Nescafe Gold

13,744 views

Published on

2 Comments
5 Likes
Statistics
Notes
No Downloads
Views
Total views
13,744
On SlideShare
0
From Embeds
0
Number of Embeds
51
Actions
Shares
0
Downloads
939
Comments
2
Likes
5
Embeds 0
No embeds

No notes for slide

Nescafe Gold

  1. 1. WELCOME TO THE WORLD OF COFFEE
  2. 2. 2005 GOLDEN Marketing Plan
  3. 3. Nescafe Gold Best Drinking Moment
  4. 4. Premium Segment is in introductory stage : Pioneer Marketing Strategy Premium Segment Mixed Segment R&G Segment Regular Segment BCG Matrix Model
  5. 5. Coffee is the most popular drink nowadays. 36 Instant Coffee 41 CSD 41 34 Bottle water 31 25 Instant Coffee 39 UHT/Pasteurized 28 drinking yogurt 13 CSD 38 18 Bottle water 28 3 in 1 coffee 16 UHT/Pasteurized drinking yogurt 20 5 Beer 26 3 in 1 coffee 17 Beer 15 UHT/Pasteurized / 18 Sterilized Milk 12 UHT/Pasteurized / Sterilized Milk 15 Alcoholic drink except 4 Alcoholic drink except beer 14 beer 24 Milo Ovaltine 12 15 Milo Ovaltine 8 Iced coffee hawker 8 RTD Coffee 8 Iced coffee hawker 9 6 UHT/Bottle soya milk 7 RTD Coffee 5 Energy drink 7 10 Milo/ Ovaltine UHT 6 UHT/Bottle soya milk 7 7 UHT/Bottle/Can branded fruit juice 4 2 Energy drink 12 Milo/ Ovaltine UHT 8 3 UHT/Bottle/Can Male Female 6 branded fruit juice 2 Source : Coffee U&A study, 2003
  6. 6. Coffee is more popular day by day , 52% of Hot Drinks Value Mio. Bht 7,000 Market is growing every year. +14% +14% Coffee consumption is booming. 6,000 (esp out of home) +6% +6% +11% +11% 5,000 2,421 1,341 1,777 4,000 200 206 266 People lifestyle is westernized & 3,000 modernized. 2,000 People have less time / work harder. 3,504 3,372 3,410 Coffee is the part of image enhancer. 1,000 0 2002 2003 2004 More players jump into coffee market. Coffee is their part of life. Coffee Market Size by segment
  7. 7. More opportunity to grow premium segment Mio. Bht 300 Consumers are more sophisticated. +29% Premium Coffee is well adopted. 250 +3% +1% 200 150 266 100 200 206 People spend more on coffee (per 50 transaction & consume more) Consumers are still looking for and 0 willing to pay for coffee great taste. 2002 2003 2004 Opportunities is there but HOW? Premium Coffee Market Size
  8. 8. How about the premium segment today? Mio. Bht Few players with less competitive 300 +29% degree. No one owns this market. 250 +3% +1% No one invested the market before, Nescafe Gold starts in 2004 200 Market size can be doubled in next 3 years! 150 266 100 200 206 + Nescafe Brand is highly accepted. + N. Gold is highly recognized and get 50 success in 2004 + High barrier to enter the market 0 2002 2003 2004 - Green Tea Booming. -“Health Concern” Perception Premium Coffee Market Size - Substitute product
  9. 9. We need to understand where we are today! Competitor Understanding Ourselves Consumer/Shopper
  10. 10. Main competitors today ... Sara Lee Trading – Moccona Royal Gold, Moccona Espresso +Key competitor with total >30% market share. +Price is a bit lower. +Before 2004, they lead the market. -They focus mix segment. -Brand Image -Not good product taste
  11. 11. Main competitors today ... Trading companies – Taster Choice, Maxim, UCC etc +High product image. +High flexibility. -Low corporate image. -Product Supply Fluctuation. -Not invest in the market.
