To Know The Consumer Preference About NesCafe Coffee

To Know Consumer Preference About NesCafe Coffee In Surat City
Chapter 1
Introduction
PROF. V. B. SHAH INSTITUTE OF MANAGEMENT 1

1.1 Industry Profile
1.1.1 FMCG Industry Overview
In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap
bars,embossed with the words “Made in England by Lever Brothers”. With it, began an
era of marketing branded Fast Moving Consumer Goods(FMCG).
The FMCG industry manages consumer packaged goods – production, distribution to
marketing i.e. those categories of products tha are consumed at regular intervals.
Examples include food & beverage, personal etc. The industry is vast and offers a wide
range of job opportunities in functions such as sales, supply chain, finance, marketing,
operations, purchasing, human resources, product development and general management.
Global leaders in the FMCG segment are Sara Lee, Nestle, Reckitt Benckiser, Unilever,
Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.
The Indian FMCG industry is the fourth largest industrial sector that has stayed
recessionresilient and shows signs of bright future.
FMCG companies are rushing to the bottom-of-the-pyramid market with custom-made
products. Estimated at close to 350 million, this consumer segment is the biggest and
perhaps the fastest growing in the FMCG Sector currently valued at approx US $14
(Source: IBEF). Also with the emergence of organized retail many of the big FMCG
giants will look to tie up with retail players thereby pushing their product by virtue of
B2B Sales.
FMCG Round Table
The FMCG corporate round table saw more than 50 corporates attending the event. The
topic of the discussion ranged from ‘Rural Marketing’ to ‘Distribution Channles’, with
the studentsalso getting an opportunity to present their views on topics like innovation
brand promotion and cost effective distribution models, to name a few. Key learning’s for
the students from the round table were to work hands-on as many live projects as possible
as well as to have an in-depth preparation on their preferred sector

Outlook
There is a huge growth potential for all the FMCG companies as the per capita
consumption of almost all products in the country is amongst the lowest in the world.
Again the demand or prospect could be increased further if these companies can change
the consumer’s minset and offer new generation
products. Earlier, Indian consumers were using non-branded apparel, but today, clothes
of different brands are available and the same consumers are willing to pay more for
branded quality clothes. It’s the quality, promotion and innovation of products, which can
drive many sectors.
Companies that patronize us :-
Blue Star Ltd.
Goodlass Nerolac
BIDCO Oil Refineries,Kenya
Asian Paints
Britannia Industries
Carlsberg
Coca Cola
Glaxo Smith Kline
Glencore India
Godrej Consumer
Aries Agro

GTC Industries
Hindustan Pencils
ITC Foods
Johnson & Jhonson
Kansai Nerolac
Lakme Lever
Lexi Pens
Doneal
Nataraj Pencils
Parle Agro
Pepsi
Philips Electronics
Pidilite Industries
Rachi Soya
Sapat Group
Videocon
Perfomance
In India, the FMCG industry is the fourth largest sector with a total organized market size
of over US $15 billion in 2007, as per ASSOCHAM, and can be classified under the
premium and popular segments. The premium segment (~25%) caters mostly to the
higher/upper middle income consumers while the price sensitive popular or mass

segment (~75%) consists of consumers belonging mainly to the semi- urban or rural areas
that are not, and cannot afford to be, brand conscious.
The market growth over the past 5 ears has been phenomenal, primarily due to
consumer’s groeing disposable income which is directly linked to an increased demand
for FMCG goods and services. Indeed, It is widely acknowledged that the large young
population in the rural and semi- urban regions is driving demand growth, with the
continuous rise in their disposable income, life style, food habits etc. On the supply side,
the wide availability of raw materials, vast agricultural produce, low cost of labour and
increased organised retail have helped the competitiveness of players.
At a time when the economy and other large industrial sectors such as automobiles,
aviation and financial services are reeling from the global slowdown, the consumer goods
sector in India has managed to defy the trend. According to the recent reports by Zeus
Consulting, India’s FMCG industry has so far been resilient to the slowdown in the
economy and a dip in consumer sentiment, with most companies posting double-digit
growth in net profits in the first half of fiscal 2009, backed by healthy sales. As very
categorically said by the Amway India Enterprises managing and chief executive, Mr.
William Pinckney, “I am not saying that our company is recession-proof but it is
recession-resilient.” This statement on the whole stands strong for most the leading
players in the FMCG sector.
While a price hike and cost-cutting were the first lines of defense in a bid to protect
margins, Indian manufacturers were able to let logic rather than bottom lines dictate
measures which increased marketing efforts, a well-though product mix and new
launches remain promising. Adi Godrej, Chairman and MD of Godrej Consumer
Products Limited(GCPL) and Chairman of Godrej Industries feels that the best policy
would be to provide tremendous fiscal and monetary stimuli to the economy, “...(stimuli
is needed) especially in industries connected through and that will generally create
multiplier factors. FMCG already seems to be doing quite well and FMCG sector will
have its best year in 2009-10.”, he said.

Future Prospects
The only threats to this strong growth trajectory remain the high portion of unorganized
trade, the limited distribution network of new entrants and the pressure on profit, margins
due to increasing competition. But these are likely tobe of diminished importance as
proportion of organized trade increases and players invest in improving distribution.
Going forward, the industry prospects remain attractive and new graduates can hope to
leverage the training and on-the-job learning at the leading players in various functional
roles, across the Metros as well as the interior heartland on India.
FMCG
Fast-Moving Consume r Goods (FMCG) - or Consumer Packaged Goods (CPG) –
are products that are sold quickly and at relatively low cost. Examples include non-durable
goods such as soft drinks, grocery items, toiletries, soap, cosmetics, tooth
cleaning products, shaving products and detergents, as well as other non-durables such as
glassware, bulbs, batteries, paper products and plastic goods. Though the absolute profit
made on FMCG products is relatively small, they generally sell in large quantities, so the
cumulative profit on such products can be substantial.
The term FMCGs refers to those retail goods that are generally replaced or fully used up
over a short period of days, weeks, or months, and within one year. This contrasts
with durable goods or major appliances such as kitchen appliances, which are generally
replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy
products, and baked goods—are highly perishable. Other goods such as alcohol,
toiletries, pre-packaged foods, soft drinks, and cleaning products have
high turnover rates.

The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector
in the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to
USD 30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural
and semi-urban India by 2010. Indian consumer goods market is expected to reach $400
billion by 2010.Hair care, household care, male grooming, female hygiene, and the
chocolates and confectionery categories are estimated to be the fastest growing segments.
At present, urban India accounts for 66% of total FMCG consumption, with rural India
accounting for the remaining 34%. However, rural India accounts for more than 40%
consumption in major FMCG categories such as personal care, fabric care, and hot
beverages. In urban areas, home and personal care category, including skin care,
household care and feminine hygiene, will keep growing at relatively attractive rates.
Within the foods segment, it is estimated that processed foods, bakery, and dairy are
long-term growth categories in both rural and urban areas. The growing incline of rural
and semi-urban folks for FMCG products will be mainly responsible for the growth in
this sector, as manufacturers will have to deepen their concentration for higher sales
volumes.
The following are the main characteristics of FMCGs:
 From the consumers' perspective:
o Frequent purchase
o Low involvement (little or no effort to choose the item – products with
strong brand loyalty are exceptions to this rule)
o Low price
 From the marketers' angle:
o High volumes
o Low contribution margins
o Extensive distribution networks
o High stock turnover

1.1.2 SWOT Analysis
Strengths:
 Low operational costs
 Presence of established distribution networks in both urban and rural areas
 Presence of well-known brands in FMCG sector
Weaknesses:
 Lower scope of investing in technology and achieving economies of scale,
especially in small sectors
 Low exports levels
 "Me-too" products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban
market.
Opportunities:
 Untapped rural market
 Rising income levels i.e. increase in purchasing power of consumers
 Large domestic market- a population of over one billion.
 Export potential
 High consumer goods spending
Threats:
 Removal of import restrictions resulting in replacing of domestic brands
 Slowdown in rural demand
 Tax and regulatory structure

Product Characteristics & Industry Segments
Product Characteristics
Products belonging to the FMCG segment generally have the following characteristics:
 They are used at least once a month
 They are used directly by the end-consumer
 They are non-durable
 They are sold in packaged form
 They are branded
The main segments of the FMCG sector are:
 Personal Care: oral care; hair care; skin care; personal wash (soaps); cosmetics
and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary);
shoe care.
 Household Care: fabric wash (laundry soaps and synthetic detergents); household
cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners,
insecticides and mosquito repellants, metal polish and furniture polish).
 Branded and Packaged Food and Beverages: health beverages; soft drinks;
staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates;
ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products;
bottled water; branded flour; branded rice; branded sugar; juices etc.
 Spirits and Tobacco: An exact product-wise sales break up for each of the items is
difficult.

