nescafe cold coffee
DESCRIPTION
Maketing Research ProjectTRANSCRIPT
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Table of Contents
Introduction
Background
Research Problem
Research Objectives
Scope of the study
Research Methodology
Sample Split
Focus Group Guideline
Consumer Profile
Top-lines
Analysis
Appendix
.
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Introduction
Background
Nestle has been serving this world for over one hundred and thirty years. It has differentiated
itself through its high quality product mix and positioned itself as Health and Nutrition Company
while targeting the health conscious people throughout the world. Recently Nestle introduced a
new product i.e. Nescafe cold coffee. Nescafe Cold coffee was launched in July 2012, ready to
drink cold coffee in 200ml tetra pack packaging. It is a smooth blend of coffee and milk. It is
targeted to youth and is available in large stores in the major metros. It’s the first time that
someone launched cold coffee in tetra pack packaging in Pakistan. So, the product has no direct
competitor so far. However Nescafe Cold Coffee is facing indirect competition from juices and
other beverages.
Research Problem
To analyze the current positioning of Nescafe Cold Coffee, i.e. to understand the image of cold
coffee in tetra pack packaging in the minds of consumers. Furthermore to find out an attractive
and appealing marketing strategy to reposition it according to our desires in the minds of
consumers lastly, to understand how, if the phenomena of cannibalization is impacting the sales
of Nescafe Cold Coffee.
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Research Objectives
To find out Consumer’s Attitude towards Coffee in Pakistan?
(To Identify Attitudes towards Coffee and Competing Brands, Perception)
What Is The Consumption Frequency Of Coffee Among Coffee Consumers?
To Examine How Coffee Are Used In Social Setting?
What are the Role of Seasonality and Hot Vs Cold Coffee?
How Cannibalization is impacting the sales of NCC?
What Is the Level of (Brand Awareness) Product Awareness among Consumers?
What Are The Emotional Triggers Or Words That Have Been Used In Selling Nescafe
Cold Café?
What is consumer perception about cold coffee in tetra pack packaging?
How effectively Nescafe Cold Coffee is using its unique selling preposition in order to
increase its sales
Considering Its Packing Who Is Its Biggest Competitor, Juices Or Coffee Shops?
To Determine How Digital Marketing Can Help In Brand Activation For Nescafe Cold
Coffee?
Scope of the study
To understand the perception of coffee among users of fresh coffee vs. tetrapak packaged coffee,
and consumer’s acceptability of coffee in a boxed pack, whereas the comparison proxy of coffee
with other products and its use in a social setting
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Research Methodology
We use the qualitative research technique of focus group discussion among the target
respondents to obtain the requisite information
The discussion were 1 hour 35 min long to help understand reactions on the concept board and
product
Focus group discussions were conducted with 8 respondents in each group.
The focus groups were used as an effective method of exploring and comparing views and
attitudes. The discussions encouraged a spontaneous and free flowing exchange of opinions and
ideas among the participants
Focus groups helped us to gauge consumer perception about concept in terms of likeability,
acceptability, relevance, believability, usage occasion and frequency, packaging, substitution,
purchase intent, appeal uniqueness, comprehension, areas of improvement
During the focus groups initially consumer attitude and perceptions towards the product category
were gauged. After the respondents were exposed to the product concept and then finally they
were asked to taste the product and their feedback was gauged
The respondents were asked to taste the product and were asked to give feedback on different
aspects like appearance, texture, taste, and strength and likeability
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Research Design
Sample Split
Focus Group # 1 Focus Group # 2 Focus Group # 3
Age 16-19 20-24 25-29
SEC A & B A & B A & B
GenderUsers
6 Male and 2 FemaleUsers & Non Users
4 Male and 4 FemaleUsers & Non Users
5 Male and 5 FemaleUsers & Non Users
Focus Group3 Focus Groups Bases on Age Segmentation
Exploratory\Descriptive Research
Qualitative Research
Research Design
Blueprint for Research
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Focus Group Guidelines
Discussion Guide
Nescafe Cold Coffee
Introduction /Warm Up session
Introduction by the moderator regarding self, purpose of the focus
group (as in gathering information about general trends among
consumer, popular products in your routine)
Participants to introduce themselves, include age, family status, if
they have children their interests. Levels they are studying, jobs,
hobbies, spare time activities etc
Introduction-
10 minutes
Attitude Towards Product Category
Let’s start by talking about spare time, what things you enjoy doing?