  12. 12. Nescafe Gold is one step ahead the others! Product Price Brand Image Promotion Distribution Techo. Nescafe Gold Moccona Imported Nescafe Gold Key priority is to drive the total category
  13. 13. Let’s review where we are .... Strength Weakness • Positive brand image & product. • Low flexibility • Big investment to drive. • Endorsed by Nescafe / Nestle • Various pack size to serve • Uniqueness • High technology in the business Opportunity Threat • Coffee is booming. • Substitute product : Green Tea, Tea • Consumer is more sophisticated. • Health Concern. • Needs for premium coffee exist. • Smuggling Product • Premium coffee is more popular. • Changing in people lifestyle
  14. 14. N. Gold market share shows promising trend... 50% 45% 45% 43% 40% 37% 35% 30% 25% 21% 20% 18% 19% 17% 15% 12% 13% 13% 12% 13% 12% 10% 13% 12% 5% 0% 2002 2003 2004 Nescafe Gold Moccona Royal Gold Tasters Choice green Moccona Expresso Others
  15. 15. Having a good start in 2004 (Mio Bht) 300 Market is growing by +29% While N. Gold sales is about 4 times higher! 250 206 266 200 150 Market N . Gold 100 50 99 26 0 2003 2004 Premium Market Size vs Nescafe Gold sales 2003-2004
  16. 16. SEGMENTING Age 0 - 15 24% of population : 15,462,944 People 16 - 30 21.2% of population : 13,658,934 People 31 - 45 24.2% of population : 15,591,803 People 46 - 60 24.8% of population : 15,978,376 People 60 Up 5.8% of population : 3,736,878 People
  17. 17. Targeting : Product Specialization Age 0 - 15 Demographic + Psychographic 16 - 30 • At certain age • Educated, Modernized • Socialized, Dynamic 31 - 45 • Out going, Trendy • Cool • Confident, Unique 46 - 60 60 Up
  18. 18. Getting to know consumer is vital
  19. 19. Youth : 16-30 Spend 70% of their time out of home KEY INSIGHT Home • 19 yrs old is the age of having the first cup of coffee • Do not appreciate the taste and Image of Nescafe School/Office • New Coffee Shops are changing the way they look at coffee. Coffee is becoming more of a social drink Entertainment • Key Need states are Quick/energy boost/kick start, • Have a nice place Thirst Quenching for lunch • Shopping at Mall Snacking (Iced coffee) • Playing sport • Key Psychographics • Going to cinema Want to Experience life & • Hang out with friends Want to Grow themeselves Work hard, Play hard
  20. 20. Family builder : 31-45 KEY INSIGHT Home • The age of adapting hot coffee Office • Coffee is becoming a part of their everyday life • Key Need states are Kick start, Key activities : Refreshment during the day • Business Dinner Mental renewal • Going to fitness / sports • Going to theaters • Key Psychographics • Socializing with friend ; Career and success are the key focus at lunch or drinking in evening before go home Now they have goals that they want to pursue • Have a nice place for • Coffee ignites their spirit, gets them ready, bring meal with family their confidence, lets them focus, settle their • Shopping complex with family thoughts, initiates social bonding
  21. 21. No time to dream: 46-60 Home KEY INSIGHT • Heavy users : More coffee appreciation Office • Coffee is a part of their everyday life Key activities : • They spend relatively more time at home with family • Business Dinner • Key Need states are Kick start, • Deliver / pickup sons from schools Mental renewal • Going to public park Relaxing and Rewarding oneself • Socializing with friend ; • Key Psychographics mostly at lunch • Have a nice place for They’ve accomplished certain things and now looking meal with family for life’s small pleasures. • More traveling; personal Appreciate good things in life business They have much more focus on the family
