Brand and Nescafe

The beginnings of Nescafe can be traced all the way back to 1930, when the Brazilian government first approached Nestle. At that point Brazilian coffee meets Swiss science. Nestle’s coffee researcher Max Morgenthaler, and his team set out immediately to find a way of producing a quality cup of coffee that could be made simply by adding water, yet would retain the coffee’s natural flavor. After seven long years of research in Nestle’s Swiss laboratories, the answer was found.

The new product was named NESCAFE – a combination of Nestle and cafe but word wide cafe means coffeehouses or coffee-bars.

Nescafe was first introduced in Switzerland, on April 1st, 1938. For the first half of the next decade, however, World War II hindered its success in Europe. Nescafe was soon exported to France, Great Britain and the USA. Without realizing it, America played a key role in re-launching Nescafe on the continent by virtue of the fact that it was included in their food rations.

Its popularity grew rapidly through the rest of the decade. By the 1950s, coffee had become the beverage of choice for teenagers, who were flocking to coffeehouses to hear the new rock ’n’ roll music.

It is currently estimated that, on average, some 3,000 cups of Nescafe are drunk every second. As is evident Nescafe’s come a long way since 1938 and all is owed to Max Morgenthaler and his team! In Bangladesh under the sole distributorship of Nestle Bangladesh Ltd. , Nescafe Classic was first introduced in 1998.

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This was a beverage aimed at the upper and middle segment of the population. In October 2000, another Nescafe beverage Nescafe Sunrise was introduced for the lower income population. Other Nescafe products available in the market such as Nescafe Gold, Nescafe gold Blend are all imported and not distributed by Nestle Bangladesh Ltd.

NESCAFE has over 70 years of expertise in selecting the best beans, blending, roasting and extracting the flavor of coffee. Our commitment to quality is tested millions of times every day by millions of coffee lovers around the world. ————————————————- Brand Elements of Nescafe * Brand Name: Nescafe(Nestle + cafe) * Logo: * Symbol: Red Mug * Slogan: Get Set Go!!! * Packaging: Glass, Plastic & Aluminum foil * Color: Red, Black & Grey * Jingle:CholoSobai… * URL: www. nescafe. com Figure 1: Brand Elements of Nescafe ———————————————— Nescafe Bangladesh Brand Positioning Positioning Statement “Nescafe is a contemporary, up-beat brand of distinctive quality that offers me a rewarding coffee experience every time, everywhere. ” Segmentation and Target Market The company has determined Nescafe’s target market based on a multi-attribute segmentation model. The pattern of segmentation selected is homogenous as well as heterogeneous segmentation based on the analysis of urban and rural area of Bangladesh. Behavioral Segmentation Usage Rate: Markets are segmented in to heavy coffee-drinkers, medium to light consumers.

Nescafe tries to capture heavy to medium users of its product. Nescafe all products category are positioned on the basis of the consumption rate of consumer. Occasions: Nescafe promotes its beverages as ideal for all occasions such as breakfast, midday, evening, night (when you want to stay awake), important days such as Valentine’s Day, Eid-ul-Fitre and Eid-ul-Azha and so on. Benefits: Nescafe users has been classified as ‘people who seek to be recharged’, ‘people who want to let others know that they have important stations in life’, ‘those who want to start their day with something positive’ and so on.

User Status: Nescafe’s markets can be segmented into nonusers, potential users, first-time users and regular users of coffee. So that, some geographic areas people are more potential to buy Nescafe. That’s why, Nescafe distribute more product in that area and the extended distribution according to user status. Demographic Segmentation Income Level: The target market includes all those individuals having a monthly income at least greater than or equal to Tk. 10000. this is basically the target market in order to those who has ability to buy Nescafe.

On the other hand to market their premium brand product, Nescafe have different income level consumer for whom Nescafe market has to be obtained their premium product through distribution in different retail shop. Age and Life-Cycle Stage: Nescafe targets the late teens to early thirties segment of the population. As its secondary target market it aims at the 30+ segments. According to Nescafe it is the 18-30s market in Bangladesh that shall be its future potential coffee drinkers and hence it focuses on appealing to them. PsychographicsSegmentation

Lifestyle: People believe that coffee consumption is an indicator of their rich and prosperous standard of living. Nescafe users or potential users are assessed to be individuals with active lifestyles and hence Nescafe produced its line of Instant beverages. Personality:Nescafe has an ability of its products with a brand personality that corresponds to its present and potential consumers. Some of the personality traits of Nescafe are: Confident, Positive, Success and Achievement-Oriented, Getting started in life, Dynamic and Optimistic. Social Class: Coffee is a drink for the affluent segment of the society.

