf
with a “Green” Bru. On the other hand the color of the package being similar to coffee makes it
more associable with the product itself. The brand appeal is established via promotion and
generating awareness, so if the advertisement claims a launch of a product, Nescafe Classic with a
richer aroma and better taste. The words “richer aroma” or “better taste” should feature on the
package. Sometimes Nescafe also uses a red and white combination which is basically the
combination used by its parent company “Nestle”
Containment and safety: The safety of the product as well as the consumer who uses the package is
a prime concern of the company. Nestle’s safety promises cannot be explained better than the
promise made by the company on the company’s website.
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POINT OF PURCHASE: Nescafe products are mainly sold in the following points. Nescafe Classic being
the most commonly used Nescafe coffee line extension.
a. Kirana Store : The most common and the most widespread form of sales point in India
b. Modern Retail: Present mostly in cities are increasingly becoming the most important points
of purchase. There are many factors that may influence the consumer’s decision at the last
moment of purchase. Most important of which are
a. Visibility: Whether the product is at eye-level or not
impacts the number of SKU’s sold
b. Accessibility: Where the SKU stack is located in
comparison to the entrance of the mall matters as most
of the SKUs sold today are impulsive purchases, so if the
SKU stack is located near the entrance and is visible, it
will impact the sales.
c. Vending Machines: Nescafe has its own vending machines
installed at various locations namely College canteens, Offices,
restaurants etc. This is a very efficient form of OOH marketing
too.
Other forms of Promotion: One very important and usually overlooked form of Nescafe’s
marketing is that wherever Nescafe’s vending machines are present they supply coffee in special
Nescafe paper cups only. Also Nescafe has special cups
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They also tried to rope in a very successful form of advertising which is also becoming increasingly
popular, social marketing.
They created a facebook page for involving the user, also known as Interactive marketing. The
statistics of the facebook page as on 16-11-2011 are: 1,080,645 like this 113,539 talking about this,
which is by-far one of the best Indian company facebook page. Engaging over2000 fans per comment speaks of the popularity and engagement index.
So in the end we see how the positioning has changed for Nescafe classic through time.
Reference
Year target positioning Slogan Objective
1998-
2005
urban youth morning drink for spirited
soul
100% pure First choice of drink for
morning coffee
2006 urban youth recharge drink Re 1 pack inducing trail in smaller cities
2007-
2009
urban youth beverages for any moment Coffee at its best increasing usage
2010 urban youth the drink that gives
strength for any challenges
Switch on the best in
you
increasing market share
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9. http://www.mesn.org/mumbai%20traffic%20stats.html
NESCAFE CAPPUCCINO
Nestle introduced one of its premium product Nescafe Cappuccino in early 2009 in India. The
product offers rich taste of the cappuccino coffee with a rich froth and a real cappuccino aroma.
Nestle did not bring out many advertisements for its cappuccino product. Cappuccino being a new
product, while Nestle kept TV commercials to a minimum, it put more emphasis on print and trials.
These are the three main channels it uses to market the product and we will analyze them in detail.
Channels used:
TVC, Print Media, Outdoor Trials
TVC 1: There is just one TV commercial that Nescafe Cappuccino launched in India. Following is the
link for the commercial:
http://www.nestle.in/images/tvchtm/cappuccino.htm
Message: The TV commercial produced for Nescafe Cappuccino shows a homely environment with a
girl sitting on a chair, besides a swimming pool and enjoying her cappuccino. In the TVC, Nescafe
Cappuccino has focused on the comfort of home while enjoying one’s coffee. In addition, the image
of froth building up in a coffee mug and the girl licking the forth from her lips has done well to bring
out the main objective of the communication, thick froth and rich coffee taste at home. The act of
licking thick coffee froth from the lips after having a sip of cappuccino has been done to make the
consumer salivate upon the sight of the TVC. This strategy is used as an indirect attack on the
psychology of the consumer which is used by many other FMCG manufacturers like Coca-Cola, etc.