  22. 22. Understand consumer is the key to succeed. All 16-30 yrs 31-45 yrs 46-60 yrs 60 yrs up Bas : Instant Coffee % % % % % At home 92 97 89 91 93 Office 8 3 6 11 6 In car/on the way 01 0 5 0 0 Base : 3 in 1 coffee % % % % % At home 79 85 69 79 82 Office 17 5 23 17 15 - Regular at home School/Education institution 1 10 2 0 0 - Big opportunity : office Base : Hot coffee at hawker % % % % % Street vendors/hawker 63 50 64 76 56 At home 17 43 23 4 20 Office 12 0 0 6 25 - As breakfast All 16-30 yrs 31-45 yrs 46-60 yrs 60 yrs up - Convenience oriented Those consuming Instant Coffee yesterday % % % % % Before breakfast 54 29 54 52 57 During breakfast/as the breakfast 33 43 26 34 34 After lunch till dinner 10 0 5 11 11 Those consuming 3 in 1 coffee powder % % % % % Before breakfast 42 13 22 42 52 During breakfast/as the breakfast 31 37 31 35 25 After lunch till dinner 20 10 30 20 17 Those consuming Hot coffee at hawker % % % % % Before breakfast 23 18 20 11 36 During breakfast/as the breakfast 23 10 0 41 17 After lunch till dinner 15 0 0 20 20 After dinner till before bed time 22 9 66 10 25
  23. 23. CIRCUMSTANCES OF CONSUMPTION Base: 617 INSTANT COFFEE HOME (93%) OUTSIDE (10%) As breakfast 55 With breakfast at home 15 During break 3 Having snacks at home 8 As breakfast 2 Before breakfast 6 Working 2 Watching TV/ VDO /listen music/ radio / reading 4 Hanging with friends 2 After meal 4 Base: 270 3 IN 1 COFFEE HOME (80%) OUTSIDE (23%) As breakfast 48 During break 10 With breakfast at home 10 As breakfast 4 Relaxing 7 Having snacks 4 Before breakfast 6 Watching TV/ VDO /listen music/ radio / reading 4
  24. 24. POSITIONING: Place product in consumer’s mind. Nescafe Gold ... make you sense the real coffee feeling
  25. 25. POSITIONING: Place product in consumer’s mind. Nescafe Gold ... bring out the best in you.
  26. 26. We do not sell Coffee, We sell Best drinking moment
  27. 27. More room to grow the business (Mio Bht) 600 +22% 500 +24% 400 +29% 300 525 200 430 345 266 100 206 Market 0 2003 2004 2005 2006 2007 Market Size of Premium Segment in next 3 years.
  28. 28. Are you ready for 2005?
  29. 29. Our Vision Lead and Grow the Premium Coffee Market and Become The Most Preferred/Aspirational Coffee Beverage Brand in Thailand
  30. 30. What to achieve ... 2005 Objective Achieve 145 Mio. Bht Sales ( 42% market share) Lead and profitably grow the total premium coffee market Long Term Objective Own the premium segment : Think of premium coffee, Think of Nescafe Gold Achieve 65% market share in next 5 years.
  31. 31. How to achieve ... 3 main strategies Recruit new user : Regular Segment (by 15%) : Out of Home : New new user Increase consumption : As Breakfast : 2 cups a day (or more) Turn competitor user : Expect 20% conversion rate
  32. 32. Every single element is ready to strike .. Great product on earth Right pricing to tempt the consumers Full distribution to ensure product availability Communication and Promotion to drive success Success is in the arm reach!