How often do you go out for dinner with family and friends?
How do you keep yourself active through the day?
How do you keep good care of your health?
Who does groceries in your home? Do you accompany them?
Do you remember any new advertisements about any new product
launch?
Where do you usually hang out with your friends? How much time do
you spend there? And what do you do there, study, hang around,
gossip etc
Being students how much late night study sessions you do? You do
group studies, Skype calls etc.
How do you keep yourself awake during late night sessions or long
work (hours) days?
Leading
Questions
towards the
product-10
minutes
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Coffee
How often do you consume fizzy drinks?
What alternates you use for fizzy drinks?
Do you prefer healthy drinks over fizzy drinks? Which ones
When it comes to tea or coffee which one you prefer?
What would you prefer in a social or family setting? Tea or coffee
How do you feel about coffee?
Do you visit coffee houses? What do you order there?
Blended coffee or canned (readymade coffee)?
How often do you visit these coffee shops?
Is coffee just for winters or you can use it in the summers as well?
Have you tried coffee desserts lately?
What are the benefits of coffee in your opinion?
Name products that can be made from coffee?
What do you prefer hot or cold coffee?
What is your current level of satisfaction from currently available
coffees in the market?
Are you aware of any coffee brands? Local or International
Consumption
attitudes/trends
-10 minutes
Media, Marketing & Advertising
What advertisement you think is the best?
Give an example of the perfect advertisement? And why?
How would you design an advertisement for coffee consumers?
What key factors should be highlighted?
What benefits you can think of can be used to target customers?
Do you believe coffee to be healthy drink?
Would you recommend coffee to anyone?
Can you recall a coffee advertisement?
Seen any new billboard or flexes, flyers of new upcoming products?
Perception
and
Advertising
- 10 minutes
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Packaging-15
minutes
10 min
Packaging
How do you like your coffee?
Good looking or comfortable packaging?
Describe the benefits of bottle or tetra pack? Which is better in
your opinion?
Do you believe in recycling?
Are you aware of the harmful effects of plastic bottles?
Name a few products which provide you tetra pack products?
Do you believe tetra pack is safe and healthy?
Collage Assignment
o Few magazine clippings of words and features and random
product packaging we will ask them to make a perfect pack
what should be written, how much color, size shape. Design
etc
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Nescafe
Have you seen the new Nescafe cold coffee?
Have you tried it like it? Why? Disliked? Why?
Do you plan on trying to use it again? Why and why not?
Do you remember the advertisement? What your take on it?
Taste test?
Describe the taste? How would you have made it better?
What’s your take on the packaging?
Do you remember the Nescafe song? Sound test
How do you think is the competitor for Nescafe?
What would you pick when thirsty nestle fruit vitals or coffee? And
why?
What do you think about the price of the product? Do you think it
provides value for money or goes beyond?
Have you seen any new marketing techniques done on the social
media?
Is this product been sold at your university?
Milo or Nescafe cold coffee?
Personify!!
Would you recommend this product?
Product
Evaluation-20
minutes
Dismissal/ End of Focus Group 5 minutes
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Consumer Profile
Consumer Profile
Demographic Segmentation
Focus Group #1 Focus Group #2 Focus Group #3
Age 16-19 20-24 25-29
Sex 6 Male 2 Female 4 Male 4 Female 5 Male and 5 Female
Income SEC A & B SEC A & B SEC A & B
Marital status Single Single Unmarried/Married with and without children
Education In High School and Plans On Attending College/University
Attending University
Have attended university and college
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Psychographic Segmentation
Focus Group # 1 Focus Group # 2 Focus Group # 3
Extroverts, Fun-loving,
Adventurous
Extroverts, outgoing and
social
Living with parents, spend
Most of their time with
friends
Living with parent, spend
most of their time with
friends
Risk ardent people Risk ardent people
Free-goers, least
worried about parent’s money
Economy-minded
Sports Lovers Music Lovers
Hanging out with
friends
Reading books and mostly
into sports
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Top-Lines
Focus Group # 1 Focus Group # 2
Nescafe is Popular Nescafe is a Masculine
And Boyish Drink
Coffee is Alternative For
Tea
Nescafe Cold Coffee is a
Competitor for Milo
Cold Coffee Has
Chocolate In It Too
Nescafe Cold Coffee is An
Energetic And Active
Drink
Cold Coffee Calms Down
Heartbeat
Nescafe cold coffee Colors
should Be Black And Red
In a Tin-Can
Nescafe Cold Coffee Is
Cold!
