Nescafe IMC

Prepared By:Bhavin Agrawal (02)Nikita Balar (04)Malvi Bhatt (08)Ishani Dave (14)Nitin Madhavi (28)Kushal Mehta (31)

IntroductionProduct Type Instant Cofee

Owner Nestle

Country Switzerland

Introduced 1938

Markets Worldwide

Sales $9.8 Billion

Brand value $17.3 Billion

Website www.nescafe.com

Source: http://www.forbes.com/companies/nescafe

Brand Perception• Nescafe logotype was always the same since its origin. The logotype

borrowed the same Nestlé format, and the word Nescafe is a combination of the first three letters of Nestlé and café which is coffee in Portuguese.

• The symbol added to convey the brand meaning was the red mug. Most commercials scenes show someone holding the red mug with the Nescafe logotype written in the vertical position.

• Probably the red color of the mug was chosen to emphasize the energy of the drink, since coffee is a stimulating drink and red is perfect to describe this state of mind. Therefore, the semiotics triangle would display on the sign side, the red mug, on the object side, the granulated instant coffee, or the product itself, and on the interpretant side, the wellness state of a good cup of coffee.

Market Share of Coffee in India

NescafeBru

others

0%5%

10%15%20%25%30%35%40%45%50%

Market Share

Market Share

45% 47%

8%

http://business.mapsofindia.com/top-brands-india/top-coffee-brands-in-india.html

Global Market Share of Coffee

Nestle

Jacobs D

ouwe Egberts

Green Mountai

nTch

ibo

Jm Sm

ucker C

o.

Lavazz

a0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Market Share

Market Share

22.7

16.3

3.4 2.5 2.3

1.9

http://www.statista.com/statistics/323254/global-retail-coffee-market-share-by-company/

NESCAFE

• ‘Nes’ means Miracle ‘café’ – coffee; miracle with coffee

• Product Range in India:

NESCAFE - INDIA NESCAFÉ Classic – a 100% natural coffee

NESCAFÉ Cappuccino- a range of delicious foaming mixes available in 3 delightful flavors Cappuccino, Vanilla Latte and Choco Mocha.

NESCAFÉ Sunrise Premium-Handpicked Arabica and Robusta beans that are expertly roasted and granulated to give you richer aroma and a captivating coffee experience. (Coffee: Chicory = 70:30)

NESCAFÉ Sunrise-A special blend of select Robusta coffee beans are specially roasted to give you great, stimulating coffee taste and aroma. (Coffee: Chicory = 60:40)

NESTEA ICED TEA - A special blend of natural tea and natural fruit flavor enriched with the goodness of Vitamin C. Available in Lemon and

NESCAFE

• Nescafe’s Aim– We meet the needs of the present without compromising

the ability of future generations to meet their own needs.• Within five years (2011-15), they have doubled the

amount of NESCAFÉ coffee bought directly from farmers and their associations– purchasing 180,000 tonnes of coffee from around 170,000

famers.• Providing advice on farming and post-harvest

practices to over ten thousand coffee farmers per year.

https://www.nescafe.com/our_ambition_en_com.axcms?ActiveID=1253

NESCAFE• It also comes in varieties such as NESCAFÉ Protect and

NESCAFÉ Green Blend, a new type of coffee, which contains high levels of naturally occurring polyphenol antioxidants.

• All in all, Nestlé is investing CHF 500 million in coffee projects for the ten years (2011-20).

• This includes CHF 350 million for the NESCAFÉ Plan and builds on the CHF 200 million investment in coffee projects over the past ten years.

• Around 4,600 cups of NESCAFÉ are consumed every second.

SWOT Analysis

Strengths

• Strong brand name as it is associated with Nestle

• Innovation• Ability to penetrate tea loving market• Products diversified into many flavors• Promotion

Weakness

• People avoid caffeine if they are health conscious

• Nescafe is known to be the choice of common man and those pose attractive to the sophisticated palate

• Usage rate low in tea loving country like India.

Opportunity

• Reduce their price according to the places they are selling their products

• Expand their business into the rural areas• Increase and improvise the distribution

channels in Rural areas• Highlight health benefits of Coffee as a part of

Marketing campaigns to gain more trust and loyalty in the brand

Threats

• Bru’s marketing and expansion strategies pose a threat to the market holding of Nescafe in India

• Competitors may reach the rural Indian market which is still untapped before Nescafe does.