  33. 33. Nescafe Gold is ready ... to rock the market. Nescafe Gold Army New Affordable Range with Proprietary Packaging
  34. 34. Nescafe Gold Doypack w/ zipper EdenII jar Stick in box 70g 35g 200g 100g 8 sticks x 2g Price 120 Bht 65 Bht 420 Bht 230 Bht 35 Bht
  35. 35. Right product at right time! Highly accepted brand with positive image – Nescafe Gold. Premium&Modern Look with reliable quality at proper price range. Attractive pack size to serve various group & purpose. Jar Line Pouch Stick in box Loyal Shopper Recruit new user Increase Consumption -100g & 200g -70g & 35g -2g. -X-Citing shape -Trial pack size -Out of Home/Convenience -Premium / Modern -Zipped Lock -Modern/Cool -New Design
  36. 36. X-Citing to drive $ALES Innovation : Limited SKUs Nescafe Gold 3 in 1 in Q3 : Out of home Nescafe Gold Decaf in Q3 : More cups a day / Health Concern Nescafe Gold Mocca in Q4 : More cups a day Renovation : Packaging Modification – Special Packaging Valentine’s , X’ Mas Recipe Application – Nescafe Gold Frappe’
  37. 37. Pricing reflect high image & reliable quality. Brand Index Nescafé Gold 100 Skimming Pricing to build business both Moccona Royal Gold 77 retailer & vendor. Price is less sensitive. Taster’s Choice 74 Establish Price&Quality Relationship UCC 124 Build Image and Perception while deliver Maxim 135 promised quality Others 125
  38. 38. Where to find our product : Distribution Channel Modern Trade contributes 95% of business Hypermarket Supermarket Convenience Store
  39. 39. Alternative trade channel to widen the distribution Out of home / Food Service Channel - Restaurant, Hotel, QSR Alternative channels - Entertainment section, Book store
  40. 40. 360 degree of communication to bomb the town! Print Quality coffee In-store activity TVC $ Market Growth $ Cinema Sampling OOH P/R
  41. 41. Rapidly increase Awareness through Mass Media TVC : Prime Time (Throughout the year)
  42. 42. Rapidly increase Awareness through Mass Media Prime Time Channel 3 / 7 / 9 Soft Opera after news News Program Morning News Program + Increase awareness + Direct to target group + Induce Trial Hit > 9,000,000 people TVC : Prime Time (Throughout the year)
  43. 43. Rapidly increase Awareness through Mass Media Alternative but Attractive Media Tie-in Program Magazine Ads Cinema & Internet + In line with target lifestyle Unique and strong communication + Increase awareness + Build positive image + > 800,000 people
  44. 44. Rapidly increase Awareness through Mass Media PRINT
  45. 45. Event to create excitement. - Excite consumer - Create Loyalty - Nescafe Gold consumer > 1,000 people join the activities
  46. 46. Promotion to drive sales Get free Gold Mug when buy Nescafe Gold in July
  47. 47. Merchandising at point of sales to activate the purchase. Impactful Merchandising drives sales & visibility : Home shelf & Out of shelf.
  48. 48. Dominate Visibility on Shelf and in Store
  49. 49. Product Trial by continuous Sampling In store 350,000 Wet sampling - in Modern Trade : AM / PM Consumption
  50. 50. Product Trial by continuous Sampling In Office Dry 200,000 wet and dry sampling - in offices Sampling : AM / PM Consumption
  51. 51. Product Trial by continuous Sampling Cinema - Fit to target group lifestyle. - > 120,000 people
  52. 52. Attract Opinion Leaders through targeted PR and CRM activities PR CRM Activities Special Gold kit sent to 400 opinion leaders (CEO, government officer, celebrities)
  53. 53. Ensure product availability by sales incentives Special Incentive in Q1 • Achieve stretched target • Make sales team having more focus in Nescafe Gold • Drive distribution to ensure having no OOS in store • Part of total integrated campaign to ensure success
