Campaign Breif ‘07

Jessica SneddenVictoria Irwin

Sam Breen

MART201

Demographic trends: We intend to address potential consumers who currently do not purchase instant

coffee, who are students or young professionals, largely female, 18 – 29 years

old who live in an either an urban or suburban area and have a low to middle

disposable income. These consumers are inclined to purchase café coffee thus

will be more interested in the gourmet café style range. They are interested in

presenting themselves as sophisticated, sexy and strong but also fun, exciting

and intriguing. They want to obtain a positive perception of themselves and

are looking to differentiate themselves from teens and the younger generation.

These consumers are socially inclined however don’t mind indulging by ones

self. There is a high chance these consumers will be interested in organic and

fair trade products.

Nescafe in a Historical NutshellNescafe, “the worlds most popular coffee brand” was established in 1930

during the Great Depression after the Brazilian Government requested the

development of a coffee that consumers could ‘just add water’ to, and just like

that instant coffee was born. Since then Nescafe has grown and become a

major international competitor in the world of coffee and one of the best global

brands for 2006 see appendix A

The 1990’s house coffee culture initiated the introduction of an instant gourmet

brand which Nescafe claimed would allowed consumers to recreate the same

coffee house experience at home, refer to appendix B, and estimated that on

average, some 3,000 cups of Nescafe were drunk every second around the

world in 2002.

Situational Analysis

Industry analysis Nescafe has the greatest market share in the instant coffee industry with 45.3%

market share in the Premium Instant category and 44.4% in the Standard Instant

category (CAANZ, 2002). Moccona is the main competition in the premium

instant category with a rapidly growing market share. Nescafe’s initial response

was the introduction of Nescafe French and Nescafe noir – a stronger darker

coffee for those who drink short blacks.

There are many new, younger brands and flavours entering the New Zealand

market focusing on Brazilian and more European-based gourmet products.

Nescafe have already adopted this ethnic focus to their products reinforcing it

with taglines such as ExoticNes and FrenchNes.

Evidently the home market for coffee is still growing reasonably fast globally

and locally, with some café brands selling more in supermarkets than in the café

(Appendix C) Nescafe have to react with a vigorous campaign to of which rises

brand equity within the New Zealand instant coffee market before more café

coffees (Robert Harris already has) in New Zealand follow this trend capturing

Nescafe’s potential customers.

It is also imperative that we mention emerging health trends. Consumers today

are made more and more aware of their health resulting in concerns associated

with anxieties about diet, fitness and stress and the emergence of young coffee

culture.

Nescafe supply stock in all major New Zealand supermarkets and numerous

convenience stores and dairies.

Market analysis and segmentation strategiesNescafe currently market to a large and varied segment of the instant coffee

market, however some of the obvious target markets are

-The young adult café culture segment who not only drink coffee but

consume it for social reasons.

-Upscale, quality driven, higher income consumers

-And the middle class consumer

Nescafe already has a strong brand name that gains brand recognition and

loyalty with existing markets however Nescafe needs to build on brand equity

towards the younger generation who are now distinguishing and generating the

demanding coffee culture.

Nescafe Classic is the dominant seller. It is aimed at large overall market and

tactically uses economical benefits. The low prices make it difficult to find a

better quality brand at such an affordable price.

The Decaf, Fine Blend and Espresso ranges are also inexpensive and are aimed

at an older market that know what they like in terms of drinking instant coffee

and are satisfied with basic coffee. Nescafe have produced and retained reliable

products under their brand name (Appendix D)

New Gourmet products are sold in glass jars as opposed to coffee bags to add

hedonistic value.

The strategy is to ultimately generate a segment with an emphasis on the young

‘professional’s’ lifestyle. Nescafe have noticed the increase of a coffee culture

lifestyle that is being adopted by students and young professionals and have

decided to focus on the psychographics and lifestyle dimensions of the intended

market, refer to Appendix E.

Nescafe aim to target the innovator and the thinker type consumer; with the

intention of turning them into Believers of the Nescafe brand as they age.

Competitor analysisMoccona targets the main household shopper, aged 25 – 60, mid to high

disposable income. It is the most expensive instant coffee on the market and

advertising stresses its rich, European background and flavour. This is potentially

threatening, as it would appeal to the younger ‘yuppie’ market that is entering

the market.

Riva have a specific target audience who are younger consumers like students.

They are potentially threatening to Nescafe as their intended market develops

loyalty to brand at young age. Similar pricing structure to Nescafe. Increasing

market share. Younger brand. Launch of Riva in Australia affected the maturity

and stability of the instant coffee market with respect to Nescafe.