Nescafe cold coffee has An
Instantaneous Desire
Nescafe Cold Coffee Is
A Refreshing Drink
Nescafe Cold Coffee is mostly
Used In A Social Setting
Nescafe Cold Coffee uses
‘Jaago and Jagao’ theme
The term Nescafe and
Coffee are used
Alternatively
Nescafe Cold Coffee
should be used when
studying and preparing
for exams
Nescafe Cold Coffee is
Expensive
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Nescafe Cold Coffee is An
Energy Drink
Nescafe Cold Coffee Is
Jago Aur Jagao!
Nescafe Cold Coffee is
mostly Drunk While Alone
Nescafe Cold Coffee is
Handy & Portable
Nescafe Cold Coffee
Should Be In A Bottle
Nescafe Cold Coffee is helps them Get Through The Day
Nescafe Cold Coffee
should be drunk in
Combination With Ice-
cream
Nescafe Cold Coffee has a Strong Aftertaste
Nescafe Cold Coffee’s ad
shows a container
Popping Out Coffee
From It
Nescafe Cold Coffee has Large Quantity Of Salt In It
Nescafe Cold Coffee
reminds of Personal
Experiences
Nescafe Cold Coffee Creates Memories
Nescafe Cold Coffee Is
No Different Than A
Fizzy Drink
Nescafe Cold Coffee is a Healthy Drink
Nescafe cold coffee is
Easily Available
Nescafe Cold Coffee Should Be Strong
Nescafe Cold Coffee is Nescafe Cold Coffee Is Low in Quantity
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Expensive
Nescafe Cold Coffee Is
Preferred In Summers
Nescafe Cold Coffee Has
A Buttery Taste
Analysis
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Focus Group # 1
Lifestyle:
The group consisted of six young boys and two young girls, who represented the quintessential
Pakistani teen in the modern age. Not surprisingly they belong to that part of the population
which was least concerned about its future and more concerned with living it up in the present.
Most of them were junk food lovers, or say junkies for the true sense of the word, while some of
them had a tendency to be more diet-conscious. This was a tendency seen in the two girls
especially. Moreover, they loved to hang out with their friends and spend most of their time
socializing with people of the same age. They were certainly not the type you would expect to
stay at home and do household chores. They most often expressed the desire to be given absolute
freedom. However, according to their own statements, they acted differently when within the
family circle than when with friends. Consequently, they said what they chose to eat and drink
also differed in the two situations. When they were with family, they preferred food that was
according to them ‘socially acceptable’, whereas when they were with friends, they said they
could have whatever they like. They were the kind of lot that didn’t care much what they are
eating as long as it’s something to eat.
Attitudes:
The attitudes of the group with regards to three main classifications were evaluated to understand
why they feel what they feel about beverages in general and cold coffee in particular.
Attitude towards the Product Category:
If we take beverages in general as the product category and then divide it into subgroups of hot
drinks and cold drinks, all the participants in the focus group were heavy drinkers, and showed
no considerable difference with regards to their consumption of cold or hot drinks. According to
them, their choices depended largely on the weather and if the weather was cold, they would
prefer a hot drink and vice versa. Since the climate of Pakistan is generally hot, most of them
preferred cold drinks.
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Attitude towards the Product:
When asked about whether they would prefer hot coffee or cold coffee, they again replied that it
would depend on the weather, as mentioned above.
Cold coffee, according to them, was not very nutritious but when a girl said who cares about
nutrition anyways; if everything we consumed depended upon its nutritious value, then maybe
we wouldn’t consumer anything. This shows that this lot does not care much about the nutritious
value attached to beverages, not to say they don’t care at all. When asked about whether they
thought caffeine was harmful or not, all of them swiftly replied that it’s only harmful in large
quantities.