Advantages To The Sector
Govt. Policy
Central & State Initiatives
Foreign Direct Investment (FDI)
Market Opportunities
Vast Rural Market
Export- “Leveraging the Cost Advantage”
Sectoral Opportunities
Dairy Based Products
Packaged Foods
Oral Care
Beverages

The top 10 companies in FMCG sector
S. NO. Companies
1 Hindustan Unilever Ltd.
2 ITC (Indian Tobacco Company)
3 Nestle India
4 GCMMF (AMUL)
5 Dabur India
6 Asian Paints (India)
7 Cadbury India
8 Britannia Industries
9 Procter & Gamble Hygiene and Health Care
10 Marico Industries

1.1.3 History of Coffee
The global spread of coffee growing and drinking began in the Horn
of Africa, where, according to legend, coffee trees originated in the
Ethiopian province of Kaffa. It is recorded that the fruit of the plant,
known as coffee cherries, was eaten by slaves taken from present
day Sudan into Yemen and Arabia through the great port of its day,
Mocha. Coffee was certainly being cultivated in Yemen by the 15th
century and probably much earlier. In an attempt to prevent its
cultivation elsewhere, the Arabs imposed a ban on the export of fertile coffee
beans, a restriction that was eventually circumvented in 1616 by the Dutch, who
brought live coffee plants back to the Netherlands to be grown in greenhouses.
Initially, the authorities in Yemen actively encouraged coffee drinking.
The first coffeehouses or kaveh kanes opened in Mecca and quickly spread
throughout the Arab world, thriving as places where chess was played, gossip was
exchanged and singing, dancing and music were enjoyed. Nothing quite like this
had existed before: a place where social and business life could be conducted in
comfortable surroundings and where - for the price of a cup of coffee - anyone
could venture. Perhaps predictably, the Arabian coffeehouse soon became a centre
of political activity and was suppressed. Over the next few decades coffee and
coffeehouses were banned numerous times but kept reappearing until eventually
an acceptable way out was found when a tax was introduced on both.
By the late 1600’s the Dutch were growing coffee at Malabar in India and
in 1699 took some plants to Batavia in Java, in what is now Indonesia. Within a
few years the Dutch colonies had become the main suppliers of coffee to Europe,
where coffee had first been brought by Venetian traders in 1615. This was a
period when the two other globally significant hot beverages also appeared in
Europe. Hot chocolate was the first, brought by the Spanish from the Americas to
Spain in 1528; and tea, which was first sold in Europe in 1610. At first coffee was

mainly sold by lemonade vendors and was believed to have medicinal qualities.
The first European coffeehouse opened in Venice in 1683, with the most famous,
Caffe Florian in Piazza San Marco, opening in 1720. It is still open for business
today. The largest insurance market in the world, Lloyd's of London, began life as
a coffeehouse. It was started in 1688 by Edward Lloyd, who prepared lists of the
ships that his customers had insured.
The first literary reference to coffee being drunk in North America is from
1668 and, soon after, coffee houses were established in New York, Philadelphia,
Boston and other towns. The Boston Tea Party Of 1773 was planned in a coffee
house, the Green Dragon. Both the New York Stock Exchange and the Bank of
New York started in coffeehouses in what is today known as Wall Street.
In 1720 a French naval officer named Gabriel Mathieu de Clieu, while on
leave in Paris from his post in Martinique, acquired a coffee tree with the
intention of taking it with him on the return voyage. With the plant secured in a
glass case on deck to keep it warm and prevent damage from salt water, the
journey proved eventful. As recorded in de Clieu's own journal, the ship was
threatened by Tunisian pirates. There was a violent storm, during which the plant
had to be tied down. A jealous fellow officer tried to sabotage the plant, resulting
in a branch being torn off. When the ship was becalmed and drinking water
rationed, De Clieu ensured the plant’s survival by giving it most of his precious
water. Finally, the ship arrived in Martinique and the coffee tree was re-planted at
Preebear. It grew, and multiplied, and by 1726 the first harvest was ready. It is
recorded that, by 1777, there were between 18 and 19 mill ion coffee trees on
Martinique, and the model for a new cash crop that could be grown in the New
World was in place.
But it was the Dutch who first started the spread of the coffee plant in
Central and South America, where today it reigns supreme as the ma in continental
cash crop. Coffee first arrived in the Dutch colony of Surinam in 1718, to be
followed by plantations in French Guyana and the first of many in Brazil in the

state of Pará. In 1730 the British introduced coffee to Jamaica, where today the
most famous and expensive coffee in the world is grown in the Blue Mountains.
The 17th and 18th centuries saw the establishment across Brazil of vast
sugar plantations or fazendas, owned by the country’s elite. As sugar prices
weakened in the 1820’s, capita l and labour migrated to the southeast in response
to the expansion of coffee growing in the Paraiba Valley, where it had been
introduced in 1774. By the beginning of the 1830’s Brazil was the world’s largest
producer with some 600,000 bags a year, followed by Cuba, Java and Haiti, each
with annual production of 350 to 450,000 bags. World production amounted to
some 2.5 million bags per year.
The rapid expansion of production in Brazil and Java, among others,
caused a significant decline in world prices. These bottomed out in the late
1840’s, from which point a strong upward movement occurred, reaching its peak
in the 1890’s. During this latter period, due mainly to a lack of inland transport
and manpower, Brazilian expansion slowed considerably. Meanwhile, the upward
movement of prices encouraged the growth of coffee cultivation in other
producing regions in the Americas such as Guatemala, Mexico, El Salvador and
Colombia.
In Colombia, where coffee had been introduced by the Jesuits as early as
1723, civil strife and the inaccessibility of the best coffee-growing regions had
hampered the growth of a coffee industry. Following the “Thousand Days War”
of 1899 to 1903, the new peace saw Colombians turn to coffee as their salvation.
While larger plantations, or haciendas, dominated the upper Magdalena river
regions of Cundinamarca and Tolima, determined peasants staked new claims in
the mountainous regions to the west, in Antioquia and Caldas. New railways,
relying on coffee for profit, allowed more coffee to be grown and transported. The
opening of the Panama Canal in 1914 permitted exports from Colombia’s

previously unreachable Pacific coast, with the port of Buenaventura assuming
increasing importance.
In 1905 Colombia exported five hundred thousand bags of coffee; by 1915
exports had doubled. While Brazil desperately tried to control its overproduction,
Colombian coffee became increasingly popular with American and European
consumers. In 1914 Brazil supplied three-quarters of U.S. imports with 5.6
million bags, but by 1919 that figure had fallen to 4.3 million, while Colombia’s
share had risen from 687,000 to 915,000 bags. During the same period Central
American exports to the U.S. had risen from 302,000 to 1.2 million bags.
In spite of political turmoil, social upheaval and economic vicissitude, the
20th century saw an essentially continuous rise in demand for coffee. U.S.
consumption continued to grow reaching a peak in 1946, when annual per capita
consumption was 19.8 pounds, twice the figure in 1900. Especially during periods
of high global prices, this steadily increasing demand lead to an expansion in
production throughout the coffee-growing regions of the world. With the process
of decolonization that began in the years following the Second World War, many
newly independent nations in Africa, notably Uganda, Kenya, Rwanda and
Burundi, found themselves in varying degrees dependent on coffee export
revenue.
For US coffee drinkers, the country’s wettest city, Seattle, has become
synonymous with a new type of café culture, which, from its birth in the 1970s,
swept the continent, dramatically improving the general quality of the beverage.
This new found 'evangelism' for coffee has spread to the rest of the world, even to
countries with great coffee traditions of their own, such as Italy, Germany, and
Scandinavia, adding new converts to the pleasures of good coffee. Today it is
possible to find good coffee in every major city of the world, from London to
Sydney to Tokyo; we are drinking more and, more importantly, better coffee.

The importance of coffee to the world economy cannot be overstated. It is
one of the most valuable primary products in world trade, in many years second in
value only to oil as a source of foreign exchange to producing countries. Its
cultivation, processing, trading, transportation and marketing provide employment
for hundreds of millions of people worldwide. Coffee is crucial to the economies
and politics of many developing countries; for many of the world's Least
Developed Countries, exports of coffee account for more than 50 percent of their
foreign exchange earnings. Coffee is a traded commodity on major futures and
commodity exchanges, most importantly in London and New York.