As such Nescafe targets the upper strata of society through different line extension of premium brand such as Nescafe Gold, Nescafe Metinal, and Sunrise. Geographic Segmentation Urban area: Positioning different category of Nescafe product according consumer life style. Nescafe have to concentrate on how they are positioning to the urban area, because of the positioning would be different based on the area. That’s why Nescafe can market their all kinds product to the urban area like Dhaka, Chittagong, Sylhet and so on. Rural Area:Positioning fewer categories of productsin ruralarea of Bangladesh.

Usually in rural area people will find out Nescafe 3in1 coffee, because this product is very popular in very corner of Bangladesh and rural people will able to buy this coffee packet as their income level. ————————————————- Mass Marketing Nescafe Classic Coffee Nescafe Classic Coffee is an all-time favorite in households worldwide. Nescafe Classic is considered to economy price and coffee for the mass consumer. It has a different size of packet to market it for the mass consumer. Premium Product positioning Nescafe Gold is the premium choice for special, smooth cup of coffee every day.

Nescafe Gold is positioned to the market according to geographic and psychographic segmentation. Geographic &psychographic segmentation is important for positioning Nescafe premium brand. People those who have higher income level and posh lifestyle and looking for different taste of coffee they will buy Nescafe premium products such as Gold, sunrise, Metinal etc. Niche Marketing Nescafe have a very few product for Niche marketing. Nescafe Brazilian is considered to market for Niche consumer. Nescafe Brazilian is made in Brazil. It’s a Very strong and best for black coffee and very premium priced. ———————————————— Adequate Sales Potential in the Segmentation NESCAFE 3in1 NESCAFE 3in1is a perfect mix of coffee, milk or creamer and sugar in an easy way. This coffee is being distributed to the every corner of Bangladesh. That’s why consumers are able to find Nescafe 3 in 1 in a corner of a tea stall to the retail shop. Figure 2: Product Line Extension ————————————————- Marketing Mix Pricing Strategy by Nescafe, Bangladesh a) Nescafe Classic Coffee 200gm Product Code| Weight (Kg/Lt/oz. /pcs)| Price(Taka)| Item Name| Manufacturer| Recent Rating| 45| 0. 0| 395. 00| Nescafe Classic Coffee 200g Jar| NA| Buyer Rating| Table 1: Nescafe Classic Coffee b) Nescafe Gold-Germany 100gm Product Code| Weight (Kg/Lt/oz. /pcs)| Price(Taka)| Item Name| Manufacturer| Recent Rating| 45| 0. 20| 395. 00| Nescafe Gold Coffee 100g Jar| NA| Buyer Rating| Table 2: Nescafe Gold Coffee c) Nescafe Classic Instant Coffee 100gm Product Code| Weight (Kg/Lt/oz. /pcs)| Price(Taka)| Item Name| Manufacturer| Recent Rating| 23553| 0. 10| 225. 00| Nescafe Classic Instant Coffee 100g Jar| NA| Buyer Rating| Table 3: Nescafe Classic Instant Coffee ) Nescafe 3in1 Coffee 11. 5gm*4pc Product Code| Weight (Kg/Lt/oz. /pcs)| Price(Taka)| Item Name| Manufacturer| Recent Rating| 26191| 11. 50| 24. 00| Nescafe 3in1 11. 5gm*4pc| NA| Buyer Rating| Table 4: Nescafe 3in1 Coffee ————————————————- Nature of competition A certain type of customer often defines the nature of competition because others firms have also decided to target that segment in the plane to do in the future because consumer in that segment already may look to other brand in their purchase decisions.

Major Competition takes on others basis of channels of distribution, resources, capabilities & price. ————————————————- Distribution Strategy by Nescafe, Bangladesh Nescafe use temperature resistant glass which helps to protect the coffee from moisture and oxygen. As Nescafe do not use any preservative for their coffee, so air tight foil of the jar plays a vital role for keeping the coffee fresh for long time. Nescafe jars are imported by Nestle Bangladesh from Nestle Malaysia. For jars only one packaging activity is conducted here in Bangladesh that is labeling.

