nescafe report (collected)

8/18/2019 Nescafe Report (collected)

1/27

INTRODUCING COFFEECULTURE IN BANGLADESH:THE

TEAM OFFLINEFableeha BushraRubyat Tasfia RaNishadul Haque N Aanisha Mahmoo WAY


2/27

Mother Company Starin B994

Factory

located in GAZPeo dire65


3/27

Bangladesh has never been kind tothe coffee industry as far as

popularity or sales are concerned

Since the British rhas been predomitaste of tea as the required for manybreakfast, with the

as the beverage fo

“The ‘real taste’ of coffee is rather appalling” - Sanjeeda Nusrat, Brand Man


4/27

’


5/27

2. industry and

competitor analysis

“ ”


6/27

2. industry and

competitor analysis

Bru, MacCoffee, Coffee CrMaxwell House and Bean C

94%

6%MARKET SHARE

Nescafé

Others

Currently, Nescafé has a busaround 3 tons annuall


7/273. mar

DEGREE OF BUYERINVOLVEMENT

INEXPENSIVE therefore, habi

BUBEHA

shelve stocking

reminder ads

MARKETINGSTRATEGY


8/273. mar

WHILE BUYING

perceived brand difference…

Since coffee consumers do not makeheavy decisions about what brand tobuy, non-stop ads serve the purposeof creating

BRAND FAMILIARITYrather than BRAND CONVICTION.

Accordingly, if this pfollowed by a purcha

is likely to turn into adue to the reason thatsuitable to have an adtowards it.

As a result, consumeto habitual buying bthey keep buying Neowing to habit form familiarization or a r


9/273. mar

WHILE CONSUMING

perceived brand difference…

Significant perceived branddifferences: Consumers could buyNescafé without much evaluationbut they evaluate the quality of coffee while consumption.

According to product’s strength ortaste, next time, a consumer mayswitch his/her brand prefer andcan purchase one of thecompetitors of Nescafe Classic.

they may switch branNescafé Classic andswitching occurs becseek variety and wandifferent coffee. Ther

consumers act accord seeking buying beha

For instance,


10/273. mar

TARGETTING A SEGMENT

The focus is urban yocosmopolitans withlifestyles.

Taste and aroma of the coquality is the important eNescafé emphasizes keepthroughout the day.

ND SEGMENT is


11/273. mar

…

The introduction of coffee in a j

initially a failure in Bangladesh. Pricpremium and sold in only familyformerly, the jar coffee had almost no mshare during the times of introduction Bangladeshi market. A handful of conswho were passionate about coffee

purchased the jars and the company clisted the launching of Nescafé as venture.


12/273. mar

…

Nescafé gained some of the expectedmarket after the launching of the mini-jars,but yet it lacked a strong customer base toensure a good prospect for the future of thecompany. The target market of coffee wasnever the low income groups, as thepositioning of coffee is to the youth or to theupper societal class. In order to penetratethe market, the primary objective of Nescaféwas to get the people used to the taste of coffee. Because tea is the main competitor of coffee and the prevalent beverage, theobjective could not be accomplishedovernight.


13/273. mar

The taste of ‘real’ coffee is rathnormally practiced tea drinks uand drunk all over the counvending-machine idea was astrategy for Nescafé, the taste olightened with a lot of milk andrecipe to deem acceptable bypublic.


14/273. mar

Otherwise known as the on-the-go coffeepack, the recipe of this pack is also exactlythe same as of the vending-machines. Theonly value migration that occurs here is theidea of do-it-yourself for the customers, tohave a significant increase in theirinvolvement.. The target population agesfrom 17 to 20 years, which is the adaptiveage for tea/coffee drinking as considered byNescafé. This market is desirable in order tobe tapped by Nescafé as it is believed thatonce a customer becomes brand loyal toNescafé, s/he provides a lifetime of revenuesto the company.


15/273. mar

Nescafé uses a premium pricing strategy tosignal its quality and strong brand attributes.The pricing strategy is different for each packsize.