1.2 : Company Profile
NesCafe
 Brand Value $17.7 BAs of November 2013
 Industry: Beverages
 Founded: 1938
 Country: Switzerland
 Website: www.NesCafe.com
 Sales: $10.7 B
 #27 World's Most Valuable Brands (According to Forbes List)
1.2.1 Introduction TO NesCafe
NesCafe is a brand of instant coffee made by Nestle. It comes in many different product
forms. The name is a portmanteau of the words "Nestle" and "cafe". Nestlé's flagship
powdered coffee product was introduced in Switzerland on April 1, 1938 after being
developed for seven or eight years by Max Morgenthaler.
If necessity is the mother of invention then profit may be the mother necessity. As the
Great Depression gripped the United States in the 1930's and coffee sales plummeted
there was a definite need for the coffee growers to find new ways to sell their product.
NesCafe came to the rescue.

In 1867 Henri Nestle, a German chemist living in Switzerland, had invented a baby
formula for women who couldn't nurse. By 1900 he had set up production facilities in
several countries, including the United States, where he also made condensed milk. Over
the next thirty years the company expanded their products to include powered chocolate
milk mix and other confectionary products.
In 1930 the Brazilian government approached Nestle to create a new instant coffee that
would give the consumer another option and at the same time increase the dwindling
coffee exports of Brazil. It took eight years but in 1938 Nestle introduced NesCafe.
Instant coffee was not a new idea; it was originally invented by a Japanese chemist
named Satori Kato in 1901 and had been marketed and sold by various companies with
disappointing results. NesCafe revolutionized the way instant coffee was made.
Early methods of making instant coffee involved brewing a batch of high-strength,
concentrated coffee and then boiling it dry in stainless steel drums; the residue left behind
was instant coffee. The heat involved in the boiling process destroyed most of the
aromatic and flavorful properties of the coffee. When reconstituted in water the result
was a pungent, bitter decoction that little resembled coffee.
Nestle developed a new process for dehydrating the concentrated coffee which vastly
improved the quality. In entailed spraying a fine mist of the solution into a heated tower
where the droplets turned to powder almost instantly. They then added carbohydrates in
the form of dextrose, dextrin and maltose which helped preserve the flavor.
Nestle struggled to come up with a name for this new product which would inspire the
public to buy it. They combined the word Nestle and the Italian word for coffee, caffee,

or café in hopes that the Italian inference would create an aura of romance and capture
the imagination. Apparently it worked; through an aggressive, and expensive, ad
campaign that targeted the American housewife NesCafe became a huge success for
Nestle and doubled its global market share.
WWII rebounded the country from the depression and did much to further the NesCafe
name as instant coffee became a staple of the soldiers' ration kits.
While instant coffee accounts for only about 25% of coffee sales world-wide. NesCafe is
bar far the dominate player in the arena. NesCafe remains the second most recognized
brand name in the world, second only to Coca-Cola.
Branding and marketing
NesCafe, a brand introduced by the Nestlé Company, can be traced back to the 1930s. In
the United States, the NesCafe name was used on its products until the late 1960s. Later,
Nestlé introduced a new brand in the US called "Taster's Choice", which supplanted
NesCafe for many years. Taster's Choice was also introduced into Canada at the same
time, and continues to be sold as a separate product, branded as superior to NesCa fe, and
is higher priced.
In the United Kingdom, a television advertisement campaign, the Gold Blend
couple starring Anthony Head and Sharon Maughan ran in 12 installments between 1987
and 1993.The first 11 episodes were released as a promotional compilation video
called Love Over Gold in 1993. A novelisation of the same name written by Susan
Moody (under the pseudonym Susannah James) was released in the same year.
In 2003, the company reintroduced the NesCafe brand in the US, and the product is now
known as NesCafe Taster's Choice. It is sold in US supermarkets in both glass and plastic
packaging.

While the NesCafe brand was created for soluble coffee, it has subsequently been used as
an umbrella brand on a number of instant coffee products, including, in the UK, Gold
Blend and Blend 37 freeze-dried coffees.
In 2006, NesCafe launched the new coffee machine system "Dolce Gusto" ("sweet taste"
in Italian). The system allows consumers to make various styles of coffees themselves
(cappuccino, latte macchiato, espresso, lungo, etc.). Additionally, hot chocolate and cold
drinks can be prepared with the machine. The machines are now sold in more than 60
countries worldwide. Unlike other NesCafe products, most Dolce Gusto beverages use
roasted and ground coffee, instead of instant coffee.
Other marketing activity included experiential marketing/relationship marketing, which
led NesCafe to become the headline sponsor of Good Food Show 2008 at Birmingham
NEC as part of their campaign to drive awareness of the increased NesCafe collection.
About 95% of consumers at this popular event rated the NesCafe Collection stand the
best at the show. NesCafe used advanced 3D technology to engage their consumers, led
by iD Experiential.
In the UK in August 2009, NesCafe unveiled a £43 m ad campaign for NesCafe, focusing
on the purity of its coffee and featuring the strapline "Coffee at its brightest".
Nestlé claims that 3,000 cups of NesCafe are drunk every second.
1.2.2 Products of NesCafe
NesCafe products include:
 NesCafe Original Blend
 NesCafe Classic
 NesCafe Clasico
 NesCafe Dolca
 NesCafe Gold Blend, (in Sweden called 'Lyx' as in 'Luxury')
 NesCafe Gold Blend Decaf, (in Sweden called 'Lyx' as in 'Luxury')
 NesCafe Gold Blend Half Caff

 NesCafe Black Gold
 NesCafe Spécial Filtre (in France)
 Nescafe Blend 43
 NesCafe Blend 37
 NesCafe Decaff
 NesCafe Half Caff
 NesCafe Partners Blend (Fairtrade)
 Café Parisien (The Paris experience)
 NesCafe Suraya
 NesCafe Alta Rica
 NesCafe Alta Rica Decaff
 NesCafe Allen
 NesCafe Espresso
 NesCafe Red Cup (available in several European countries)
 NesCafe Green Blend (with more antioxidants, available in Sweden)
 NesCafe Azera (barista style instant coffee)
 NesCafe Café de Olla
NesCafe has a speciality range which includes:
 NesCafe Cappuccino
 NesCafe Cappuccino Unsweetened
 NesCafe Cappuccino Skinny
 NesCafe Cappuccino Decaffeinated
 NesCafe Decaffeinated
 NesCafe Latte Macchiato
 NesCafe Latte
 NesCafe Latte Skinny
 NesCafe Ice Java Coffee Syrup

NesCafe has a Café Flavours range which includes:
 Vanilla
 Irish Cream
 Mocha
 Double Choca Mocha
 Mocha Skinny

Chapter 2
Review Of
Literature

“A. K yle” researcher of USA had made research on AWASOME INSTANT COFFEEs
on December 31st, 2011. He find out in his research that coffee is only in the market
which can instantly. There is no comparison for this product. It saves time.
“EddieE” (2011) from Geecheeland had made research on Amazon Verified Purchase. In
that he found that it has a very good flavor. Researcher has ratted this very good.
Researcher also research that when he need a cup and do not want to brew an entire pot
but want a I've gotten myself into while preparing the drink, and then push another few
seconds worth of espresso out of the capsule. Does this make a world of difference in
strength? I doubt it...but it gives me just that much darker of a drink and it makes me feel
like I'm getting the most bang for my buck.
Offcourse, the fact that I can get that much more espresso out of the capsule b y waiting a
bit isn't necessarily all the capsule's fault, but it is truly my only caveat (I also wonder if
it's possible to make recyclable capsules...). Either way, unless I've really overdone the
amounts of milk or espresso (or haven't gotten back to the machine in time to turn it off),
getting a 'watered-down' cappuccino is not possible and, in my opinion, purely an
'operator problem' (see tip above).
Also something to note: a generally accepted typical single shot of espresso is made up of
8g of ground coffee and the final product shouldn't be any more than 35mL. The
instructions on the package tell you to pour about 40mL (and there is exactly 8g of
espresso in the capsule). In other words, if you overdo the espresso capsule, you'll be
getting a noticeably watered down espresso (as for the whole cappuccino, I usually can't
tell if I've overdone it a touch).
Guests have always commented on the excellent look (use clear glasses for quite the
show), feel, and taste of the foam and milk. I have to agree that compared to using other
capsule-based machines where one has to purchase an extra milk-frother (and deal with
the clean-up, supplies, etc), this system easily produces a comparable (at least) milk and
foam experience, with very little hassle (if any).
When it comes to flavors, there's been a long-standing tie between Cappuccino and the
Latte Macchiato in my household. We tend to always have a supply of Cappuccino
around with the occasional box of Macchiatto every month or two. Cappuccino is
definitely a favorite. Top notch. Never had a problem with a bad after-taste, or at least
nothing but the great taste of good espresso.

