nescafe analysis

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History Nescaf is the brand owned by Nestl

Brand of instant coffee by Nestl. The name is the conjunction of the words "Nestl" and "caf. Nestl was introduced in Switzerland on April 1, 1938.A2_Group10_Fmcg_Ver1.1

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History Brand for soluble coffee, & also used as an umbrella brand. In the US the Nescaf name was used on its products throughout the 1950s and '60s. Later, Nestl introduced a new brand in the United States called Taster's Choice and the product is now known as Nescaf Taster's Choice.A2_Group10_Fmcg_Ver1.1 2

Strategy Applied For Nescafe Heavily investing in sponsorship deals

Last April the coffee brand teamed up with the Ministry of Sound music tour and MTV sponsoring 31 music events worldwide

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Second brand strategy In second brand strategy the second brand need not be a discounted brand. e.g. Nestl launched its Gold Blend brand at a premium to its Nescaf brand.

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Strategy to enter the growing green tea market. Tapping into consumer health consciousness, Nescaf will be positioning their product as having 70% more anti-oxidants than regular green tea, despite actually being a coffee.

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NESCAF coffee is available to suit all tastes and in a wide range of packaging. NESCAF now produces many different types

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Best Performing StrategiesThe company continuously focuses its efforts to better understand the changing lifestyles of modern India and anticipate consumer needs in order to provide convenience, taste, nutrition and wellness through its product offerings.

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Distribution strategy for Nescafe Focused on operational efficiency; improving product availability and visibility and initiated efforts to make its products more relevant to the consumers. This has been supported by the distribution of smaller stock-keeping units (SKUs).

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Nestle understood buying pattern & purchasing power of people & hence they came up with coffee in sachets which helped them to encourage the commonest people buy coffee.

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SuggestionCoffee Machine It involves establishing coffee machine in corporate offices Introducing several flavors in that machine e.g. latte, cappuccino, black coffee. Using that machine as a promotional tool. Cup-vending machines featuring new cupsA2_Group10_Fmcg_Ver1.1 10

Promotional Activities Availability - Wherever, Whenever, However Two key directions to strengthen Immediate Consumption Acceleration in OOH focus on beverages and coffee in particular New initiatives on RTD coffee with JV with Coca-Cola (Beverage Partners Worldwide)A2_Group10_Fmcg_Ver1.1

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Out of home advertising, therefore, is focused on marketing to consumers when they are 'on the go' in public places, in transit, waiting This would result in sales growth in terms of volumes & uplift the market share to certain extent.A2_Group10_Fmcg_Ver1.1 12

Factors Need to be Considered Tea drinkers constituted 66 per cent of the population compared to 22 per cent who had been branded as habitual coffee drinkers. Listing out the barriers for low intake are expensive, not healthy or required more efforts to prepare.

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Identifying Coffee Growth OpportunitiesWorld Population World Coffee Consumption Sales "Sophisticated" (1cup/day plus) "Intermediary (1cup/day) "Starting (1cup/week and less) 17% 65% 42% Nescaf

26%

29%

54%

57%

6%

4%

_________________________________________ 100% 100% 100%

(source: internal statistics from 95 markets/regions)A2_Group10_Fmcg_Ver1.1

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Changing Consumption Patterns Targeting Kids through Chocolate Flavor which will convert kids into potential customers Example Introducing ready-to-drink cold coffee in jars especially in summer Making the coffee available mostly at every railway station as it is available at Churchgate.A2_Group10_Fmcg_Ver1.1 15

Enlarging Market Segment Introducing Ayurvedic Coffee, Sugar-Free Coffee which will open the new market segment.

Nescaf can also supply such coffee to hospitals, small health-care centre, doctors.

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Entrepreneurial Activities Nescaf can start its own shop like Barista & Caf Coffee Day for targeting young generation. It would be easier for Nescafe to provide variety of coffee to its customers. Shops can also be used for test marketing i.e. testing potentials of a new product in the market.A2_Group10_Fmcg_Ver1.1 17