Package pricing is done for Nescafé ClassicJar, Nescafé “Bondhu” Classic Sachet andNescafé 3 in 1 Coffee.

Other than these three products, Nescafé has

some other products like Coffee mate,Nescafé 200 gm pillow pouch etc. Theseproducts are imported and are available in bigchain stores.

Nes460Tk

Nes260Tk

Nes135Tk


16/27

3. mar

Nesca8

Tk

Nescafé 1.8 gm Bondhu Pa5

Tk

Nescafé 0.9 gm sachet 2Tk


17/27

3. mar

pricing strategies…

VALUE ADDED PRICING

This involves attracting value-added service to differentiate thecompany’s offers and to supportcharging higher prices.

The price of Nescaféhigher/cup price thanNescafé pack.

Yet people tend to buy i1 pack is very populyoung generation as it i

without any hassle, andvalue to that product asis mixed with the classic


18/27

3. mar

pricing strategies…

COST BASED PRICING

It is setting prices based on thecosts of production, distribution,and selling the product with a fairrate for effort and risk.

As Nescafé imports theirand raw materials mainlabroad, they cannot sell it aprice. So, they sell theirbased on expenses they nbear after the import


19/27

3. mar

PLACE AND SALES POINT

Nescafe products, in most cases, are found oshelves of various departmental stores and

the smaller packs are found even on roadsidtea stalls.


20/27

3. mar

PLACE AND SALES POINTPack Size Target Users

Out of home pack mostly serving the bulk users, irestaurants etc.

In- home pack, mainly for the relatively frequent coffee

In-home pack, meeting the daily usage need of hoaffordable way.

Containing right mix of coffee, creamer and sugar to hcoffee just by adding hot water , convenient pack size o the consumers to carry it with them and have coffee an

For 2 persons, affordable pack with broader consum


21/27

3. mar

PROMOTIONS - TVC

Cholo shobai

Anytime, Anywhere

Get, S

Jaago


22/27

3. mar

PROMOTIONS– Print Media

NESCAFÉ has been advertising inProthom Alo, The Daily Star, StarWeekend Magazine etc. togenerate awareness among theconsumers.


23/27

3. mar

PROMOTIONS– In Store Communication

Trade posters, Shelf talkers, Bunting, Danglthe main elements used for in-store

communication. Nestlé appoints merchandisinstalling these materials. These are also calle

of Sales Materials (POSM).


24/27

3. mar

PROMOTIONS– Outdoor Activities

NESCAFÉ is currently using shop signagoutdoor promotion. These help shoppersremember the brand while they are makin

purchases.


25/27

3. mar

PROMOTIONS– Sampling

Sampling is a very useful tool to ensure tricoffee. Wet sampling is basically providing sto consumers in ready to drink form. It is d

through vending machines and also throudifferent agencies. NESCAFÉ has yearly bufree sampling and is actively utilizing it with

to familiarizing people with coffee taste


26/27

3 mar

PROMOTIONS– Consumer Promotions

Till now NESCAFÉ has adopted two ways of cpromotion. 1. Through sponsoring different

related to the target consumers, i.e. NESUnplugged, NESCAFÉ Campus Carnival and NBattle of the Giants. 2. Through providing sincentives with the pack, i.e. NESCAFÉ mug, Nbranded spoons, T-shirts, Caps etc. Besides, the cohas also tried out some cross brand promotactivities like promoting NESCAFÉ and Cotogether in the NESCAFÉ dream couples contest.


27/27

TO END WITH…

Nescafe has seen a steady growth in market demand for its products.It has successfully been able to change customers’ attitude towards

coffee and has been able to convert tea drinkers to coffee drinkers…

with the entry of international coffeehouse franchises in to the market that Nescafe has worked so hard to build, the future of Nescafeproducts are at stake

however,

as such,Nescafe has resort to even more creative means to compete andgain market share or even retain its current turnover..

Will this be the start of a new era of marketing for Nescafe?

nescafe report (collected)

Documents