For those who like to know where their coffee comes from: the milk is from France and
the coffee capsules are from England (although the actual 100% ground and roasted
arabic beans themselves, I don't know). Also, there's 8g of ground coffee in the espresso
capsules (the Latte Macchiato has less -- in fact, the Macchiato box recommends 50mL
of espresso for a capsule that contains 6.5g... in other words, the amount of espresso that
you'd find in a fairly small single shot with the amount of water reserved for a small
double shot...perhaps one of the reasons I tend to prefer the Cappuccino).
And off-course, buying the boxes from Amazon.com with the subscribe and save is the
most inexpensive option I've found.
Also, make sure to sign-up online at Dolce Gusto's website for the award points you get
with every box. With a box of three from Amazon (through subscribe and save), AND
factoring in the 10 award points you get with every box (with which you can redeem
Amazon gift cards), the price per box drops to a little over 7 dollars (compared to ~9
dollars a box at Sur la Table and other retailers).
And since I'm a money-saving statistics addict, I'm especially happy about the fact that
the online rewards program keeps track of all the points you've ever recorded (thus telling
me how many boxes I've ever purchased). This helps me calc. how much money I've
saved in total in comparison to, say, Starbucks.
All in all, if you're not quite willing to shell out major bucks for a real espresso machine,
and have limited counter-space to begin with, the Dolce Gusto machine is an easy choice
(they just released new and improved versions, too). And, as of early October '10, they've
revamped their boxes, giving them a classier, more matte- like finish (along with a recycle
symbol on the bottom) and a cleaner look in terms of pictures and text. Great
improvement to the design, and a fun, refreshing face-lift.
Greg Márquez (OC, California) has make an research on Verified Purchase I have both a
Dolce Gusto "Piccolo" machine, and the Tassimo coffee maker. I have tried making
cappuccinos on both machines, and by far I prefer the Dolce Gusto. For my palate, it has
a much more authentic cappuccino test. I think that this is because the Dolce Gusto
machine uses a high pressure, 15 bar system and the Tassimo does not. The Tassimo does
make a delicious drip style coffee, especially from the Starbucks selections. I genera lly
do not like sweetened coffee drinks, and again for me, the main difference between the
Dolce Gusto "Cappuccino" and the "Skinny Cappuccino" seems to be the sweetner added

to the milk capsule of the regular cappuccino. I really look forward to my daily Dolce
Gusto Skinny Cappuccino and highly recommend this product.
Greg Márquez (OC, California) has made an research on cappuccino deliciouso on
December 30,2010. I have both a Dolce Gusto "Piccolo" machine, and the Tassimo
coffee maker. I have tried making cappuccinos on both machines, and by far I prefer the
Dolce Gusto. For my palate, it has a much more authentic cappuccino tast. I think that
this is because the Dolce Gusto machine uses a high pressure, 15 bar system and the
Tassimo does not. The Tassimo does make a delicious drip style coffee, especially from
the Starbucks selections. I generally do not like sweetened coffee drinks, and again for
me, the main difference between the Dolce Gusto "Cappuccino" and the "Skinny
Cappuccino" seems to be the sweetner added to the milk capsule of the regular
cappuccino. I really look forward to my daily Dolce Gusto Skinny Cappuccino and
highly recommend this product.
Jacob Hantla (Chandler, AZ United States) ha made an research on Great Cappuccino!
Easy to Make, Fine-tune to your taste, on April 28, 2009 The cappuccino and the Latte
Macchiato are where the Dolce Gusto machine really shines. On the cappuccino, I get a
great cup of cappuccino with perfect foam, perfect flavor. I did not expect such quality
when I got the machine. The plain espresso & coffee lived up to those expectations; the
cappuccino and macchiato blew them away. I have begun to fine-tune the drink to my
flavor preference. A little less milk, a little more espresso for some extra strength. Or for
a little later in the afternoon, when I want a lighter beverage, I can do more milk less
espresso. I like the free that Dolce Gusto gives to make me feel like a barista and have
some control over my drink. The cost, since each beverage takes 2 pods, is about a dollar
apiece. A bargain, considering the great taste, convenience, and ease of preparation.

CHAPTER 3
THEORETICAL
FRAMEWORK

Chapter 3 : Theoretical Framework
CONSUMER PREFERENCES
The underlying foundation of demand, therefore, is a model of how consumers behave.
The individual consumer has a set of preferences and values whose determination are
outside the realm of economics. They are no doubt dependent upon culture, education,
and individual tastes, among a plethora of other factors. The measure of these values in
this model for a particular good is in terms of the real opportunity cost to the consumer
who purchases and consumes the good. If an individual purchases a particular good, then
the opportunity cost of that purchase is the forgone goods the consumer could have
bought instead.
We develop a model in which we map or graphically derive consumer preferences.
These are measured in terms of the level of satisfaction the consumer obtains from
consuming various combinations or bundles of goods. The consumer’s objective is to
choose the bundle of goods which provides the greatest level of satisfaction as they the
consumer define it. But consumers are very much constrained in their choices. These
constraints are defined by the consumer’s income, and the prices the consumer pays for
the goods.
We will formally present the model of consumer choice. As we go along, we will
establish a vocabulary in order to explain the model. Development of the model will be
in three stages. After a formal statement of the consumer’s objectives, we will map the
consumer’s preferences. Secondly, we present the consumer’s budget constraint; and
lastly, combine the two in order to examine the consumer’s choices of goods.
THE THEORY OF THE CONSUMER
Consumer make decisions by allocating their scarce income across all possible goods in
order to obtain the greatest satisfaction. Formally, we say that consumers maximize their
utility subject to budget constraint. Utility is defined as the satisfaction that a consumer
derives from the consumption of a good. As noted above, utility’s determinants are

decided by a host of non-economic factors. Consumer value is measured in terms of the
relative utilities between goods. These reflect the consumer’s preferences.
Theory of Consumer Preferences
Consumer preferences are defined as the subjective (individual) tastes, as measured by
utility, of various bundles of goods. They permit the consumer to rank these bundles of
goods according to the levels of utility they give the consumer. Note that preferences are
independent of income and prices. Ability to purchase goods does not determine a
consumer’s likes or dislikes. One can have a preference for Porsches over Fords but only
have the financial means to drive a Ford.
These preferences can be modeled and mapped through the use of indifference curves.
In order to graphically portray consumer preferences, we need to define some terms.
First, since we will be working in two dimensions (2-d graphs), we assume a two good
world. These could be any
two goods. One common treatment is to define one good, say food, and let the other
good be a composite of all other goods. For expository simplicity (making things easier
for me), let’s define the two goods as Good X and Good Y. The axes of the graph then
measure amounts of Good X on the horizontal, and amounts of Good Y on the vertical.
Each point in this Cartesian space then defines some combination of goods X and Y.
We call these combinations commodity bundles.
The goal of the theory of preferences is for the consumer to be able to rank these
commodity bundles according to the amount of utility obtained from them. In other
words, the consumer has different preferences over the different combinations of goods
defined by the set of commodity bundles.
In order to develop a model we need to make some assumptions about the consumer’s
preferences . There are four assumptions. The first is decisiveness. Here, given any two
commodity bundles in commodity space, the consumer must be able to rank them. In