Nescafe also added a new version of its trademark jingle, “Pa PaRaPa Pa Ra Ra”, to the TVC in order
to identify the product with the quality of original brand Nescafe. Another objective of the
communication is to induce trial among the existing Nescafe and other coffee consumers, as Nescafe
Cappuccino is a new product. The TVC also achieves the objective of inducing trial by displaying a
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sachet pack with clear markings of ‘Makes 1 cup’ indicating the availability of trial packs. To achieve
its objectives, Nescafe has kept its messages quite simple and clear, which is quite significant for the
adoption of a new product. The message, saying that one can now experience the thick frothy taste
and rich aroma of cappuccino right at home, leaves quite less to the imagination of a consumer. As
also mentioned above, Nestle has used only television, print and trials as the communication
channels to reach its consumers in an effective manner. Restricting the usage of communication
channels also shows emphasis on the nascent stage of the product and hence a reluctance to float a
full throttle campaign. Let us now discuss the communications in details.
Target Segment: The marketing campaign is targeted towards a segment which includes consumers
who like to enjoy their free time at their homes with a mild drink like coffee. The TVC also depicts a
female enjoying her cappuccino in a homely environment. A highly decorative and luxurious
ambience clearly indicates that the product is not directed to either rural or other SEC-C consumers.
There is a clear emphasis on female consumer as throughout the whole ad they have maintained a
flowery and comforting ambience. Thus they have once again tried to target the urban youth,
especially females.
Why specifically females?
a. Indian male youth are usually assigned a more outgoing personality as compared to Indian
girls. Therefore, there are more chances of them indulging in drinks which are served
outdoors, thus rendering the main objective of Nescafe Cappuccino useless in such cases.
b. Indian women are also considered to be main grocery shopper for the household, thus
making it more logical to target and influence the women of the households to buy their
product for their homes.
Positioning: “Deliciously frothy and pure cappuccino experience at home”, Nescafe Cappuccino tries
to sell the frothy and real coffee flavored cappuccino experience at the comfort of one’s home. The
comfort aspect of the positioning makes it different from competitors existing in the industry.
Print Ad 1: The print ad for Nescafe Cappuccino has again been kept simple and to the point. The ad
could have been used in newspapers, magazines and OOH.
Message: The ad shows a mug of cappuccino with a thick froth and
vapors of rich aroma of coffee in order to depict the quality of the
product. There is a very clear smiley made out of chocolate powder
on the froth depicting the smile it may bring to a consumer on
consumption. The message at the bottom clearly states the main
objective of the campaign, to ‘Bring home the café experience’. The
message also says what all does the new product has to offer to the
consumer, i.e. thick froth, rich aroma and great coffee taste. Nestle
has used the trademark blend of colors used by Nescafe Classic in its
ads and other communication, in order to maintain the relation with
the parent brand. This is another way to increase consumption by
attracting existing Nescafe consumers to try the new product. Again,
display of the sachet and the marking ‘Makes 1 cup’ distinctly at the
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bottom helps add to the trials of the product. A message indicating availability in select cities also
means that the product is in its nascent stages and hence might not be available in every city.
http://www.nestle.in/images/cuppucino_ad.jpg
Outdoor Trials: In the trials, Nescafe Cappuccino again maintains its simplicity of message and
provides an opportunity to consumers to try the new product on the go. Nescafe uses locations like
malls and markets to put up stalls for the Nescafe Cappuccino where it can attract potential
consumers looking for something new. The stalls carry the name of the brand, Nescafe, and the
product, Cappuccino distinctly at a comfortable level to be seen from a distance and amid a crowded
mall. The impressive stacking of the packs of the product on the counter of the stall is also an
effective way to grab the attention of a passing person. To emphasize the simplicity of the
preparation of the product, all stalls carry no other equipment than a hot water jug. This is an
impressive way to demonstrate the ease of preparing the rich cappuccino coffee from just the
ingredients of the pack. An advantage of trials is that one can not only see and listen to the ads, but
can also smell and taste the real product and make judgments on the spot. The smell of coffee being
sampled can be experienced in a wider area than just the small, thus attracting potential customers
to the stall, while the taste can help them reach a decision about the quality of the product.