Moreover, most of them said that a cold coffee is not just coffee and milk; it also has added
ingredients such as chocolate. So its taste differs a lot from the actual coffee. Most of them said
that they preferred to drink cold coffee with an ice cream. It thus makes a good dessert in many
aspects.
A guy, which was the most interesting case, said that he prefers to make coffee himself and
spends two hours brewing it himself. He doesn’t even buy it powder form, but actually smashes
the beans himself and enjoys doing so. He said this is because he makes professional coffee, and
for his ownself. The rest of the participants were quick to point out that because they don’t want
to waste so much time on a coffee, they prefer to buy ready-made stuff. It’s perhaps not a
revelation that young people tend to buy stuff on which they have to spend the least amount of
time between purchase and consumption. A girl said that cold coffee does not take much time at
all, compared to brewing up a hot coffee. This perhaps is a hint towards the fact that cold coffee
is an ideal match for the busy urban youth.
One girl in particular described why she didn’t like cold coffee in these enlightening words:
“Uske upar ajeeb sa foam aa jata hai. Usko thori der parhe rehne do tow pani alag ho jata hai aur
coffee alag ho jati hai”!
This can easily be utilized by any brand trying to tap into the market for cold coffee, by
eliminating this inconvenience from its product and highlighting so in its communications.
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Attitude towards the Brand:
Most of those who liked cold coffee preferred the brand of Nescafe when they had to drink it
alone by themselves. However, when they were in a social setting primarily with friends, they
preferred to drink cold coffee from restaurants like Gloria Jeans because of the status symbol
attached with it.
All of them said that cold coffee was easily available in their schools and colleges, while only
one girl said that it is only available to seniors. This ease of availability was the defining factor
why they would purchase Nescafe’s cold Coffee. But the purchase was hampered by the
product’s price.
Most of them felt that Nescafe’s Cold Coffee is very expensive as compared to other substitute
products like juices and chocolate milks. And so if they have a choice between the three
products, they would definitely choose the later two, not only because of its price but also
because of its taste. One stood out and said that he would prefer Nescafe’s cold coffee. When
asked why, he said it is because a personal experience of his in which he had to stay up all night
to study for the exam and relied on coffee for the purpose. He said he got a B+ still, but still
managed to be up all night, a feat which was impossible otherwise according to him. This shows
the stereotypical image associated with many coffee products and how it positively affects
Nescafe’s brand of cold coffee. Nescafe can definitely utilize the caffeine ingredient as its unique
selling point.
Role of Media:
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It was found that this lot was very much susceptible to advertising wear out. They only remembered those advertisements which were very distinctive and humorous, which primarily included Ufone’s ads. It was thus deciphered that Nescafe’s cold coffee brand has got a lot of work to do.
Advertising and Promotion:The discussion carried with this particular group aged between 16 and 19 was one of the most interesting discussions. This segment of the target population is the most active consumers of milk products. They are highly exposed to media and advertisements and enjoy a variety of choice in their drinking consumption. Through our discussion with a sample of the population we could infer that most target audience from this group is unaware of the TV advertisements for Nescafé’s cold coffee. The campaign is being broadcasted on the channels Play and Oxygene, targeting music lovers. It is designed as a musical composition that attracts the attention of people who are more into music. It was interesting to find out that this form of musical advertisements did not interest this age group more. This might be due to limited exposure or frequency of TV appearance. This means that the amount of reach is less and needs to be increased. It was also observed that many members of this group were interested in sports and take cold coffee as an energy intake. Thus sports channels are important mediums to buy for this particular brand. Despite its limited advertising reach, Nescafé cold coffee has a strong and well distributed network to deliver the product to this particular segment. It is widely available in schools and colleges as stated by mainly all the members. This adds to their variety and choices. All the participants did not remember seeing the advertisement for Nescafe’s cold coffee. Only one boy remembered seeing it, and described it in the illuminating words below:
“Ek container hota hai aur uss mein se coffee phoot jati hai”!
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That was all he could remember, unfortunately. Therefore it could be clearly seen that the advertising needs to be strong enough to change perceptions about the product itself. And quite conspicuously, Nescafe’s Cold Coffee has suffered from a miserable advertising campaign.