Figure 1, suppose we randomly chose two commodity bundles A and B. This
assumption means that the consumer must be able to say that they prefer commodity
bundle A over B, or B over A, or that bundles A and B provide the same level of utility.
The second assumption is consistency. The consumer must be consistent in
preference and rankings. Again referring to Figure 1, suppose we now include
bundle C. Let the consumer prefer commodity bundle A over B, and also
commodity bundle B over C. Then by this assumption the consumer must prefer A
over C.
The following two assumptions are not required to develop the theory of the
consumer, but simplify matters significantly.
The third assumption is non-satiation. In other words, more is always better than less.
More formally, any commodity bundle with at least as much of one good and more of the
other must be preferred. Commodity bundle A in Figure 1 has two straight lines running
through it. This creates four quadrants, to the northeast, southeast, southwest and
northwest of bundle A. All commodity bundles to the northeast of A contain more of both
X and Y then does A. Therefore, by the assumption of non-satiation, any bundle in this

quadrant is preferred to A. The opposite is true for bundles to the southwest of A. They
contain less X and Y than does A, hence must be less preferred. The quadrants to the
southeast and northwest contain more of one good but less of the other; hence we cannot
determine preference rankings with respect to A.
The last of the assumptions is convexity, which is the most difficult to explain. It is based
on the notion that as a consumer consumes more and more of a particular good, the
additional utility obtained decreases. We define marginal utility as the change in utility
due to an incremental increase in the consumption of a given good. Convexity says that
marginal utility declines as consumption increases. Note that the total utility continues to
increase if marginal utility is positive (which it must be for non-satiation to hold), but
total utility increases at a decreasing rate if marginal utility is declining.
An indifference curve is a collection of all commodity bundles which provide the
consumer with the same level of utility. The indifference curve is so named because the
consumer would be indifferent between choosing any one of these commodity bundles.
In Figure 1 the curved line which passes through commodity bundle A represents an
indifference curve. All the commodity bundles on U0 provide the same utility as does
bundle A.
Any commodity bundle above the U0 indifference curve must be preferred to any
commodity bundle on U0. Conversely, any commodity bundle on U0 must be preferred
to any bundle below it. The choice of commodity bundle A to derive U0 was completely
arbitrary. It could have been any other commodity bundle. This means that each
commodity bundle has an indifference curve running through it.
Figure 2 shows a family of three indifference curves. An indifference curve represents a
greater level of utility as we move further to the northeast from the origin. Why? (The
student should examine the consumer preference assumptions for the answer.) Therefore
indifference curve U2 has a higher utility level than U1 which has a higher utility level
than U0.

Note that indifference curves are negatively sloped. This is the case because of non-satiation.
Indifference curves can not be upward sloping because the consumer cannot
be indifferent between two commodity bundles if one has more of both goods.
The big question is why the indifference curve is bowed inwards. The quick and dirty
answer is the assumption of convexity. Recall that convexity results from diminishing
marginal utility, i.e., as a consumer consumes more and more of a given good, the
additional unit of that good provides less utility. As we move along an indifference curve
from left to right,the consumer is consuming more and more of good X and less and less
of good Y. Thus the marginal utility of the additional unit of good X declines whereas
the marginal utility of the foregone Y increases. Since by an indifference curve’s
definition that each commodity bundle provides the same level of utility, the consumer is
willing to give up less and less good Y as he or she consumes more and more good X in
order to hold utility constant. This trade off between goods X and Y along an
indifference curve is an important topic. It is called the marginal rate of substitution
(MRS).
Figure 3 shows four commodity bundles, A, B, C and D, along an indifference curve.
As we move to the right along U1, we are increasing the amount of good X by
equalincrements of an

amount X. The amount of good Y that must be given up as we move from bundle A
to bundle B ( Y0), from B to C ( Y1), and from C to D ( Y2) gets smaller and smaller.
This is true because the additional utility from the additional increment in good X
provides less and less utility, while the additional unit of good Y the consumer is
giving up contains more and more utility. This gives rise to why the indifference
curve bows inwards.
The marginal rate of substitution reflects the maximum amount of good Y the
consumer would be willing to give up in order to obtain an additional unit of X. The
consumer would be happy to give less Y since it would place the consumer above U1 at a
higher utility level. However, the consumer would not be willing to give up more Y since
it would place the consumer below U1 at a lower level of utility.
The MRS can be portrayed as the slope of the indifference curve. This would show the
amount of good Y given up per unit of X. The slope between points A and B is Y0/ X,
between B and C is Y1/ X, and between C and D is Y2/ X . Notice that since Y is

declining, the slope is getting flatter and flatter. For very small increases in good X, the
slope of the indifference curve becomes the slope of the tangent to it. We general define
MRS as the absolute slope of the tangent to an indifference curve. In Figure 4 the
tangent gets flatter and flatter as we move from A to B, B to C and C to D.
To sum up, the slope of the indifference curve represents the value to the consumer of
the additional unit of X in terms of the amount of Y they are willing to give up. As we
move from left to right along an indifference curve, the slope gets flatter reflecting a
decrease in the value of the additional unit of good X.
This theory of the consumer has given us many tools. Indifference curves map or
graphically represent consumer preferences. The properties of these indifference curves
reflect the four consumer preference assumptions. The slope of an indifference curve, the
MRS, reflects the value placed on the additional unit of a good in terms of the other
goods the consumer would be willing to give up. These concepts will be used extensively
in the next few chapters.
The Budget Constraint
Using these families of indifference curves, we can model consumer preferences showing
how the consumer would rank commodity bundles according to the utility each bundle
provides. Having a map of consumer preferences, however, is not enough to explain the
choices consumers make. Choices are also a function of our constraints, namely the
consumer’s income and the price of goods.
In order to simplify the presentation, we assume that income is exhausted over the
consumer purchases. This means we are excluding savings. The budget constraint
would then say that income is equal to the sum of consumer expenditures.
Expenditures on a particular good is the product of the amount of the good purchased
times its price. We can then write the budget constraint as:

I = Px*X +Py*Y.
In this equation the consumer has expended all income, I, across both goods X and Y,
where Px and Py are the prices of X and Y, respectively. To graph this budget constraint
into commodity space requires rewriting the budget constraint in terms of good Y, the
variable on the vertical axis. Using simple algebra, we can rearrange terms to produce
the following budget line:
Y = I/Py - Px/Py * X.
In the equation of a line (Y = mX + b), the slope is given by m, the number mult iplied
with X, and the Y intercept is given as b. Referring to the budget line, its slope is
Px/Py and the Y intercept is I/Py. Figure 5 illustrates these characteristics of the
budget line.
The budget line divides commodity space into two. The commodity bundles
which are affordable are shown as being on or below the line. Income is
completely spent for those bundles on the line. We exclude the commodity
bundles below the
budget line since all income is not being spent. The commodity bundles above and to
the right of the budget line are beyond the reach of the consumer, given their income

and the prices of goods X and Y.
Note the intercepts. The Y intercept represents a commodity bundle that contains only
good Y. This is the amount of good Y that the consumer could purchase if they spent
their entire income on good Y. The same is true for good X’s intercept. I/Px is the
maximum amount of good X that this consumer can purchase, given their income and
the two goods’ prices.
The budget line plays two important roles. The first is determined by the level of
income. The more income the consumer has to spend the greater number of the
commodity bundles that are affordable. An increase in income would be portrayed as a
parallel shift outwards of the budget line. It is a parallel shift because we are holding the
prices of goods X and Y constant, therefore there would be no change in the line’s slope.
The second role for the budget line is to act as a price line. A price line demonstrates the
relative price of two goods. A relative price is the price of one good in terms of another.
For example, let Pb = $0.50/banana be the price of bananas, and Po = $1.00/orange the
price of oranges. The relative price of a banana in terms of oranges is ½ orange. If the
consumer buys a banana then they necessarily forgo purchasing one half orange. If we
take the ratio of the banana’s price to the price of an orange, we get:
Thus the slope of the budget line shows the relative price of good X in terms of good
Y. If the price of good X increases, then the amount of good Y that is foregone
increases. There is an increase in the relative price of good X. Since we are holding
income and the price of good Y constant, this increase in good X’s price results in a
decrease of the budget line’s X intercept. The line swivels inward.
Relative price is an important tool. It shows how much of one good that the consumer
must necessarily give up in order to obtain more of another. The flatter the budget line,
the less costly the good on the horizontal axis in terms of the good on the vertical axis.
The steeper the budget line, the more costly the good. Note that relative price is shown
solely as the budget line’s slope. The distance from the origin does not reflect prices.

Consumer Choice
The consumer’s objective is to allocate income between goods X and Y so that they
achieve the greatest amount of utility, i.e., to reach the highest indifference curve
possible within their budget constraint. They must choose that commodity bundle on
their budget line which has the highest level of utility. Utility levels, as we have seen,
are measured by indifference curves; therefore the consumer tries to reach the highest
feasible indifference curve.
In Figure 6, we examine several possible choices for a consumer. Should they choose
commodity bundle B? It is on their budget line and so exhausts income. But does B
provide the highest level of utility? The answer is no because there are other affordable
commodity bundles within the budget constraint that lie on a higher indifference curve.
The commodity bundle which maximizes utility is commodity bundle A. All other
feasible commodity bundles lie below A’s indifference curve.
The utility maximizing commodity bundle is determined by the tangency of the
indifference curve to the budget line. At the point of tangency, the slope of the
indifference curve is equal to the slope of the budget line. In other words, the marginal
rate of substitution is equal to the relative price of X in terms of Y. This means that the
amount of good Y that the consumer must give up for another unit of good X is equal to
the amount they are willing to give up.
Utility Maximization: MRS = Px / Py.
Recall that MRS can be interpreted as the value to the consumer of the additional unit of
good X. The relative price of good X represents the consumer’s opportunity cost.
Therefore, utility maximization is achieved when the marginal benefit of consuming
more good X is equal to its marginal cost in terms of Y.
Returning to Figure 6, commodity bundle B is not utility maximizing. Note that the

tangent to U0 at B is steeper than the budget line’s slope. In other words, MRSb > Px/Py.
This says that the value to the consumer of the additional unit of X is greater than its
costs. Utility rises by consuming more good X at the expense of less Y. This would move
the consumer down to the right along the budget line. Utility is again maximized at
commodity bundle A.