Lavazza’s strengths include an excellent international marketing campaign

targeted at younger female gourmet coffee drinkers. Lavazza responded to

rivals by building on their unique advantages; as a national firm with a home-

field advantage; advertising to Italian tastes, culture and lifestyle. With the

claim ‘Italy’s favourite coffee’ and one of the more expensive brands in their

category it obtains a high-perceived quality. Weaknesses include small market

share within New Zealand in correlation with less awareness meaning little or

no brand loyalty. Lavazza would be potentially threatening if campaign were

run in New Zealand due to its creativity and execution of ideas. It demonstrates

a brand that is unique and European with aesthetically pleasing images that

thrive on connotations, well-articulated ambiguity and metaphors effectively

giving the brand meaning.

Marketing objectivesNescafe’s major objectives are to target younger, café coffee drinkers,

presenting them with gourmet ranges that are viable and cheaper alternatives

to café coffee.

Nescafe look to increase market share and sales volume in the gourmet

range ahead of our main competitor, Moconna, in the premium instant coffee

category.

Nescafe are currently the dominant instant coffee providers in the market,

and would like to grow the gourmet and café menu range a combined 15%

of market share by the end of 2009, taking our overall market share in the

Premium Instant category to approximately 60% (CAANZ, 2002) Nescafe are

also looking to increase overall profits by maintaining existing Nescafe instant

Classic, Decaf and Espresso coffee drinkers, while at the same becoming part

of the in home café coffee niche market. Nescafe want to retain their believers

while at the same time recruit socially conscious quality seeking café coffee

drinkers who want the café experience in the convenience of their own home

and at a more affordable and price.

Sought behavioural responsesNescafe are potentionally looking to develop an increased usage with younger

consumers being the primary target to adopt Nescafe’s new concepts as early

adopters.

Want the consumer to remember the qualities of the brand before the product.

Nescafe needs consumers to stay true and loyal to their brand and create

positive Word of Mouth about their brand; generating this will increase usage.

Trial will be promoted by advertising or word of mouth so Nescafe will include

the café menu sachets in magazines favoured by the target market including

Cleo, FQ, and Cosmopolitan with the possiblity of featuring in health magazines.

We will also make it possible for potential consumers to request the sachets

on our website.

Main Objective/s and Indicative Budget

Brand Loyalty / Repurchase - To ensure that the Nescafe brand is the first brand

purchased by the target market, differentiate Nescafe with respect to the

intended market. Make the market want and need Nescafe, make it desirable,

make it everything a young woman or young metro man would want out of the

coffee, remember it is not only about the taste now, it is about the experience.

Brief Indicative communication budgetNescafe spends approximately $25 million a year on advertising (Dotpoint, 2004).

For the 2007 campaign we aim to create an extensive advertising campaign

including billboards, magazine features and some television commercials.

Nescafe want sachets to be given free in magazines, and distributed at

university sites, major events and in CBD areas. We would also like to establish

temporary Nescafe cafes in CBD areas and in universities, which allow for free

trials and sell takeaway coffees at a fraction of café prices. We would like to

giveaway free chocolate/cinnamon shakers with gourmet range purchases at

supermarkets for the first 2 months of our campaign as an attractive incentive.

We would also like to offer a discount or free biscotti in conjunction with New

Zealand-based biscotti producers ‘Foodworks’ when consumers purchase our

gourmet range in store.

To remind consumers of our television campaign, we would request in-store

point of purchase advertising.

Nescafe has agreed to provide an ‘Objective and Task Method’ approach to

budgeting. We feel that because this is an aggressive and competitive campaign,

it was worth contributing a significant budget to this project, as attracting our

target market and developing and retaining their loyalty will be profitable in the

long term within the coffee market.

Bibliography

CAANZ (Communication Agencies Association NZ). (2002) The

2002 EFFIE Awards Case Study Sara Lee Household and Body Care By Grey

Worldwide’ www.caanz.co.nz/v2/awards_winners.asp?year=2002&id=26&aw

ardType=EFFIE&awardpage=36&subcat=21&CatTypeID=&SubCatTypeID=

Coffee dotpoint.doc. (2004) Coffee, Black as hell, strong as death, sweet as

love - Thurkish proverb. 1-4. www.dotpoint.com.au

Food and Drink.com. (2002). Nestle launches Nescafe Frothe in US. Breaking

News on Food Marketing and Retailing. 1-2 www.foodanddrinkeurope.com/

news/printNewsBis.asp?id=15815

Nescafe New Zealnd. (2007) Nescafe, September, 2007, www.nescafe.co.nz/

nescafe

(Pickton, D & Broderick, A. (Eds 2.). (2005). Integrated Marketing

Communications. England, Pearson Education Limited

Young. S. (2002) Instant Mmmarketing Mmmagic’. NZ Marketing Magazine November 2002 (pg 18) www.simonyoungwriters.com/Section?Action=View&Section_id=22

Appendix

Appendix A

The Business Week/Interbrand’s Annual Ranking of the Best Global Brands for

2006 indicates that Nescafe was ranked 23 in 2005, had a brand value of 12,

507 million dollars for 2006 and had a percentage change of 2% over 2005.