Perceptions about Price and Packaging:
Price and packaging has been one of the major areas of discussion in this focus group to understand the behaviors and reactions of this segment of coffee consumers. It was seen that due to availability of many alternative options in drinks such as Milo, Nestle’s fruit juices and cold drinks people of this particular segment that are mostly students tend to be price conscious while selecting their choice. In effect, many of Nestle’s other beverage brands are causing cannibalization for Nescafe’s Cold Coffee. The price of Nescafé cold coffee being higher than the other drinks has been one of the factors affecting its demand. Students tend to choose what is best suits their income or in case of cold coffee tend to switch to home-made rather than purchasing a pack of Rs. 35 from the market. Even though some members tried to show that money is not the main reason for not selecting Nescafé cold coffee as their first consumption option, but infant price is one of the most considerable factors. Secondly packaging was an interesting topic under discussion. All the members were probed to answer how they see the idea of cold coffee in a tetra pack and what other options would they like to consider for such a drink. Through a thorough discussion it was found out that many members were willing to see a change in the packaging of Nescafé cold coffee from tetra packing to bottled packs.
Fun Experiment:
Another protective test exercise was carried out to further elaborate their idea about how they would like to see Nescafé cold coffee's packaging;
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through this we were able to analyze that people wanted to see innovative packaging in different shapes that were not related to the traditional tetra packing. However some of them even managed to understand the logic behind tetra packing as being safe and appropriate enough for a product like cold coffee where pressure maintenance is not that important. Tetra pack was seen as an acceptable packing for this and the colors used on the pack are also suited to the product. A link between packaging and price was also made by some members as they believed that tin packing is more expensive while tetra packing is economical within the same value. Hence it is analyzed that Nescafé cold coffee should reconsider their price and aim to capture the consumers that consider price as a factor to look for drinking options.
Analysis
Focus Group # 2
Lifestyle
The group consisted of four boys and four girls all youngsters with a very extrovert nature and
which wanted a change and something happening in their daily routine. Even though they had
very busy college routines but they like to get some time out for chilling out with friends,
checking out new cafes listening to new music as they are heavy users of iPods. What was also
common among them was that they regularly listened to FM radio while going to their colleges
and preferred listening to Fm 89 and 91 more as it played contemporary music. They spent most
of their time on Facebook, Watching Seasons and greater portions of their daily screen-time was
spent texting, and relaxing in a more adventurous way. As soon as they get time out they like to
get out of their homes and socialize extensively. They are the new age cinema goers which prefer
watching new blockbusters in cinema with friends and spend a good time together.
Advertisement Retrieval Power
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This younger lot has a very strong retrieval power of different ads and advertisements in their
surroundings. They remember the Billboards and Print Ads and they were also very good in
remembering and recalling the store displays, hoardings etc. As these students belong from
architectural and media studies background and also they were into doing music so they were
very much creative and evaluated the ongoing ads very critically and formed their own opinions
about it. So good quality media advertisement had a considerable effect on their minds and they
discussed it with a very good command. So the observant behavior was very much dominant in
this group as they noticed very minute details about the ads as evident by the following
expression:-
“Mujhey achi tarha yaad hey ke aik cool sa add thaa jismay aik Larki pay Coffee Spray ki ja rahi
thi with the tagline “Let The Cool Hit You”.
Role of Media
They all admit that media in all shapes (electronic, print, outdoor and indoor) has a great
influence on and it was evident from the type of response and discussion we held with them. As
this age group is very observant so good quality ads had a positive reinforcement influence on
them and they always wanted to try new things which were shown on TV. Even each of them
agreed that media doesn’t influence on luxury goods purchase decisions due to affordability
factor but they do get attracted to the consumer goods of daily usage like shampoo toothpaste
etc. Also the products which are being newly launched they are highly depended upon their
introductory advertisement and this age group for once like to try whatever new comes up and if
the ad made for a particular product was cheap and ordinary it really discourages them to buy it
and try it for once. So this group agrees that media does play a very crucial role in making or
breaking a product launch and its sales. Extensive repetition of ads does irritate the respondents
to an extent but it also at times makes them curious to check out the product to buy and see for
them that what is so special about it that it is being talked about on media so much. So this trend
can work both ways.