CHAPTER 4
RESEARCH
METHODOLOGY

CHAPTER 4 : RESEARCH METHODOLOGY
Introduction
“Research is a careful inquiry or examination to discover new information or relationship
and to expand and to verify existing knowledge.”
According to professor Gifford Moody, research is a method of discovering truth,
through critical thinking. He says” Research comprises defining and redefining problems;
formulation hypothesis or suggested solution, collecting, organizing and evaluating data
making deductions and making conclusions; and at last carefully testing the conclusions
to determine whether they fit the formulated hypothesis.”
4.1 SCOPE OF THE STUDY:-
The scope is limited area of Surat city like katargam, varachha and adajan area
and has not considered the entire Surat city.
4.2 OBJECTIVES OF STUDY:-
Primary objective:
The primary objective of carrying out this research is “To study the consumer
preference about NesCafe Coffee in Surat city”
Secondary objective:
- To derive information about the major competitors.
- To determine the actual demand and preference of consumers.
- To identify the factors affecting purchase of consumers.
- To know the consumption pattern of consumers.

4.3 IMPORTANCE OF THE STUDY:-
- The study will help to understand the preference of customer while purchasing
NesCafe Coffee.
- Information about the major competitors of the business to help the firm to
identify the threats of business.
- The firm will come to know the needs of customers and will be able to fulfill
the needs.
- The study will help to know where the company stands in the mind of
customer.
- The suggestions given by respondents can help us to make changes according
to the demand of people.
- To know the consumption pattern of customers.
4.4 Research design:
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. It is an important tool to
study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A
research design specifies the methods and procedures for conducting a particular study.
According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control
variance.
Types of Research are:
 Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are undertaken
in many circumstances when the researches is interested to know the characteristic of
certain group such as age, sex, education level, occupation or income. A descriptive study
may be necessary in cases when a researcher is interested in knowing the proportion of

people in a given population who have in particular manner, making projections of a
certain thing, or determining the relationship between two or more variables.
After reading a many research paper and books, researcher realized that there are many
problems accured in past studies on consumer preference towards NesCafe Coffee. So
researcher has selected a general public or customers of Surat city for the resea rch. They
just want to know that how consumers satisfied more and what are the basic factors
influencing customers for purchasing Nescafe coffee and overcome mistakes which stand
in existing study.
So researcher has adopted Descriptive Research.
4.5 Sources of data:
There are two types of data collection,
1. Secondary Data
2. Primary Data
1. SECONDARY DATA :
“Any data, which have been gathered earlier for some other purpose, are known as
secondary data.” Secondary data are already gathered by any other or someone else.
Like magazines, books etc.
Researcher has used secondary data like websites, magazines, and books.
Websites like,
 business.usi.edu/cashel/241/text%20files/CONSUMER.pdf
 www.ihmctan.edu/PDF/notes/Research_Methodology.pdf
 www.slideshare.net/anilkumarkhadka/research-methodology- notes
 www.icap.org/PolicyTools/.../4DataAnalysisandInterpretation
 www.sagepub.in/upm-data/18534_C hapter5.pdf

 www.strativity.com
 www.slideshare.net/.../a-project-report-on-consumer-preferences.com
So Researcher has used above all website for research paper and other
information.
2. PRIMARY DATA :
Primary data are those which are collected at the first hand either by the researcher or
by someone else especially for the purpose of the study is known as primary data.
Questionnaire is to be filled up by an informal rather than by the researcher.
Tool or instrument for primary data is Questionnaire which is used by researcher in
this research report.
4.6 RESEARCH INSTRUMENTS:
For collecting the primary data “Q uestionnaire” is to be taken as research instrument. A
questionnaire consist a set of questions presented to respondents for their answer. It is
most common instrument use to collect primary data. Here from collecting primary data
structured questionnaire is taken for research as research instrument.
Sampling is a process of obtaining the information about the entire population by
examining a part of it. The effectiveness of the research depends on the sample size
selected for the survey purpose.

4.7 SAMPLING:
1) Sampling Unit:
Sampling Unit refers to the questions “who is to be surveyed?”
Before conducting the market survey, it is necessary to decide the target
population that will be sample would cover under market survey for effective
market research. So Researcher have survey the various customers of major areas
of Surat city.
Researcher selects a sample unit between 15 to 45 age people from different areas
of Surat city.
2) Sample Size:
It refers to the question “How many people should be surveyed?”
The 200 respondents have taken interview in Surat city to acquire the desire result
of research.
4.7.2.1 Pre-testing the questionnaire :
Once the questionnaire is ready, it should be Pre-Tested. Pre-Testing of
the questionnaire implies that it is tried out on a few respondents and their
reaction to the questionnaire is observed. It helps the researcher decide whether
any changes in the question-content of the wording of questions.
No. of
Respondents
Tea Coffee Both Nothing
30 6 18 5 1

If coffee or both than,how many person purchase NesCafe Coffee?...
No. of
Respondents
Yes No
23 19 4
The enough sample size should be taken for much realistic result. The large
sample size is not possible due time limit.
It is produced sampling plan and sampling size on the basis of pre-testing.
Determine the size of sample for effective result, so Researcher has taken 30
respondents and make study and from this study Researcher has got 6 person who
preferred tea, 18 preferred coffee, 5 preferred both and one person giving
unfavorable response. From this, researcher got 13 favorable and 5 unfavorable
responses for purchasing Nescafe coffee.
I.e. Researcher got 19*100/23 = 82.61%
Here, Researcher has taken 95% (Z) confident level and tolerable error (e) 5%, so
at 95% confident level is 1.96 and 5% tolerable error is 0.05
n = p x q (Z/e)2
Where, n= sample size,
P= probability of success
q = Probability of failure
z = Confident level at 95%
e = tolerable error at 5%

So,
P = 0.83, Q = 0.17, Z = 1.96, E = 0.05
= 0.83 * 0.17 (1.96/0.05)2
= 0.83 * 0.17 (1536.64)
= 204.82
= 200 (Approximately)
Here, Researcher has taken 200 sample size and conducting field survey.
3) Sampling Procedure:
Sampling procedure may be of two types, probability sample & non-probability
sample. Probability sample is known as random sample and non-probability
samples as non-random samples, both of these, Researcher has selected the non-probability
sampling procedure because survey of total population is impossible
due to time limit.
4) Sampling Plan:
Sample Element : Customers
Sampling Method : Convenience Sampling Method
Extent : Surat city
Time Duration : 6th January 2014 to 5th March 2014.

4.7.4.1 Convenience Sampling Method:
It means selecting sample units at convenience of the interviewer. It is also
known as accidental sampling because the respondents whom the
interviewer meets accidently are included in the sample. It may be used
for simple purpose such as testing ideas or gaining ideas or rough
impression about a subject of interest.
It does not require a list of population.
4.8 LIMITATION:-
- As the sample size is very small so project may not give perfect result.
- It is very difficult to collect all information for future in short time.
- Information is collected only from customers.
- Respondent’s answers might have influence or bias.
- Survey is limited only for some areas of Surat city.

Chapter 5
Data Analysis &
Findings

Chapter 5 : Data Analysis & Findings
Demographic Details
Responses No. of Responses % of No. of Responses
15-20 102 51
21-25 63 31.5
26-30 12 6
31-35 15 7.5
36-40 5 2.5
41 – above 3 1.5
Total 200 100
Age
(Table 1)
(Chart 1)
60
40
20
Interpretation
It is interprete that age from 15-20 are giving more preference to NesCafe
Coffee and 26-30 age group are giving less preference so if company want
to grow than they have to make to aware above 26 age groups.
0
AGE
% of No. of
Responses

Que. 1) What do you prefer?
People Preference Towards Tea &
Coffee
Tea Coffee Both Nothing
% of Responses
(Table 2)
Responses No. of Responses % of Responses
Tea 41 20.5
Coffee 118 59
Both 31 15.5
Nothing 10 5
Total 200 100
(Chart 2)
70
60
50
40
30
20
10
0
Interpretation
Survey is conducted of the people who prefer tea, coffee, both and nothing and the above
graph shows that 20.5% of respondents prefer tea, 59% prefer coffee, 15.5% prefer both
and rest of respondents prefer neither tea nor coffee. It is good for NesCafe that more
customer are prefer coffee as compare to other drinks so company take advantages by
more attracting them.