PACKAGING
Nescafe Cappuccino is launched in two important packs, 250 gm. carton and
sachets. While the cartons are meant for high consumption households, the
sachets are meant to increase trials for the new product. Apart from
providing the basic information about the product like ingredients, logo of
the company, net content, etc. the packaging has also successfully conveyed
the brand promise attached with Nescafe. A single look at the color tones
used on the packaging reminds you about Nescafe which gives a
psychological advantage to Nescafe Cappuccino. An onlooker, specifically
existing Nescafe users, will immediately be assured of the quality of the
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product. The markings ‘Makes 1 cup’ on the sachets efficiently convey their usage as single serves
and hence attract trials amongst the consumer.
COMPETITION
Nescafe Cappuccino faces a tough competiti
offered in both hot and iced variants. Bru introduced its cappuccino products in 2007 and held
strong campaigns to promote them. Bru’s ‘Sip, Lick, Ummmhh…’ campaign was an instant hit in the
market with the launch of the product. However, Nescafe enjoys the advantage of positioning itself
as a simple-to-prepare formulation of the product which gives it an edge over Bru.
In its campaign Bru has targeted the young generation enjoying coffee at different day
occasions. Bru has tried to introduce a new way of drinking cappuccino by putting in words the
different actions a consumer will go through while drinking a rich cappuccino coffee.
specifically effective in its appeal to the young generation because of the whole youthful ambience
of the TVC.
Another kind of competitors that Nescafe faces are the coffee outlets like Café Coffee Day and
Barista. Although these outlets do not
a challenge to Nestle. The quality of coffee prepared at these outlets cannot be matched by the
instant mix prepared with just hot boiling water. In addition, the way these outlets have positioned
themselves as cool hangout places for the youth, they are offering much more than just comfort.
Needless to say, in this case, the target segment might differ in its behavioral aspects and the needs
that are served by these outlets.
NESTEA
Channels used:
OOH, TVC, Print Media, Radio
The advertising campaign was highly
road shows ensured many touch points populated by young adults, such as malls, colleges, high
traditional trade outlets and multiplexes.
‘Makes 1 cup’ on the sachets efficiently convey their usage as single serves
and hence attract trials amongst the consumer.
Nescafe Cappuccino faces a tough competition from Unilever’s Bru Cappuccino products which are
offered in both hot and iced variants. Bru introduced its cappuccino products in 2007 and held
strong campaigns to promote them. Bru’s ‘Sip, Lick, Ummmhh…’ campaign was an instant hit in the
the launch of the product. However, Nescafe enjoys the advantage of positioning itself
prepare formulation of the product which gives it an edge over Bru.
has targeted the young generation enjoying coffee at different day
occasions. Bru has tried to introduce a new way of drinking cappuccino by putting in words the
different actions a consumer will go through while drinking a rich cappuccino coffee.
specifically effective in its appeal to the young generation because of the whole youthful ambience
Another kind of competitors that Nescafe faces are the coffee outlets like Café Coffee Day and
Barista. Although these outlets do not market themselves in the conventional manner, they do pose
a challenge to Nestle. The quality of coffee prepared at these outlets cannot be matched by the
instant mix prepared with just hot boiling water. In addition, the way these outlets have positioned
themselves as cool hangout places for the youth, they are offering much more than just comfort.
Needless to say, in this case, the target segment might differ in its behavioral aspects and the needs
that are served by these outlets.
was highly focused and took the route of experiential sampling.
touch points populated by young adults, such as malls, colleges, high
traditional trade outlets and multiplexes.