Nestle Bangladesh only change the label of the jars in the factory of Sreepur. But the Sachet and Nescafe 3 in 1 is packaged in Bangladesh. For sachet and Nescafe 3 in 1 raw material such as coffee, Coffee mate are imported from Malaysia and they use local sugar [United Sugar Mills Ltd, Abdul Monem Sugar Refinery (Igloo sugar)]. In the factory of Sreepur they mix coffee, coffee mate, sugar to produce Nescafe 3 in 1. Nestle have started this production from November, 2009 they have the local supplier of packaging material for these products, e. g. Anmon Packages Ltd.

In total they have 15 local supplier of packaging material. These suppliers always design the packaging material like- label, sachet etc according to the demand of Nestle Bangladesh. Nestle use food grade plastic for packaging Nescafe 3 in 1 and Sachet. Nestle always help these suppliers by giving them proper training. They also share resources with packaging suppliers. ————————————————- Distribution channel of Nescafe After analyzing all the processes of Supply Chain Management of Nescafe we have identified that their supply chain management is very much effective.

The reasons behind our perception are as follows: Collection of raw material: Nescafe is collecting raw materials from the suppliers who can guarantee about quality. Nescafe is always conscious about the quality that’s why they are encouraging the suppliers not to use more fertilizer and insecticides. These things are helping Nescafe to deliver quality products. In case of processing the coffee beans Nescafe is very much careful about quality. They are not using any kind of preservatives which ensures better quality.

Packaging: Their packaging is not only attractive but also helps to keep the coffee fresh for long time. Nescafe is also helping their packaging suppliers to improve the packaging quality. Nescafe strong distribution network are making Nescafe available all over the country. They can reach any corner of the country with their distribution network but others like Mac coffee may not be able to do so. Nescafe| Mac coffee| Strong distribution network| Weak distribution network| ————————————————- Point of Parity & Point of Difference

There are two important concepts when it comes to positioning: points of parity and points of difference. When a brand establishes a frame of reference, or competitive set, there are obvious points of parity. These are features and benefits offered by basically everyone. In our product Nescafe coffee also provide same raw material, same taste, and same flavor. These are all point of parity. Points of difference are the things that help a brand stand out. These are the factors that drive purchase. These Nescafe coffees have some unique difference than other products.

This product have Low price with high quality, Taste with low calories, Nutritious with good tasting, affection with mild. ————————————————- Brand Exploratory Research Methodology It is a systematic approach of detailed assessment of brand equity, collecting the information; analyzing the information and providing alternate suggestions. Three type of project research can be distinguished. Some research is exploratory, i. e. to gather preliminary data to shed light on the real nature of the problem and suggest possible hypothesis on new ideas. Defining the purpose and research objective

The research objective state that what information is needed to perform a detailed assessment of brand equity using some concepts and tools. The objective of the research is doing competitive analyses of Nescafe Coffee and finding the shortcoming it. Developing Research Plan Once the objective is defined, the next step is to prepare a plan for getting the information needed for the research. The present study will adopt exploratory approach. Where there is a need to gather a large amount of information before making a conclusion if required. The descriptive and casual approaches may also be used.

Collection and sources of Data To collect the data, relevant information is necessary as regards to the project; as a result data was collected by using two ways: * Primary Data * Secondary Data Primary Data: The information is being possessed with first-hand information, which is new and fresh. The tools used by us for the primary data are as follow: * Questionnaire * Face-to-face interview Secondary Data: The information that is received with the help of Journals, Magazines, or which is already present with the company. * References used from management books Gathered information through World Wide Web (www). Sampling Plan Sampling unit: The respondents were mainly the IUB graduate students. Sampling size: A survey was conducted for 30 thirty respondents across IUB. Analyze the collected information This involves converting raw material in to useful information. It involves tabulation of data and using statically measures on them for developing frequency distribution, knowledge about the brand, and popularity of the brand and consumer perception towards the brand. Report research finding This phase will mark the culmination of the marketing research efforts.