• Competition from beyond hot drinks – the expansion and diversification of soft drinks, which are effectively targeting trends towards health and convenience, pose a notable threat to Nestlé's hot drinks products.

• Many people avoid coffee due to their health reasons

Market Details

Consumer Market Details

• NESCAFÉ is available around the world in different blends and flavours, which are adapted to local taste.

• NESCAFÉ comes in different sizes and at different price points

• From our affordable priced products to premium products such as NESCAFÉ Gold or NESCAFÉ Dolce Gusto

Consumer Market Details

• Nescafé’s market consists of basically coffee drinkers, especially people who are in the need of instant and qualified coffee that stimulates body within a day.

• Due to its convenience, it is a quick solution for people who want to enjoy it at home, work or school accordingly.– It targets each of them in different ways.

Segmentation (pan India)• Geographic

– Nescafe has divided the country into four segments Southern, Northern, Eastern and Western

– The Southern Segment consumes the most amount of Coffee and prefers hard and roasted coffee.

– In Northern region, Nescafe instant coffee is consumed in higher quantities.

• Demographic– Nescafe has tried to segment every age group, families, region,

gender and different socio-economic.

Several Potential TargetSegments

Segment-1• Geographic

– Density: Urban• Demographic

– Occupation: Students– Age: 15-23 years

• Psychographic– Lifestyle: Busy– Personality: Ambitious, outgoing– Occasion: Seasonal (at exam times)– Benefits: Convenience– User Status: Potential user, regular user, first-time user– User rate: Light user– Loyalty Status: Medium



– Occupation: Professionals– Age: 23-31 years

• Psychographic– Lifestyle: Western– Personality: Inspired, outgoing– Occasion: In the mornings– Benefits: Quality– User Status: Regular user– User rate: Medium user– Loyalty Status: None, medium, strong



– Occupation: Managers– Age: 46-60 years

• Psychographic– Lifestyle: Hard-worker– Personality: Ambitious– Occasion: Regular– Benefits: Speed– User Status: Regular user– User Rate: Heavy user– Attitude toward product: Indifferent

Target Market

• When these segments are examined, it is seen that the second one is the best potential target market.– Whose focus is on urban young professional

cosmopolitans with contemporary lifestyles.– Taste, aroma of the coffee and quality is the

important element for them.– Nescafé emphasizes on keeping them active

throughout the day.

Target

• NESCAFÉ is available around the world in different blends and flavours, which are adapted to local taste.

• NESCAFÉ comes in different sizes and at different price points

• From our affordably priced products to premium products such as NESCAFÉ Gold or NESCAFÉ Dolce Gusto

Nescafe Overall Postioning

Nescafe’s positioning is “1 coffee cup, 1 good feeling ”

The TVCs and all Promotional Messages focus on passing love between two person. Sharing a cup of coffee is shown as a symbol of sharing happiness.

The Red Nescafe mug is another popular symbol which associates the Brand Nescafe with the concept sharing happiness.

Nescafe Classic is positioned as “100% Pure Instant Coffee”

Nescafe Cappuccino is being positioned as “A true Café”

Share your goodness

A film conceptualized by McCann EricksonCreative team: Prasoon Joshi, Pradyumna Chauhan, Rohit DevgunMedia agency: ZenithOptimedia India

In this campaign, Nestlé will motivate people to look into their own experiences, share their goodness, recognize the goodness of others, engage with each other, and create conversations that bring alive the values and emotions that spread warmth.

Share your goodness

The Nescafe Moments

The Nescafe MomentsGet stories from users on social forums to talk about their coffee memories - how they won their first coffee date or how they cracked an interview over a coffee conversation or how they bonded with their better half over a good cup of morning coffee or how they bonded with their best friends over long gossip sessions with coffee.

The Nescafe MomentsNescafe Basement

To promote young musical talent. Central theme of ‘My Nescafe Moments’

and ‘Nescafe Basement’. Auditions would take place in major

metros (Delhi, Mumbai, Bangalore, Chennai, Kolkata) where we would pick 20 young and talented students having passion for music.

Auditions form would have a ‘My Musical Nescafe Moment’ section keeping in mind our central theme. Top 20 people selected would be mentored by Shankar-Ehsaan-Loy, keeping in mind their association with them.

They plan to launch this show on Channel V to go with the youth-oriented image of the show.

Also, they plan potential tie-ups with a radio station to promote the budding artists and the show.