Que.2) If coffee than of which brand you like most?
(Table 3)
NesCafe 95 63.76
Bru 41 27.52
BrookBond 11 7.38
Tetly 2 1.34
Starbucks 0 0
Total 149 100
(Chart 3)
100
90
80
70
60
50
40
30
20
10
Interpretation
From the above survey done, 95 respondents from 149 were like most Nescafe
means more than half of total mostly prefer Nescafe brand. (Approximately 64%).
So company can attract customer by providing new products compare to other
competitors.
0
NesCafe Bru BrookBond Tetly Starbucks
No. of Responses
% of Responses

Que.3) Give rank to the brands of coffee as per your choices.
Preference Among Different Brands
NesCafe Bru BrookBond Tetly Starbucks
Total
(Table 4)
Brand 1 2 3 4 5 Total Rank
NesCafe 100 23 11 9 6 649 1
Bru 35 57 36 15 6 547 2
BrookBond 10 44 53 29 13 456 3
Tetley 2 13 31 70 33 334 4
Starbucks 2 12 18 26 91 255 5
Total 149 149 149 149 149 2241 -
(Chart 4)
700
600
500
400
300
200
100
0
Interpretation
From the above graph we can say that NesCafe is on 1st position, Bru on 2nd,
BrookBond on 3rd, Tetley on 4th and Starbucks stands on last position. From this, it is
conclude that NesCafe is more satisfying customer among competitors.

Que.4) Since how many months/year you are preferring coffee?
Duration Preferring Coffee
11.41%
27.52%
20.13%
40.94%
1-3 months
3-6 months
year
> 1 year
(Table 5)
1-3 months 17 11.41
3-6 months 41 27.52
year 61 40.94
> 1 year 30 20.13
Total 149 100
(Chart 5)
Interpretation
From the survey, 11.41% proportion of respondents is preferring coffee from 1-3 months.
27.52% people prefer coffee from 3-6 months. So the customer who are using in last 6
month, company has to make promotional activity to make more users.

Que.5) Do you purchase NesCafe Coffee?
People Preferring NesCafe Coffee
Yes No
% of Responses
(Table 6)
Yes 111 74.5
No 38 25.5
Total 149 100
(Chart 6)
80
70
60
50
40
30
20
10
0
Interpretation
The above graph shows that 74.5% respondents purchase NesCafe Coffee and 25.5%
people intake other brands coffee. So it is very good point for NesCafe that high number
of customer preferring this brand.

Que.6) If yes, how often do you purchase Nescafe Coffee?
Time Period of Purchasing NesCafe Coffee
No. of Responses
12
42
24
33
Monthly
15 Days
Once In a Week
Daily
(Table 7)
Daily 12 10.81
Once In a Week 42 37.84
15 Days 24 21.62
Monthly 33 29.73
Total 111 100
(Chart 7)
Interpretation
According to bar graph, 42 was highest amount of responses from 111 respondents, who
purchasing NesCafe Coffee in every week. Only 12 persons purchasing NesCafe Coffee
daily. So company has to make that type of offer that customer prefer to take coffee every
day.

Que.7) How much gram packet of Nescafe coffee you prefer?
People Preferring Diferent Packet of NesCafe Coffee
21%
35%
31%
13%
5 gram
50 gram
100 gram
More Than 100 gram
(Table 8)
5 gram 23 20.72
50 gram 39 35.14
100 gram 34 30.63
More Than 100 gram 15 13.51
Total 111 100
(Chart 8)
Interpretation
20.72% respondents prefer packet of 5 gm and 35.14% respondents prefer packet of 50
gm of NesCafe Coffee. So company has to increase the packat size of less gram packets
to consume more coffee.

Que.8) Mostly through which source do you know about Nescafe coffee?
Sources of NesCafe Coffee
14%
37%
32%
17%
Friends
Advertisements
Relatives
Others
(Table 9)
Friends 16 14.41
Advertisements 41 36.94
Relatives 19 17.12
Others 35 31.53
Total 111 100
(Chart 9)
Interpretation
From the above char, it is conclude that people get source of NesCafe Coffee from any
areas. So it can says that NesCafe is popular among peoples.

Que.9) Which are those factors that force you to prefer Nescafe coffee?
(Tick mark any two factors on which you think more while purchasing)
25
20
15
10
5
0
Factors Affecting NesCafe Coffee
% of Responses
(Table 10)
Quality 79 22.38
Price 56 15.86
Taste 64 18.13
Brandname 57 16.15
Refreshment 54 15.3
Advertisement 43 12.18
(Chart 10)
Interpretation
22.38% respondents think more about quality of coffee while purchasing coffee. 18.13%
respondents think more about taste of coffee while purchasing coffee. So company has to
concentrate on increase quality and taste to attract more customer.

Que.10) How will you rate the following features of Nescafe coffee? (Out of 5)
1=poor, 2=average, 3=good, 4=very good, 5=excellent
0 50 100 150
Availability
Refreshing
Brandname
Taste
Quantity
Quality
Price
1
2
3
4
5
(Table 11)
Factors 1 2 3 4 5
Price 7 14 31 9 50
Quality 0 10 16 35 50
Quantity 1 7 51 42 10
Taste 2 3 17 50 39
Brand name 2 3 23 51 32
Refreshing 2 1 23 48 37
Availability 2 4 11 55 39
(Chart 11)
Rating of Features
Interpretation
From this chart, we can say that price and quality of NesCafe Coffee is equally excellent
because almost half of respondents give 5 rates to price and quality. So it is conclude that
company is having good rate in quality and price but they have to make NesCafe
availability in market and increase quantity to satisfied more customer because customer
want more quantity in product at purchase time.

Que.11) How much you are satisfied with Nescafe Coffee?
Satisfaction With NesCafe Coffee
No. of Responses
% of Responses
(Table 11)
Highly Satisfied 46 41.44
Satisfied 47 42.34
Neutral 14 12.62
Dissatisfied 4 3.6
Highly Dissatisfied 0 0
Total 111 100
(Chart 11)
50
45
40
35
30
25
20
15
10
5
0
Interpretation
41.44% respondents are highly satisfied with NesCafe Coffee and 42.34% respondents
are satisfied with NesCafe Coffee. So company reputation will increase in market
through word of mouth by satisfied people and company don’t require to make
advertisement.

Que.12) Are you satisfied with the quantity given in the place of price you pay?
Highly
Satisfied
Satisfaction With Quantity
Satisfied Neutral Dissatisfied Highly
Dissatisfied
No. of Responses
(Table 13)
Highly Satisfied 28 25.23
Satisfied 53 47.75
Neutral 23 20.72
Dissatisfied 5 4.5
Highly Dissatisfied 2 1.8
Total 111 100
(Chart 13)
60
50
40
30
20
10
0
Interpretation
28 respondents are highly satisfied and 53 respondents are satisfied with the quantity
given in place of price they pay. So it is interprete that customer are satisfied with the
quantity given so they have to work on other criteria like price, quality and so on to make
them satisfied.

Que.13) Would you suggest other people to have Nescafe coffee?
Suggests To Prefer NesCafe Coffee
Yes Rarely No
No. of Responses
(Table 14)
Responses No. of
Responses
% of Responses
Yes 91 81.98
Rarely 16 14.41
No 4 3.6
Total 111 100
(Chart 14)
100
80
60
40
20
0
Interpretation
91 respondents say that they will suggest other people to have NesCafe Coffee. So it is
interprete that more customer will recommend other to have NesCafe Coffee, so
company’s market share will increase by joining new customers.

Chapter 6
Testing
of
Hypothesis

Chapter 6 Testing of Hypothesis
X2 TEST
Que. 2. If Coffee, than of which brand you like most?
H0 : There is no association between gender and preference of brand in Coffee.
H1 : There is an association between gender and preference of brand in Coffee.
Actual value
Row Labels 1 2 Grand Total
1 65 30 95
2 22 19 41
3 4 7 11
4 1 1 2
Grand Total 92 57 149
Frequency
Row Labels 1 2 Grand Total
1 58.65771812 36 95
2 25.31543624 16 41
3 6.791946309 4 11
4 1.234899329 1 2
X2cal = 0.109466368
X2tab = 9.488
X2cal = 0.109466368 < X2tab = 9.488, So the H0 is not rejected. It means there is no
relationship between gender and preference of brand in coffee.