The report with the research finding is a formal written document. Based on the term paper and the current market situation of Nescafe, we have made some questionnaire and based on the information, we demonstrated brand exploratory Some of the major questionnaire discussion is described below – 1. Do you prefer Nescafe when you like to take coffee? Figure 3: Sales On the above pie chart we can see that 93% students are saying that they like to have Nescafe whenever they like to take coffee. So it can be measured that how much popular the Nescafe brand is. 2. Do you find out Nescafe available whenever you want to have it?

Figure 4: Product Availability From the above pie chart we can demonstrated that 90% people find Nescafe available everywhere. That means Nescafe distribution is very strong, that’s why most of the consumer able to buy it from their near shop. 3. Do you think Nescafe price is adequate with its quality? From the below pie chart we measure that how consumer perceived about Nescafe price. 83% people think that the price of Nescafe is adequate with its quality and rest of the respondent think its not adequate and some respondent think it may go with its price. Figure 5: Price Adequacy with Price . How many times a day you like to have a Nescafe while in work? Figure 6: Consumption Rate It is very important for Nescafe that how much coffee Bangladeshi people are consuming. From the above pie chart it can be measured that every day consumer like to have Nescafe, 43% respondent are having Nescafe in every day and 34% people like to have coffee more than two times. In Bangladesh Nescafe is doing their business very effectively and very efficiently. Nescafe promotional activities are very effective as well. Most of the respondents like Nescafe promotion and advertisement.

So that consumer get more knowledgeable about Nescafe as well as consumer will be affiliated with the brand. We have asked to the respondents regarding Nescafe promotional activities which are described below – 5. Do you think that the current promotion effort of Nescafe coffee is enough for you to know about its product? (If your answer is no then give your opinion) Figure 7: Perception towards Nescafe’s Current Promotion From the above mentioned pie chart we demonstrate that Nescafe current promotion is obtaining to associate with more consumers.

As a result, Nescafe is capturing their market share promptly as they have already captured most of the market share. In additional to this, Nescafe is very much concerned about their distribution channel. Consumers are able to find Nescafe every retail shop to tea stall in most of the corner of the country. Especially Nescafe 3in1 is very popular for tea stall. Moreover, Nescafe premium brand such as Gold, Matanil and so on is being distributed to the specific geographic area where consumer would like to have those premium brands. ————————————————-

Recommendation * Targeting to huge rural population After reviewing all the things we have come up with some recommendations for Nescafe which are as follows Coffee for rural areas of Bangladesh: For the product Nescafe Nestle Bangladesh limited can target the huge rural population of Bangladesh. Because they have a very strong distribution network and they also have different product categories of Nescafe. * Establishment of Coffee processing plant and Packaging materials industry Nestle basically import Coffee bulk and other finished products of Nescafe from Nestle Malaysia.

They also rely on the outside suppliers for packaging materials. But we think that, they can establish their coffee processing plant and packaging materials industry in Bangladesh because of cheap labor price in Bangladesh and Nestle Bangladesh ltd also get good support from the parent company. * Introducing premium brand to the premium restaurant across the cities of Bangladesh Nescafe basically distribute their all premium brand in some specific area where consumer’s living standard and life style is very rich.

However, if Nescafe can introduce their premium brand to the different popular restaurant as well as famous fast-food chain in the urban area such as Dhaka, Chittagong and Sylhet, Nescafe will retain huge number of consumer. As a result, the consumption rate of the premium brand will rise. ————————————————- References * http://www. nescafe. com/worldwide/en/Pages/Home. aspxy * http://nestle. bdjobs-server. com/bd. htm * http://www. scribd. com/doc/23372208/COMPETITIVE-ANALYSES-OF-NESTLE’S-NESCAFE ————————————————-

Questionnaire 1. Do you prefer Nescafe when you like to take coffee? a. YESb. NO 2. Do you find out Nescafe available whenever you want to have it? b. YESb. NOc. SOMETIMES 3. Do you think Nescafe price is adequate with its quality? c. YESb. NOc. MAY BE 4. How many times a day you like to have a Nescafe while in work? d. LESS THAN 1b. 1-2 TIMES c. 2-4 TIMESd. MORE THAN 4 5. Do you think that the current promotion effort of Nescafe coffee is enough for you to know about its product? (If your answer is no then give your opinion) e. YESb. NO