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Grocery Shopping
Patterns Differ a bit when it comes to doing grocery most of the youngsters to accompany their
family members mostly parents and they mostly shop at bulk at ALFATAH, Metro and Hyper-
star. This age group mostly shop for themselves and doesn’t influence much of the commodity
buying which is mostly done by their parents. But Coffee drinks was part of their bulk purchases
except one or two respondents who didn’t buy it in bulk in one go due to health related issues as
they think they will consume more if they will take home more. So they buy in single packs
whenever the need arises. One of the respondents expressed that she does impulsive buying
whenever they want to buy chocolates and low involvement products. During shopping in big
stores discount packages, flex hoardings and placement of product do entice them to check out
that product and they might put them in the trolley to avail that discount or any new promotion.
So shelf marketing and on spot sales tactics does influence this Age group.
Also we learned that Nescafe powdered was part of the grocery list where Nescafe Cold Coffee
is consumed as the main beverage drink.
So grocery shopping is mostly done in accordance with the preferences of parents and
accordance to the list they have already made. As expressed by one of the respondents;
“I accompany my parents for grocery shopping mostly but I buy according to the list and also
check for new products saath saath as I pick them from shelves”
Degree of influence
During exams week the consumption of cold coffee increases because students need to have late
night sessions for study so these students heavily rely on coffee so they can be active and
energetic throughout the night. The NCC is mostly bought as an item of impulse
It doesn't matter if it's steaming hot or iced. It doesn't matter if it's a Turkish grind, French roast,
percolated, brewed, or pressed. It doesn't matter if it's a caf americano, caffe latte, espresso,
cappuccino, or a caffe macchiato. It doesn't matter if it's decaf, regular or half-and-half. It doesn't
matter if it's Gloria Jeans, McDonalds, Dunkin' Donuts or in your own kitchen. What only
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matters is that it's the drink that keeps us moving. Coffees offer us a way to look at our
relationship to the larger world
Brand Loyalty
Brand loyalty was very high among Nescafe users because there first associations with coffee
was with Nescafe, it was the first coffee brand in Pakistan and people have earliest recollection
of coffee associated with Nescafe the jingle of Nescafe is very popular and the coffee loyal
consumers are deeply loyal to the brand the biggest competition they face is from café like
Gloria Jeans, Masooms and Coffee Planet, it all comes down to the element of fresh or
readymade boxed coffee. Plus coffee has been considered have addiction issues and perception if
you use one bran you will be addicted to it and the idea these companies use flavor and caffeine
enhancer to create loyalty is also there
Price and Quantity
Price and quantity was most discussed in every section because most of consumers were price sensitive and they tend to prefer the alternative like Milo & Juices when it comes to NCC, NCC costs around 35 rs for 200ml where as Milo and Fruita Vitals cost 25rs for 200ml, when you do the value for money and benefit analysis consumers tend to switch In effect, many of Nestle’s other beverage brands are causing cannibalization for Nescafe’s Cold Coffee. The international coffee readymade drinks are tend be in stylish packing and they are usually in 300-350ml packs so one of the problems is that its quantity is very low
“When you tend to enjoy it its finished, Just like Shezan Mango”
Brand Personification
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We got very interesting responses in this segment when we asked the respondents to give their
loyal brands a human type characteristic and associate them with real life characters. Some of the
people thought that NCC is someone who likes to hangout and acts like a “RUDE–DUDE GUY”
who is the market leader a celebrity and everyone else likes to copy him. One of the respondents
termed NCC as “A Cowboy” which is Brown and Yellow and in a hard box packaging and leads
the trend. Another respondent termed Nescafe Cold Coffee as “JESAY CHAA GAYA HAI
THAA KAR KE”. They believed that Milo is more like a sportsman as it mostly associated with
sportsperson and figures but it is decent person who is trying to make its mark in the market.
So a general character which Nescafe Cold Coffee forms a Male member of the society who is
rough and tuff and is very adventurous and risk taker and does it in a very relaxed manner very
calm like Indiana Jones
Experiment
We conducted an experiment to analyze the NCC packaging because heavy coffee drinkers believe in the freshness element plus the value for money concept so we gave them free hand to draw NCC packs for coffee, most of the respondents draw Nescafe in a Tin-Can with use of red and black color highlighting the part of Nescafe brand plus they also focused on coming up with a name for the product like Nescafe Chiller and half of the respondents not heavy users understand the concept of tetrapak and insisted on the box
pack but they disapproved the color and design of the box