‘Makes 1 cup’ on the sachets efficiently convey their usage as single serves
on from Unilever’s Bru Cappuccino products which are
offered in both hot and iced variants. Bru introduced its cappuccino products in 2007 and held
strong campaigns to promote them. Bru’s ‘Sip, Lick, Ummmhh…’ campaign was an instant hit in the
the launch of the product. However, Nescafe enjoys the advantage of positioning itself
prepare formulation of the product which gives it an edge over Bru.
has targeted the young generation enjoying coffee at different day-to-day
occasions. Bru has tried to introduce a new way of drinking cappuccino by putting in words the
different actions a consumer will go through while drinking a rich cappuccino coffee. The TVC is
specifically effective in its appeal to the young generation because of the whole youthful ambience
Another kind of competitors that Nescafe faces are the coffee outlets like Café Coffee Day and
market themselves in the conventional manner, they do pose
a challenge to Nestle. The quality of coffee prepared at these outlets cannot be matched by the
instant mix prepared with just hot boiling water. In addition, the way these outlets have positioned
themselves as cool hangout places for the youth, they are offering much more than just comfort.
Needless to say, in this case, the target segment might differ in its behavioral aspects and the needs
experiential sampling. Various
touch points populated by young adults, such as malls, colleges, high-end
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TVC 1: This is the first of the two advertisements which has come out on television.
Message: The television ad clearly had the ‘fun’ and ‘youth’ touch to it, with words playing in the
back like ‘masti’ and also Lemon aspect with vitamin C was thrown in the same. It showcased young
pair who is chilling out with Nestea. From the visuals, clearly the target audience is youth who wants
to have good time. People aspiring to be have a good lifestyle.
The same advertisement and communication was continued for next couple of years. At the first
quarter of this year, Nestea again got aggressive on OOH and also came out with another
advertisement on the television which tries to increase the target segment apart from just young
college going crowd.
TVC 2: The second and the latest of the advertisement goes the animation way and show ‘mommy
kangaroo’.
Message: The recent ad features a Kangaroo mother who is not being able to gel well with her son’s
lifestyle and get along with his friend group. So by using the Nestea remix, she gets the appreciation
of her son. Clearly the focus has shifted from just talking to youngsters to appealing all those people
who want to be trendy and happening. Also the use of animation helps the advertisement to stand
out from the crowd. It is very appealing when it comes to target audiences since it connects
exceptionally well with the youth.
Target Segment: The 1st advertisement features youth with trendy get up and urban look style.
Clearly the focus is on the youngsters who are in sync with the recent trends and feel cool and
happening.
While the 2nd advertisement uses a Kangaroo to depict an urban mom who finds herself out of sync
of her child’s world. The visuals are of partying and rock music playing in background. Clearly a
setting to interest the urban youth and people with better lifestyle.
Positioning: “pyas ko pee ja, dhoop ko bhiga, masti me doob ja”, the ad very clearly depicts the
usage and the time of usage for the product.
Slogan: “Refreshingly Good”, puts the spot light on the ice tea claiming that it refreshes one’s mood
and playful visuals with water pipe goes well with the slogan.
Other Channels: Around the first quarter of this year, Nestea again
got aggressive on OOH and came out with advertisement at bus stand
during the start of the summer season.
Other References:
1. http://indiacoffee.org/indiacoffee.php?page=CoffeeData#exports
2. http://www.indiacoffee.org/userfiles/file/Coffee%20consumption%202008.pdf
3. http://business.mapsofindia.com/top-brands-india/top-coffee-brands-in-india.html
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4. http://indiacoffee.org
5. http://www.euromonitor.com (Hot Drinks – India: Euromonitor International : Country
Market Insight - January 2011)
6. http://www.indiastat.com/demographics/7/population/217/projectedpopulationbasedon20
01census20012026/418450/stats.aspx
7. http://www.firstpost.com/living/indian-urban-youth-are-all-about-food-booze-and-dope-
113917.html
8. http://www.euromonitor.com (Coffee in India: Euromonitor International : Country Sector
Briefing January 2011)