Know your neighbors

• “Know your neighbors”- Launched in Jan 2011• Agency: Mc Cann Erickson• Part-1– Featuring: Deepika Padukone and Purab Kohli – Tagline: Bring out the best in you

• Part-2– Featuring: Deepika Padukone , Karan Johar and

Purab Kohli – Tagline: One Nescafe Many coffee

Know your neighbors

Know your neighbors

• Part-1– TG: Coffee drinking youth– Positioning: liven up every moment in life;

positions coffee as a conversation starter Competitor: Bru and other beverage brands

• Part-2– TG: Coffee drinking youth/café goers– Positioning: One can do wonders with coffee and

prepare café like coffee at home– Competitors: Cafes/coffee lounges

My First Cup

My First cup

• Featuring: Deepika Padukone , Karan Johar , Vir Das and Purab Kohli

• Product: Nescafe My First Cup• Tagline: Its time you started• TG: Non Coffee drinkers/ occasional drinkers• Positioning:Urging consumers to try coffee by

positioning it as the preferred drink of urban India• Competitor: primarily tea drinkers/ beverage

consumers.

Communication

• Slogan:– “100% Pure”– Remove any shadow of doubt from the minds of the

consumer when they go to purchase coffee from a local Kirana store.

• Positioning:– “Morning drink for the spirited soul”– The ad very clearly depicts the usage and the time of

usage for the product– 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

• One of the very first commercials of Nescafe classic in India• Throughout the advertisement it can be seen that the

characters in the ad are sipping coffee at the start of a day or work (Targeting morning time)

• Target People– Youngsters– Artists– A book store owner– A corporate rushing for a meeting

• Slogan:– “Coffee at its best“– This advertisement can also be seen as persuasion

to increase the usage of the product• Positioning:– “Beverage for any moment“– Use Nescafe anytime in your daily schedule

• A slight change in the positioning from the previous advertisement.

• Nescafe released three slightly different advertisements following the same theme.

• The ad shows a couple enjoying the moment in the rain, a group of friends chatting while enjoying coffee.

• Target People– A Couple– Friends

(Urban Youth)

• Slogan:– “Behtereen Coffee, Behtereen Daam”– Which means excellent coffee at excellent price– This slogan is in Hindi compared to the previous

ads• Positioning:– This objective of this advertisement was to

generate awareness about a 1 rupee sachet of Nescafe being available.

• Increase usage of the product amongst the current users

• Convert non users to users• Convert the competitor’s consumers to your own consumer.

• Target People– 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:– “Switch on the best in you“’– Daring one to take on challenges and discover

one’s new self• Positioning:– The advertisement positioned the product as “the

drink that gives strength for any challenge”– The coffee that instills confidence in you.

• After six advertisements they finally signed a celebrity to endorse their brand.

• Deepika Padukone and Purab Kohli• The advertisement was released in three parts each

stage in continuation to keep up the curiosity quotient of the consumer.

• The product is shown as being an “ice-breaker or a conversation-starter” for the two characters.

Social Media

Objective“The main objective of the campaign is TO IMPROVE THE ONLINE

PRESENCE OF THE NESCAFE.”

Facebook

• Facebook page: 15,226,512 likes with 2,80,142 people talking about it– High engagement rate – Presence of a lot of fake fans– No emotional connection with the brand in terms of

engagement– Lack of content that holds “Share value”– Lack on campaigns infusing people to participate– Spammy: Too many posts around “like it , hit it , tag

your friends”

Pinterest• With more than 509 followers, Nescafe is doing a

average job on Pinterest• Filled with visually stimulating images, the page is a

treat for any coffee fan.• Item level Promotions• No emotional connection with the brand in terms of

engagement• Lack on campaigns infusing people to participate

Twitter• Can’t imagine a brand not utilizing the the power of

twitter. More so when they have a good following of 27,100.

• It seems their goal is to copy-paste certain tweets between 9 AM to 2 PM and nothing else.

• There are no conversations. – Apart from ‘regret’ tweets addressing complaints

from contest winners who have not received their prizes even after 45 days!

• And there are so many coffee lovers but Nescafe hasn’t reached out to them for conversations.

YouTube

• Some of their latest videos have got some good number of views– High engagement rate – Emotional connection with the brand in terms of

engagement– Frequent Postings of videos– Use of contents that holds “Share value”– HD videos– Videos of 1-2 min time duration

• Frequent posting of videos