Que. 5. Do you purchase NesCafe Coffee?
H0 : There is no association between gender and purchase of NesCafe Coffee.
H1 : There is an association between gender and purchase of NesCafe Coffee.
Actual value
Row Labels 1 2
Grand
Total
1 71 21 92
2 40 17 57
Frequency
Row Labels 1 2
Grand
Total
1 68.53691275 23.46308725 92
2 42.46308725 14.53691275 57
X2 Cal = 0.340832817
X2tab = 9.488
X2 Cal = 0.340832817 < X2tab = 9.488, So the H0 is not rejected. It means there is no
relationship between gender and purchase of NesCafe Coffee.

Que. 13. How much you are satisfied with NesCafe Coffee?
H0 : There is no association between gender and the satisfaction level towards NesCafe
Coffee.
H1 : There is an association between gender and the satisfaction level towards NesCafe
Coffee.
Actual value
Row Labels 1 2
Grand
Total
1 38 8 46
2 26 21 47
3 5 9 14
4 2 2 4
Frequency
Row Labels 1 2
Grand
Total
1 29.42342342 16.57658 46
2 30.06306306 16.93694 47
3 8.954954955 5.045045 14
4 2.558558559 1.441441 4
X2cal= 0.003427659
X2tab= 9.488
X2cal= 0.003427659 < X2tab=9.488, So the H0 is not rejected. It means there is no
relationship between gender and the satisfaction level towards NesCafe Coffee.

Z-Cal
Q-5. Do you purchase NesCafe Coffee?
I have taken 30 samples before survey for pilot study in which 23 respondents were
prefered coffee and 7 were preferred tea or nothing. And from 23 respondents, 19
puchase NesCafe Coffee, it means…
P= 0.83
Q=0.17
H0 : 83% customers purchase the NesCafe Coffee.
H1 : 17% customers not purchase the NesCafe Coffee.
Where ,
X= respondents who says yes=111
n = sample size=149
p= X/n
=111/149
=0.74
Z=
|푝−푃 |
√푃푄 /푛
=
|0.74−0.83|
√0.83∗0.17/149
=2.903
So, Zcal = 2.903
Ztab = 1.96 (5% of significance level)
Zcal = 2.903 > Ztab = 1.96
 Zcal = 2.903 > Ztab = 1.96 , So the H0 is rejected. It means that there is no
relation between the pilot study and actual study of this research.

Chapter 7
Finding And
Conclusion

Chapter 7 : Finding And Conclusion
7.1 Findings
It clearly shows that mostly all people prefer coffee than tea.
Among the total respondents, majority of respondents are consuming coffee since
one year.
According to analysis it has been observed that maximum important factors for
coffee have been given to quality and taste.
Mostly all the people in India which are middle or higher class are consuming
Nescafe Coffee.
Departmental stores are mostly situated in each area of Surat city and so even
maximum people are aware of Nescafe Coffee.
According to the survey maximum respondents finds proper quantity of Nescafe
Coffee in place of price given.
Even the maximum respondents are satisfied with the NesCafe Coffee.
Approximately 42% respondents are well satisfied the NesCafe Coffee so they are
sure that they will suggest other people to have NesCafe Coffee.

7.2 Conclusion
Marketing plays a vital role in the growth and development of the country. Growth and
development always keep a peace in the economy. Now the modern marketing faces the
high competition. The consumers are satisfied only when information is collected from
the consumers. The marketing is a consumer oriented marketing. It begins with the
consumers.
It is well concluded that Brand Image of NesCafe Coffee is good. In the big competitive
market, there are majority of people who still prefer only NesCafe Coffee. Company
image of NesCafe is very high. It is well concluded that NesCafe Coffee is excellent in
quality and taste. The findings of the study reveals that consumer preference on NesCafe
Coffee usually consumed by everyone due to its quality, good taste, quantity, availability,
refreshing etc. NesCafe is an old and trusted brand and caters to the need of every
consumer. In India, it enjoys very high brand awareness. It offers reasonable priced and
good quality product, which helps her to maintain its position in the market. NesCafe
should give some promotional and other offers so that price conscious people should also
be attracted to purchase its product. Question on factors has been asked to identify much
affecting factors in while purchasing the NesCafe Coffee. The survey revealed that two
factors: Taste and Quality are the most important factors. The findings of the study
reveals that consumer preference on NesCafe Coffee usually consumed everyone due to
its quality, good taste, quantity, availability, refreshing, etc. hence company must
maintain this strength and try to satisfy the need by providing value and satisfaction to
the consumers.

Chapter 8
Suggestions

Chapter 8 : Suggestions
8.1 Suggestions
Currently, small amount of people consumed nothing i.e. tea and coffee, so there will be
chance for NesCafe to convert those people into consumer of coffee of their brand. Bru is
the upcoming competitor for NesCafe, so NesCafe should try to provide best products for
maintain good image. There were requirement of promotional activity by NesCafe in few
rural or under developed area like varachha, kamrej and rander. The company can
maintain their best position in market by providing more flavor of coffee and promotional
activities. According to survey, few respondents were dissatisfied with NesCafe Coffee,
so meet those persons and know the actual problem for their dissatisfaction and solve out
the problem and try to convert them from satisfied customer to loyal customer.

Reference
(A) Bibliography
(B) Annexure

(A) Bibliography
The above information was gathered through the following sources :-
 Books :
 Philip Kotler “Marketing Management” 13th edition, Pearson education
publisher, Third Indian re-prints, to 003.
 Links of Websites :
 business.usi.edu/cashel/241/text%20files/CONSUMER.pdf
 www.ihmctan.edu/PDF/notes/Research_Methodology.pdf
 www.slideshare.net/anilkumarkhadka/research-methodology- notes.com
 www.icap.org/PolicyTools/.../4DataAnalysisandInterpretation.com
 www.sagepub.in/upm-data/18534_C hapter5.pdf
 www.strativity.com
 www.slideshare.net/.../a-project-report-on-consumer-preferences.com
 www.slideshare.net/.../a-project-report-on-customer-preference-towards-
HULproducts.pdf

Annexure
-Questionnaire

 Questionnaire
Dear respondent,
I, Prashant Dhanani management student conducting a study on “A study on consumer
preference about Nescafe Coffee in Surat city”. This exercise is a part of project towards
fulfilling the requirement of graduate management course, VNSGU, Surat. I would be
graceful if you could provide with some of your valuable time to fill this questionnaire. I
assure you that use conveyed by you will be used for academic purpose only. I thank you
in advance for your co-operation.
Yours faithfully,
Prashant Dhanani
________________________________________________________________________
Instruction: Use tick mark (√) for your favourable answer.
1. What do you prefer?
Tea
Coffee
Both
Nothing
2. If coffee than of which brand you like most?
Nescafe
Bru
Brook bond
Tetly

Starbucks
3. Give rank to the brands of coffee as per your choices.
Brand Name Nescafe Bru Brookbond Tetley Starbucks
Rank
4. Since how many months/year you are prefering coffee?
1-3 months
3-6 months
1 year
More than 1 year
5. Do you purchase Nescafe coffee?
Yes
No
6. If yes, how often do you purchase Nescafe coffee?
Daily
Once in a week
15 days
Monthly
7. How much gram packet of Nescafe coffee you prefer?
5 gram,
50 gram
100 gram

More than 100 gram
8. Through which source do you know about Nescafe coffee?
Friends
Advertisements
Relatives
Others
9. Which are those factors that force you to prefer Nescafe coffee?
(Tick mark any two factors on which you think more while purchasing)
Factors Quality Price Taste Brand Name Refreshment Advertisement
Tick mark
12. How will you rate the following features of Nescafe coffee? (Out of 5)
1=poor, 2=average, 3=good, 4=very good, 5=excellent
Factors 1 2 3 4 5
Price
Quality
Quantity
Taste
Brand Name
Refreshing `
Availability
13. How much you are satisfied with Nescafe Coffee?

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
14. Are you satisfied with the quantity given in the place of price you pay?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
15. Would you suggest other people to have Nescafe coffee?
Yes
Rarely
No

Personal Details
Name : __________________________________________________________
Age : __________________________________________________________
Gender :__________________________________________________________
Address :__________________________________________________________
Occupation :__________________________________________________________
Income : 10000-15000 [ ]
16000-25000 [ ]
26000-35000 [ ]
36000-45000 [ ]
46000-Above [ ]
Contact No. : _________________________________________________________
E-mail : _________________________________________________________

To Know The Consumer Preference About NesCafe Coffee

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