  54. 54. Action & Strategy to drive the business Achieve 145 Mio sales and grow the category Increase Turn Competitor’s Recruit new user Consumption User - Create awareness by TVC, - New product Launch : Decaf, - Create awareness by TVC, Magazine Ads, other Media Limited Edition : Mocca Magazine Ads, other media - Sampling in store, office, - No OOS in store - Sampling in store, office, cinema cinema - Sampling in store, office, - P/R and CRM Activities cinema - Impactful merchandising at store - New Product Launch : Decaf, 3 in 1 - New Product Launch - In store Promotion - New packaging
  55. 55. It is time to drive great beverage on earth. Type Detail Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Total Cost Media TVC 29,800,000 PRINT 2,700,000 Cinema 2,400,000 Sampling In store 17,000,000 Office 13,000,000 P/R 600,000 Promotion 6,000,000 Innovation Limited/New Product 700,000 Packaging 600,000 Incentives 1,200,000 Others 3,000,000 Total 77,000,000 Integrated activities to ensure the success
  56. 56. Awareness & Trial are the key driver! Incentives 84% of investment is spent to ensure awareness & Trial. Innovation Other Media TVC & Sampling are key to succeed. Promotion Sampling TVC 0 5 10 15 20 25 30 35 Investment grouped by spend type
  57. 57. We invest for the future ..... (Mio. Bht) 16 10 9 14 8 12 7 10 6 Sales 8 5 Spending 4 6 3 4 2 2 1 0 0 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 2005 Monthly sales & Spending
  58. 58. We invest for the future ..... Mio. Bht 2003 2004 2005 2006 2007 Market 206 266 345 430 525 Market Share 12.6% 37% 42% 45% 47% Sales 26 99 145 194 248 COGS 8 45 65 87 124 MC 18 54 80 107 124 Commercial Fund 4 55 77 82 85 Profit 14 (1) 3 25 39
  59. 59. We invest for the future ..... 600Mio Bht. 45 Right investment make profit 40 500 jump up high! 35 30 400 25 Market 300 20 Sales Profit 15 200 10 5 100 0 0 -5 2004 2005 2006 2007 Projected Market size & Nescafe Gold sales & Profit in next 3 years
  60. 60. N. Gold market share continuously fly high and higher... 50% Firm market Leader Position 47% 45% 45% 42% 45% 40% 35% 30% 25% 19% 19% 20% 18% 20% 15% 15% 12% 12% 12% 11% 12% 11% 13% 13% 10% 13% 12% 9% 5% 0% 2002 2003 2004 2005 2006 2007 Nescafe Gold Moccona Royal Gold Tasters Choice green Moccona Expresso Others
  61. 61. How to ensure the result? Quarterly performance review Mio. 2003 2004 2005 2006 2007 Bht Market 206 266 345 430 525 Market 12.6% 37% 42% 45% 47% 300 Share 50% 47% 45% 45% 250 40% 42% 45% Sales 26 99 145 194 248 35% 200 30% COGS 8 45 65 87 124 25% 150 266 20% 18% 19% 19% 20% MC 18 54 80 107 124 15% 15% 12% 12% 100 200 206 12% 12% 11% 13% 10% 13% 11% 13% 12% Comm 9% 50 5% ercial 4 55 77 82 85 0% Fund 2002 2003 2004 2005 2006 2007 0 Nescafe Gold Moccona Royal Gold Tasters Choice green 2002 2003 2004 Moccona Expresso Others Profit 14 (1) 3 25 39 + Sales, Market Share, Financial Outlook : Investment / Profit + Set KPI in quarterly basis Research in Q3 2005 to check attitude & usage
  62. 62. Nescafe Gold is ready ... Market 300 250 200 • Coffee premium segment is growing by > + 20% every year. 150 266 • Out of home consumption is booming. 100 50 200 206 • Consumer is opened to premium coffee. 0 2002 2003 2004 Competition • No one drives the market seriously today, but Nescafe Gold. • Nescafe Gold gain many competitive advantages. • Competition is not aggressive today. Consumer • Age 30 – 60 Years with modern lifestyle • They are looking for great taste of coffee. • They are opened to many kinds of media.
  63. 63. Nescafe Gold is ready ... Tools to hit • Attractive Product to serve consumers needs. • Right pricing to make people buy. • Full distribution to ensure sales. • Communication & Promotion to drive success. Print Quality coffee In-store activity TVC $ Market Growth $ Cinema Sampli OOH P/R
  64. 64. Nescafe Gold is ready ... Future Outlook • Market is expected to grow by > +20% for next 3-5 years. • Nescafe Gold will grow > +30% in next couple years. • The 1st comer always enjoy the big piece of cake. We invest for the future ...
  65. 65. Nescafe Gold Ready to strike the market
  66. 66. WELCOME TO THE WORLD OF COFFEE
  67. 67. THANK YOU

×