Appendix BNestle USA said that the expolosion of the coffee house culture in the 1990’s

had paved the way for the introduction of an instant gourmet brand which, it

claimed, would allow consumers to recreate the same coffee house experience

at home. It cited data from a 2002 survey conducted by the National Coffee

Association which revealed that 34% of coffee drinkers aged 18 and over

consume coffee out of their home on a daily basis, but that 79% also drink it at

home every day. (Food&Drink Europe.com, 2002) It can be assumed that within

a NZ context simular results would be evident due to the shared ideologies

within the western culture never the less Nescafe New Zealand do not want

to be Americanised, it is imperative that Nescafe relate their barand with New

Zealand culture and ideologies to ensure success.

Appendix C Emerging coffee trends

The home market is growing fast with Illy (a mojor brand) saying that its home

sales are now larger than its coffee sales. (Dotpoint, 2004)

This could possibly be a result of inflation making a perfect time for Nescafe to

create brand awareness to this segment.

Appendix D ADAlta Rica, Cap Colombie, Kenjara, Gold, Noir, French Roast – aimed at

connossieurs. Tactic: cheaper, equally flavoursome alternative to café coffee.

Cater for all tastes so target market doesn’t need to look elsewhere.

Also Nescafe have devised Coffee Mate; flavoured shots to add to instant

coffee. This provides an alternative to café coffee and an extension on instant

coffee, appealing to younger novice coffee drinkers who have adopted this

coffee culture and are willing to make it at home.

Appendix ELifestyle DimensionsActivities

Students or young professionals

Enjoy social interaction

Get involed and amongst it

Community orientated

Belongs to one or more clubs, has a gym membership

Part of the entertainment scene, socialite.

Interests

Family and friends (can enjoy a coffee with)

High to over achiever

Enjoys good food, can opt for healthy options.

Fashion guru or recreational advocate

Can love job or hate job

Enjoys reading magazines whether it be to observe trends, a light read or to

aquire information (healthy food guide)

Opinions

They have a confident persona seeking to reinforce a positive perception of

themselves. They may understand politics or not care. Most likely are educated

and have acquired some knowledge on coffee. Have either tried other Nescafe

products or adopting the brand for the first time. Possibly looking for the right

brand to grow old with. Ethnically diverse and accepting of other cultures.

Demographics

Ages from around 18 to the elderly. Education not a prerequisite however

market is more inclined to have an education with a professional job/career

or acquiring a tertiary level of education. Family size is not determined as it

can range. Consumers live within the urban or rural areas of New Zealand.

(Nescafe café menu allows rural consumers to have the coffee experience in

their own home with say the neighbour)

City size ranges, does not mater where you live. Consumers are more inclined

to be in the Bachelor stage, the Newly wed stage, Full nest 2 stage, Full nest

3 stage, empty nest 1 stage, and possibly the solitary survior. However the

primary segment are the professionals within the younger generation.

Nescafe is looking to attract and retain a young female market. These potential

consumers are urban based, and are not price sensitive when purchasing coffee

but never the less still take it into account. They currently favour café coffee

and do not frequently purchase instant coffee. We are looking to be the leading

brand of instant coffee within the supermarket café coffee market. We aim

to encourage potential consumers to buy our new café menu range through

the perception of the brand with respect to competitors within the gourmet

segment.

In the Situation Analysis We have detailed Nescafe’s strengths weaknesses

and opportunities in the current market using demographic trends, historical

contexts, industry analyses, market analyses, competitor analyses and market

segmentation.

Nescafe’s then follows this with the Marketing Objectives, Behavioural

responses and the Indicative Communication Budget.

Executive Summary

From: Nescafe Marketing Team

To: Saachi and Saachi

Re: Campaign Brief

Date: 13 September 2007

Dear Saachi and Saachi

Please find attached our Creative Brief for the Marketing Campaign of our fresh

new Gourmet and Café Menu ranges.

We hope you are as excited and energized about this campaign as we are. We

have enclosed a number of samples of the new products for your enjoyment

and inspiration. If you have any queries do not hesitate to contact us. Good luck

and we look forward to your ideas for this campaign.

Kind Regards,

Nescafe Marketing Team

MEMORANDUM